National City is facing a nearly $12.7 million general fund deficit as city leaders grapple with rising costs and declining reserves, with the city manager warning that continued spending at current levels could eventually push the city into insolvency.
City Manager Doug Schulze told the City Council at a recent meeting that the city could face insolvency by 2030 if it does not make significant changes to its finances.
“Insolvency” would mean the city could no longer meet its financial obligations without major cuts or other measures to restructure its finances. Schulze said the city could face a growing funding gap in the coming years if current spending trends continue…