Desert Hot Springs faces decision on fiscal emergency

News Channel 3 has learned that Desert Hot Springs is preparing for a potential bankruptcy filing.

A report done by the city’s Interim Director of Finance and Administration paints a very bleak picture of the city’s finances.

The report found the city is facing a potential budget deficit of $3,077,299 by the end of the fiscal year.

The city’s general fund could run dry by March 31, 2014.

The reports also says City Attorney Steve Quintanilla has laid out two potential paths the city could follow to seek bankruptcy protection.

Reached at home Thursday night, Mayor Yvonne Parks said she hadn’t seen the report.

She also said she was shocked..

The city council will get a financial update at a special meeting November 12th at 4:00 p.m..

See the full report here:Financial Update – Fiscal Year 2013/14