Like many of the county's across California, Orange County is facing rising living expenses and dangerous California Public Employees Retirement System payouts. One of the most recent cities to face great fiscal dangerous is Placentia. If the city doesn't act fast in the next several meeting, they could be facing more than just increased taxes–they may have to file for bankruptcy.
While bankruptcy often carries a negative stigma, there are many benefits to filing for bankruptcy. Even still, this type of financial tool is often better suited in the hands of an individual, rather than a city. Placentia, a small Orange County city, is already dealing with a $1.5 million deficit, which could increase $4.5 million in just a few years.
Placentia has several options to avoid bankruptcy, including:
- Raise sales tax, utility tax and create new assessment districts
- Contract out police work from the Orange County police department
- Controversial billboard proposal
While the main issues Placentia is facing is a choice between keeping its own police for or contracting our larger departments for more affordable work, it appears that they are leaning towards a solution. As city meetings continue over the next several months, residents will be asked for fresh ideas on how to solve some of the city's larger revenue problems–that is if they want to avoid the common raised taxes route.
With many cities, companies and individuals facing bankruptcy, it is increasingly important to seek experienced counsel with financial matters. At 1st California Law, we don't focus on forcing you into filing for bankruptcy. Instead, our Orange County lawyers work with you to determine a positive solution, whether that be through debt consolidation or chapter 7 bankruptcy.
Contact us today if you need to schedule a free consultation.