by Kathy Ryan
Co-founder, LB Taxpayers Association
(July 12, 2008) -- The devil is in the details seems apropos when talking about the Mayor's Infrastructure Bond.
I believe most Long Beach citizens were surprised to read that we will be voting on a Parcel Tax versus an actual Infrastructure Bond in November. The details that have come to light should be an embarrassment to the Mayor.
Mayor Foster should focus on a pay as you go plan to refurbish Long Beach's infrastructure and at the same time initiate sound business principles that will sustain Long Beach's infrastructure as well as its finances. With his strong allegiance to public employees, he is unable to make long term decisions that will benefit the citizens of Long Beach.
His vision is clouded, because he will not do any cutting at City Hall that affects the salaries and benefits of public employees to fix our infrastructure.
Mayor Foster states it will take $30-40 million yearly to restore the infrastructure. He could save millions by having Long Beach public employees pay a fairer share of their pension cost. Currently, taxpayers are subsidizing the pensions of public employees by paying the overwhelming majority of the cost.
More cuts are needed in overtime pay that police and firefighters have come to rely on for their personal enjoyment. In 2007 public safety overtime amounted to $25,000,000.00. These expenditures, along with the yearly payments on $99,000,000.00 of pension obligation bonds (as of 2007) have put the city in what we consider a precarious situation, and without money for street repair. Long term planning is required before any new spending is justified.
If we are going to demand fiscal responsibility from City Hall, then we need to start now.
The Mayor's idea of good planning is to set up a fund where one time revenues will be set aside for future infrastructure repair. Those monies will be secured only until the next labor negotiations. With all the demands from the unions, and a Mayor who cannot say no to them, there is no guarantee that the fund would not be taped for salary increases or additional benefits.
We cannot rely on the city for short term fiscal discipline. We need long term planning, fiscal discipline and permanent pension reform to fund current and future infrastructure repairs.
Admittedly, a $10.00 a month Parcel Tax doesn't seem like much of a gamble to repair the streets; however, the real problem is the philosophy that has brought our city to where it is today still exists at City Hall.
Without substantial changes in City Hall's thinking, there is no guarantee that Long Beach will not be in the same situation years from now. Remember, the same city council, who voted for raises for miscellaneous and safety employees on May 6th without a way to pay for them is the same Council who has the power to put a Parcel Tax on the ballot.
Will the Mayor and City Council be concerned that the Parcel Tax can be raised by a maximum of 3% a year starting in July, 2010, or that the monies will be part of the general fund, where they have easy access to spend on whatever they want, and not necessarily infrastructure?
No! but we should.
We don’t go into major surgery without a 2nd or 3rd opinion and lots of questions, unless it is a life or death situation. The Mayor is treating the Parcel Tax as an emergency with his urgency to get approval on Tuesday night, so the Parcel Tax can be voted on in November. More truth and details would derail his Parcel Tax. The plans that were revealed during the day on Thursday and again Thursday night are not what we are hearing today.
Hopefully, the City Council, on Tuesday [July 22], will exhibit some intellectual curiosity and delve deeply into the Mayor’s plan and won't rely on a "Trust Me" from the Mayor...because we won’t in November.