Home OP-ED Council Backing Recipe for Disaster — Rose

Council Backing Recipe for Disaster — Rose

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Photo: George Hodan / publicdomainpictures.net

Re: “Rose ‘Corrects’ Mayor’s ‘Misinformation’” 

Last week your Culver City Chamber of Commerce made a statement on the spending of the City Council on the Rental Assistance Program (RAP) that was funded by the now defunct Redevelopment Agency.  The money for the RAP will run out on June 30 having lasted for 2½ years after the demise of the Redevelopment Agency.

The City Council voted 3-2 (Jim Clarke/Andy Weissman opposing) to fund the RAP program out of the city’s General Fund Reserves, using the one-time money received from the sale of the Pacific Stadium 12 Theaters to fund this on-going new $1.2 million annual expense.

This is a dangerous financial policy.

There is an ongoing exchange between Mayor Meghan Sahli-Wells and myself (Chamber) on this issue.  The Mayor now states that the Chamber opposes rental assistance for the disabled – an absolutely erroneous assumption.

Let me explain.

Point One: The lack of funding for the RAP program was the result of the state’s decision to eliminate Redevelopment Agencies across California, while never stepping up to identify alternative sources of revenue to fund rental assistance programs throughout the state.

Point Two: The campaign to approve Measure Y, the half-cent sales tax increase, included the creation of an oversight committee to review the expenditures from this $8 million-plus tax increase.

The majority of the City Council, however, ignored the report from the Finance Advisory Committee (FAC), on an 8-0-1 vote, that the General Fund of the city was not an appropriate expenditure for the RAP program.

The Culver City Chamber realizes that in the next few years there will be significant upcoming expenses that the city will be required to fund.

And not having a reserve to count on is irresponsible!

The $50 million-plus, federally mandated Urban Runoff Program and upcoming large increases in CalPERS expenses caused by state changes in CalPERS regulations at the turn of the century will have an enormous effect on us in the future.

Spending down our reserves makes it more likely that the city will have to float a bond, increase taxes, lay off staff and/or cut vital city services to make ends meet.  The 10- year city budget forecast shows an $11 million yearly deficit by the end of the forecast period.

The Culver City Chamber supports prudent expenditures of the city’s limit resources.

We encourage the City Council to create policies that would prevent ongoing subsidy-type expenditures that cannot be sustained over the long term of government financing.

After all, using one-time revenues to fund ongoing expenses is a recipe for disaster in our own homes and businesses. It is even more disastrous when that happens at City Hall.

Mr. Rose, president/CEO of the Culver City Chamber of Commerce, may be contacted at ssssteve@culvercitychamber.com