According to the California State Auditor Villa Park is 426 out of 471 cities on financial risk and that’s a good thing. This is because the higher a city is on this list, the higher the financial risk, with the City of Compton placing number one as the city with the highest fiscal risk. La Habra at 18 was the only Orange County City to place in the top 20.
The California State Auditor created dashboard that allows the public to compare the financial statistics of 471 cities and see which ones are at the highest risk of distress. There are 10 financial metrics to use for the scoring system. The metrics consider liquidity, revenue trends, debt burdens, pension and other post-employment benefits (OPEB) obligations.
See here for Villa Park’s full Fiscal Health Audit from the California State Auditor
Villa Park Financial Health Audit
|Ranking Factor||Risk Level|
|General Fund Reserves||Low|
|Future Pension Costs||Low|
The California State Auditor (State Auditor) analyzed financial information for 471 California cities to identify cities that may be at risk for fiscal distress. They assessed risk by performing various financial comparisons and calculations that are referred to as financial indicators. They analyzed the finances related to each city’s governmental and business-type activities, including the general fund or main operating fund. The analysis relied upon information from audited financial statements prepared in accordance with generally accepted accounting principles (GAAP) that are obtained through various sources such as city websites, the Federal Audit Clearinghouse, the Electronic Municipal Market Access website, and the California State Controller’s Office (State Controller). They also analyzed unaudited pension related information from the California Public Employees’ Retirement System (CalPERS) and the State Controller.