COUNCIL TARGETS CITY DEBT; BORROWING LIMIT SET UNDER PHASED PLAN.Byline: Rick Orlov Orlov (Орлóв) is the name of a Russian noble family which produced several distinguished statesmen, diplomatists and soldiers. The family first gained distinction in the person of four Orlov brothers, of whom the senior was Catherine the Great's Daily News Staff Writer Concerned about the city's growing debt load, the Los Angeles City Council  The Los Angeles City Council is the governing body of the City of Los Angeles, California, United States. on Tuesday adopted a phased-in program to limit borrowing
over the next two years.
Under the new debt program, the council agreed to limit non-voter-approved borrowing to 6 percent of its $4 billion budget and to limit all borrowing to 15 percent. The council also agreed not to borrow to buy any products that have a life span of less than six years. ``This will satisfy Wall Street and make sure we are able to keep our high credit (AA-2) ratings,'' said Chief Administrative Officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive Keith Comrie. The council rejected a Comrie proposal that would have allowed the council to divide the borrowing evenly - at 7.5 percent each - among that approved by voters and that approved by the council and mayor. ``I think you ought to keep some flexibility, so that in hard times you will be able to borrow,'' Comrie said. By spreading the impact of the policy, which can be changed at any time by a majority of the council, the city will have two years in which to cover the $20 million in costs to its general fund. The 13-1 vote for the policy, with 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. dissenting dis·sent intr.v. dis·sent·ed, dis·sent·ing, dis·sents 1. To differ in opinion or feeling; disagree. 2. To withhold assent or approval. n. 1. , came after a nearly two-hour debate in which council members cautioned against going into further debt. Aides to Mayor Richard Riordan Richard J. Riordan (born May 1, 1930) is a Republican politician from California, U.S. who served as the California Secretary of Education from 2003–2005 and as Mayor of Los Angeles from 1993–2001. Riordan ran for Governor of California unsuccessfully in 2002. said he remained opposed to the council action and was concerned about its impact with bond-rating agencies. ``The mayor's view is unfortunately the council chose to restrict the city in its ability to provide essential public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. ,'' said budget director Jennifer Roth. ``Basically, what they chose to do is put a hole in our budget that will force us to choose between replacement of vehicles or other crucial services in the city.'' Roth said the mayor would not want to go against the policy because of the message that would send. ``The whole point is to have a policy that's realistic,'' she said. ``My sense is the bond-rating agencies would not look kindly on us if we have a policy that's constantly changing.'' Riordan spokeswoman Noelia Rodriguez said the mayor will take the next 10 days reviewing the council's action in comparison with the proposal submitted by Comrie and backed by the mayor. ``The mayor wants to look at the real-world effects of the policy and determine how it works,'' Rodriguez said. The council has voted to put about $1 billion in bond measures on the Nov. 2 ballot, which Comrie said would raise the city's voter-approved debt to the 3 percent level. ``We should adopt the most stringent policy we can,'' said Councilman Joel Wachs Joel Wachs served for several terms as Los Angeles City Councilman for the 2nd district. He was first elected by defeating incumbent James B. Potter. While in office, Wachs chaired the Public Works Committee and vice-chair of the Environmental Quality & Waste Management . ``It is big borrowing that got cities like New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of into so much trouble.'' The amount of non-voter-approved borrowing has gone up dramatically over the past five years, costing the city $25 million in annual payments. Comrie said most of that was to make up for the years in which the city failed to replace emergency vehicles, particularly police cars, and computers. |
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