With
the “non-binding” football stadium deal signed, sealed and delivered
on time to meet the ultimatum from AEG’s Tim Leiweke, the City Council moved on Wednesday to protecting the Community Redevelopment Agency’s funding to subsidize more downtown luxury hotels and condominiums and looking at numerous schemes to raises taxes to keep the city afloat.
Even as City Administrative Officer Miguel Santana noted in passing that the financial problems the city faces are entirely due to soaring costs of salaries, pensions and health care and not the modest decline in revenue in the recession, Chief Legislative Analyst Gerry Miller was outlining ways taxes could be raised on just about everybody on top of the planned massive hikes in water, power and sewer rates.
There was even a lot of talk about all the money “left on the table” — and they didn’t mean the tens of millions of dollars that no one of the Council dared to seek from AEG as part of its lower-than-market-value-keep-all-the-revenue stadium deal.
For his part Leiweke made it clear after the unanimous vote Tuesday (reopened Wednesday so the sycophantic Tom LaBonge could join in the unanimity) said that reopening the deal to look at
profit sharing would not be in the cards because it wouldn’t “inspire confidence” with the NFL — far different than the official reason that the stadium is a low-profit margin operation with a return of just 6.7 percent.
“Let’s not revisit deals that have already been done,” he said without apparent irony about a deal that was done in back rooms long before he ever went public with it.
The curve ball about money left on the table that did come up before the Council was thrown by Ron Galperin’s Ad Hoc Commission on Revenue Enhancement which suggested that the looming deficits of $200 million or more could be wiped out if the city merely operated in an efficient and competent manner.
For instance, there’s the $18 million in tax revenue due the city from the county from 2004 to 2008 that no effort was made to collect and the millions more that are lying around in the state and federal treasury because Controller Wendy Greuel doesn’t bother to track and audit money owed the city from other government agencies.
Then, there’s the commission’s chance discovery that the proprietary departments — DWP, Harbor, Airport — made $322 million in purchases in a six-month period without making any effort to support LA-based businesses that would pay sales taxes on the purchases as well as providing jobs and paying business, property and other taxes.
Only five of 69 bids that were examined went to local companies and those accounted for only 2 percent of the value of the purchases.
In addition, the departments spent $60 million in eight bids for fleet vehicles — none of which went to an L.A. firm.
You would think at least one of the Council members would lose their temper and demand that heads will roll for this bungling incompetence.
Instead, there was a lot of backslapping about how they solved all the budget shortfalls to this point and only laid off fewer than 500 of the city’s 50,000 workers and got pension and benefit concessions that do nothing to solve the underlying problem that costs of payroll and benefits are beyond the city’s ability to pay unless there is an economic miracle sooner rather than later.
And if there isn’t — if there is a double dip recession that goes on for years?
Not to worry. This crop of do-nothing politicians will be living high on city pensions and lifetime health benefits themselves.
Your columns lately have literally cried for
reaction and correction.
Why do we put up with this? Get mad, folks.
Okay, so, any Council vote to raise fees and taxes (one in the same) protects Council’s pension. Therefore, any Council vote is a conflict of interest.
The Pensions will go BANKRUPT. They can’t grab enough $$$$ fast enough to cover it. If the Stock Market goes down more–that’ll be the final straw! Sacramento ALREADY THIS WEEEK needs ANOTHER 550 MILLION TO COVER THE STOCK MARKET FROM THIS MONTH ALONE!!!
UHAUL—MAKE YOUR RESERVATION TODAY AND GET THE HELL OUT OF HERE ASAP!
Wayne, there are many reasons many of us cannot leave. But we must not run for our lives, we must fight back. Why cannot we get help from our
goveernment and the law? Is everyone crooked now?I don’tthink so. Then what are we afraid of?
Mistakes can be forgien, but delibeerate acctions
are to be held up and corrected. Surely most of us are not the perps but byy fightting back we
need not be victimized. At my age, I will be dying soon anyway, so you can use me anyway
that will help. I promise I will.
The people have a voice and reps aside from the incompetent assholes in City Hall. Where are those voices? I have personally called the NFL and said ‘HELL NO TO LA HAVING A FOOTBALL TEAM. TAKE THE TEAM TO THE CITY OF INDUSTRY.
At least I’m trying to do something. Folks, you better get off your lazy asses and start making phone calls, emailing and letting as many people as you know the bullshit corruption going on in City Hall. When I send out stories to friends who typically aren’t in the know of City Hall corruption they are shocked. Candidates like Wendy Greuesome who they were going to support aren’t. Jan Perry constituents in South LA are also naive and after reading what I sent again, not supporting her. We have to do it ourselves since we have nothing but tabloid reporters in LA.
Sadly, I’ve been looking for a new home. I believe the one I’m in was a victim of bribed or “glance it over” inspectors. The architect is a high roller, as was his crooked contractor.
When checking out surrounding areas (I don’t want to move far away at this time–personal reasons), I have noticed surrounding areas are as bad. Perhaps it’s a California thing.
Many property listings boast of not being within the coastal commission. Imagine that-bragging that a home owner would not be subject to them.
LA is one of only three (2?) cities in the area that allows submeters. The submeter has saved me thousands on my water bill over the years. I was told the person that pushed the submeter through was former Mayor Riordan. Say what you will about him, I am grateful he pushed that through.
In one area outside the city, a person has to get a permit to drive a vehicle on the road, unless you’re the home owner. Or, maybe the homeowner does too.
So, maybe the moral here is, when I can, I need to leave California. It breaks my heart, because this is my home. But, I cannot stand what is happening and I don’t see an end in sight.
Ron’s post on campaign finance reform (real reform) may be the only answer. Methinks that one won’t even make it on the ballot. After all, isn’t it the very people who depend on those donations that would put it on the ballot?
I’m actually looking for a new home in LA County, outside LA City boundaries. That’s the only solution I see.
Its interesting to hear the discussion of raising taxes including the Hotel Occupancy tax. Just last year, the City Council waived the Occupancy tax on the Grand Wilshire Hotel project.
Give the newest biggest hotel tax breaks and let the older, smaller hotel make up the difference.
We can tell just by the audit reports that something is wrong internally. An FED Audit should be conducted.
It’s much easier to tax than look in the mirror (City of L.A.) at your internal/accounting policies and procedures. Or to reinvest money in more safer funds after losing billions.
All of lovely Philippian girls in the accounting department for the City of L.A. would never challenge one thing; that’s why they were put there. To never challenge what and how things are done.
Now many are retired. Living back in their native country.
Docile employees are treasured in city of LA. They mirror the General Managers selected by the Mayor. Typical to hit below the belt rather than at the head. Go ahead and do something about our corrupt Mayor instead of hitting at low-level employees.
You will want to fill out this FAFSA. You may get some funds from the federal (money you don’t need to pay for back) and also loans (which you’ll pay back later). I think quite often that they offers you more than enough college money that you’re now even though you may higher education. Then again, after you move on, it is typically problematic to experience a lot of funds that you ought to reimburse. Consequently, you ought to need as few as conceivable.
The council feels the need to raise taxes and fees but it still is giving Eli Broad $52 M and paying Sacramento an extra $97 M to keep the CRA which will please us of another 1/3 Billion in the upcoming year.
The city has plenty of money — if it would stop giving it to goniffs, mamzers and other crooks.