Los Angeles is commonly referred to as the “City of Angels,” a place with plenty of sunshine,  where people go to pursue their dreams. But behind this glossy exterior looms a bleak financial situation akin to the city’s notorious smog.  

While L.A. has been outperforming some other large cities like New York City and Chicago in their financial situation, the city still needs a bit of a financial fixer-upper.

Here are five things to know about the condition of Los Angeles’ finances:

1. Los Angeles needs more than $9 billion to pay its bills.

Los Angeles has $12.4 billion in assets to pay $21.4 billion in bills, resulting in a $9 billion gap.  

2. The city’s Taxpayer Burden™ stands at -$7,200.

TIA estimates that each L.A. taxpayer would need to contribute $7,200, in addition to already paid taxes, to pay off the unfunded debt their city has accumulated.

3. Of the city’s unfunded liabilities, pension and retiree health care promises account for $10.3 billion and $2.7 billion, respectively.  

Despite new accounting rules to increase financial transparency, Los Angeles continues to hide $4.8 billion in retirement obligations from its balance sheet.  

4. Los Angeles issued its financial report 221 days after the end of the fiscal year.  

Comprehensive annual financial reports are considered timely if they are released within 180 days of the city’s fiscal year end. Los Angeles issued its report 41 days late.

5. The Taxpayer Burden in Los Angeles has decreased in recent years.

Los Angeles’ Taxpayer Burden has decreased from -$8,000 in 2014 to -$7,200 in 2016, or 10 percent.    
 

Los Angeles has a long way to go before it can boast a Taxpayer Surplus™ like some of its Californian counterparts. Still, the city’s declining Taxpayer Burden might be a source of optimism. If Los Angeles continues to decrease its Taxpayer Burden by 10 percent annually, each taxpayer will be responsible for less than $1,000 in roughly two decades, and it would take about 80 years for taxpayers to break even—though we hope it will not take that long for L.A. to tackle its unfunded debt.  

To find out more about Los Angeles and all 75 of the most populous U.S. cities, read the latest Financial State of the Cities report.