CaliforniaCityNews.org

A Taxing Future: Consultant Advises Carlsbad Council on Rising Pension Costs

Carlsbad’s City Council received a forecast that it was probably looking to avoid, but in light of rising costs, a consultant recently told council members to seriously consider shifting a greater burden of the pension costs to employees. The advice from consultant John Bartel was made all the more difficult by the fact that it’s an election year and city employee benefits are a touchy subject that voters will likely have passionate opinions about as city officials struggle to balance their budgets. While Carlsbad has fared better than many cities during the economic downturn, the North County Times reports that “City officials forecast that Carlsbad's pension costs could climb over the next decade. In the current fiscal year, which ends June 30, the city expects to add $14.94 million to its pension system. In eight years, that figure is forecast to be $23.49 million.”

Bartel argues that Carlsbad’s best option is just to renegotiate the amount that current employees are expected to pony up for the pension system because cutting the benefits of future employees will not save much money. Council members Keith Blackburn and Matt Hall are both running for the position of mayor and they each have opposing views on how to approach the city’s pensions, so perhaps it's the election results that will tell whether the consultant’s advice will be heeded or if the status quo will be maintained for as long as it is fiscally possible.

Web Battle: Facebook’s Dominance May Replace Traditional Govt. Web Sites

As cities increasingly find ways to utilize technology in order to reach citizens and address their concerns more efficiently, it’s also likely there will be a shift in the way services are delivered by replacing government Web sites with popular platforms like Facebook. So the question arises as to whether or not cities will continue to rely mostly upon detailed Web sites if Facebook eventually becomes the primary way people access the information they need. Facebook is certainly popular and in many ways is replacing email and other forms of communication. As a result, cities may increasingly consider the platform as a way to connect, especially when the site already has so many active users. For instance, Government Technology reports that San Francisco’s Facebook page already has 260,000 “friends.” The Chief Intelligence Office for the city of San Francisco, Chris Vein, said the following of Facebook’s influence on how cities will relay information:

“On the city Facebook page, we have enabled all of the services that are available on our Web site. For instance, you can pay your parking ticket on the city Facebook site. "We‘re looking at this as just another portal into the city. It's an experiment."

The so-called “experiment” is bound to change the way local governments organize and present information when compared to the maintenance of traditional city Web sites, as well as ease access and delivery of services for citizens.

Quote of the Day

“I had faith that California's economy would be restored to 'precarious,’” said Robert Upshaw, a fictional character from the satirical newspaper The Onion in a feature called “American Voices” that presented responses – albeit fake – to the news that Governor Arnold Schwarzenegger said California is showing “signs of a comeback.”

Cathedral City Declares State of Fiscal Emergency and Weighs Sales Tax Hike

The City Council for Cathedral City was forced to declare a state of fiscal emergency and as a result city officials want citizens to approve a tax hike on the June ballot. Usually a tax increase would require a two-thirds vote, but after the Council’s unanimous declaration of financial direness, this measure would only need the support of a simple majority of voters to enact a one percent sales tax increase, or an additional penny per dollar spent. It is hoped that if voters approve this course of action, the city will take in $3 million annually until the hike is expected to cease, which would be in five years. It would also make Cathedral City the only place in the Coachella Valley to have a sales tax higher than 8.75 percent.

The Desert Sun reports that City Manager Don Bradley believes the city will lose $6 million in revenue this year and that since the city is spending more than it has, it is likely that the city’s reserves could be used up by 2012. Mayor Kathy DeRosa said the following of the city’s circumstances:

“We are in unprecedented times. We have suffered unprecedented reductions in revenues and takeaways from Sacramento. It's time for our residents to hear that we are in a financial crisis.”

DeRosa was not the only one to suggest that Sacramento should shoulder some of the blame, as Mayor Pro Tem Charles England called state representatives “junkies” who are passing problems on down to local governments that are also struggling to pay the state redevelopment agency, which will collect more than $2 billion from cities. That is unless the California Redevelopment Association can stop the seizure of redevelopment money by winning a lawsuit against the state.

State Budget 2010: Hurry Up and Wait

The other day a friend of CCN's who doesn't follow state politics religiously (lucky them), asked us, "So what's up with the State Budget this year?"  As Anthony York wrote in the Cap Weekly this week, "What a Difference a Year Makes." 

Without the cash shortage faced last year, legislators in Sacramento don't seem to be in too much of a hurry getting the state budget going, and this week the constitutional deadline for the Legislature to respond to the fiscal emergency declared by Gov. Schwarzenegger came and went.

Oh, they passed a set of bills that are allegedly going to save the state about $2.5 billion. Kinda, sorta, maybe.  The package relies on shifting money (of course) and leveraging federal funds somewhere over the rainbow.

Why the lack of urgency?  Well, a number of things.  1). the State Controller, despite earlier harbingers of doom, has reported January revenues exceeding expectations.  2). Democrats are switching Assembly Speakers int he coming weeks, and big budget decisions don't tend to happen with a lame duck Speaker, and 3). The Summer and Fall are sure to be electoral Armageddon on virtually every level.  It's the Governor's last budget, John Perez's first and campaigns from council to congress and from ballot measure to governor will begin impacting the political calculus in ways only beginning to take shape.  So get ready.

Car Dealer Vacancies Drive Cities to Find New Streams of Revenue

Putting space to good use is ideally a key focus for city officials, so many officials are looking to vacant auto lots to develop new properties for housing, office space and retail outlets. The LA Times reports that “There are roughly 9.1 million square feet of empty buildings sitting on more than 1,000 acres of prime commercial real estate.” While auto dealerships have traditionally supplied cities with plenty of tax dollars for the land they occupy, the change in the financial fortunes of many auto companies has led to an increase in vacant lots that present a void in revenue streams. For instance, General Motors and Chrysler have been hit hard by the recession and their closed dealerships have forced cities to find ways to replace them with new franchises. While many vacant lots may have expensive clean-up costs due to underground storage tanks and lubricant seepage, there are numerous vacancies that could make ideal locations for medical, industrial or retail businesses. An example of the amount of vacant space is apparent in a city like San Bernardino, which lost seven of its twelve dealerships. More cities may face such vacancies if they continue to compete with one another for new car sales.

LAX Modernization Takes Flight with Mayor and City Council’s Approval

One of the largest public works projects is set to take flight at Los Angeles International Airport (LAX) as Mayor Antonio R. Villaraigosa and City Council Members Janice Hahn and Bill Rosendahl rolled out modernization plans for the Tom Bradley International Terminal. While modernization efforts have been stalled in the past, it is hoped that the project will create 4,000 jobs over a four-year period. The development plans ultimately were able to move forward when the mayor worked out a settlement for a lawsuit that was filed against the LAX Master Plan and then the City Council approved the project. Mayor Villaraigosa said the following of the new terminal:

"Today marks another milestone in our effort to modernize the hub of Southern California's air transportation system and restore it to the premier international gateway the airlines and our customers need and the City of Angels deserves. By modernizing the Tom Bradley International Terminal at LAX, we will provide better service for passengers from around the world. Tourism and international trade are major contributors to Los Angeles' economy that generate jobs and contribute to the City's ability to retain its position in the ever-increasing competitive global marketplace.  Improving the experience for travelers at LAX will put thousands of people to work now and for years to come."

Since LAX is the sixth busiest airport in the world, the project will likely improve the airport experience for tourists and ease the woes of the recession through the creation of jobs.

Culver City’s iPhone App Connects Local Govt. and Citizens

One Southern California city has found a way to put technology to good use by letting citizens report issues to the local government through an iPhone application. The program is called the Culver City Connect mobile app and it lets any iPhone user open the app, take a picture of an issue that needs fixing – say potholes or graffiti – and the GPS and camera features of the iPhone will report the location so that problems can be reported without citizens having to visit City Hall or make a phone call. Efficiency and speed seem to be the most beneficial aspects of this new app, as the picture is automatically sent to the person who is responsible for fixing whatever issue needs to be addressed. Better yet, the application is a free download at the iPhone App Store. If the new app proves its usefulness, then perhaps more cities will be eager to adopt the same technology in order to save time and money and to show local governments are up to speed with the conveniences such technology can provide.

Check Minus: Most O.C. Cities Fall Short in Verifying Legal Work Status of Employees

Recent analysis released by the Department of Homeland Security shows that a free system created by the federal government to weed out employees who are illegal immigrants has been scarcely used by many cities in Orange County. The system is called E-Verify and has been around for six years, but the OC Register reports that the majority of cities in the county are not taking part in an employee check that ensures the Social Security number of an applicant is legitimate and is therefore authorized to work in the States. In fact, as of late January, only seven O.C. cities have signed up to use the free system and a tad more than 1 percent of employers have enrolled. Many cities in Orange County have their share of vocal critics of illegal immigrant workers, so they may be more than a little disappointed that such a small contingent of O.C. cities actually utilize E-Verify, as many anti-immigration advocates contend that Social Security numbers need to be checked to ensure they are valid. The cities that are actually enrolled are Brea, Buena Park, San Juan Capistrano, Santa Ana, Orange, San Clemente, and Mission Viejo. The city of Mission Viejo in particular is the only city that forces contractors to use the federal system if the city does business with them. Mayor Trish Kelley said the following of the program:

“I think we are covering our bases by having implemented the program. I can't speak for other cities, but from what I know for the city of Mission Viejo, it has provided us with an assurance that we are doing all that we can do ... to ensure that those that are working in our city are here legally and in compliance with the law."

A Look at LA's Budget Public Engagement Program

Pete Peterson of Common Sense California takes a look at LA's Public Budgeting initiative over at Fox and Hounds this week.  Here's an excerpt, for the full article, click here.

In another sign that California’s city governments are finding new and creative ways to engage their residents on excruciating budget decisions, Los Angeles Mayor Antonio Villaraigosa has been attempting to drum up participation in the city’s, Los Angeles Budget Challenge website. Utilizing the “Budget Challenge” software developed by Next Ten, the website is a facile survey-based platform that asks budget cut and revenue questions while it tracks the actual fiscal impact of your choices.

As Mayor Villaraigosa recently encouraged, “I believe community participation in the city's budget process is essential." But is the “community” really participating in this process? After going through the site myself, there are definite “Good”, “Bad”, and “Ugly” aspects to the initiative...

Again, click here for the full post.