Santa Monica is under dire financial distress as it confronts settling a massive sexual abuse scandal of children by a city employee on top of the rampant waste, fraud and abuse that is already stretching the city towards insolvency.
“The City has been under increasing pressure from taxpayers to halt the settlements that so far have paid a total of $229,825,000 to 229 plaintiffs, with the amounts varying per case.
To pay the settlements, the City has been rapidly depleting cash reserves that have dwindled to $150 million, from as much as $400 million; used Housing Trust Funds that subsidize affordable housing and even considered selling City properties. “
Here is what Fitch, the bond rating agency, has to say:
"Outlook revision to Negative reflects heightened uncertainty related to potential liabilities stemming from 180 claims of child sexual abuse by a former city employee, which could negatively affect the city's fiscal and/or liability profile. The city has previously settled 229 related cases at a cost of approximately $229.8 million"
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⚠️Santa Monica California is effectively bankrupt after homeless/criminals they invited (free housing by the beach!) destroyed business revenue & they owe $300-500 MILLION to victims of a single molester.
Despite that, paying $259,000 a year + great benefits to “housing & human services” director who will figure out how to dole out tens of millions of taxpayer dollars to more homeless & subsidize even more housing.
There are about 5000 vacant apartments in the city yet they claim there’s a crisis so they build more at a taxpayer cost of $1-2 MILLION per studio!
Below 👇 is one of those $2 million/unit (including land) taxpayer funded free luxury condo buildings they’re building a couple blocks from the beach! Lunacy.
houmanhemmati ↗