The problem with ALL California government, both city and state, is that the whole house of cards is predicated on several things:
--That the tax revenues collected will always increase.
--Concurrent with that, property taxes will always increase at rates significantly greater than the 2 percent per year under Prop 13 because of new construction and sales.
Guess what happens when 1--property values fall, 2--houses don't sell, 3--houses aren't built, 4--taxpayers leave the state?
And oh, BTW--the STATE and COUNTY dole out the money to the various cities. I never paid a check to the city. It was always to the Orange County Tax Assessor's Office, every June and December.