City Finance Issues: Editorial | Mid-Year Report by City Manager Falls Far Short of Expectations

 

With high hopes of a new and improved city manager’s office operation after the hiring of Arminé Chaparyan, there are several areas of concern that have surfaced over the last 24 months. The most concerning is a less than stellar result in the area of city finance.

At the February 21, 2024 public joint finance commission city council meeting, Chaparyan’s six-month city finance report could have been a crucial opportunity to break through and establish her office as fully capable of assessing, planning, and providing a complete and useful report on the difficult financial situation that the city is in. Instead, the opposite happened.

According to Finance Commissioner Sheila Rossi’s open session response, the six month report provided didn’t include any line item data necessary for analysis; noting that it’s the analysis that drives decision making by the City Council as well as the groundwork for serious recommendations by the Finance Commission.

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The predicament of South Pasadena city finances is serious and systemic as reported by the Finance Commission and backed-up by 3rd-party reporting by recently contracted NHA consultants. The seriousness of the situation has now been defined and established. For the first time in over a year of effort by city staff, various consulting firms, and council members; the plan to remedy the city finance issues has yet to be fully established.

The City Council was prepared for action back on the February 21st council meeting. Councilmember Janet Braun proposed an ad-hoc finance committee to get to the bottom line on every area of city finance operations, needs, wants, and detailed expenditures – to see how the city can reverse the trend. The ad-hoc committee is proposed to be comprised of both city council members and finance commission members.

The move to establish the ad-hoc committee did not receive pushback, however there was concern that this ad-hoc could be perceived as a ‘watchdog’ over city staff as well as lengthen the time to establish the budget by end of June 2024.

According to the council and finance commission discussion, the adhoc is a positive thing, and opportunity to assist with the work and expertise necessary to get the line item details necessary on real-world city operations on the department level. Then, to report back to both the city council and the finance committee with detailed data necessary for sound decision making; essentially provide more resources to the city manager’s office toward the task of generating a useful six month report.

Decisions about the ad hoc finance committee are on the table for tonight’s council meeting: March 20, 2024.

The public is encouraged to attend in person, or online.  Public comment can be made via zoom.

The live stream can be viewed online CLICK HERE

Viewers have the ability to provide public comment via zoom during the meeting: CLICK HERE to provide public comment during designated times.

More on this topic as it unfolds.

From the South Pasadena Government website: Public Comment Guidelines:

The City Council welcomes public input, however, to ensure City business can be conducted in a timely manner General Public Comment will be limited to 30 minutes at the beginning of the agenda. If there are speakers remaining in the queue, they will be heard at the end of the meeting

Members of the public can comment on a non-agenda subject under the jurisdiction of the City Council or on an agenda item, you may participate by one of the following options:

Option 1:
Public Comment speakers have three minutes to address the Council, however, the Mayor and City Council can adjust time allotted as needed. Participants will be able to “raise their hand” using the Zoom icon during the meeting, and they will have their microphone un-muted during comment portions of the agenda to speak.

Option 2:
Email public comment(s) to ccpubliccomment@southpasadenaca.gov.
Public Comments received in writing will not be read aloud at the meeting, but will be part of the meeting record. Written public comments will be uploaded online for public viewing under Additional Documents.  There is no word limit on emailed Public Comment(s).  Please make sure to indicate:

1. Name (optional)
2. Agenda item you are submitting public comment on.
3. Submit by no later than 12:00 p.m., on the day of the Council meeting.