City Council passes budget and disses voters at the same time

Council passed the annual operating budget last Monday night. Mostly, from what I can see the budget is appropriate.

I do have one serious concern: they added nearly $4 million more to the city’s General Fund reserve. Ok. Reserves help with stability, and generally I don’t have an issue with a healthy reserve. BUT, Pasadena already has a very healthy General Fund reserve. So healthy, the city recently earned a AAA bond rating.

Here’s my gripe, when they were campaigning for passage of Measure D, which I supported, the Mayor, former city manager, current interim city manager and the Council said they faced an emergency if the Utility User Tax wasn’t extended. BUT, now that the have the UUT in place, the city leaders are taking cash and putting it in their own reserve funds. NOT using it for services. NOT using it for constituent support. NOT using it for anything at all. If there was an emergency in February and it no longer exists, it seems to me only fair that, rather than line the city’s bank account, the appropriate action would have been to rebate that $3.7 million to the folks who pay the Utility User Tax.

As for the argument that other cities have higher reserves — those cities don’t enjoy a AAA bond rating. They also don’t have a utility company that generates mass quantities of money on a daily basis and that carries both a reserve and a working capital reserve valued together at more than 25% of the General Fund budget. Oh, and let’s not forget the Capital Projects Reserve and a host of other funds carrying balances to hedge against lost revenue or emergencies.

So, I have take my hat off to Martin Truitt and Wayne Lusvardi, who apparently were prescient when they said that the city didn’t have an emergency, didn’t need the UUT renewal and that city leadership was only going to fatten its own wallet with the money.

In times of economic stress, I do find it difficult to accept a city government that increases its own reserves rather than do what it can to relieve the stress on its citizens and businesses.

Paul