Moody’s declares Long Beach Outlook Stable

I copied and pasted this from the city website. Enjoy! (source – read the article on the city’s website here)

city_sealMoody’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.

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9 thoughts on “Moody’s declares Long Beach Outlook Stable”

  1. I don’t understand how this report comes out, when there are so many other reports that come out that say otherwise. It’s tough to know wtf is going on.

  2. West End Tom, the only PERSON who says this administration is doing a bad job is Jimmy Hennessy (the Republican spokesman). Other than him they receive praise from everybody including Mangano. They saved the city. I don’t even know who the republican candidates are but does it even matter? If you don’t vote for the Dems this time around you are a die hard tea partier. It’s pretty obvious who is winning this time around. Election is over.

  3. DJ,
    I don’t know. I’m not as optimistic.

    Taxes have gone up considerably (and outrageously) and will continue to do so. Not only that, they have voted to override the state’s tax cap, doubling the increase. (http://longbeach.patch.com/groups/politics-and-elections/p/long-beach-to-override-tax-cap) And this year, they predicted a short fall of tax revenue.

    Borrow, tax, spend? Increasing the city’s debt by about $140 million in 6 months before Sandy? This is what you’re praising?

    Plus, it appears that the debt issue was not as bad as the administration made it out to be, some (besides JH) say so that they could raise taxes as much as they have.

    If you want to know where you’re money and you’re money of tomorrow is going, take a look at the extremely high pay raises in the police department that got a 27% pay increase the day after your taxes were raised. The police commissioner is among the most highly compensated in the state, more than NYC, at $302,000; while residents are being bled dry through taxes, and violent crime is up.

    Not to mention, all of the questionable appointments, with lack of experience, that look like nothing more than political patronage.

    Also, the $44 million dollar boardwalk, that no one seems to know how it’s getting paid for; though I think we’ll find out April 15, 2014.

    So everyone but J Hennessy is praising this administration?

  4. Anyone can make their bond rating look better by raising taxes. There is no political courage in that. This is why those Tom Suozzi ads are so funny – “my bond rating was better than Gulotta’s”. Yeah sure it was, because you had property taxes increases and an energy tax on everyone. As far as Long Beach – if the FEMA reimbursement for the boardwalk is 90% – you will hear about it before the election. However, if you don’t hear about it before the election – that’s the sign that the news is bad, that FEMA isn’t going to payoff 90% on the $44M. If the news is bad, you won’t hear about it until after the election – and taxes are going to skyrocket.

  5. If FEMA doesn’t pay off, there is going to be a massive property tax increase to cover the costs of the bloated $44M boardwalk project. It’s that simple, the City’s fiscal position is all based on a big FEMA payout. Also remember that there are going to be endless assessment challenges as the value of everyone’s home drops because of the new flood premiums – that’s also going to reduce tax receipts to the City and cause more impetus for even further tax increases. I can easily see the municipal portion of everyone’s tax bill rising 50% over the next 3 years. Easy.

  6. Wrong. I’m not going to list the failures, but it starts with the boardwalk still sitting here incomplete and unpaid for. Anyone I’ve talked to that owns a home is NOT pleased with how things are being run.

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