Officials in the troubled Los Angeles-area city of Vernon are contemplating a possible bond issuance, among other remedies, to pay for $60 million in grants for parks and recreational facilities that were agreed to during the legislative session in order to stave off the threat of disincorporation, according to published reports.
In addition to recommending a series of reforms, Sen. Kevin De Leon, D-Los Angeles, told Vernon officials he would help them defeat the bill to disincorporate if they agreed to contribute $60 million to fund community projects in the cities surrounding Vernon, according to the Los Angeles Times
Discussion on the matter was listed on the city’s Dec. 6 City Council meeting agenda, but the matter never came up, the report stated.
City officials are considering issuing additional bonds or using money from the general fund or the Light and Power department.
Vernon already has $500 million of debt outstanding and its general fund expenditures have exceeded revenues in each of the last five years by totals as large as $33 million, according to the report.
The specter of disincorporation was raised in late 2010 because of issues such as the conviction of three public officials on corruption charges that year.
The industrial city is home to 1800 businesses, but only has a population of 112.