Summary

Ongoing budget deficit

• Projected a $5 million budget deficit for fiscal year 2015–16 and continues to experience dwindling reserves.
• Developed an inaccurate and overly optimistic five-year plan to address its budget deficit.

Rising pension costs

• Has maintained employer contributions but faces increasing costs because of its large unfunded liability.
• Will incur additional payments if it fills vacant positions.

Use of city-supported library by nonresidents

• Spent $1.8 million in fiscal year 2014–15 on library operations.
• Serves patrons throughout the region, of which nearly half are not Hemet residents.

Significant retiree medical costs and unfunded liability

• Had large retiree medical obligations, but has since shifted many participants to lower-cost health plans.
• Continues to incur a large unfunded liability.

Underfunded fire department

• Faces critical needs for sufficient staffing and repairs to its infrastructure.
• Handles high demand for services with minimal staffing, resulting in potentially unsafe conditions.
• Incurs costs for emergency medical services but does not recover these costs through charges.

Lack of coordinated approach to promote community engagement

• Does not have a citywide coordinated effort for community engagement.
• Has not sufficiently communicated information on citywide concerns to members of the public.

Inefficient structure of city government

• Has experienced disproportional reporting relationships within city operations
• Has some functions that are related, but do not share reporting relationships or locations.

Turnover of key positions and lack of consistent leadership

• Has experienced frequent turnover in its city manager and fire chief positions.
• Is likely to have some city departments heavily affected by upcoming retirements.

Inconsistencies in outsourcing maintenance activities

• Outsources some landscape maintenance, but maintains its parks, resulting in additional costs.