Here's a Pre-Cautionary Tale

Yes, yes, I know that the City of Newport Beach is not in the same condition as the City of Vallejo.

• 80% of our budget does not go to our Police and Fire Department's salaries AND benefits.
• Our Sales Tax revenue has not been dropping
• We haven't lost our economic engine (a shipyard in Vallejo's case)
  
• A major source of tax revenue (property tax) hasn't been affected by the housing crises, since Newport's homes aren't losing as much value as our neighbors, and
  
• Our budget is balanced.

And for that, we should be very thankful to the City Council and their predecessors for doing their best.

However, one would never think that a City should, or be in a situation, where it would have to file for Bankruptcy, and if it weren't for a deal with their Police and Fire Union, the City of Vallejo would have to do just that.

Ironic, considering that it was probably their City Council's contracts with the Police and Fire Union which helped put them in that situation.

Nevertheless, I mention this because of what Newport Beach potentially faces in the next 10 years, in no particular order:

• Our Rehab/Sober Living Home Ordinance lawsuits - Win or lose, we will have to pay lots of money to keep the further institutionalization of our Residential neighborhoods.
  
• Our new White Elephant - although costs are a "major concern," the simple fact is that we will have to borrow money to build it, which is predicated on the hope that we'll have ample money in the future to pay it.
• Our own City Employee Unions are very Politically active and are consistently able to increase the number of City Employees, as well as their own Wages & Pensions - This sets us up for that dreaded "Unfunded Pension Liability Issue," which is also dependent on the hope that we have ample money in the future to continue to fund it. Remember we have more City Employees to Residents than any of our Coastal neighbors.
  
• The necessary dredging of the Back Bay and the potential lack of Federal dollars to help pay for it.
  
• Our property values do not start to nosedive, like our neighbors have, and
  
• That the City of Newport Beach is able to work with Irvine, Costa Mesa, and the rest of our affected neighbors to make sure that the John Wayne - OC International Airport does not happen. If that happens, then you'd better believe that our Economic Engine and Property values will disappear.
  

But, like I say above, the City of Newport Beach is very financially healthy and fiscally fortunate, and our City Council are made up 86% by Republicans, who are always fiscally conservative...

I just wanted to "play" the John Moorlach-circa-1994 role in warning our City Council to start considering a more fiscally conservative role.