I
am taking our economic situation very seriously. But we need to step
back and think what type of message is continually coming out of City
Hall to the community -- residents, businesses and potential businesses.
The message is negative and pessimistic. A potential deficit
has been announced almost every year that I have been in office. Of
course, by the time we pass the budget, it is balanced as a deficit is
not allowed by state or city law. That message rarely gets out.
Residents
have been told time and again that unless all city employee unions step
up and agree to pension reform, serious cuts in core services -- the
services delivered by these employees -- will happen. Public safety
unions have agreed to pension reform -- yet their services have been
cut. The non-public safety employee union is slated to also agree to
pension reform -- yet the services they provide are also being proposed
to be cut. These employees were publicly chastised for not wanting to
help with the deficit -- they have helped and are scheduled to help --
yet cuts continue.
The City Manager and Mayor have proposed and
made serious cuts to core services -- police, fire, parks and recreation
and library. Infrastructure repair is behind.
Streets
particularly need fixing -- but oil prices are increasing dramatically
and the cost of asphalt increases significantly (as asphalt is made from
oil). Yet, the City (which sits one of the largest oil and gas fields)
assesses an oil (but not gas) production tax (which would help pay for
asphalt) one half the amount that Signal Hill does. (The oil production
tax does not impact the cost of oil at the pump whatsoever because the
cost of oil at the pump is sent at the international market.) Today, oil
is selling at $104 per barrel with an annual forecast that oil will
reach $121 a barrel. There are 42 gallons in each barrel. The City of
Long Beach's oil tax (which is a .41 cents per barrel tax and not based
upon the market value) essentially charges Occidental Petroleum 41
cents, leaving the oil company $103.59 a barrel. Last Saturday, the LA
Times reported that Oxy Petroleum generated a net profit of $1.56
billion in the first three months of 2012.
See article by clicking here.
The
City Auditor has identified 5 instances of City departments not
appropriately handling and/or collecting revenue to which the City is
entitled and needs. These instances include: towing, animal care
services, parking tickets (two reports) and parks, recreation and marine
department fees. What does this say to the community? That perhaps our
"deficits" are being caused by our inefficiencies? No business would
operate like this...for long.
Sadly, there are numerous other
departments that need to be audited concerning their revenue collection
practices. (I will write more on this because I think we need to heed
the advice of the Government Finance Officers Association and to either
contract out our collections activities or consolidate all these
activities into one department.)
Our message needs to be changed.
Now. We need to get our own house in order and make certain that the
City is efficient and effective and that we are lean. The first thing
Chicago Mayor Rahm Emanuel did upon taking office was to order a 10%
reduction in senior management: reduce compensation across the board or
reduce the number of positions -- whichever results in a 10% reduction
in the cost of senior management. This makes sense. Instead of laying
off lower paid employees who actually deliver the services to the
taxpayers -- cuts needs to be made where they will not impact these
services.
Every City department needs to justify its existence for continued funding. Can we consolidated departments?
And
my personal pet peeve I have pursued for 6 years: when are we going to
get an automated time and attendance system so that we know who is at
work, how long do they work each day, who is on sick leave or vacation
or workers compensation? Is every hourly employee getting their breaks
and lunch -- a fact we need to prove if they ever file an FLSA claim
that they didn't receive these.
We employ 5,000 and time sheets are hand written every two weeks and put into the computer by 12 employees.
Okay. So we have a lot of work to do. And I would appreciate your input.
Thank you for being engaged in this important civic effort.