City Out of Business in 3 Years!

By Steve Schultz

City of FV Out of Business in 3 years! $10 Million Deficit In 2013..."Inability to Operate"

At the May 5, 2009 City Council meeting, City Treasurer Elizabeth Fox, projected that FV will have a $10 million deficit for 2013-2014 fiscal year. Ms. Fox said it would, "deplete city reserves and the ability to operate." This puts Fountain Valley in danger of having to be annexed by Huntington Beach or Westminster.

At the May 5, 2009 City Council meeting, City Treasurer Elizabeth Fox, projected that FV will have a $10 million deficit for 2013-2014 fiscal year. Ms. Fox said it would, "deplete city reserves and the ability to operate." This puts Fountain Valley in danger of having to be annexed by Huntington Beach or Westminster.

Reason:

1. Shortfalls in city sales tax revenues due to lack of new business development and retail/entertainment opportunities for consumers to shop in the city.

2. Due to the $2 million deficit from 2009-2010, City Council made vast cuts to city services and enacted a hiring freeze. This band-aid approach balanced the budget for this fiscal year, however, city Finance Director Sherri Holman says the $10 million deficit projection will still happen unless we take a new course of action quickly.

Solution:

1. New vision and new leadership that can connect local business leaders and city staff to eliminate counter-productive city policy that keeps companies out of FV.

2. Initiate the re-development projects now to attract top companies to bring their stores into our city so people make FV their destination for shopping. This will increase city revenues and save us from this financial collapse.

• The $10 million deficit and shut down of Fountain Valley is public record and detailed information can be found at http://fountainvalley.org/government/agendasminutes/documents/May52009AgencyCouncilMinutes.pdf