February20, 2018 -- With high personnel costs and record unfunded employee pensions equaling more than two thirds of its operating budget, the City of Santa Monica might not be able to “absorb” the fiscal shock of future recessions, according to the findings of an outside auditor.

The report by Moss Adams, which goes to the two City panels this month tasked with studying City Hall compensation, recommends the City develop “financial and operational strategies,” to cope with financially hard-times in the future.

With a diverse tax base, Santa Monica survived the 2008 recession without the cuts in staffing and efficiency measures other cities imposed to stay afloat, Moss Adams said.

But the future could be different for the City without a change in approach, the audit suggests.

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