Barry Allen’s Comments on Glendale Finances in the 05-04-08 Vanguard Weekly News

“Wow, here we are with 8 weeks left before the Council passes a budget. A new acting director of finance who we are all counting on to give us – that’s right you and the public ---the correct numbers. Each year Glendale, as one of 900 members of the Government Finance Officers Association, receives a meaningless Certificate of Achievement for the Comprehensive Annual Financial Report that is conspicuously posted at the front of the CAFR. The City once again spent more than it took in even though they counted pass through monies from the superior governmental agencies, twice. Fortunately knowledgeable and forthright members of the public kept you from spending $41,000,000 on rebuilding two un-needed fire stations. For 1/5th of that amount you were able to purchase Rockhaven for public use. Mayor Drayman and Council member Yousefian need the help of one more Council member, a Council member that is willing to put the interests of the public first and foremost in demanding fiscal accountability from City Management. Council member Najarian who once said that accountability is just a cute word and Council members Quintero and Weaver who had nothing except accolades for the former acting director of finance, all need to re-evaluate their positions on the financial and economic welfare of the City. Mr. Najarian told the public he is an economist. An economist must be knowledgeable as to how much money is available to invest on the long and short term and is very dependent on good record keeping from the finance department. The Council should have known from not only public records and financial reports from the outside auditor that the pretty pictures were only a façade. Even Council member Weaver correctly would say that we don’t have the money for this venture and that the others wouldn’t listen or question staff. Red Flags:

1. Between 2005 and 2007 pension payments doubled to $20,000,000

2. The investable cash dropped from $1.5B to $1.3B

3. Capital Outlay went up $33,000,000 in one year

4. Capital Outlay included non-capital expenses such as car washes and credit card charges and $20,000 to Right Mind Consulting for data base management

5. $93,000,000 in accrued unfunded post retirement benefits

6. Employees are given take home cars, fuel, insurance and aren’t required to list mileage

7. The MSB Seismic retrofit was financed by encumbering the fire apparatus and the buses

8. Today the City can’t tell the public how much the retrofit has actually cost.

9. The Enterprise businesses are not well thought out, other than the GWP, they lose money. One suggestion would be to make them leased concessions without using City employees.

Last week you heard from the HR Director that you should pay more to get better – the same mantra you hear whenever Management is promoting excessive salaries when hiring new directors and which is not backed by HR studies of hiring best practices. It is time to ask serious questions of Management and demand accountability. Management will be here until they retire on a bountiful pension while each of you will be scrounging money for your next election, answering questions as to why you let the public’s money go to waste. Don’t accept Management‟s statement that something isn’t true…make them show you the documents. We heard Dr. Espiritu make statements about the sidewalks, curb cuts, the Beeline and the Nextbus system. Management said Espiritu was wrong. Last week DPW Director finally said in response to Mr. Yousefian that the Nextbus System doesn’t work. Vindication of Dr. E. Will the City be able to fund the new $30,000,000 Beeline contract while continuing such irresponsible behavior as granting exorbitant salaries while using outside consultants and law firms to do the work?

[ED Facts and figures were taken from public documents.]