Budget Adopted by City Council

By Julie BUTCHER

Before deliberating and unanimously adopting a budget in excess of $938 million for the upcoming fiscal year, the Glendale City Council at Tuesday night’s meeting debated and ultimately green-lighted the transfer of $21 million from the City’s utility.

Prior to the budget discussions, the Council recognized and honored graduates from the City’s youth program, STAR (Students Training As Role models). Started in the mid-1990s, the program focuses on the most vulnerable youth from low- and moderate-income families, ages nine to 14, and offers intensive long-term mentorship and guidance, coordinated by Glendale’s police and community services and parks departments.

“Our officers and staff help students develop effective advocacy tools for their own success,” explained a police lieutenant about the program, which has graduated approximately 100 students. “[They] then give back to the community, back to their high schools.”

City Clerk Ardashes “Ardy” Kassakhian announced an additional opportunity to learn more about changes anticipated in the administration of next year’s election at a community meeting called “Voting Solutions for All People” on Thursday, June 13 from 6 p.m. to 9 p.m. at the Armenian Society of Los Angeles, 117 S. Louise St. in the library room on the third floor. Glendale’s clerk and LA County’s Registrar/Recorder are co-sponsors of the event.

History and litigation continue to color discussions of the City’s annual charter-authorized transfer of 10% of the utility’s Electric Works Budgeted Operating Revenue, this year just over $21 million. City Attorney Michael Garcia provided an overview starting with two lawsuits filed in 2014 by the Glendale Coalition for Better Government challenging the legality of the fund transfer, alleging that the City violated its charter in its accounting mechanisms and that the transfer itself violated Prop 26. Prop 26 is a statewide voter-approved measure designed to protect against charges (and fees and taxes) beyond what it costs to provide a public service.

Garcia reported that the City lost on the practices that violated its own “archaic accounting rules,” but that the judge had ordered no repayment or the transferring of any funds as a remedy, instead solely ordering future compliance. The City has appealed the Prop 26 portion of the ruling and is buoyed by several recent appellate court cases supporting its position. One recent decision by a court of appeal specifically defines a transfer such as the City proposes as “not a tax.” Garcia held the court papers up for emphasis.

“The transfer makes the budget what it is today,” said Councilmember Zareh Sinanyan summing up the arguments of the Council majority. “You can’t pretend that you support the budget, you support the City, you support the employees, if you don’t support the transfer.”

Mayor Ara Najarian was direct and deliberate in his comments.

“Let me speak plainly to the members of the Coalition for Better Government. Although you may have some grounds to make your legal challenge, the point of challenging the transfer that was called for in the charter is short-sighted. It’s short-sighted because those funds go into the general fund. We’ve trimmed many departments, gone from 2,000 employees down to 1,600, maybe even less. The general fund goes to support two of our biggest expenditures – police and fire – and my obligation is to keep public safety a priority.”

Councilmember Paula Devine explained her intent to vote no on the funds transfer.

“I voted no on the transfer and on the budget last year and, in order to remain consistent and to stay true to my beliefs, I’m going to do the same this year. [That is] because the $20 million is used in the calculation of the cost of service and that has resulted in rate hikes for our residents and, because we’re still in litigation, if we lose we would have to pay it back.”

Devine was the lone “no” vote on the GWP transfer but voted in favor of the overall budget.

Sinanyan responded to public comments alleging that Glendale city workers are overpaid.

“They’re not overpaid,” he said. “Yet our City’s performance records and general safety are out of proportion. Let’s face it; we’re not one of the richest cities in the state, but we are consistently one of the safest cities in the state.”