[Editor’s Note: From activist Paul Ehrlich’s address to the City Council last Monday night on the state of city finances.]
Let’s talk money — or the lack thereof.
I have previously discussed the $1 million Lehman Brothers’ bond loss, the loss of millions of dollars from the Redevelopment Agency to the state, the suggestion of revenue generated from advertising on busses, trash and other city vehicles, the staff making fee reductions behind closed doors without any review, failure to meaningfully involve the public in the flawed budget process, an overly optimistic budget and a very weak hiring freeze that the City Council has overridden.
Since then, you had promised that there would be a quarterly financial statement in November. This is December, and nothing has been agendized.
Also due in November was a discussion and installation of parking meters. Again there is no action.
In order for the Council to make wise decisions, one must know the city’s present and future financial health. There are only two reasons that reserves can/should be used:
a) In case of major emergency.
b) In case of proven temporary conditions where the funding would clearly be made up in a very short order.
Since I spoke to you last, these changes have occurred:
1. The general economy has deteriorated further. This could mean commercial defaults, failure to pay rents and taxes/fees to the city.
2. In June of 2009, the 2 percent estimated surcharge for CalPers contributions has now doubled to 4 percent.
3. The state of California, the city of Los Angeles and the Culver City Unified School District all have reopened their budgets for review and mid-year reductions while Culver City sleeps.
I am asking for immediate action on these subjects:
1. Publish the following information on the city’s website (culvercity.org):
a) City quarterly financial condition, with projections into the next three quarters.
b) Redevelopment Agency’s financial condition, with projections into the next three quarters.
c) Animal control operation, with projections into the next three quarters. Set firm income and expense goals and dates.
2. Require deadlines for quarterly reports.
3. Change the financial philosophy. The bookkeeping concept of waiting to determine reported cash flow gives a distorted view of the city’s financial health. It should be changed to a Controller’s concept of making best estimates, as solid information becomes available.
4. Ignore staff excuses that they can do nothing about parking meters because it is not in the budget. A four/fifths Council majority can override any budget oversight.
5. Take immediate meaningful action if the near-term and future projections warrant such a hard hiring freeze (including fire and police). Permanently close City Hall on Fridays. Make a 5 percent cut in all salaries, with immediate employee reductions involving all departments, and/or close the City Plunge just as the School District closed the Natatorium years ago.
Mr. Ehrlich may be contacted pmsha@aol.com
