Commentary: Newcomers are decrying finances of a financially sound city
It is hard to argue with someone who is as passionate about the classical music program at St John Vianney Chapel as are Arlene and I.
And I learned a long time ago not to take exception to a political puff piece disguised as a serious discussion about an important issue. But Bob McCaffrey’s commentary the other day about the financial health of our city cries out for a response.
The statement that the budget is $46 million less than last year has nothing to do with the alleged financial expertise of Team Newport. It has everything to do, in my view, with the completion of Marina Park and the removal of that line item from the budget.
As such, the elimination of that number does not represent a savings achieved by Mr. McCaffrey’s friends on the council but the completion of a magnificent project initiated by the very people Team Newport seeks to demonize.
Drilling down into the budget, operating costs have gone up in both of the Team Newport budgets. In fact, these increases have exceed the recommendations of the city manager each year.
Join the conversation on Facebook >>
A significant portion of the debt is our pension obligations. The proposal by Councilman Scott Peotter would have created negative amortization and increased the underlying debt, not reduced it. A companion proposal by Finance Committee member Will O’Neill would have increased the debt cost by more than $20 million.
Preserving the option to refund, as proposed by Mr. McCaffrey would have increased the city’s debt service by an additional $7 million. These proposal were made in direct contradiction to the analysis and recommendation of the city’s financial advisors.
And remember, it was Team Newport that wanted to put taxpayer monies into a trust and, instead of paying down the pension liability, speculate in the stock market. That is Bob Citron ideology. (Editor’s note: Citron, now deceased, is the former county treasurer whose investment strategy drove the county into bankruptcy in 1994.)
I am now waiting for the other shoe to drop and for Team Newport to institutionalize the mantra that the city overpaid for the construction of the Civic Center, a project that includes City Hall, an extensive library expansion, an emergency center, a parking structure, a civic green, a sculpture garden and, yes, a bunch of bunnies, by approximately $1.2 million.
This allegation is based upon a preliminary draft of an incomplete report pursuant to an audit that the auditors themselves have acknowledged could contain errors and omissions. Both Councilman Kevin Muldoon and O’Neill, as practicing attorneys, must concede that those alleged damages are, at this time, speculative. To instruct the city attorney to initiate litigation before all the information is collected and ascertained, is to continue to waste taxpayer dollars, as opposed to managing them.
Contrary to the fundamental allegation of Mr. McCaffrey, the economic health of the city of Newport Beach is good, thanks to the hard work of people like Councilmen Keith Curry, Ed Selich and Tony Petros.
We have a surplus, we have manageable debt, we have world-class resorts, we have internationally renowned art and culture. We cannot allow a group of people, who, excluding Councilman Duffield, have a combined residency in this city of approximately 10 years, to destroy what has been built.
--
PHIL GREER is a candiate for Newport Beach City Council.