Despite California's reputation for poor fiscal management and a general atmosphere of economic austerity, the town of Moreno Valley is implementing some clever policy to rise and thrive.
According Marc Joffe, director of policy research at the California Policy Center, the town has applied some key measures to remain solvent throughout a housing crisis and an economic crash that can provide those working in Government and economic management with some insight.
The measures included:
- The city established a minimum general fund reserve for emergencies and contingencies equal to 15% of annual spending before the recession, and managed to maintain that reserve despite reduced revenues. With the economy strengthening, the city’s general fund balance grew to 56% of expenditures.
- The city has leveraged one time funds to meet long term municipal priorities while minimizing ongoing costs. For example, the city invested in a $2 million city-wide camera system which allows a smaller police force to prevent and solve crimes more efficiently.
- The city provides a variety of incentives to encourage employees to relocate including reduced utility costs and a concierge service that helps firms navigate the regulatory process and obtain fast approvals for their applications. (Business recruitment efforts have added 9,000 new jobs in the city)
- City officials have a strong commitment to engaging citizens in the budget process. Moreno Valley implemented Balancing Act, a web-based tool from Engaged Public, which allows users to simulate the budgetary impact of various policy changes.
"These profiles show that cities can pursue a variety of policies to promote financial health...But establishing minimum general fund reserve requirements, and abiding by them even when times are tough, would seem to be a universal requirement for fiscal health" said Joffe.