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Has the City of Compton addressed their Unfunded Pension Liabilities

pensionCity of Compton Mayor Aja Brown campaigned on a platform to get the city back on track.  A main point of contention during the 2013 election was the looming $40 million dollar deficit the city faced.  Mayor Brown initially dismissed the deficit amount as being due to errors and in late August, the city submitted an application to the Local Agency Formation Commission (LAFCO), requesting to annex Rancho Dominguez, back into Compton.

Back in 2012, CALPERS sued the city over $2.7 million in pension contributions the city didn’t pay.  Remarkably, City of Compton employees contribute ZERO towards their pensions.  100% falls on the backs of taxpayers.  At the time San Bernardino and Stockton had similar issues.

Related article:  CalPERS Sues City of Compton Over Unpaid Contributions

Although the city has restructured their debt, which includes annual payments owed to the State of California (Redevelopment Agency) and Compton Unified School District (CUSD), they are not out of the woods.

Related article:  City of Compton Sells $5M in Bonds to Secure Operational Funding

Restructuring the deficit, in addition to maintaining regular obligations, which includes a large balance on their Sheriff’s contract, many are wondering how the deficit vanished and is all well in the “Hub City”?

 Related article:  LA Weekly asks if Compton Mayor can turn city around

The California Policy Center (CPC), a nonprofit research group, recently came out with a ranking of the most financially stressed cities.  The City of Compton came in at #1 with Maywood and San Fernando, also ranking high.

CPC states that had more up to date been available, especially for the cities listed, the results would likely be different.

Related article: Ohio’s Unfunded Pension Liability More than $25K per Resident, $10K Above National Average

2UrbanGirls feels a good indication that the details of the findings will be worse than expected is based in part of a quick review of the contributors and advisors to the report.  Majority of them have a background in government finance and pensions.

Which begs to ask the question have the City of Compton’s unfunded pension liabilities been addressed?  Is the annexing of Rancho Dominguez part of the solution?

To put this issue into perspective, City of Inglewood Mayor James Butts recently made the front page of the Los Angeles Business Journal for getting Inglewood’s unfunded pension liabilities under control, which strengthens the value of the city.  Citing “retooled city policies” Inglewood is rising.  What policies have Compton City Council successfully addressed, for the direct benefit of the city?

2UrbanGirls brought the article to Compton Mayor Aja Brown’s attention.  When we inquired of the City’s application to LAFCO, she replied, “…our application is still under consideration with LAFCO…”  The application was submitted in August 2013.

 

 

 

 

 


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About Melissa

I am a lifelong Inglewood resident living in District 4. I serve on PTA and School Site Council as Vice-President, for the last 8 years with Inglewood Unified School District. I volunteer on the Wellness Committee for ICEF Public Schools. I am an alumni of California State University, Dominguez Hills with a degree in Political Science. You can find me on Twitter under @CreoleMommie

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