The City of Beaumont has grappled with financial insolvency, brought to the forefront recently when controversies emerged over financial mismanagement under prior leadership. In November, the State Controller’s office determines that the City failed to account for $626 million in bond funds.
While the City is currently insolvent, Acting City Manager Elizabeth Gibbs-Rutabaga reported to the City Council on December 1, 2015 that Chapter 9 bankruptcy protection offers little benefit to the City. Currently, the City does not have contracts that could be cancelled or renegotiated through the Chapter 9 bankruptcy process that would offer significant savings over time. The bankruptcy process is costly and the benefits do not outweigh the expense for Beaumont.
The best option for the City of Beaumont is righting the financial ship. That is where UFI comes in.
Through execution of the Beaumont Work Out Plan to Sustainability UFI will work with the City to complete a multi-step plan to improve the financial conditions in the City. Those steps are:
- Clean up and close the books for FY2014-2015
- Produce a five year Capital Improvement Plan (CIP) and budget
- Create a multi-year financial forecast
- Assess the organization for service and budgetary solvency
- Identify potential cost savings
- Develop options for funding the Work Out Plan to Sustainability
- Community dialogue
When cities such as Beaumont work through financial difficulties it is hard to know exactly where to start. UFI has the expertise, the reputation and the third party autonomy as a consultant to help make the tough choices and outline a path to recovery.
Acting City Manager Elizabeth Gibbs-Rutabaga credits UFI with much of the progress made in Beaumont thus far, “We wouldn’t be where we are if not for them, we truly have made great strides to right the ship and this is just another step in the right direction.”
Cities interested in the services offered by UFI should contact Mike Busch at (714) 283-9334 or firstname.lastname@example.org.
Urban Futures, Inc. has been providing services to local governmental agencies for over 43 years. Operating as five divisions – UFI Public Management Group, UFI Public Finance Group, UFI Economic Development Group, Analytics and Compliance Group and Isom Advisors – UFI offers clients a growing portfolio of services and industry expertise that might otherwise be out of reach. Over 300 public agencies have benefited from partnering with UFI. UFI is based in Orange, CA with offices in Walnut Creek and El Dorado Hills. Visit their website at www.urbanfuturesinc.com or call (714) 283-9334.