What's Happening?
The city of Calexico has been removed from the California State Auditor's high-risk designation, marking a significant financial and administrative turnaround. For nearly a decade, Calexico was considered
a high-risk city due to chronic deficits and poor internal controls. The October 2025 audit report concluded that Calexico had taken satisfactory corrective action, addressing deficiencies that compromised its fiscal stability. The announcement was made during a City Council meeting, where local leaders celebrated the achievement. Newly hired City Manager Benjamin Martinez highlighted the city's improved financial health, noting consistent positive general fund balances since 2016-2017.
Why It's Important?
Calexico's removal from the high-risk list signifies more than financial recovery; it marks a shift in the city's reputation and readiness for growth. This change positions Calexico to attract new investments, strengthen relationships with state and federal agencies, and pursue larger infrastructure and economic development projects. The city's fiscal discipline, combined with quarterly financial reporting and stronger policy enforcement, has proven its financial health. The success reflects years of collaboration among city departments, improving liquidity and reducing long-term liabilities. This achievement is a testament to the dedication and attention to detail of the city's staff.
What's Next?
Calexico plans to continue its financial discipline and transparency efforts, aiming to attract new investments and strengthen relationships with state and federal agencies. The city is developing comprehensive grant management policies to promote transparency and accountability, with hopes of regaining eligibility for Community Development Block Grant funds by fiscal year 2026-27. Initiatives such as mentorship and cross-training programs are underway to ensure leadership continuity and maintain progress. The city is also working on increasing accessibility in how it communicates financial information to the public, offering Spanish-language translation for budget presentations and expanding bilingual access.
Beyond the Headlines
The removal of the high-risk designation signals a shift in Calexico's reputation and readiness for growth. The change positions the city to attract new investments, strengthen relationships with state and federal agencies, and pursue larger infrastructure and economic development projects. The city's fiscal discipline, combined with quarterly financial reporting and stronger policy enforcement, has proven its financial health. The success reflects years of collaboration among city departments, improving liquidity and reducing long-term liabilities. This achievement is a testament to the dedication and attention to detail of the city's staff.
