I copied and pasted this from the city website. Enjoy! (source – read the article on the city’s website here)
Moody’s declares Long Beach Outlook Stable, No Longer Negative; City Council to Remove Fiscal Crisis Designation at Meeting Tuesday Night
Moody’s Investors Service has improved the outlook on the City of Long Beach’s general obligation bonds from negative to stable. The August 2013 Moody’s report cites the current administration’s “improved financial controls and policies leading to balanced budgets” and shrinking the City’s overall debt level by $6M as reasons for the positive report. This is in stark contrast to the previous administration that elicited an unprecedented five-level downgrade with fiscal mismanagement of epic proportions.
“We are extremely pleased that Moody’s is applauding this administration for restoring fiscal responsibility in Long Beach after years of mismanagement by the Republican administration,” said City Council President Scott J. Mandel.
In February 2012, shortly after the current administration took office, the City Council voted to declare a fiscal crisis in the City due to the $10M deficit that was inherited from the previous administration. According to the Moody’s report: “Since the declaration was announced, city management has reduced expenditures by $1.7 million, lowered headcount by 12% and labor and personnel costs from 83% of budget to 63% of budget. The city reduced overtime costs, which had been a significant driver of the city’s fiscal stress, despite the significant effect of Hurricane Sandy in October 2012. In addition, new management has brought budgeted revenues more in line with historical revenues resulting in balanced budgets.”
The City Council is expected to officially remove the fiscal crisis designation at a public meeting on Tuesday, September 3, 2013 at 7pm in Long Beach City Hall.