[00:03:05]
WELL, THANKS EVERYONE FOR JOINING US FOR THE SPECIAL MEETING.
[CALL TO ORDER]
KERR.ALRIGHT, SO, UH, WE CALL IT A SPECIAL MEETING OF THE CITY COUNCIL FOR A BUDGET HEARING.
RECOMMENDATION TO RECEIVE AND FILE A PRESENTATION ON THE PRE-DEVELOPMENT OF THE CITY OF LONG BEACH'S FY 27 ANNUAL BUDGET.
[1. 26-54770 Recommendation to receive and file a presentation on the pre-development of the City of Long Beach’s FY 27 Annual Budget. ]
GREAT, THANK YOU.SO, THIS IS A FEW MONTHS EARLIER THAN NORMAL FOR US.
UM, OUR FORMAL BUDGET PROCESS REALLY KICKS OFF WHEN THE BUDGET IS PRESENTED, UM, BEFORE AUGUST 2ND OF EACH YEAR.
BUT WE WANTED TO BRING THIS STUDY SESSION FORWARD TODAY TO GIVE THE PUBLIC A CLEAR UNDERSTANDING ON HOW OUR BUDGET WORKS AND WHAT THE CHOICES WILL BE AHEAD OF US IN THE MONTHS TO COME.
SINCE OUR EARLIER CONVERSATIONS, OUR FINANCIAL OUTLOOK HAS IMPROVED SLIGHTLY.
AT THE SAME TIME, WE KNOW THAT THERE'S STILL WORK TO DO TO CONTINUE CLOSING, UH, THE GAP.
IT'S ALSO IMPORTANT FOR US TO PUT THIS MOMENT IN THE CONTEXT.
WE'VE ANTICIPATED THIS DEFICIT, UH, SINCE THE PANDEMIC.
AND IN FACT, IN RECENT YEARS, WE WERE ABLE TO BALANCE THE BUDGET DUE, YOU KNOW, IN LARGE PART TO VACANCIES, STAFFING VACANCIES, AS WELL AS FEDERAL RECOVERY ACT FUNDS.
WELL, THOSE CONDITIONS ARE CHANGING.
RECOVERY ACT FUNDS HAVE NOW BEEN FULLY UTILIZED AND WE'RE ACTIVELY HIRING TO FILL CRUCIAL POSITIONS IN OUR CITY.
THAT'S SOMETHING THAT STRENGTHENS OUR CITY, BUT IT ALSO COMES WITH COSTS.
[00:05:01]
OUR FOCUS ON HIRING MEANS THERE ARE NOT AS MANY VACANCIES TO SOLVE, UH, CHALLENGES.SO THE GOOD NEWS IS WE HAVE A CLEAR PATH FORWARD.
IF WE STAY DISCIPLINED THIS YEAR BY MEETING OUR SAVINGS TARGETS, CONTINUING TO FIND EFFICIENCIES, LIVING WITH OUR MEANS WILL BE ON TRACK TO RETURN TO A SURPLUS WITHIN THE NEXT YEAR OR TWO.
SO THAT'S WHY THIS YEAR MATTERS.
TO STRUCK, TO ENSURE A STRUCTURALLY BALANCED BUDGET FOR THE LONG TERM.
WE HAVE TO MAKE THOUGHTFUL ADJUSTMENTS NOW GROUNDED IN FISCAL RESPONSIBILITY AND A CONTINUED COMMITMENT TO DELIVERING FOR OUR COMMUNITY.
I WANNA THANK, UM, THANK TOM AND TEAM FOR THE PRESENTATION.
GONNA, THEY'RE, THEY'RE GONNA, UH, PRESENT.
I'VE HAD A CHANCE TO REVIEW IT.
UH, I THINK THIS IS A, A GREAT PRESENTATION, SO LET'S GET RIGHT INTO IT.
UM, SO YEAH, UH, THIS IS NOT THE ACTUAL KICKOFF OF THE BUDGET.
WE'RE NOT PRESENTING BUDGET, YOU KNOW, SCENARIOS OR THOSE TYPES OF THINGS THAT COMES LATER.
UH, BUT WE TYPICALLY COME TO YOU IN MARCH OR APRIL TO TALK A LITTLE BIT ABOUT WHAT THAT PREPARATION'S GONNA LOOK LIKE AND WHAT THE NEXT YEAR LOOKS LIKE.
WHAT ARE THE REVENUES, WHAT ARE THE COSTS? UH, AND WITH THIS ONE, UM, AS THE MAYOR MENTIONED, UH, WE, WE DO HAVE SOME CHALLENGES TO COME UP WITH THIS YEAR, BUT WE'RE GONNA ALSO LOOK BACK INTO HISTORY AND PUT THIS A LITTLE BIT INTO CONTEXT.
I'M GONNA GO THROUGH A LOT TODAY.
UM, WE'RE ALSO GONNA END WITH SOME MYTHBUSTERS 'CAUSE WE HEAR A LOT OF THINGS OUT THERE THAT ARE INCORRECT.
UH, AND, UH, JUST TO HELP TO EDUCATE, UH, THE PUBLIC AND, AND GIVE PEOPLE THOSE TOOLS.
BUT I KIND OF WANNA START WITH THE BEGINNING.
UH, WHERE REALLY WHAT THIS STORY IS ABOUT REALLY IS, IS, IS VERY, YOU KNOW, SYNTHESIZED HERE IN THESE SIX, UH, POINTS.
WHAT'S HAPPENING? WE'RE HAVING REVENUE IMPACTS.
UM, SO LIKE MANY CITIES, WE HAVE SIGNIFICANT REVENUE IMPACTS DUE TO A VERY TUMULTUOUS, UH, ECONOMY THAT'S GOING ON RIGHT NOW.
JUST LIKE, UH, YOU AT HOME, OUR COSTS ARE RISING, UH, PARTICULARLY IN THE AREAS OF PUBLIC CELL, PUBLIC SAFETY AND HEALTH.
UH, WE'RE ABSOLUTELY BEING IMPACTED BY FEDERAL FUNDING LOSSES.
UM, THE IMPACTS FROM FEDERAL POLICY ARE VERY REAL, UH, WITH ABOUT 302 MILLION IN EITHER LOSS OR DELAY OF FUNDING IN SEVERAL DIFFERENT AREAS THAT WE'LL COVER IN THE PRESENTATION.
UH, WE'VE ACTUALLY GONE FIVE YEARS WITHOUT ANY, UH, REDUCTIONS, WHICH IS THE LONGEST IN OUR RECENT HISTORY.
UH, AND WE'LL KIND OF SHOW WHAT THAT LOOKS LIKE.
UH, OTHER CITIES ARE FACING THE SAME THING.
UH, EIGHT OF THE TOP 10 CITIES ARE ALSO FACING DEFICITS NEXT YEAR.
AND OUR DEFICIT HAS IMPROVED RECENTLY.
UH, I KNOW WE'VE HEARD THAT 60 TO 80 MILLION, WE GAVE SOME RANGES 'CAUSE IT'S JUST CHANGING SO OFTEN.
WITH EVERYTHING THAT'S GOING ON AT THE FEDERAL LEVEL, IT'S NOW AT 61.3 MILLION.
AND JUST LIKE OUR RESIDENTS, CITIES HAVE TO BALANCE THE BUDGET.
UH, WE DON'T GET TO ISSUE DEBT.
WE DON'T GET TO, UH, PUSH THAT OFF LIKE THE FEDERAL GOVERNMENT DOES OFTEN.
UH, WE HAVE TO BALANCE THE BUDGET AND WE HAVE TO DO THAT EVERY SINGLE YEAR, WHICH MEANS SOME REDUCTIONS IN DIFFICULT CHOICES.
SO WHERE DOES REVENUE COME FROM? UH, SO THIS IS OUR, OUR PIE OF ALL OF OUR DIFFERENT FUNDING SOURCES, BUT I REALLY WANT YOU TO FOCUS ON THE RIGHT.
THE TOP THREE GENERAL FUND REVENUES ARE PROPERTY TAX AT 34% SALES TAX AT 21%, AND UTILITY USERS TAX AT 13%.
AND SO TAXES IN GENERAL MAKE UP 72% OF GENERAL FUND REVENUE.
AND ALL THREE OF THOSE GENERAL FUND REVENUES ARE DOWN RIGHT NOW.
AND WE WILL SEE THAT A LITTLE BIT LATER.
UH, AND SO WHERE DOES THE MONEY GO? WHAT ARE THE BIGGEST EXPENSES? IT'S PEOPLE.
UH, WE PROVIDE SERVICE TO OUR RESIDENTS WITH PEOPLE, WITH OUR POLICE FI, OUR POLICE OFFICERS, OUR FIREFIGHTERS, PUBLIC WORKS EMPLOYEES, UH, SUPPORT STAFF, EMPLOYEES, PARKS AND REC LIBRARY, ALL THOSE PEOPLE.
OUR WHAT OR WHO PROVIDE THOSE SERVICES.
AND THAT'S 77% OF THE GENERAL FUND.
AND WHAT IS THE BIGGEST EXPENSE OF THE GENERAL FUND? IT'S PUBLIC SAFETY.
65 AND A HALF PERCENT OF OUR BUDGET GOES TOWARDS PUBLIC SAFETY.
UH, THEN YOU CAN SEE THE OTHER PIECES OF THE PIE.
WE'VE GOT PUBLIC WORKS AND DEVELOPMENT, UH, COMMUNITY SERVICES AND, UH, WHAT IT TAKES TO RUN THE ORGANIZATION, LEGISLATIVE AND GENERAL GOVERNMENT.
AND SO WE DO HAVE A BIG BUDGET.
WE HAVE ABOUT A $3.7 BILLION BUDGET.
BUT REALLY THE PORTION THAT WE TALK ABOUT, THE GENERAL FUND THAT CAN BE SPENT ON THE SERVICES THAT MOST PEOPLE THINK OF AS GOVERNMENT SERVICES, THAT'S ONLY 21% OF THE BUDGET.
AND SO, UH, THIS WILL BE IMPORTANT AS WE GET LATER INTO THE MYTHBUSTERS.
YOU KNOW, WE REALLY CAN'T USE ANY OF THESE OTHER FUNDING SOURCES ON THE THINGS THAT RESIDENTS MOSTLY ASK ABOUT.
UH, THESE ARE RESTRICTED FUNDING SOURCES AND CAN ONLY BE SPENT FOR THOSE USES.
UM, OUR CITYWIDE VACANCY RATE.
THESE ARE BUDGETED POSITIONS THAT WE'RE WORKING TO HIRE, UH, HAD REACHED PRETTY HIGH UP, UH, TO ABOUT 22% IN 2023.
AND SO WE'VE BEEN DIG DILIGENTLY WORKING TO LOWER THAT AMOUNT.
UM, EVERYTHING FROM GOING TO VOTERS AND ASKING FOR STRUCTURAL CHANGES IN HOW WE HIRE, UH, TO, UM, REALLY WORKING WITH DEPARTMENTS TO BRING PEOPLE ON BOARD.
WE'RE NOW DOWN TO 16.8% AT THE SAME TIME WE'VE BEEN HIRING IN THE AREAS OF BOTH POLICE AND FIRE.
UM, SO YOU CAN SEE, UM, WE HAVE HIRED, UH, ALMOST 200 POLICE OFFICERS, UM, OVER THE LAST FOUR YEARS WITH THE LARGEST AMOUNT, UM, IN THE ACADEMY RIGHT NOW.
SO 98, UH, WERE, UH, STARTED IN THIS ACADEMY.
[00:10:01]
LARGEST ACADEMY WE'VE EVER HAD IN OUR HISTORY.AND YOU CAN SEE WE'VE BEEN DOING BACK TO BACK TO BACK HIRING OF FOR POLICE.
UH, FIRE TYPICALLY USED TO AVERAGE ABOUT 20 TO 25.
AND, UH, WE'VE BEEN AVERAGING MORE LIKE, UH, YOU KNOW, ALMOST 40.
AND SO WHEN WE USE THIS WORD STRUCTURAL DEFICIT, WHAT DOES THAT MEAN? IT MEANS AN IMBALANCE BETWEEN OUR ONGOING REVENUES AND OUR ONGOING COSTS.
WE BALANCE THE BUDGET AND MAKE SURE REVENUES AND COSTS ARE THE SAME, UH, BUT MAKING SURE THAT YOUR ONGOING REVENUES AND ONGOING COSTS, THAT IS WHAT'S CONSIDERED STRUCTURALLY BALANCED.
SO IF YOU THINK ABOUT THIS IN YOUR OWN HOME, IF YOU HAVE YOUR NORMAL PAYCHECK COMING IN AND YOU HAVE YOUR EXPENSES, IF YOU WERE TO GET AN INHERITANCE OR YOU WERE TO GET A SETTLEMENT OR, OR A BONUS, SOMETHING THAT COMES IN ONCE, YOU NEED TO BE VERY CAREFUL ON HOW YOU SPEND THOSE DOLLARS.
'CAUSE IF YOU WENT OUT AND GOT A NEW HOME, THAT MONEY'S NOT GONNA BE PAYING THAT MORTGAGE EVERY SINGLE YEAR.
AND SO WE NEED TO MAKE SURE, JUST LIKE IN YOUR HOUSEHOLD, UH, BUDGET, THAT ONGOING REVENUES AND ONGOING EXPENSES MATCH.
SO WHAT'S OUR HISTORY BEEN? UH, SO WE HEAR SOMETIMES THIS IS, YOU KNOW, ABOUT, YOU KNOW, WE HAVEN'T EXPERIENCED THIS IN THE PAST.
IN FACT, WE HAVE EXPERIENCED THIS A LOT IN THE PAST.
UH, GOING BACK TO, UH, ABOUT 20 YEARS AGO, UH, IF YOU LOOK AT, UM, COMING OUT OF, UH, THE, UH, 2000, UM, ONE, UH, OR SEPTEMBER 11TH, UM, ATTACKS, UH, THERE WAS A MAJOR, MAJOR BUDGET DEFICIT.
SO WE HAD ABOUT A HUNDRED MILLION DOLLARS IN REDUCTIONS OVER THREE YEARS.
UH, JUST FOR CONTEXT, OUR BUDGET AT THE TIME WAS ABOUT 300, 350 MILLION.
SO THAT WAS A VERY LARGE PERCENT.
THEN, UH, WE WENT RIGHT INTO THE GREAT RECESSION.
RIGHT AFTER THAT, WE GOT BALANCE.
AND THE NEXT YEAR WE WENT INTO THE GREAT RECESSION AND WE BASICALLY HAD REDUCTIONS EVERY SINGLE YEAR FOR ABOUT FOUR TO FIVE YEARS.
THEN MEASURE A CAME IN 2014 TO 2018, AND WE HAD NO MAJOR REDUCTION TARGETS DURING THAT TIME.
AND WE'LL TALK ABOUT WHAT MEASURE A DID THEN, UH, COVID HIT, AND I THINK WE ALL KNOW WHAT HAPPENED THERE.
UH, AND WE HAD TO TAKE SOME MAJOR REDUCTIONS.
BUT FOR THE LAST FIVE YEARS, WE BASICALLY HAD NO REDUCTION SCENARIOS, WHICH IS THE LONGEST IN OUR, IN OUR RECENT HISTORY.
AND THEN IN 2027, WE'RE LOOKING AT SOME REDUCTIONS.
SO WHAT WAS GOING ON DURING THOSE TIMES? AGAIN, WE HAD RECESSION AND FALLOUT, UM, FROM NINE 11, UH, IN THOSE YEARS FROM 2004 TO 2007.
THEN 20 2009 TO 2013, THAT WAS THE GREAT RECESSION.
SO PROPERTY TAX WAS REDUCED, HIGH UNEMPLOYMENT, MAJOR REDUCTIONS IN SERVICES, HIGH PENSION COSTS WERE DRIVING OUR EXPENSES.
THEN FOR ABOUT FOUR YEARS, THOSE PENSION COSTS CONTINUE, BUT WE WERE ACTUALLY BENEFITED IN THE GENERAL FUND BY THE LOSS OF REDEVELOPMENT.
SO WE LOST A LOT OF PROPERTY TAX FOR REDEVELOPMENT, BUT WE GOT A PORTION OF THAT BACK IN THE GENERAL FUND.
WE ALSO HAD MEASURE A, WE ALSO HAD A VERY STRONG ECONOMY, AND WE STARTED TO INVEST IN INFRASTRUCTURE.
THEN IN 2019 TO 2021, THAT'S WHEN COVID HIT AND CIVIL UNREST AND MAJOR ECONOMIC, UH, DISRUPTION.
AND WE USED OUR, UH, EMERGENCY RESERVES FOR THE FIRST TIME.
AND THEN THE LAST FOUR YEARS, WE STILL HAD THAT MAJOR ECONOMIC DISRUPTION.
BUT WE HAD A HISTORIC INVESTMENT IN FEDERAL ASSISTANCE IN HEALTH.
WE INVESTED IN OUR ECONOMY, WE INVESTED IN OUR TOURISM REBOUND.
WE HAD SPACE SPEECH GROWTH, SERVICE LEVEL ENHANCEMENTS IN AREAS LIKE LIBRARY, FIRE AND POLICE, UH, INFRASTRUCTURE.
UM, MORE INFRASTRUCTURE THAN WE'VE EVER DONE.
AND THEN, BUT WE ALSO HAD SOME MAJOR RETENTION AND RECRUITMENT ISSUES.
AND THEN, UH, THIS NEXT COMING YEAR, WE, OR THIS UPCOMING YEAR, WE'VE GOT SOME VERY LARGE ECONOMIC TURBULENCE, VERY UNPREDICTABLE FEDERAL GOVERNMENT ACTIONS.
EVERYTHING FROM WAR IMPACTS TO TARIFFS AND INFLATION.
UH, AND THAT'S REALLY DRIVING SOME OF THE REVENUE LOSS.
SO LET'S GO BACK TO 2014 AND TALK ABOUT MEASURE A.
SO, UM, YOU KNOW, WE NOW HEAR PEOPLE SAYING, WELL, DOESN'T MEASURE A CANOPY SPENT FOR THIS.
AND THAT, WHAT WAS IT REALLY DESIGNED TO DO? IT WAS DESIGNED FIRST AND FOREMOST TO STOP THOSE CUTS.
WE WERE CUTTING EVERY SINGLE YEAR.
SO IN ORDER TO ADD, YOU GOTTA STOP CUTTING, YOU GOTTA STOP THE REDUCTIONS.
AND SO, UH, FIRST IT WAS TO, UH, MAINTAIN AND KEEP THOSE CUTS FROM HAPPENING.
THEN NUMBER TWO, IT WAS TO MAKE SOME MODEST INVESTMENTS IN PUBLIC AND SAFETY ENHANCEMENTS, WHICH WE DID.
AND THEN NUMBER THREE, IT WAS TO CREATE A DEDICATED, UH, INFRASTRUCTURE FUNDING SOURCE.
SO THIS IS FROM OUR CITY AUDITOR, WHERE DID MEASURE A GO, ABOUT 60% GOES TO PUBLIC SAFETY, UH, SERVICES AND EQUIPMENT.
AND THE OTHER 40% IS SPENT ON INFRASTRUCTURE.
SO LET'S TAKE A LOOK AT THE LAST FIVE YEARS AND WHAT THAT'S LOOKED LIKE.
UH, WE HAD SOME UNPRECEDENTED INVESTMENT IN THE RECOVERY ACT, ABOUT $260 MILLION.
UH, A LOT OF CITIES JUST PUT THAT INTO THE BANK AND ONLY USED IT FOR BUDGET ISSUES.
WE SPENT IT ON OUR RESIDENTS TO HELP THEM RECOVER.
WE SPENT IT ON OUR BUSINESSES TO HELP THEM RECOVER.
AND WE USED SOME OF IT, UM, FOR OUR OWN BUDGET, UH, SOLUTIONS AS WELL.
THOSE SOLUTIONS WERE SUPPOSED TO LAST ABOUT TWO YEARS.
SO THROUGH THAT AND, AND SOME OTHER WAYS THAT WE SAVED OUR TOURISM, UM, RECOVERY HAS WORKED.
AND WE ARE, UM, CURRENTLY OUTPACING OTHERS.
SO WE'RE DOING BETTER AT TOURISM THAN SAN DIEGO, THAN, UH, ANAHEIM, THAN, UH, SAN FRANCISCO AND LA UH, WE HAVEN'T HAD TO DO CUT SCENARIOS.
UH, SO WE HAVE NOT HAD TO ISSUE ACTUAL REDUCTIONS, BUT THAT'S ALSO MEAN WE HAVEN'T HAD A LOT OF ROOM FOR GROWTH.
[00:15:01]
GROWING, AND I'LL SHOW YOU THAT IN A LITTLE BIT.BUT, SO IT DOESN'T MEAN THAT WE'VE BEEN ABLE TO ACCOMMODATE THAT GROWTH, BUT WE HAVEN'T HAD TO REDUCE, WE'VE HAD THE HIGHEST INFRASTRUCTURE INVESTMENT IN A GENERATION.
UH, WE'VE HAD A LOT OF DIFFICULTY HIRING, ESPECIALLY IN THE AREAS OF RECRUITMENT AND RETENTION.
AND WE ALSO EXPERIENCED VERY HIGH INFLATION.
AND I WANNA LOOK BACK ABOUT FOUR YEARS AGO AND SEE WHAT DOES THE SAME SERVICE LEVEL COST US FOUR YEARS LATER, UH, JUST LIKE OUR RESIDENTS ARE SEEING HIGHER COSTS, CITY EXPERIENCES, THAT TOO.
SO GRAFFITI ABATEMENT USED TO BE ABOUT A MILLION DOLLARS A YEAR.
SO THAT'S A 20% INCREASE OVER FOUR YEARS.
GROUNDS MAINTENANCE USED TO BE ALMOST 4 MILLION.
AND OUR STREETLIGHT PROGRAM USED TO COST ABOUT $1 MILLION.
1.1, UH, UH, IS NOW UP TO $2 MILLION.
AND A LOT OF THAT IS THE COST OF ELECTRICITY, WHICH HAS BEEN GOING UP EVERY SINGLE YEAR.
THE COST OF PUBLIC SAFETY HAS RISEN AS WELL.
SO, UH, FOR THE EXACT SAME POLICE OFFICER AND FIREFIGHTER LAST YEAR, THE FULL OR FOUR YEARS AGO, THE FULLY LOADED COST, THAT'S EVERYTHING IT TAKES TO, UM, HAVE A POLICE OFFICER, UM, FROM EQUIPMENT TO, UM, TO, UH, MEDICAL TO WORKERS' COMP AND, AND SALARY AND OVERTIME, ALL THOSE THINGS.
NOW IT'S ALMOST 270,000 FOR A FIREFIGHTER.
AND SO WHAT ARE THE DEFICIT DRIVERS RIGHT NOW? UM, IT'S REALLY INCREASED COST OF EXISTING SERVICES.
SO THIS ISN'T ABOUT NEW SPENDING.
THIS ISN'T ABOUT ADDING ALL KINDS OF NEW THINGS THAT, UH, NOW WE CAN'T AFFORD.
THIS IS REALLY THE COST GOING UP FOR THE EXISTING, UH, SERVICES, UH, BEING HIT PRETTY HARD ON THE ECONOMIC TURMOIL FROM INFLATION AND TARIFFS.
AND UNCERTAINTY IS DRIVING OUR REVENUES DOWN.
AND OUR THREE TOP REVENUE SOURCES, UH, PROPERTY SA TAX, SALES TAX AND UTILITY TAXES ARE ALL DOWN.
THE FY 27 BUDGET IS SEEING AN $18.4 MILLION REVENUE IMPACT IN THE AREAS THAT WE JUST TALKED ABOUT.
WE'RE ALSO BEING HIT WITH IMPACTS FROM THE FEDERAL FUNDING LEVEL.
UM, SO 300, $2 MILLION OF PROJECTS THAT ARE EITHER TAKEN BACK OR ARE WERE PROMISED, BUT THEN, YOU KNOW, AREN'T COMING ANYMORE OR WERE DELAYED.
UH, A LOT OF THOSE ARE INFRASTRUCTURE PROJECTS IN THE AREA OF PUBLIC WORKS.
UH, BUT HEALTH AND HUMAN SERVICES HAS BEEN HIT PARTICULARLY HARD ABOUT $18 MILLION.
AND A LOT OF THAT IS, IS OPERATING.
THERE'S SOME OTHER EXTERNAL IMPACTS THAT ARE HAPPENING.
SOME, UH, THAT COULD BE, UH, OF, OF HELP TO THE BUDGET AND SOME THAT COULD CONTINUE TO IMPACT IT.
ONE, EVERY LEVEL OF GOVERNMENT IS MAKING REDUCTIONS IN HOMELESSNESS, UM, AT THE STATE LEVEL, THE FEDERAL LEVEL, AND THE COUNTY LEVEL.
AND SO THAT'S HOW WE MOSTLY FUND HOMELESSNESS, IS THROUGH THOSE, UH, PROGRAMS. AND SO WE'RE GONNA HAVE LESS OF THAT COMING UP.
THERE IS, UH, A MEASURE THAT, UH, VOTERS CAN CONSIDER IN JUNE THAT LA COUNTY PUT ON TO REALLY, UH, UH, BACKFILL SOME OF THE DOLLARS THAT THEY'RE LOSING FROM THE COUNTY HEALTH SERVICES.
AND A PORTION OF THAT WOULD GO TO THE LOCAL HEALTH JURISDICTION.
SO, UH, THAT'S PROBABLY ABOUT $10 MILLION SPLIT AMONG US IN PASADENA.
UH, THAT COULD HELP SOME OF OUR HEALTH COSTS.
AND THEN, UH, THERE IS A, UM, CITIZENS INITIATIVE THAT IS, UH, SEPARATE FROM THE CITY, BUT A, UH, A GROUP IS COMING TOGETHER TO PROPOSE WHAT THEY CALL THE BLOCK, THE CUTS ACT.
AND THAT IS REALLY TO INVEST IN FIRE, AFFORDABLE HOUSING, HOMELESSNESS, AND INFRASTRUCTURE.
AND A PORTION OF THAT MONEY WOULD BE GIVEN TO THE CITY, UH, TO PREVENT, UH, SERVICE REDUCTIONS IN THOSE AREAS.
UM, MOST OF CALIFORNIA'S TOP 10 LARGEST CITIES ARE PROJECTING A DEFICIT.
IN FACT, EIGHT OUT OF 10 OF THEM, LA, SAN DIEGO, SAN JOSE, SAN FRANCISCO, FRESNO, SACRAMENTO, AND OAKLAND.
IT'S ALSO IMPORTANT TO NOTE THAT NOT ALL CITIES GENERATE REVENUE AT THE SAME LEVEL.
UM, SO WHILE A LOT OF US HAVE VERY SIMILAR TAXES, SOME MIGHT HAVE A COUPLE DIFFERENT ONES, UH, BUT FOR THE BIG, UH, UM, UH, TAXES, THINGS LIKE PROPERTY TAX AND SALES TAX, WE GENERATE THEM AT DIFFERENT LEVELS.
AND SO THIS GRAPH KIND OF SHOWS YOU, UH, WHEN YOU HEAR ABOUT OTHER CITIES THAT MIGHT BE IN DIFFERENT FISCAL POSITIONS, WHEN YOU NORMALIZE IT BASED ON THE NUMBER OF PEOPLE.
SO TAX PER PERSON, LOOK AT SANTA MONICA, UM, WHICH IS, YOU KNOW, AT, AT, AT, YOU KNOW, A FRACTION OF OUR SIZE, BUT GENERATES ABOUT $5,200 PER PERSON, UH, NEWPORT AT 3,800 PER PERSON.
UM, SAME THING WITH SIGNAL HILL.
THE CITIES ON THE RIGHT ARE THE ONES THAT ARE EXPERIENCING MORE OF THE FINANCIAL DIFFICULTIES.
SO, UH, LOS ANGELES, UH, TORRANCE, SAN JOSE, LONG BEACH AND SAN DIEGO, ALL MORE IN THE 1.11 OR 1500 TO 2100 RANGE AND LONG BEACH NEAR THE END OF THAT SCALE.
WE OFTEN HEAR, UM, UH, A RUMOR OUT THERE THAT LONG BEACH HAS THE HIGHEST TAX OF ANY CITY IN THE WHOLE NATION.
UH, GUESS WHAT? THAT IS NOT CORRECT.
UM, WE WERE ONE OF THE FIRST TO LOOK AT AN INVESTMENT IN PUBLIC SAFETY AND INFRASTRUCTURE, BUT OVER THE LAST 10 YEARS, UH, A VAST MAJORITY OF THE CITIES IN LA COUNTY HAVE PASSED SIMILAR MEASURES, AND
[00:20:01]
SOME HAVE ACTUALLY GONE BEYOND US.AND SO, UH, ONLY 34 OF THE 88 CITIES IN THE COUNTY HAVE A LOWER SALES TAX THAN LONG BEACH.
UH, AND INCLUDING THERE'S OTHERS THAT ARE HIGHER THAN US, LANCASTER, PALMDALE, AZUA, GLENDALE, UH, I'M SORRY, GLENDORA, UM, IRWINDALE AND SOUTH EL MONTE.
AND A NUMBER JUST WENT TO VOTERS AND ACTUALLY INCREASED, UH, BEYOND US AS WELL TO 10.75 IN THE LAST ELECTION.
AND SO OUR DEFICIT, AS THE MAYOR MENTIONED, HAS GOTTEN, UH, SOMEWHAT BETTER.
UM, IT IS GOING TO BE A DIFFICULT YEAR NEXT YEAR, THERE'S NO DOUBT ABOUT THAT.
UM, BUT WE WERE PROJECTING ABOUT A 60 TO $80 MILLION DEFICIT, AND NOW IT'S, UH, UM, FOR NEXT YEAR IT'S 61.3.
SO THAT IS THE TARGET THAT WE'RE SHOOTING FOR.
SO WHAT DOES IT LOOK LIKE LONG TERM? UM, SO WE TRY TO LOOK OUT FIVE YEARS.
UM, SO, UH, WHERE IN, IN PREVIOUS PROJECTIONS YOU'LL REMEMBER, IT WAS KIND OF REDUCTIONS EVERY SINGLE YEAR.
NOW WE'RE SEEING, UH, BASICALLY TWO YEARS OF IMPACTS FOLLOWED BY SURPLUS, UM, IN 29, 30 AND 31.
SO IF WE'RE ABLE TO SOLVE 27 AND 28, THEN WE'RE BACK ON THAT PATH OF FISCAL SUSTAINABILITY.
AND IN FACT, UH, MEASURE A ACTUALLY SHOWS UP IN FY 28.
UM, AND SO THAT WOULD BE A POLICY CHOICE BY MAYOR AND COUNCIL.
YOU COULD USE THAT FOR INFRASTRUCTURE OR YOU COULD USE THAT FOR PUBLIC SAFETY EXPENSES.
UH, THIS IS JUST SHOWING IF WE WERE TO SOLVE, UH, OUR BUDGET DEFICIT IN FY 27, THEN IF YOU WERE TO APPLY, UH, MEASURE A, UH, TO PREVENT FURTHER CUTS TO PUBLIC SAFETY, ESSENTIALLY YOUR BALANCE.
SO ESSENTIALLY YOU'RE AT ONE YEAR OF IMPACT IF, IF YOU WERE TO MAKE THAT CHOICE.
AND SO WHAT IS OUR STRATEGY, UM, FOR BALANCING THE GENERAL FUND BUDGET AS, UM, I'M WORKING TO PREPARE THE BUDGET THAT WE'LL THEN BRING TO YOU, UM, IN AUGUST, UH, ONE AT THIS MAGNITUDE, UH, THE SHORTFALL IS GONNA REQUIRE GENERAL FUND SERVICE REDUCTIONS.
UH, THEY WILL IMPACT SERVICES.
WE ALSO ARE GONNA LOOK AT ALL OF OUR GENERAL FUND, UM, WHAT WE CALL RELATED FUNDS.
AND SO THESE ARE THE INTERNAL SUPPORT FUNDS AND TRY TO KEEP THOSE COSTS LOW.
AND SO LOOKING AT SOME REDUCTIONS THERE, UH, ALL DEPARTMENTS NEED TO PARTICIPATE IN THE BUDGET BALANCING STRATEGY.
UH, THIS IS, YOU KNOW, AT AT THAT LEVEL WHERE WE REALLY NEED EVERYONE TO PARTICIPATE.
UH, WE WILL BE DOING A FOCUS ON PRIORITY BASED APPROACH.
AND SO LOOKING, UH, USING AN EQUITY LENS AND LOOKING TO PRO, UH, PROTECT OUR CORE SERVICES THAT RESIDENTS VALUE MOST.
WE'RE ALSO GONNA BE LOOKING AT ALTERNATIVE SERVICE MODELS.
UM, THINGS LIKE TECHNOLOGY, UH, CONSOLIDATION OF FUNCTIONS AND MANAGEMENT, UH, CHANGE IN BUSINESS PRACTICES, LOOKING AT CONTRACTING IN AND CONTRACTING OUT.
WE'VE ALSO NEED TO GO BACK AND LOOK AT OUR SUBSIDY MODELS FOR FEES.
UH, THERE'S CERTAIN THINGS THAT WE'VE BEEN SUBSIDIZING AND AREN'T COLLECTING THE FULL COST THAT IT TAKES TO PROVIDE THAT SERVICE.
AND SO LOOKING AT THAT ALSO THROUGH AN EQUITY LENS, AND THEN TRYING AT THE, AT THE MOST POSSIBLE TO PROTECT OUR CITY RESERVES, WE DO NEED TO MAKE THE DIFFICULT CUTS THIS COMING YEAR, UH, AND MAKE THOSE DECISIONS SO THAT, UH, WE USE THOSE RESERVES IF WE NEED TO WISELY, UH, BUT REALLY START, UH, TO TACKLE, UM, UH, AND GET BACK INTO STRUCTURAL BALANCE.
SO I WANNA GO A LITTLE BIT INTO MYTHBUSTERS THINGS THAT WE HEAR.
UM, SO, UH, WE OFTEN HEAR, WELL, THE PORT MAKES LOTS OF MONEY.
WHY CAN'T WE JUST USE THAT AND FIX ALL OF OUR STREETS AND HIRE MORE FIREFIGHTERS AND HIRE MORE POLICE? WELL, THEY ARE LEGALLY RESTRICTED.
UM, SO THEY HAVE TO BE USED ONLY ON PORT RELATED EXPENSES.
THEY CANNOT BE USED ON GENERAL SERVICES.
WE OFTEN HEAR, WHY CAN'T WE USE AIRPORT MONEY? OR WHY CAN'T WE TAX ALL THE PLANES THAT FLY AROUND AND, AND HAVE THAT BE PUT INTO THE GENERAL FUND? SIMILAR TO THE PORT AIRPORT FUNDS ARE LEGALLY RESTRICTED AND, UH, FOR AVIATION USES ONLY AND CANNOT BE USED TO SUPPORT GENERAL CITY SERVICES.
WE OFTEN HEAR, WHY DO WE DO THINGS LIKE BUILD INFRASTRUCTURE PROJECTS? WHEN YOU HAVE A BUDGET DEFICIT, WHY DO YOU NOT TAKE THAT MONEY AND USE THAT TO HIRE MORE POLICE OFFICERS OR, OR SOLVE THE ISSUES? WHY DO WE DO THINGS LIKE BUILD AMPHITHEATERS, UM, OR THESE PROJECTS THAT GENERATE REVENUE? THAT'S THE REASON WE, YOU KNOW, CONTINUE THOSE.
THEY'RE OFTEN DEDICATED FUNDING SOURCES IN THE, IN THE CASE OF THE AMPHITHEATER, THAT IS MONEY THAT CAN ONLY BE SPENT ALONG THE COAST, BUT IT IS JUST DESIGNED TO GENERATE REVENUE, UM, THAT CAN HELP SUPPORT A GENERAL FUND AS WELL.
UM, WHEN PEOPLE GO TO OUR RESTAURANTS, WHEN PEOPLE STAY IN OUR HOTELS, FOR EXAMPLE, WE OFTEN HEAR YOU HAVE A BUDGET DEFICIT BECAUSE YOU GAVE OUT A GREEN CART AND SWITCHED OUT THE PURPLE CARTS.
UM, UH, THAT IS ALSO NOT TRUE.
UM, SO STATE LAW REQUIRED US TO DO THAT, AND WE REQUIRED TO DO NOW FOOD WASTE AND STANDARDIZED RECYCLING.
UH, AND SO, UH, ALL OF THAT IS A FEE FOR SERVICE.
IT DID, UH, IMPACT SOME OF THE UTILITY BILLS.
WE'RE NOT ABLE TO TAKE ANY OF THAT MONEY AND PUT THAT INTO THE GENERAL FUND.
UH, WE OFTEN GET ASKED WHY, IF WE HAVE A BUDGET DEFICIT, DO YOU CONTINUE TO DO THINGS LIKE SUPPORT BUSINESSES OR ISSUE GRANTS OR SUPPORT THE ARTS OR OTHER THINGS? AGAIN, A LOT OF THOSE ARE PAID FOR WITH EITHER OUTSIDE DOLLARS, RESTRICTED DOLLARS, OR THEY'RE PART OF ONE TIME INVESTMENTS THAT, UH, THE COUNCIL HAS PUT FORWARD, UH, TO MAKE A, A PROGRAM IMPACT IN A CERTAIN AREA.
AND THEN WHEN THOSE DOLLARS ARE GONE, UH, THEY GO AWAY.
WE OFTEN HEAR THAT, YOU KNOW, IF UTILITY RATES WENT UP, UM, YOU KNOW, CAN'T YOU USE THAT? OR AREN'T YOU USING THAT TO SUPPORT THE GENERAL FUND? UH, AND THE ANSWER IS NO.
UM, AGAIN, IN CALIFORNIA THAT IS ALL
[00:25:01]
RESTRICTED.UM, UTILITY RATE INCREASES ONLY FUND UTILITY SERVICES AND CANNOT BE USED FOR THE GENERAL FUND DEFICIT.
WE ALSO HEAR ISN'T THE DEFICIT DUE TO OVERSPENDING AND SPENDING MORE MONEY, UH, ON, ON NEW SERVICES? AGAIN, UH, WE COVERED THAT BEFORE.
IT'S NOT CAUSED BY OVERSPENDING.
IT'S, UH, REFLECTS REALLY THAT SHARP DOWNTURN IN REVENUE, UH, UH, AS WELL AS THE ONGOING COSTS OF PROVIDING THE EXISTING CITY SERVICES.
WE OFTEN HEAR, WASN'T THERE A SURPLUS? YOU KNOW, WE HAD ALL THIS MONEY AND WHERE DID THAT MONEY GO? UH, WE HAVE NOT BEEN IN SURPLUS.
WE'VE BEEN BALANCED THESE LAST FIVE YEARS, BUT IT HASN'T BEEN STRUCTURALLY BALANCED.
UH, WE'VE BEEN USING THE DOLLARS THAT THE FEDERAL GOVERNMENT GAVE US TO BE ABLE TO COVER SOME OF THOSE, UH, SOME OF THOSE GAPS WHILE WE WORKED ON RECOVERY.
UH, AND SO, UM, YOU KNOW, WE, WE WEREN'T IN SURPLUS AND WE DIDN'T SPEND THAT EXTRA MONEY.
AND WE OFTEN HEAR, ISN'T THE CURRENT DEFICIT THE WORST IT'S EVER BEEN? UH, THAT'S ALSO NOT TRUE.
UH, DURING THE GREAT RECESSION THE CITY HAD YEAR AFTER YEAR OF MAJOR REDUCTIONS, UH, THIS IS ABOUT ONE TO TWO YEARS OF PROJECTED DEFICITS.
AND THEN ARE THERE ANY POTENTIAL NEW REVENUES THAT CAN HELP? UH, REVENUES, UH, LIKE TAX MEASURES AREN'T PROPOSED BY, UM, THE MAYOR AND COUNCIL.
THEY AREN'T PUT IN PLACE BY MAYOR AND COUNCIL.
THEY'RE ONLY PUT IN, IN PLACE BY THE VOTERS.
AND SO, UH, VOTERS, UM, WILL HAVE TWO OPTIONS LATER THIS YEAR TO DECIDE IF THEY WANT TO INVEST.
UH, ONE IS THE COUNTY MEASURE THAT COULD SUPPORT OUR HEALTH, UH, DEPARTMENT.
AND THE OTHER IS THE BLOCK, THE CUTS ACT, UH, THAT ALSO WOULD BE UP TO VOTERS.
WE OFTEN HEAR, WHY AREN'T YOU DOING MORE TO GROW REVENUES? UH, THERE'S ACTUALLY A WHOLE PROGRAM TO DO THAT.
UM, SO, UH, PROGRAMS LIKE SPACE SPEECH OR BRING IN NEW EMPLOYERS, UH, GROW LONG BEACH IS, UH, WORKING SPECIFICALLY ON OUR INVESTMENTS AND, AND REVENUE OPPORTUNITIES, UH, TO ATTRACT NEW DEVELOPMENT, NEW, UH, INVESTMENT AND NEW ECONOMIC ACTIVITY.
AND SO, WRAPPING UP, WHAT'S NEXT? UM, SO WHAT ARE WE DOING IN FY 27 AND 20, UH, I AM SORRY, 26 AND 27? UH, WELL, WE STARTED THIS WORK, UM, UH, LATE LAST YEAR TO ISSUE SAVINGS TARGETS.
WE STARTED WITH A 1% SAVINGS TARGET, AND THEN WE ISSUED A 3% SAVINGS TARGET, UH, IN DECEMBER, UH, TO REALLY, UH, HELP ADDRESS SOME OF THE CHALLENGES WE'RE GONNA SEE IN FY 26.
WE ARE CONTINUING TO SEE MAJOR REVENUE DECLINE.
AND SO, UH, WE DO NEED TO HIT THOSE SAVINGS TARGETS AND EVEN FIND ADDITIONAL DOLLARS, UH, TO BE ABLE TO CLOSE THE, THE EXPECTED GAPS.
UM, WE, UH, DO EXPECT, UM, SOME IMPACTS, UH, FROM THAT YOU DON'T, YOU DON'T HAVE THOSE SAVING TARGETS WITHOUT SOME SORT OF IMPACT.
BUT WE'RE REALLY TRYING TO LIMIT THE PUBLIC FACING IMPACTS THIS YEAR.
SO THAT, UM, UH, WHEN WE ACTUALLY HAVE THE DISCUSSION IN 27, THAT'LL BE A FULL PUBLIC DISCUSSION ON WHAT THOSE IMPACTS ARE.
UM, THEN, UH, WE ARE CONTINUING TO SEE RISING PERSONNEL COSTS AND SPANNING OUR TECHNOLOGY NEEDS AND GREATER OVERHAUL EXPENSES.
OVERHEAD EXPENSES HAVE LED TO A PRETTY BIG INCREASE IN OUR HEALTH FUND.
SO THAT IS ONE OF OUR BIG GENERATORS RIGHT NOW WHEN THE FEDERAL GOVERNMENT AND STATE DON'T INVEST IN OUR HEALTH FUND, THAT IS HITTING THE GENERAL FUND.
AND THEN IN 27, WE'RE GONNA HAVE TO CONTINUE TO LOOK AT THE HEALTH FUND.
WE'RE GONNA HAVE TO CONTINUE TO LOOK AT ALL OF OUR OPERATIONS AND BRING YOU A SPENDING PLAN THAT GETS US BACK INTO ABOUT, INTO BUDGET BALANCE.
SO WHAT'S OUR TIMELINE BEEN? WE WENT OUT TO THE COMMUNITY IN WINTER OF 2026 AND WE TALKED THROUGH SOME OF THESE, UH, ISSUES AND GOT, UH, INPUT FROM THE COUNT OR FROM THE COMMUNITY, UH, AND THEN, UM, WE'RE IN THAT PHASE RIGHT NOW.
WE'RE PUTTING TOGETHER OUR BUDGET, UH, RECOMMENDATIONS TO GIVE THAT TO THE MAYOR, AND THEN THE MAYOR WILL FORWARD THAT ON TO THE COUNCIL.
AND THEN, UM, IN AUGUST, THAT'S WHEN WE'RE REALLY GONNA BE ENGAGING WITH THE MAYOR AND COUNCIL AND ALL THE COMMUNITY ON THE SPECIFIC IDEAS, UH, AND BE ABLE TO GET THAT INPUT ABOUT, UH, WHAT IT'LL TAKE TO GET BACK INTO STRUCTURAL BALANCE.
AND SO THESE ARE OUR GENERAL DATES.
UM, JULY 3RD IS WHEN THE MANAGER PRESENTS THE BUDGET UNDER THE CHART OF THE MAYOR.
THE MAYOR WILL RELEASE IT ON OR BEFORE AUGUST 2ND.
AND THEN, UH, WE HAVE TO ADAPT, UH, THE BUDGET BY SEPTEMBER 15TH.
SO THAT'S, UH, IT IN A NUTSHELL.
UM, I HOPE THIS, UH, IS SOMEWHAT EX, UM, SOMEWHAT CLARIFYING OF WHAT'S BEEN GOING ON.
UM, UH, HAPPY TO ANSWER ANY QUESTIONS AND, UH, WE'VE GOTTEN A LOT OF INPUT FROM THIS ALREADY FROM SOME OF THE NEIGHBORHOODS AND GROUPS, UM, THAT REALLY LIKE TO HAVE A KIND OF A DOCUMENT THAT HELPS EXPLAIN WHAT IS BUDGET, HOW DOES IT WORK, WHAT'S BEEN HAPPENING, AND ALSO HOW IT COMPARES, UH, TO THE PAST.
SO WITH THAT, WE'LL TAKE YOUR QUESTIONS.
AND I, I CERTAINLY APPRECIATE THE SCHOOLHOUSE ROD APPROACH.
YOU KNOW, YOU MAY HAVE HEARD THIS.
HERE'S THE ACTUAL, HERE'S, HERE'S WHY.
SO THIS DOCUMENT IS DESIGNED TO BE SHARED.
SO NEIGHBORHOOD LEADERS TAKE A LOOK AT IT ANSWERS A LOT OF QUESTIONS.
AND I ALSO WANT TO WANT TO THANK YOU.
THIS IS, YOU KNOW, WHEN WE BROUGHT THIS FORWARD, THIS IS, YOU KNOW, IT'S EARLIER THAN BUDGET SEASON, BUT I THINK IT'S IMPORTANT GIVEN WE'VE HAD FOUR YEARS, WE HAVEN'T HAD TO DO REDUCTIONS, UH, TO BE ABLE TO GET OUT IN ADVANCE AND JUST EXPLAIN WHAT'S GOING ON, HOW IT'S HA HOW THE NATIONAL ECONOMY INFL IMPACTS OUR CITIES, PARTICULARLY, PARTICULARLY CITIES OF OUR SIZE.
EIGHT OF THE 10 LARGEST CITIES IN CALIFORNIA ARE ALL FACING THE SAME CHALLENGES.
[00:30:01]
ONLY TWO WITH THE EXCEPTION ANAHEIM.AND THEY GET ALMOST 10 TIMES AS MUCH TRANSIT OCCUPANCY TAX AS WE DO.
UM, YOU KNOW, DISNEYLAND'S DOING PRETTY WELL OUT THERE.
AND, UH, AND THE OTHER ONE IS BAKERSFIELD, WHICH I THINK THEY JUST HAVEN'T PUBLISHED THEIRS YET.
UM, 'CAUSE THEY DON'T REALLY HAVE A DIFFERENT ECONOMIC MAKEUP THAN WHAT WE HAVE.
AND SO WE'RE, THIS IS A GOOD OPPORTUNITY FOR US TO BEGIN TO UNDERSTAND IT, MAKE SURE THE COMMUNITY UNDERSTANDS IT'S ABOUT TRANSPARENCY AND JUST PUBLIC EDUCATION, WHICH IS GREAT.
UM, THE LAST THING I'LL SAY, BEFORE YOU GO TO COUNCIL, IF YOU CAN GO BACK TO THE TIMELINE THAT SHOWS THE FIVE-YEAR PROJECTION RIGHT THERE, YOU JUST PASSED IT.
NOW THIS IS, THIS IS PARTICULARLY IMPORTANT.
YOU HAVE THIS YEAR, WE NEED TO SOLVE THAT, UH, THE STRUCTURAL IMBALANCE WITH THE 61 MILLION.
WE NEED TO SOLVE THAT NEXT YEAR, THE OTHER 25% OF MEASURE A KICKS IN.
SO WE HAVE OPTIONS TO EITHER SOLVE THE DEFICIT OR DO A COMBINATION OF, UM, YOU KNOW, SAVE PUBLIC PUBLIC SAFETY CUTS WHILE ALSO INVESTING INFRASTRUCTURE.
SO NEXT YEAR IT'S REALLY A, IT'S NOT REALLY, I MEAN, THE REVENUE IS THERE IF THE COUNCIL CHOOSES TO SOLVE THAT.
SO ESSENTIALLY IT SHOWS THE REAL TOUGH BUDGET TO PASS IS THIS YEAR IS 61 MILLION.
AND AFTER THAT WE'RE, WE HAVE SURPLUSES EVERY YEAR FOR THE NEXT FIVE YEARS.
AND I THINK THAT'S INCREDIBLY IMPORTANT TO NOTE THAT WE HAVE ONE TOUGH YEAR TO GET THROUGH.
NOW I STARTED WITH THE CITY, UH, WHEN, UM, I STARTED WITH THE CITY WHEN MAYOR FOSTER WAS IN, AND I REMEMBER IT WAS FOUR OR FIVE CONSECUTIVE YEARS WHERE WE HAD REDUCTIONS FOUR OR FIVE YEARS CONSECUTIVELY.
IF WE COULD, IF WE GOT THROUGH FIVE YEARS OF THIS BACK, THEN WE CAN GET THROUGH ONE DIFFICULT YEAR THIS YEAR.
BUT I THINK WE HAVE TO REALLY ACKNOWLEDGE THAT WE NEED TO, WE NEED TO STRUCTURALLY BALANCE THE BUDGET AND NOT PASS IT ON TO THE FUTURE BECAUSE SURPLUSES ARE AHEAD.
AND IF AS LONG AS WE, YOU KNOW, WE HOLD THE LINE, WE'RE GONNA BE ABLE TO DELIVER A STRUCTURALLY BALANCED SURPLUS TO THE CITY FOR THE FIRST TIME.
AND WHO KNOWS HOW MANY SINCE 2016 WITH MEASURE A, I BELIEVE WAS THE FIRST TIME WE, WE'VE DONE THIS.
SO SINCE MEASURE A, THIS WILL BE THE FIRST SURPLUS THAT WE'VE GIVEN BACK BECAUSE OF THE YEARS, WE DIDN'T HAVE CUTS RIGHT AFTER THE PANDEMIC WE'RE LARGELY BECAUSE OF RECOVERY ACT, RECOVERY ACT DOLLARS WERE ABLE TO HELP US, BUT NOW WE'RE GONNA ACTUALLY HAVE A STRUCTURALLY BALANCED BUDGET, WHICH IS GOOD.
SO WE'RE GONNA GO TO THE CITY COUNCIL.
UH, WE'RE GONNA GO TO COUNCIL MEMBER RICK SODI.
I WAS, I WAS, I WAS PREPARED TO QUEUE UP JUST LIKE EVERYONE ELSE.
UM, UH, I THOUGHT THIS WAS GREAT.
UM, I REVIEWED IT, UH, YESTERDAY WITH MY TEAM AND, UM, AND I SEE THAT YOU ALL HAVE EVEN DONE SOME UPDATES SINCE THE, THE LAST TIME I LOOKED THROUGH THE PRESENTATION.
UM, SO THIS IS REALLY, I, I I THINK THIS IS VERY COMPREHENSIVE.
I REALLY APPRECIATED THE, UH, THE MYTHBUSTERS.
ONE THING I I WANTED TO ASK WAS, I SEE YOU ADDED SOME MORE, DO WE CONSIDER THIS KIND OF A LIVING DOCUMENT? SO AS LIKE, AS WE AS COUNCIL OFFICES ARE LIKE HEARING THINGS, MAYBE LIKE WE'RE STARTING TO SEE KIND OF A GROUND SWELL OF LIKE ADDITIONAL KIND OF MYTHS OR THINGS THAT ARE OUT THERE.
CAN WE ADD TO THIS PRESENTATION OVER TIME? ABSOLUTELY.
SO I DON'T THINK WE ADDED ANY, BUT UM, UH, WE CERTAINLY CAN, UM, TURN THIS INTO SOME OF OUR BUDGET DOCUMENTS ONLINE AND, AND ADD TO THAT.
THAT'S, IF YOU THINK OTHER THINGS THAT ARE OUT THERE THAT COULD BE HELPFUL TO BE CLARIFIED.
AND THEN A COUPLE OF THEM ARE JUST CLARIFICATIONS NOW THAT WE'RE GONNA MAKE THIS A, UM, PUBLIC FACING DOCUMENT.
I JUST WANNA MAKE SURE THAT AS WE GO THROUGH EACH OF THE SLIDES, UM, THEY INCLUDE ALL THE INFORMATION ON THE SLIDE SO THAT WHOEVER LOOKS AT THIS, UM, KNOWS WHAT'S THERE.
CAN WE GO TO SLIDE 15, I BELIEVE? AND MY COMMENT I'M GETTING READY TO MAKE IS GONNA BE, I THINK APPLIED TO BOTH 15 AND 16.
SO FOR THESE, I'M GONNA DO MY NERDY STATISTICIAN THING.
UM, CAN WE ADD A, UM, Y AXIS, UM, DELINEATOR THERE? SO I MEAN, 'CAUSE I KNOW, I THINK WE KNOW IT'S RISING COST, BUT JUST SAY LIKE, WHAT DOES 200, 400, 600, LIKE WHAT DOES THAT MEAN? SO JUST ADD SOMETHING, A LITTLE LABEL TO THE Y AXIS ON 15 AND 16.
UH, AND THEN CAN WE GO TO SLIDE 18? UM, AND THEN FOR, UM, THIS ONE, CAN WE JUST ADD A, IS THERE A WAY TO ADD LIKE A LITTLE ADDITIONAL CONTEXT, UM, AROUND THE DRIVERS? BECAUSE I THINK WE'RE, WE HAVE THE ARROWS THAT SAY UTILITY USERS, TAX SALES, TAX INTEREST POOLED, BUT I DON'T KNOW THAT FOR THE, LIKE THE GENERAL PUBLIC, THEY'RE GONNA KNOW EXACTLY WHAT THOSE ALL ARE.
AND I KNOW IN A PREVIOUS PRESENTATION WE ACTUALLY HAD A LITTLE BIT OF LIKE NOTATION IN THERE AROUND LIKE, BECAUSE PEOPLE THINK UTILITY USERS TAX, THEY MIGHT BE LIKE, OH, ARE PEOPLE USING UTILITIES LESS? RIGHT? SO I WANNA ADD A LITTLE BIT OF CONTEXT THERE, JUST SO WHOEVER LOOKS AT THAT SLIDE, THEY KNOW WHAT THAT MEANS.
UH, AND THEN FOR THIS ONE, I KNOW THAT WE'RE SAYING LIKE, HEY, WE, WE ARE LOOKING AT, UM, POTENTIAL LIKE FEDERAL POLICY SHIFTS THAT ARE INDICATING A LOSS, BUT LIKE, SINCE IT JUST SAYS,
[00:35:01]
UH, APPROXIMATELY 3 0, 2 0.2, I DON'T KNOW, SOMEWHERE IN HERE WE NEED TO ADD A LITTLE BIT MORE LANGUAGE.OR MAYBE THAT'S JUST AUGMENTING THE LANGUAGE THAT'S IN HERE TO REALLY MAKE IT MAKE SURE THAT PEOPLE UNDERSTAND THAT THIS IS, LIKE, THIS IS A LOSS.
SO WE'RE TALKING ABOUT $221 MILLION LOSS FOR PUBLIC WORKS.
OUR AIRPORT IS DOWN 49 MILLION.
WHEN I READ THE, UM, THE LANGUAGE THAT'S HERE ON THE, THE BOTTOM RIGHT HAND CORNER, I DON'T KNOW THAT THAT'S COMPLETELY CLEAR.
UH, SO I WANTED TO, TO FLAG THAT.
UM, AND THEN HERE, IS THERE A WAY, CAN WE CHANGE THE TITLE TO THIS? BECAUSE I KNOW WE HAVE OTHER EXTERNAL IMPACTS, BUT I DON'T KNOW THAT MOST OF RESIDENTS, I KNOW WE PUT PENDING VOTER RESULTS, BUT I DON'T KNOW THAT MOST RESIDENTS ARE KIND OF CLOCKED INTO THE FACT THAT THERE'S THESE POTEN POTENTIAL MEASURES THAT ARE GONNA BE ON THE BALLOT.
SO WHEN WE SAY PENDING VOTER RESULTS, AND THEN WE HAVE THESE ASTERISK, I DON'T KNOW THAT PEOPLE WILL UNDER, I THINK PEOPLE WILL LOOK AT THIS AND SAY, OH, WE HAVE AN LA COUNTY HEALTH, HEALTH SALES TAX.
LIKE, THEY'LL THINK THAT'S ALREADY THERE.
AND THEN LAST COMMENT IS GOING TO BE, OR LAST TWO COMMENTS.
UH, SLIDE 22, UH, FOR THIS ONE, I KNOW WE HAVE REVENUE PER CAP, REVENUE PER CAPITA.
CAN WE CHANGE THAT LITERALLY TO LIKE REVENUE PER PERSON? JUST BECAUSE I DON'T KNOW THAT MOST PEOPLE KNOW WHAT REV REVENUE PER CAPITA, AND I DON'T WANT PEOPLE TO REALIZE THAT, HEY, WE'RE TALKING ABOUT LIKE PER POPULATION OR PER PERSON.
UH, AND THEN LAST IS GONNA BE SLIDE 26.
I HAD TO THINK ABOUT REVIEWING THIS, WHAT A SUBSIDY MODEL WAS.
SO IF THERE'S A WAY TO ADD A LITTLE BIT OF LANGUAGE, MAYBE EVEN JUST LIKE A LITTLE NOTE AT THE BOTTOM, LIKE WHAT THAT MEANS.
SO WHEN PEOPLE LOOK AT THIS, THEY HAVE AN IDEA OF, OF WHY WE'RE TALKING ABOUT EVALUATING SUBSIDY MODELS.
UH, BUT AGAIN, THIS WAS GREAT.
SO YOU ARE, UH, I'M REALLY JUST KIND OF LIKE NITPICKING A LITTLE BIT JUST FOR CLARITY.
UM, BUT I THOUGHT THIS WAS A REALLY WELL DONE PRESENTATION.
I THOUGHT IT WAS REALLY CLEAR.
UM, AND I THOUGHT I DID A GREAT JOB OF REALLY, UH, PUTTING FORWARD A CLEAR PICTURE OF WHERE THE CITY IS AT AND WHERE WE'RE GOING.
AND, UH, THANKS TO THE CITY MANAGER AND CITY STAFF FOR PUTTING THIS PRESENTATION TOGETHER.
UM, A LITTLE BIT OF A FOLLOW UP.
SO I UNDERSTAND THAT, UM, UH, THE CITY MANAGER'S BUDGET RECOMMENDATIONS GO TO THE MAYOR IN ABOUT THREE MONTHS IN JULY, AND THAT, I BELIEVE IS DICTATED BY OUR CITY CHARTER.
UM, IS THERE ANYTHING THAT PREVENTS THE CITY MANAGER FROM SHARING INFORMATION? I THINK IT'S A LITTLE BIT OF A FOLLOW UP ON THE PREVIOUS CAN.
CAN WE GET UPDATES OR WHERE WE'RE GONNA GO WITH THOSE RECOMMENDATIONS? CAN WE GET SOME TYPE OF PREVIEW, UH, BEFORE JULY? WELL, UM, THAT IS SOMETHING THAT WE BUILD TOGETHER AND THEN, YOU KNOW, LIKE I PUT TOGETHER THE BUDGET AND THEN THE MAYOR HAS A CHANCE TO LOOK AT THAT.
THAT'S PRETTY LAID OUT IN THE CHARTER.
UH, WE CAN TALK ABOUT WHAT, YOU KNOW, THAT, UH, ALLOWS AND DOESN'T ALLOW.
UM, I CAN CERTAINLY IN OUR BRIEFINGS GIVE YOU A LITTLE BIT OF A, YOU KNOW, SENSE OF WHAT, YOU KNOW, SOME OF THE MAJOR THINGS THEY'RE LOOKING AT, BUT IT'S, IT'S GONNA BE REDUCTIONS TO JUST ABOUT ALL THE DIFFERENT AREAS AND, AND THEN THAT GETS TRANSMITTED TO THE COUNCIL.
AND THEN WE, WE KIND OF NEED TO DO THIS ALL AT ONCE BECAUSE WE'RE ALSO GONNA BE IMPACTING EMPLOYEES.
UM, AND I NEED THOSE EMPLOYEES TO FIND OUT FROM, FROM THEIR MANAGERS WHEN, WHEN THOSE DECISIONS ARE MADE AND STUFF.
SO, UM, I, I CAN LOOK AT HOW DO WE KIND OF, YOU KNOW, MAKE SURE THAT YOU'RE AWARE OF WHAT SOME OF THE, THE, THE MAJOR AREAS THAT WE'RE GOING ON WHILE KIND OF RESPECTING THE PROCESS AT THE SAME TIME.
UH, BECAUSE WE ALSO HAVE TO DO MEET AND CONFER WITH OUR UNIONS AND, AND TALK TO OUR EMPLOYEES AND THEN ALSO, UH, PUT THE INFORMATION OUT TO, TO THE PRESS AND ALSO TO THE COMMUNITY.
I THOUGHT THE BUDGET CHAIR WAS KIND OF GOING IN THAT DIRECTION A LITTLE BIT, BUT IT LOOKS LIKE, UH, WE'RE GONNA FOLLOW, UM, THE CHARTER AND THEN, UH, THE MAYOR THEN HAS TIME TO REVIEW IT AND, AND GET IT TO COUNCIL.
SO WE'RE REALLY LOOKING AT LATE JULY AND, UH, HOW WE MEET IN JULY.
UM, AND THEN OTHER THAN THE INPUT YOU TAKE FROM, UH, OUTREACH MEETINGS AND WHATNOT, THEN, THEN THIS IS IT.
WE'LL, UM, I, I, AND I'M, I'M, I'M SURE THAT YOU INCORPORATE ALL THAT INTO YOUR PROPOSAL TO THE MAYOR, BUT I THINK, UH, THE RESIDENTS NEED TO KNOW THAT THIS IS WHAT WE HAVE FOR NOW.
AND, UH, WE'LL GET DOWN TO THE BRASS TACKS, UM, SOMETIME IN LATE JULY.
VICE MAYOR GAGA, ACTUALLY, I HAD NO COMMENTS ON.
AND, UH, THE BEST PART OF THIS PRESENTATION WAS THE MISS BUSTERS, BECAUSE I LIKE SELF HAVE BEEN ADDRESSING THOSE QUESTIONS FROM THEIR COMMUNITY.
WHY ARE WE DOING THIS AS OPPOSED TO THAT, UH, THAT AS WELL AS EXAMPLE THE POOL.
WHY ARE WE BUILDING THE POOL? THE ONE WE USE THAT MONEY TO DO OTHER THINGS WELL BECAUSE IT'S ALREADY TARGETED FOR THAT, BUT THEY DON'T UNDERSTAND THAT.
[00:40:02]
WAS AN EXCELLENT, GOOD IDEA.COUNCIL MEMBER THRASS TOOK, THANK YOU SO MUCH, MAYOR.
UM, THANK YOU TO THE CITY FOR, UH, BRINGING THIS FORWARD.
AND, UM, I REALLY ENJOYED THE GRAPHICS AND THOUGHT THAT THEY HAD, UH, THE PUBLIC IN MIND, UH, IN TERMS OF BEING ABLE TO TAKE A LOOK AT THEM AND DIGEST THEM PRETTY QUICKLY, UM, AND BE ABLE TO MOVE FORWARD ACCORDINGLY.
UM, MY COM MY COLLEAGUES HAVE MADE, UM, A NUMBER OF REALLY GREAT COMMENTS.
MY COMMENTS, UH, CENTER AROUND, UH, OUR OVERALL REVENUE PIE.
UM, SO LOOKING AT THAT PARTICULAR, UH, CHART, UM, CERTAINLY WE SPEND A LOT OF TIME ON THOSE AREAS THAT ARE OUR TOP GENERAL FUND REVENUE SOURCES.
UH, ONE OF THE THINGS THAT I MIGHT, UH, SUGGEST THAT WE CONSIDER, UM, AS WE LOOK AT THAT OVERALL REVENUE PIE IS IDENTIFY, UM, A FEW AREAS MAY NOT, MAYBE NOT ALL OF THEM AT ONCE, BUT A FEW, UH, YOU KNOW, CRITICAL AREAS WHERE WE CAN IDENTIFY A WAY TO, UM, FIND LEVELS OF EFFICIENCY, NEW OPPORTUNITIES TO BE ABLE TO GROW REVENUE IN SOME OF THOSE PLACES.
UM, I IMAGINE THAT THERE MAY BE SOME OPPORTUNITIES TO DIG A LITTLE DEEPER, DO SOME ANALYSIS AROUND HOW WE CAN IDENTIFY ADDITIONAL REVENUE, UH, STREAMS WITHIN, UM, THOSE, UH, VARIOUS SLICES OF THE PIE.
SO THAT WOULD BE ONE AREA THAT WE MIGHT THINK ABOUT FROM A LONG-TERM STRATEGY, UM, AND SYSTEMATICALLY GO THROUGH THE PIE AND IDENTIFY WHAT THAT MIGHT BE.
UH, THANK YOU TO THE TEAM FOR THE PRESENTATION AND THE HARD WORK.
UM, AND TO MY COLLEAGUES FOR THE COMMENTS.
JUST I'M GONNA FOLLOW, UH, COUNCILMAN RICKS OTIS.
SO ON SLIDE 16 WHEN WE'RE TALKING ABOUT PUBLIC SAFETY, THE ASTERISK AT THE BOTTOM THAT SAYS FULLY LOADED COSTS, UM, TOM, YOU SPOKE TO THAT AS NOT JUST SALARY BENEFITS, HEALTHCARE, YOU TALKED ABOUT THAT IN TERMS OF EQUIPMENT.
AND OVERALL, I THINK THAT'S REALLY AN IMPORTANT THING FOR US TO SPELL OUT WITH THAT ASTERISK, NOT JUST THANKFULLY LOADED, I DON'T THINK PEOPLE QUITE UNDERSTAND THAT THAT IS ENCOMPASSING OF THE ENTIRE DEPARTMENT AND EVERYTHING THAT WE HAVE.
SO IF WE COULD, UM, MAKE THAT MORE CLEAR FOR FOLKS WHO DON'T KNOW THAT TERM, IT GOES BACK TO THAT WE KNOW BUDGET TERMS AND WE USE THEM FREQUENTLY, BUT NOT EVERYONE ELSE DOES.
AND THEN ON SLIDE 20, WHEN WE'RE TALKING ABOUT EXTERNAL IMPACTS, THAT WAS ALREADY MENTIONED, UH, THE LA COUNTY SALES TAX, I BELIEVE IS GOING TO BE ON THE JUNE BALLOT PER THE COUNTY SUPERVISORS.
UM, AND THE BLOCK THAT CUTS ACT IS CURRENTLY GATHERING SIGNATURES FOR NOVEMBER, CORRECT? THAT'S CORRECT.
SO IF WE COULD JUST CLARIFY THAT FOR FOLKS WHO ARE READING THAT, UH, I THINK WOULD BE HELPFUL INFORMATION AS WELL.
ALRIGHT, WE'RE GONNA GO BACK TO COUNCIL MEMBER OTTI.
UM, I JUST HAVE A STATEMENT, UH, COUNCILWOMAN, UM, SORROW, UM, HAD A STATEMENT SHE WOULD LIKE ME TO SHARE.
SHE SAID I REALLY APPRECIATE TODAY'S BUDGET HEARING AND, AND AM UNABLE TO ATTEND AS I'M IN SACRAMENTO TESTIFYING IN SUPPORT OF SB 1279, WHICH WILL ALLOW LONG BEACH TO INCLUDE ITS PORTION OF PCH AND THE EXISTING SPEED CAMERA PILOT PROGRAM.
AS WE REVIEW THE PROJECT DEFICIT OF APPROXIMATELY 61 MILLION FOR FISCAL YEAR 2027, EXCUSE ME, I WANTED TO EMPHASIZE HOW IMPORTANT IT'S TO CONTINUE ENGAGING RESIDENTS BY PROVIDING UPDATED INFORMATION AND HOW THEIR INPUT IS INFORMING THE DECISIONS MADE.
I UNDERSTAND THAT COMMUNITY MEETINGS HAVE ALREADY TAKEN PLACE AND THE SURVEYS HAVE CLOSED, BUT THIS WAS DONE PRIOR TO THE ANNOUNCEMENT OF THE APPROXIMATELY BUDGET DEFICIT OF 80 MILLION AND NOW 61 MILLION.
AT THIS STAGE, IT'S IMPORTANT THAT WE HAVE A CLEAR ACCOUNTING OF THAT ENGAGEMENT, INCLUDING HOW MANY RESIDENTS PARTICIPATED, WHO WE HEARD FROM, AND WHERE THE PARTIC WHETHER THAT PARTICIPATION REFLECTS THE COMMUNITY'S MOST IMPACTED BY POTENTIAL SERVICE REDUCTIONS.
THIS INCLUDES ENSURING THAT OUTREACH MEANINGFULLY REACHED LOW-INCOME RESIDENTS, IMMIGRANT COMMUNITIES, AND NON-ENGLISH SPEAKING RESIDENTS, AND IDENTIFYING WHERE THERE WILL STILL BE GAPS IN REPRESENTATION.
IT ALSO IS CRITICAL THAT WE ARE CLEAR ABOUT THE LEVEL OF INFORMATION THAT'S PROVIDED TO RESIDENTS DURING THIS PROCESS.
FOR COMMUNITY INPUT TO BE MEANINGFUL, RESIDENTS MUST HAVE UNDERSTOOD THAT THE CITY'S FACING A STRUCTURAL DEFICIT AND THAT REDUCTIONS TO SERVICE SERVICES ARE IMMINENT AND THAT THEY SHOULD RECEIVE CLARITY ON WHAT AND HOW SERVICES WILL BE IMPACTED.
AS WE MOVE FORWARD, COUNCIL NEEDS A CLEAR UNDERSTANDING OF WHAT WE HEARD THROUGH THAT ENGAGEMENT.
THE MAJOR THEMES, PRIORITIES, AND CONCERNS RAISED BY RESIDENTS SHOULD BE TRANSPARENT AND DIRECTLY CONNECTED TO THE BUDGET STRATEGIES BEING CONSIDERED.
EQUALLY IMPORTANT IS CLARITY ABOUT HOW THE INPUT IS BEING USED.
WHILE WE HAVE NOT YET RECEIVED THE CITY MANAGER AND MAYOR'S PROPOSED BUDGET, IT'S IMPORTANT THAT WE HAVE A CLEAR UNDERSTANDING OF WHAT WE HEARD FROM THE COMMUNITY AND HOW THAT FEEDBACK IS BEING CONSIDERED BEFORE THE BUDGET IS RELEASED.
IF WE ARE ASKING OUR COMMUNITY TO SHARE IN THE BURDEN OF THESE DIFFICULT CHOICES, THEN WE ALSO HAVE THE RESPONSIBILITY TO ENSURE THAT THE PROCESS IS TRANSPARENT, INCLUSIVE, AND CLEARLY RESPONSIVE TO THE VOICES OF THE PEOPLE WE SERVE.
ALRIGHT, WE'LL NOW GO TO PUBLIC COMMENT.
ONE MEMBER OF THE PUBLIC SIGNED UP TO SPEAK LIO.
[00:45:02]
SO TOM, YOU MENTIONED, UM, THE EMERGENCY RESERVES AND, UM, BUT YOU DIDN'T MENTION LIKE HOW MUCH IS IN THE RESERVES AND THE PRESENTATION AND THAT YOU'RE TARGETING 61.3 MILLION AS A DEFICIT, BUT AGAIN, IT'S JUST A MOVING TARGET SO THAT ALTHOUGH THAT NUMBER SOUNDS GOOD, IT'S PROBABLY NOT GONNA BE THAT, IT'S GONNA BE PROBABLY A LOT HIGHER.WITH REGARDS TO THE ENHANCEMENTS, UM, I'M CONSIDERING THE BLINKING LIGHTS THAT WE'RE SPENDING A CRAZY AMOUNT OF MONEY AND WHAT, UH, COUNCILWOMAN IS DOING IN SACRAMENTO, WHICH IS, UM, SUPPORTING THE SENATE BILL, UH, FOR SPEED CAMERAS, WHICH ARE TIED TO THE FLOCK, UH, CAMERA SYSTEM, WHICH IS TIED TO GOVERNMENT SURVEILLANCE, THE ICE PROGRAM, THE HIGHEST INFRASTRUCTURE.
SO YOU PRAISED IN THE, UM, PRESENTATION AS A GOOD JOB.
WE'VE GOT THE HIGHEST INFRASTRUCTURE, BUT THE REALITY IS LONG BEACH, CALIFORNIA IS THE POTHOLE CAPITAL OF AMERICA.
SO WHAT INFRASTRUCTURE YOU'RE TALKING ABOUT, I HAVE NO IDEA.
OHRI, YOU ALSO TALKED ABOUT THE RISING COST OF ELECTRICITY, BUT YET THE COVANTA FACILITY WAS SHUT DOWN JANUARY 31ST, 2024.
COVANTA, FOR THOSE OF YOU THAT MAY OR MAY NOT KNOW THIS, UH, WAS PRODUCING 36 MILLION, UH, 36 MILLION.
IT WAS PRODUCING 36 MEGAWATTS OF ELECTRICITY ENOUGH TO POWER ABOUT 122 HOUSES.
UM, THERE WAS A PLANT THAT WAS SUPPOSED TO BE BUILT ON THAT SAME SITE, BUT THEN BECAUSE OF COST, WHICH MEANS B******T, UM, THAT PLANT IS NO LONGER BEING BUILT.
SO WE LITERALLY JUST DID NOT DO, AS A CITY, WE DID NOT DO OUR DUE DILIGENCE TO IDENTIFY THE POSSIBILITIES OF ANOTHER PLANT BEING BUILT.
SO NOW WE LITERALLY HAVE, WE HAVE A, WE'RE AT A DEFICIT OF 36 MEGAWATTS OF POWER IN, IN LONG BEACH BECAUSE OF THESE INDIVIDUALS.
AND THAT'S RELATED TO TWO THINGS THAT WERE QUOTED IN WHAT I JUST READ, WHICH IS THE POWER PURCHASE AGREEMENT.
AND THEN THE RECYCLING CREDITS, WHICH PROBABLY HAVE BEEN UPDATED, BUT YET THERE'S BEEN NO MENTION OF THAT.
SO YEAH, THAT'S WHAT I WANTED TO ADD TO THE PUBLIC COMMENTS.
THANK YOU SO MUCH FOR LISTENING.
ALRIGHT, WELL THAT CONCLUDES PUBLIC COMMENT.
UH, WE'LL NOW TAKE THE MOTION TO RECEIVE AND FILE THE PRESENTATION.
WE'LL TAKE THE VOTE MEMBERS, PLEASE CAST YOUR VOTE.
ALRIGHT, UM, I BELIEVE WE HAVE A CLOSING PUBLIC COMMENT ON THE MEETING.
SO IN CLOSING, WHAT I WANTED TO SAY WAS, AND UM, I WISH
[PUBLIC COMMENT Opportunity to address the City Council on non-agenda items. Each speaker is limited to three minutes to make their comments unless extended by the City Council.]
THAT TERRY ACTUALLY GOT TO GOT UP TO SPEAK BECAUSE YESTERDAY DURING OUR DAILY CONVERSATION, AND I'M GONNA CALL IT A STRATEGY CONVERSATION BECAUSE WE'RE ACTUALLY WORKING TOGETHER, UM, SHE HAD A VERY, VERY GOOD POINT AND THAT HER POINT WAS, I'M GONNA DISTILL IT IN ONE SENTENCE.HER POINT WAS, IN FOUR YEARS, NOTHING.
AND I AM PARAPHRASING A LITTLE, BUT IN FOUR YEARS I'LL REPEAT THIS, NOTHING HAS IMPROVED.
AS A MATTER OF FACT, YOU CAN LOOK AT ALL THE DATA BECAUSE GUESS WHAT, THESE INDIVIDUALS ARE AMAZING AT USING EXCEL.
I MEAN, THESE POWERPOINT PRESENTATIONS ARE PHENOMENAL WITH ALL THESE CHARTS, RIGHT, WITH ALL THESE COLUMNS AND THESE CHARTS AND THEY'RE BEAUTIFULLY COLOR CODED.
BUT THE REALITY IS THAT NOTHING HAS IMPROVED IN FOUR YEARS.
EVERYTHING THAT THE PIE CHART REPRESENTS IS JUST THE PIE CHART, WHICH MEANS NOTHING.
SO THERE'S A POA, THERE'S A PLAN OF ATTACK, BUT YET NOTHING'S HAPPENING.
IT'S ACTUALLY GOING BACKWARDS.
[00:50:01]
SO WE JUST KEEP SPENDING.SO IF YOU'RE THINKING ABOUT THE 61.3 TARGETED DEFICIT, WHAT'S REALLY BEING IDENTIFIED IS, F**K, WE REALLY DON'T KNOW WHAT WE'RE DOING, BUT WE'RE GONNA SPEND A CRAZY AMOUNT OF TIME TO PUT TOGETHER ALL OF THESE PRESENTATIONS, TO HAVE ALL OF THESE MEETINGS TO UTILIZE HUMAN CAPITAL, RIGHT? 'CAUSE THIS COSTS MONEY.
THESE PEOPLE ARE NOT HERE FOR FREE.
SO WE'RE JUST ADDING TO THE BILL DAILY, RIGHT? AND YOU CAN DISTILL IT DOWN TO THE SECOND, BECAUSE WE'RE TALKING ABOUT HUNDREDS OF MILLIONS OF DOLLARS, ALMOST $1 BILLION TO RUN THE CITY.
SO I URGE YOU TO REALLY, YOU'VE GOT 56 DAYS, FIVE, SIX DAYS, JUNE 2ND TO REALLY THINK ABOUT WHO YOU WANT TO ELECT FOR THE NEXT FOUR YEARS.
BECAUSE THIS ONE HERE, JUST LOOK AT THEIR TRACK RECORD.
AND IT STARTS WITH MY BUDDY RIGHT HERE, TOM, WHICH IS GONNA BE AGAIN, THE FIRST PERSON THAT I FIRE WHEN I TAKE OFFICE.
ALRIGHT, UH, THAT CONCLUDES PUBLIC COMMENT.
THIS SPECIAL MEETING IS NOW ADJOURNED.
WE'LL BE BACK AT FIVE O'CLOCK FOR THE LONG BEACH CITY COUNCIL MEETING.