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June 24, 2013 11:13 AM
Jim E. Winburn, Staff Writer

ADELANTO • The Adelanto City Council will hold a public hearing Wednesday to decide whether or not to declare a fiscal emergency, realizing that tax revenues will not cover the city’s budget for police and fire, officials said in a report.

The city’s limited tax revenues, currently $4.5 million, cannot keep pace with the increasing cost for most of its basic public services, such as police and fire, whose budget is currently $7 million, according to a staff report by City Manager Jim Hart.

The report stated that the city’s current operating reserves and available cash are “projected to be depleted by mid-to-late 2014,” despite steps the city has taken to reduce its General Fund’s previous budget deficit of $5.5 million to $2.6 million.

“The projected depletion of the city’s reserves to meet the city’s financial obligations would cause the city to file bankruptcy and there would be significant service disruptions that would have a negative impact upon the public peace, health, safety and welfare of the community,” the report states.

Although the report does not specify how the declaration of a fiscal emergency will help the city, the general idea is to preserve the city’s credit rating by avoiding bankruptcy.

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