Government Agencies Should Develop a Financial Plan—Here’s How
Government Agencies Should Develop a Financial Plan—Here’s How
One of the fun components of reviewing annual comprehensive financial reports, which is a very time-consuming “hobby,” is when you see a trend that needs to be complimented. The ranking of Orange County’s 34 cities for the year ending June 30, 2023, was just released. When reviewing the rankings for the past seven years, there...
By John Moorlach
Most OC Cities Financially Stable, While One Seeks Sales Tax Increase
Most OC Cities Financially Stable, While One Seeks Sales Tax Increase
Of Orange County’s 34 cities in Southern California, the six with the strongest balance sheets maintained their positions in the annual fiscal rankings for the year ending June 30, 2023. However, the other 28 cities were a little more interesting. Overall, it was still a good year, with only one out of five seeing their...
By John Moorlach
California employers pay the price for state negligence
California employers pay the price for state negligence
As a Certified Public Accountant and Certified Financial Planner, one consistent piece of advice I would give to my clients was never to cosign on a loan. When doing so, you agree to be responsible for the debt should the original borrower miss a payment or stop paying altogether. It’s awkward. And I’ve seen sincere...
By John Moorlach
HOAs Set Aside Funds for Major Repairs—School Districts Should, Too
HOAs Set Aside Funds for Major Repairs—School Districts Should, Too
Newport-Mesa Unified School District (NMUSD) in Orange County, Calif., is considering issuing another voter-approved bond to pursue building improvements. The title of “Classroom Safety/Repair Measure” is being used in the initial phase of this exercise. And the Facilities Master Plan (FMP) is on the district’s website and invites visitors to take a prioritization survey. But...
By John Moorlach
Los Angeles County’s Cities Staying Financially Stable, With a Few Exceptions
Los Angeles County’s Cities Staying Financially Stable, With a Few Exceptions
The city of Compton wins the laggard award for Los Angeles County’s 88 cities in releasing its June 30, 2021, annual comprehensive financial report (ACFR). It was completed by its auditing firm on May 8 and presented to its city council on June 4 of this year. The customary completion date by the outside independent...
By John Moorlach
Federal Coronavirus Funding Boosted San Diego County’s City Finances
Federal Coronavirus Funding Boosted San Diego County’s City Finances
For the 12 months ending on June 30, 2022, the coronavirus lockdown by California Gov. Gavin Newsom was still in effect. His implementation of this lengthy and heavy-handed measure would be in place for another eight months. But, in March 2022, the Federal Reserve Board made the first of 11 interest rate hikes to slow...
By John Moorlach
Can City Budgets Be Tightened Up, or Should Taxpayers Pay More?
Can City Budgets Be Tightened Up, or Should Taxpayers Pay More?
The second fiscal year after the implementation of Gov. Gavin Newsom’s coronavirus lockdown for San Diego County’s 18 cities saw Del Mar bounce back up in fiscal rankings (see “City of San Diego Fell Behind $191 Million in First Year of Pandemic,” May 15, 2024). The fiscal year ending June 30, 2021, also saw the...
By John Moorlach
California Has Largest Unrestricted Net Deficit in US
California Has Largest Unrestricted Net Deficit in US
The California State Controller released the audit of California’s financial statements, performed by the State Auditor for the year ending June 30, 2022, on March 15. The annual comprehensive financial report should have been issued some 15 months sooner. Looking at the document, we are immediately informed on the first page of the Report Overview...
By John Moorlach
Long Overdue Financial Report for California Brings Bad News
Long Overdue Financial Report for California Brings Bad News
When it comes to the reporting of the accounting of our 50 states, two main concerns can be observed. The first is the delinquency rate of several states. For the fiscal year June 30, 2022, 20 states released their audited financial statements within six months. There are four states that deviate from the norm, with...
By John Moorlach
Which Bay Area Cities Need to Improve Their Fiscal Status?
Which Bay Area Cities Need to Improve Their Fiscal Status?
The state of California has 58 counties and 482 cities. To provide manageable fiscal rankings, I’ve divided the state into eight regions, closely following the districts established by Caltrans. The Bay Area, Caltrans District 4, has 101 cities. The rankings for 2020 are compared to those of 2019 in the graph below. For an explanation...
By John Moorlach
Newsom Provides False Commentary on His Budget Priorities
Newsom Provides False Commentary on His Budget Priorities
Having served on the California State Senate Budget and Fiscal Review Committee during my six years in Sacramento, I was recently challenged to take a closer look at Gov. Gavin Newsom’s proposed budget. I started with his Jan. 10, 2024, budget message to the members of the California State Legislature. I was not amused. It...
By John Moorlach
Newsom’s Missed Opportunity on California’s Annual Budgets
Newsom’s Missed Opportunity on California’s Annual Budgets
During my business career as a Certified Public Accountant and Certified Financial Planner, I also served on a credit counseling nonprofit board and advised those who were deep in debt on a plan toward becoming fiscally sound again. During a good financial year, these individuals needed to dramatically reduce their existing debts. The unexpected bonus...
By John Moorlach
Is the Price for Community Choice Electricity Reasonable?
Is the Price for Community Choice Electricity Reasonable?
It’s impressive how many different preferences people can have. Although bottled water is ubiquitous today, in the late 1970s, those living a conspicuous lifestyle purchased bottled water, like Perrier, to show off their success and affluence, while emphasizing healthy living practices and hygiene. Most business offices had a water cooler and were willing to pay...
By John Moorlach
Will Another Sales Tax Increase Really Help This Southern California City?
Will Another Sales Tax Increase Really Help This Southern California City?
The city of Westminster is pursuing the easy road to address its continuing fiscal mismanagement, again. It’s asking its residents to approve yet another sales tax increase, the second in the last two years. It’s much easier to tell those voting in Westminster that there will be more potholes and less public safety if they...
By John Moorlach