Vote to Declare Fiscal Emergency in Duarte Fails

Duarte, the "City of Health," does not have healthy finances.

The Duarte City Council failed to declare a state of fiscal emergency in the city when a single council member voted against the resolution Tuesday, NBC Los Angeles reported.

The city had placed a resolution on the agenda that would have declared a fiscal emergency and brought a transactions and use tax to city voters in a special municipal election, according to the city's agenda. The special election would have been held on Nov. 6, the agenda states.

But Councilman Phil Reyes cast the lone dissenting vote in a roll call that needed the support of all five council members to pass, NBC reported.

In a news release, the city said the loss of its redevelopment agency and a forced payment of $1.2 million to the state required the declaration of a fiscal emergency. It called the move an "administrative procedure."

Duarte mayor John Fasana said the move makes things sound more dire than they are. Under state law, the city must declare a fiscal emergency to place a new tax on the ballot.

"The City is not in a bankruptcy situation and we don't want to get there either," Fasana said in a statement. "Additional cuts or new revenues need to be found sooner rather than later."

The failed measure would have established a 1/4 to 1/2 cent sales tax increase that the city said could have generated $1 million to $2 million in revenue.