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City of San Gabriel

Its Ongoing Deficit Is Inhibiting Its Financial Recovery

Report Number: 2020-805


City of San Gabriel Risk Designation:  High Risk

San Gabriel’s Poor Financial Management Has Eroded Its Financial Condition
  • San Gabriel Continues to Rank as High Risk for Most Indicators of Financial Health
  • San Gabriel’s City Council and Former Management Have Allowed the City to Deplete Its Financial Reserves
  • San Gabriel Entered Into a Questionable Loan That Further Exacerbated Its Financial Problems and Restricted Its Available Cash
  • San Gabriel Needs to Consider the Continuing Impact of the Pandemic and Other Key Factors in Its Financial Projections
  • San Gabriel Has Not Implemented a Comprehensive Financial Recovery Plan
San Gabriel Needs to Consider Additional Expenditure Reductions and Revenue Increases
  • San Gabriel Needs to Address Its Rising Employee Retirement Costs
  • San Gabriel’s Mission Playhouse’s Operating Deficits Contribute Significantly to the City’s Ongoing General Fund Deficit
  • San Gabriel May Have Forgone Additional Revenue Because It Has Not Updated Its Fees for Certain City Services
Gaps in San Gabriel’s Management Controls Increase the Risk of Inefficiency and Waste
San Gabriel Does Not Monitor Contract Costs or Ensure That It Receives the Best Value for Its Procurements
Appendix AScope and Methodology
Appendix BThe State Auditor’s Local High‑Risk Program
Agency Response
City of San Gabriel
California State Auditor's Comments on the Response From the City of San Gabriel

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