What is GT's Stress Test?

Is Grand Terrace Solvent?

If the Redevelopment Agency Debt is not paid by the sale of Redevelopment Agency Property will the Cost to the City of Grand Terrace run us in to the Bankruptcy Courts?

Do we have assurance that we can cover operational costs and the RDA Debt payments. IF not GT is legally insolvent and should file for Chapter 11 reorganization. The Reorganization could void or amend retirement obligations, and contract and eliminate or ease some of the debt burden while allowing the city to remain a city.

The other option may be to end the status of being a city. This would shift the obligations for law enforcement and services back to the County and State. Because we actually just act as a clearing house for most of these services we would be saving the taxpayers by elimination of the middle man and at least save the cost of the additional level of administration called Grand Terrace City Hall.

When the City Council votes on the budget, they had better be dealing with the real facts and not some grand fiction about development paying off and the RDA being able to capture the Cash out of the property it bought at a premium.

Sales tax collection is not the basis of a sustainable economy. Ever increasing property values is not a sustainable economy... and the City Council has been feeding off of a trough of fictional funding called DEBT and High Hopes. They were lead to this state by Tom Schwab and Steve Berry, and now Tom wants to collect full retirement...

Nope, the city should file a Chapter 11 and Tom should find his retirement down sized to the point of the folks who have lost their homes, income and retirements as a result of his participation in leading the city and state into this abyss. All politicians, and City Managers or "Professionals" should feel the pain of the economics they were taking advantage of and promoting, They should not be like the Wall Street people who got great retirements, and payouts with TARP Funds.

When CEO's get millions and the Labor are asked to take pay cuts and suffer job loss, the burden of the failure is placed upon the feet of the wrong actors. The City Manager is the CEO of the City. Grand Terrace should not participate in the CEO Payout of the Schwab retirement while it has debt to pay. He burdened us and that bad work should not be rewarded with a retirement payout.

It is time the top feels the pain, and joins the back of the bread line for a few scraps. Has the City Council offered to help any of the 120 families who are in or facing forclosure this month?