We Won.  With overwhelming odds, we beat a giant machine and defeated Measure I.

But now comes the hard work, which means that we need to help the City Council–and the Mayor–put forward a plan that works for 2/3 of Long Beach voters.  There has already been some griping that this will be impossible…but it’s not.  The will is there, but the people have spoken and said that they want more accountability in a measure.

I have revised the Better Plan for Long Beach plank below, and removed all reference to Measure I.  This is for real now, and we have to work to make sure that the City Council listens:

A Better Plan for Long Beach is a comprehensive package that includes:

 •  Tightening the belt to include just the essentials.  During a time when the state is in a recession, the best plan is to pare down the amount requested of Long Beach taxpayers. 

 •  Assurances that general fund infrastructure dollars would be protected and intact.  Any plan that taxes residents and property owners needs to be airtight.  There can’t be any loopholes that allow money to be diverted to the General Fund.

 •  City Ordinances enacted that set fiscal accountability standards, and protect against future budget deficits.  We need a reserve fund set aside, and we need to do it NOW.

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The Mayor finally admitted that there is a huge loophole in Measure I.

From LBReport.com:

“…there’s $2.1 million in the General Fund and in fact if this passes that this Council or a future Council could use that money for something else, rather than infrastructure, the money going today for infrastructure used for something else. ”

Either the Mayor didn’t know about the loophole, or he didn’t want to tell anybody.  Not quite sure which is worse.

Update:  The number is actually much bigger than $2.1 million.  According to former Redevelopment Agency Commissioner Terry Jensen, looking at the budget as a whole, the number is actually over $33 billion–per year!.

Why does the Mayor want to tax Long Beach citizens to pay for infrastructure repairs that they have already paid for?  The answer is simple.   Long Beach spends every dollar in new revenue for salaries and pensions.  The current cost of supporting city employees has now reached 84% of the general fund, leaving no money for new or old infrastructure.  Protecting the $265Million dollars, that will be combined with the $571Million in Bond money for the citys’ wish list of projects, should be of worry to taxpayers. The city only budgeted $3Million dollars for infrastructure repairs in the current budget,  Why did’t they budget the $26.5Million they now receive from the federal, state and county governments for infrastructure, which is specifically earmarked for such use?   We should not trust City Hall to do the right thing, when they fail to do so now.  The Parcel Tax is just another way to prop up the general fund, and move the $26.5Million in yearly revenues for infrastructure into the general fund to pay for salaries and pensions that we cannot afford.

Kathy Ryan, Long Beach Taxpayers Association

From the Press-Telegram:

Lehman investment costs Long Beach $19.9 million

“LONG BEACH — The city is losing $25.8 million from the nation’s economic crisis after investing $20 million in Lehman Brothers days before the company went bankrupt last month, city officials said Tuesday.

City Finance Director Lori Ann Farrell told the City Council that on Sept. 3, Long Beach purchased commercial paper from Lehman Brothers in what is essentially a loan. Companies issue commercial paper to pay for day-to-day operations, and the investment is generally considered low-risk. ”

Read the rest of the story here.

We need more accountability.  We need a better plan for Long Beach!

An interesting article from Business Week that posits the dangers of floating municipal bonds like the large one the Mayor and City Council are attempting to float.

“Exposed and Vulnerable

Like residents who took outsize mortgages on risky terms, local governments have greatly increased both the amount they borrow and their exposure to rate increases. According to ThomsonReuters, total municipal borrowing has more than doubled this decade, from $195 billion in 2000 to $425 billion last year. (Next year, Thomas Doe, CEO of Municipal Market Advisors, a research firm in Concord, Mass., says that could fall to $300 billion to $350 billion.) So far this year, one in three borrowed dollars came with a fluctuating rate, compared with one in five in 2000.”

Read the whole article by clicking here.

The Fresno Bee and other news outlets have reported on the fact that there will likely be another Statewide Special Election on the Ballot in March of 2009.  Read the article by clicking here. 

This demolishes the argument from the Mayor and City Hall that it’s now or never.  With a Statewide Special Election, there will be little to no extra cost for City Hall to protect taxpayers and get it right!

Former Redevelopment Agency Commissioner, and Measure I Opponent, Terry Jensen spoke last Sunday about the reasons why Measure I was a “very good idea, crafted in a very bad plan.”

Read and listen to his words in the article here.

A Better Plan for Long Beach is a comprehensive package that includes:

 •  Tightening the belt to include just the essentials.  During a time when the state is in a recession, the best plan is to pare down the amount requested of Long Beach taxpayers. 

 •  Assurances that general fund infrastructure dollars would be protected and intact.  Any plan that taxes residents and property owners needs to be airtight.  There can’t be any loopholes that allow

 •  City Ordinances enacted that set fiscal accountability standards, and protect against future budget deficits.  We need a reserve fund set aside, and we need to do it NOW.

To comment, click the link to this post.