Hermosa Beach is financially sound with $80 million in assets, no debt, and more than $6 million already set aside to cover the settlement cost. Among other options, the remaining settlement balance of approximately $11 million can be paid off under
“… commercially reasonable terms to be mutually agreed upon by the city and E&B.”
“Hermosa will not go bankrupt if the voters fail to approve oil drilling.”
Inflated oil revenue projections are based on reports paid for by E&B. In fact, more than 70 percent of the projected oil and gas resides offshore. Revenue derived from offshore oil is highly regulated by the State Tidelands Trust, which severely restricts how it may be spent.
The presence of an oil and gas drilling operation and pipeline will lower property values, which, in turn, will decrease taxes and revenues to the city.
Please review the FULL report below:
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