11-28-08, An Open Letter to the Glendale City Council by Bruce Philpott

 

Glendale faces a serious fiscal crisis that several others and I saw coming several years ago and warned you about. Until now you have dismissed these concerns, labeling these messengers as ill informed pundits. 

 

On November 3rd, a community commentary was published in the GNP, titled, Some Kudos to those who pay attention. The author, who is a member of your very own Audit Committee, gave kudos to one of those who has spoken out, for his advocacy regarding more accountability and transparency in the city’s financial condition. In his article, he identified several areas of importance regarding the budget. At the top of his list were the big-ticket items: “increasing costs and increasing staff and salaries”. As a member of the audit committee he is in a unique position in understanding the financial realities the city is facing and, by writing this community commentary, he is encouraging more public participation. 

 

The day following that article, the GNP published an article that gave kudos to Mr. Borucki, our city treasurer. No doubt Mr. Borucki has done a fine job as the steward of the city’s investments, but contrary to some of the public’s understanding, Mr. Borucki’s only function is to invest the money the city gives him. He does not engage in or attempt to influence the city’s fiscal policies. That rests entirely with the city manager and city council. The title of the article, Treasurer: Glendale’s investments ‘safe, sound’, gives the reader the impression that Glendale is fiscally sound. However, over the past five years, Mr. Borucki has seen his investment portfolio shrink from $600 million to $440 million. There is a direct connection between the loss of $160 million in the portfolio and the audit committee member’s plea for broader public participation in the city’s finances. 

 

In an effort to trump the citizens’ warnings that the city is in dire financial straits, Councilman Quintero, wondering what all of the fuss was about, stated on the dais that the city had over $500 million in reserves. Perhaps Mr. Quintero is unaware that the unrestricted reserves are less than 15% of the total amount in the city’s investment portfolio and well under the amount that is considered prudent.

 

The community commentary written by the member of the audit committee is a clear warning of things to come. Few people are aware that the city has spent $197 million more than it received in revenues over the past six years.

I, once again, call upon this body to begin an intense review of the budget and take the necessary belt tightening measures required. This process should be conducted in an open and transparent environment and presented in such a way that the public can understand the severity of the problem. A top to bottom review of the city’s finances would be the first step, followed by a zero-based performance review of programs and services.

 

Let me cite one example where the budget can be reduced without cutting services: the city can save $120,000 annually by canceling the quarterly publication, titled City Views. It is perceived by most as just a PR marketing scheme, and during hard fiscal times, the 42 highly paid city employees that give many hours each quarter to producing this newsletter, can redirect those hours to their primary job function and be more productive. The public must wonder, how many more of these kinds of excess spending activities can be cut in an effort to restore fiscal solvency?

 

Bruce Philpott

1418 Western Ave

Glendale, CA 91201

818.240.8949

Email: brcphilpott1@aol.com/