Assistant City Manager Christine Shippey said City Manager Miller gave her explicit instructions in his absence (caused a family emergency) to remember to thank Mayor O'Neill. "[Mayor O'Neill has] provided strength, she's provided wisdom, vision, leadership to the city," Assistant City Manager Shippey said. She also thanked the Council for "their continued dedication to fiscal discipline, because there's been some tough stuff that needed to be taken care of in the last few years and our City Council has stayed the course."

Management's budget extends a three-year deficit reduction plan into a fourth year...leaving $10 million more in admittedly difficult budget cuts to one year from now.

Management said its deficit reduction plan has eliminated a $92 million of structural deficit in the past three years. Budget Chief Mike Killebrew said the plan was always meant to be flexible and extending the plan into a fourth year was prompted in part by a recently reached agreement with the LB Police Officers Association (which included sizable pay increases; LB officers had no salary increase since 2001 and POA says the increase is to reach parity with similar local agencies). City management is currently in negotiations with the LB Firefighters Association and other city employees.

Management also cited the need to make infrastructure repairs...and Assistant City Manager Christine Shippey (presenting the budget in Mr. Miller's absence, due to a family emergency) said the photo (left) on the budget document cover was personally selected by City Manager Miller because "it represents a work in progress...[I]t's a budget that invests in our infrastructure and our streets, so very literally this is street work that's going on. And then finally,...it recognizes our line workers, the people that are out on the streets providing services..."

A City Hall release says, "Adding a fourth year in the Plan will allow the City to utilize natural revenue growth to make needed investments in public safety and the City’s critical infrastructure."

City management said deferred maintenance of residential cannot continue...and Public Works Director Christine Andersen said that as streets move from good to fair, the next step from fair to poor/very poor means costly, reconstruction, not just resurfacing.

Accordingly, LB Public Works will focus on resurfacing streets in fair condition instead of reconstructing all those in the worst condition...since focusing on the fair streets will produce more street miles repaired at less cost.

City management's deficit reduction plan originated followed the Council's decision to increase budgeted spending after 9/11 in the period leading up to the 2002 elections. Although revenue lagged spending, voters returned Mayor O'Neill and Council incumbents to office after supporters said City Hall was "on the right track." After being returned to office, the Council increased city employee pensions and Mayor O'Neill announced LB City Hall faced a ballooning deficit. A month later, the Council terminated its then-City Manager...and by early 2003, interim City Manager Miller had unveiled a three-year plan to deal with what he said could have grown into a gaping $102 million deficit by FY 06 if not corrected.

Management's proposed FY 06 budget -- reflecting the third year of management's deficit reduction plan -- reduces the structural deficit by $22.5 million on top of roughly $70 million of the deficit reduced in the previous two years. The $92 million of structural deficit reduction over three years (FY 04-06) leaves $10 million for the future.

Mr. Killebrew confirmed that management's FY 06 budget as proposed assumes payment of Queen Mary rent which City Hall says the Queen Mary operator owes (and the Queen Mary operator, currently seeking bankruptcy protection, says it doesn't owe). (A Press-Telegram report said the sum exceeded $4 million some time ago).

We asked what happens if the $4+ million budgeted as receivable isn't received. "Then it would affect the balance of the Tidelands fund and we'll have to deal with it at that point. We still expect to receive it," Mr. Killebrew said. Expect to receive all of it? "Absolutely."

The Council's Budget Oversight Committee Chair, Councilwoman Laura Richardson (pouring over figures, right) and Councilwoman Tonia Reyes Uranga (tuned into a verbal presentation) attended the budget release. In July, Councilwoman Richardson indicated at the public budget summit (previously reported in detail by LBReport.com) that she believes City Hall has a strong case to make in support of a revenue increase.

We buttonholed Councilwoman Tonia Reyes Uranga as the Aug. 12 event unwound. What about a proposed tax increase for more cops? "With the half cent sales tax increase proposed for the County we were almost there, so I think the community is going in the right direction with that. People continue to say public safety is the top priority but we need to pay for it." So does Councilwoman Reyes Uranga support putting something on the ballot? "I think we're going to have to. I don't see any way around it. If you look at the budget it's bare bones as it is now."

A Council vote on the FY 06 budget will come in September after hearing comment from taxpayers and interest groups. For much of the O'Neill administration, Council budget votes went smoothly without significant dissent...in contrast to previous LB administrations and legislative bodies in other cities, and at the state and federal level where budget votes are among the most contentious.

Some have attributed LB City Hall's relatively smooth sailing to City Manager Jerry Miller's dexterous handling of the budget. Management has taken pains to make budget documents more readable and more accessible via the internet; its proposed FY 06 budget is available to the public in detailed, digital form on City Hall's website: www.longbeach.gov (specific page click here). [Comment: Kudos to LB city management for this, in our opinion a real public service.]

City Manager Miller and his budget chief, Mike Killebrew, also instituted a new approach to budgeting in FY 06: "Focus On Results (FOR) Long Beach" which plans, budgets, measures, communicates and evaluates results. Mr. Killebrew spoke at length about this process...and indicated that focusing on results (instead of just figures) has helped bring about a different culture at City Hall. "The key question we ask now is: is this working?" Mr. Killebrew said.

"Past city budgets were divided by individual divisions within city departments. The new document shifts the focus onto city services that receive funding," a City Hall release said. "For example, last year's Community Development budget described spending in categories such as "salaries, wages and benefits" and "materials, supplies and services." This year, the department's budget explains specific spending on categories such as housing, youth development and code enforcement," the release said.

Finally, management convened budget summits to which the public was invited -- "voice your choice" events scheduled at midsummer -- effectively offering the public a budget preview and a venue for venting before the budget reaches the Council.

Whether this year's budget vote is again quiet -- with the focus on public safety and a possible a tax increase -- remains to be seen.

City Hall has scheduled the following meetings to present the FY 06 Budget and obtain community feedback regarding the budget. (Caveat: If the Council votes to adopt the budget early in the process, subsequent meetings won't be held.)