COUNCIL POSTPONES ACTION ON REDEVELOPMENT BUDGET.Byline: Rick Orlov Staff Writer The Los Angeles City Council Instead, the council said it wanted to take a closer look at the financially troubled agency's spending plan with suggestions on how it can reduce its debt, estimated at $8 million this year. ``I think we can make some changes to begin to address their shortfall,'' Councilman Hal Bernson Hal Bernson served as Los Angeles City Councilman for the 12th district. He was chair of the Transportation Committee. Prior to being on the City Council, he served in the Navy. Preceded by Robert M. said. ``One of the first things First Things is a monthly ecumenical journal concerned with the creation of a "religiously informed public philosophy for the ordering of society" (First Things website). we should do is look at combining its planning staff See: central planning team. with ours (the Department of City Planning). That's about 11 positions and $1 million. Then, we should look at other areas where we can consolidate jobs.'' The CRA See Community Reinvestment Act. board has been in an ongoing dispute with the agency's administrator, John Molloy, over his budget proposal for the fiscal year beginning July 1. The budget plan calls for issuing bonds to cover a shortfall. On Tuesday, some council members warned the board to move quickly to approve a budget or risk having the council take over the decision. Riordan urged the council Thursday to delay taking any action on the CRA, to give the commission and the agency more time to deal with the problems. Also on Thursday, the CRA board refused for a second time to adopt the budget, although it passed a 60-day continuing resolution to keep funding in place for the agency's 200-member staff and its variety of programs and projects. ``I am pleased they have done that,'' Councilwoman Jackie Goldberg said. ``They are working to get to the bottom of the problem, and I do think the commission ought to be permitted to complete its work.'' Molloy has proposed a budget of $22.7 million for operations, with $159.5 million in projects and debt service, and $11 million in new bonds. ``I am opposed to using debt for operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ,'' Councilman Joel Wachs said. ``That would be an absolutely terrible thing. Once you go down that path it leads to potentially fiscal ruin. It is a very bad precedent.'' Councilman Nate Holden asked that a review be made of whether the commission had violated the state's open meeting law by a private memo sent to board members. The memo asked commissioners if they agreed with sending a letter to employees assuring them they would be paid even as the commission dealt with the budget problems. Holden said the letter should have been discussed only in public and not been part of a private communication sent to board members. |
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