West Sacramento, Rancho Cordova Thriving As Fourth California City Declares Bankruptcy
WEST SACRAMENTO (CBS13) - After news broke Tuesday that San Bernadino, yet another Califonia city, was filing for bankruptcy, West Sacramento Mayor Christopher Cabaldon sent out a tweet.
"4th CA city just voted to declare bankruptcy tonight, if you're in West Sacramento worry not...our city is in solid fiscal shape."
The reason for the tweet?
Just to remind my own constituents we're ok," said Cabaldon.
Cabaldon says his city is surviving because their government has been cut by 25 percent over the past 4 years.
"We have, in West Sacramento, been making reductions, putting our fiscal house in order so we can make sure that our citizens will be protected," said Cabaldon.
West Sacramento has also received a boost from retail.
Shoppers from Sacramento and beyond travel to West Sacramento to shop, bringing in added revenue.
"When IKEA broke, that was a significant benefit to us," said Cabaldon.
Whereas West Sacramento is sustaining, nearby in Rancho Cordova, the city is thriving with eight straight years of surplus.
"We don't just pass a budget and hope things turn out ok in the hand, we manage a budget on a day to day basis," said The Rancho Cordova City Manager Ted Gaebel.
He literally wrote the book on changing local government.
Gaebel says he practices what he writes, looking for creative ways to improve city finances.
"If that means cutting several million dollars during the year is what I need to do," said Gaebel.
And in Rancho Cordova and West Sacramento, sustaining will continue to be a challenge.
Three California cities have filed for bankruptcy this year, and more are expected to follow.
"We knew the economy was turning. As cities you find out right away because your property taxes start to go down and you just got to start making those cuts," said PERSON.
While the economy isn't improving as fast as most people like it to, in terms of the budget in West Sacramento, the mayor says they're going to continue to knock it out of the park.
Los Angeles is among the cities teetering on a financial cliff, and experts say it could file for bankruptcy by 2014.
