El Monte considers bankruptcy
Another blow to El Monte:
El Monte considers bankruptcy
By Rebecca Kimitch, Staff Writer
Posted: 06/29/2009 01:28:02 AM PDT
EL MONTE - The city council will consider Tuesday whether to initiate Chapter 9 bankruptcy proceedings for El Monte, according to the council's agenda.
The council will consider a resolution that would authorize city staff "to commence all necessary preparations for the initiation of Chapter 9 Municipal Reorganization proceedings under 11 U.S.C. Section 901 et seq."
The steps are necessary "to regain sustainable fiscal solvency" and "gain economic breathing space and to avoid magnifying additional legal liabilities," according to the resolution.
El Monte has faced serious financial troubles since last year, when plunging sales tax revenues and rising employee benefit and retirement costs caused a budget deficit that hasn't gone away since, despite layoffs and cutbacks.
Most recently, it faced a $12 million deficit for the fiscal year that starts Wednesday. To cut $10 million, the city manager laid off 100 employees and recommended other cutbacks, including the closure of one of the city's four fire stations.
The council is expected to approve this staff-recommended budget Tuesday as well.
Despite these cutbacks, the city still faces a $2 million deficit. And a state takeaway of property tax and gas tax revenues - proposed by Governor Arnold Schwarzenegger to address the state's own budget crisis - would bump the deficit to $4 million, according to the resolution.
The resolution authorizes staff to prepare a "pendency plan" for Chapter 9 proceedings and retain special Chapter 9 legal counsel. It requires staff to report back to the city council with a plan of action within a week
I don't have all of the particulars but on the surface, when you look at the cities adjacent to El Monte and the progress they have made over the past decade, it seems like El Monte should have been in the best position. We have an incredible tax base, we always have. BP hasn't always had the Wal-Mart and Target shopping centers, Rosemead has not always had the Town Square, at Rosemead Blvd and the 10 fwy, and the mall at W. Covina was not as big as it is today, but El Monte had the Vons distibution center, Longo Toyota, the old Sears Building, the manufacturing along the border with S. EL Monte, etc. I don't believe we should be rich but we should be a lot better off than we are.
I hope the City's management is replaced soon.
I think people should wake up and smell the coffee, Weldon and the police union running the campaigns with a $10,000.00 donation to every candidate that agrees to follow their orders and also running the City Council, what do you expect....
It would be in the best interest of el monte residents if the City went bankrupt.
Maybe then:
1) Salaries & benefits would be renegotiated
2) City management would be replaced (City Manager, Assistant Manager, Recreation Department,etc.)
3. All 5 COUNCIL MEMBERS WOULD BE KICKED TO THE CURB- RECALL!
Finally, to the broken record against Weldon & police union (starting to sound like the Roger Hernandez hater in West Covina) why don't you disclose how much the Fire Union, Employees unions,& private companies (longo, titan) gave to all of the council members campaigns? They are all dirty thieves! Finally, why don't you get your ass and run for council and change all of this mess! At this point El Monte residents will vote for anyone to get these current members out.
...would vote for anyone to get these members out????
Yes, but don't be foolish and just vote in lackies of the same interests that have helped to put the city in trouble. (e.g. the Overly-Political POA and shady developers- as in Festival Capri).
If management(and by management I mean basically Jim Mussenden) is guilty of anything it's that he did not have the guts to stand up to special interests or the brains to listen to the sound advice his support staff gave him. Instead he got himself in over his head - trying to be clever - and only flopped in the process.
If by management you also mean the City Council majority (Ernie, Emily and Jay) that just can't seem to quit POA and developer money and influence yes, I'd say we should clean house.
I HEARD TOMORROW NIGHT THE EL MONTE POLICE UNION IS GOING TO DEMAND THAT THE CITY COUNCIL GIVE THEM A RAISE.
Apparently they already have Jay and Emily on board and are just waiting for Ernie to make up his mind.
Why would the City Council agree to give these guys a raise at a time like this?
It goes to show you that the police only care about themselves. Don't they realize that you can't get blood from a turnip. Are they that dame stupit? We already know that Emily, Gomez and Gutierrez kiss their behinds. The city will have to file bankrupt. The first ever in the city's history. Look at South El Monte, that little city right next door. Doing great. They could learn from them. Hire the Sheriff. Do right by those of us who are stuck living here in El Monte....the end of the Santa Fe Trail! Happy 4th to Us.
TO ARMS!!! TO ARMS!!!!
CITY COUNICL BUDGET MEETING TONIGHT AT 5:30 P.M. 11333 VALLEY BLVD., EL MONTE.
GET THERE EARLY BEFORE EVERYONE TAKES UP ALL THE SEATS.
The police union is going to try to bully the council into cutting them a different deal than all of the other city groups have already agreed to.
DON'T LET THE POA USE BROWN SHIRT TACTICS TO MANIPULATE THE COUNCIL INTO WASTING YOUR MONEY.
Count to three EG. JG. EI. There you are folks. It is a done deal. The cop always gets his man. In this case his way! Bye bye El Monte.
Well I know our state is in trouble but a city near me declaring bankruptcy. Interesting but maybe it could be a lesson to other cities including El Monte. -Mireya Expressions Gift Co.
BEWARE EL MONTE - THIS COULD HAPPEN TO YOU:
http://www.policeattorney.com/newsletters-83.htm