So, three years ago an unincorporated area decided to become a city. They planned on funding their city government from state transfer payments, even though the state of California was in a budget crisis. A few days before the unincorporated area became a city, the state legislature passed a law which re-directed those state funds to cover other expenses. The unincorporated area decided to become a city, regardless.
Now, the city is in a situation where the government can not pay its bills. The residents have the choice of either taxing themselves, or dissolving the city government and go back to letting the county government handle things. The residents hate taxes on general principle, so the days of the city government seem to be numbered.
I guess it comes down to a local decision: pay for their city government or disband their city government. Which do they consider to be a worse option?