01-02-08, Bruce Philpott Comments on Creative Borrowing Catching Up With California Cities

As cities move further into this recession, we will be reading more and more about how some, actually many, ignored the fiscal warnings and others, through good judgment, sought shelter and maintained sound financial footing. The article on the link below is one of the first that we will see repeated on how cities are drastically cutting back services, deferring infrastructure maintenance, and borrowing to the hilt, to avoid financial collapse. The simple formula they all share in common is that they over spent during the last six years when the economy was robust, giving to what they have come to realize, were unsustainable compensation packages and pension benefits to employee groups. Unfortunately, Glendale falls into the group of cities that decided to over spend during the good years. We have much to do to restore our own municipal finances. It can be done, but we must reverse the present council's financial policies. We will have that opportunity on April 7.

For those who do not get glassy eyed when they read a bunch of numbers, I would also refer you to two other web sites that address this and similar issues: Pensiontsunami.com and California Foundation for Fiscal Responsibility.

P.S. did anyone happen to see the front page article in the Glendale News Press on January 1, 2009, titled, Water rates officially go up 12.4%? This will push our water and electrical rates to the highest levels when compared to almost every other utility in the state. Let me know if you want to read the surveys.

Bruce Philpott

818.956.3321

Creative borrowing catches up with California cities - Los Angeles ...