Jurupa Valley May Shut Down By Next Year

JURUPA VALLEY (CBS) —The next California city to declare bankruptcy might be Jurupa Valley, which is one of the state's newest cities.

Jurupa Valley became a city last July. Mayor Laura Roughton said the city might have to disincorporate by next July.

Their financial problems aren't a result of hefty pensions, overspending, or debt problems. In fact, the city of almost 100,000 residents has zero full-time employees. That means no pensions and no long-term healthcare costs.

Roughton said the situation happened through no fault of the city's.

"Two days before we incorporated, SB 89 passed in Sacramento, eliminating 47 percent of our first-year general fund budget," she said.

State lawmakers recently took away $7 million the city was supposed to get from state vehicle license fees.

That was nearly half of Jurupa Valley's annual budget.

City manager Steve Harding said there's enough money to get through another year, but that's it.

"(Then) possible disincorporation, which there has not been a disincorporation in California since 1972," he said.

There is a state bill to restore Jurupa Valley's funding, and the city council is now trying to get support for that bill.