Long Beach facing $10 million deficit

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“The fear is that we’re going to be priced out of Long Beach, and it’s a fear we share,” Torres said. “This is a tremendous burden — now we have to solve this problem and we will. Our mission is to do it with the least pain to residents as possible.”

When asked whether the city is looking at increasing certain fees, cutting services and personnel, Schnirman said that for now “All options are on the table.”

He added, however, that the city’s contractual and mandated pension obligations prevent it from making “unilateral” cuts across the board.

“Everybody has to figure out the cost-savings, and see where that gets us,” Schnirman said. “People will have to look at the options and decide what is the least onerous.”

Hennessy: ‘deficit is highly exaggerated’

In November, the council approved two borrowing measures amid a cash-flow shortfall: a $1.75 million tax anticipation note in order to make payroll in December, and another authorizing up to $2.5 million through a budget note in order to pay outgoing police officials, including former police Commissioner Thomas Sofield Sr., a 34-year member of the department who was eligible for a $500,000 payout.

At the time, city officials said that the departure of the department’s top brass was “unanticipated” and attributed most of the revenue shortfalls to tough economic times and “unforeseen” costs associated with Tropical Storm Irene. Some political opponents questioned the current administration’s deficit projections.

“I believe this $10 million deficit is highly exaggerated,” said former Councilman Jim Hennessy, adding that three months into the new administration’s term, he believes that they have done little to cut spending. “This administration has not done anything to curb spending, they have embarked on a public relations campaign that scares residents, and puts money into the pockets of their family, friends and political supporters who they have hired. What this administration has done is nothing short of reckless, and they should be ashamed of themselves.”

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