Long Beach City Council to Declare Fiscal Emergency

When people accessed the City of Long Beach’s website to read the City Council agenda that's posted there each Friday before the following Tuesday's meeting, they found that City Manager Jack Schnirman proposes a resolution to formally declare a fiscal emergency that will give him greater authority to control and veto spending.  

The exent of the city’s financial crisis has become increasingly more evident, with one recent report showing that nine departments have already exceeded their overtime budgets just six months into the fiscal year for 2011-12, according to Newsday:

Schnirman said:

"We will scrutinize and sign everything by hand. We are not shy about sending things back for more information, more documentation or just plain saying no."

The proposal comes after Moody’s Investors Service downgraded the city’s A1 bond rating  from A1 to Baa3, a grade below A1, in December, a month after that it came to light that the city faced a $1.3 million deficit at the end of 2011, threatening the year-end payroll. The council subsequently approved a proposal to borrow $4.5 million, in part to cover a payroll shortfall in December and to payout contractual obligation for retirees, using anticipation and budget notes.

Tuesday’s meeting, at 7 p.m. on the sixth floor of City Hall, will be the first for the new Democratic-majority administration.