L.A. City Debt: Less Is More

Hard to believe, but some city officials had considered putting a $2.2-billion-plus bond measure before the voters in November. Given that two of the city’s ranking finance experts were sounding alarms as recently as May about the city’s growing debt and the need to set a borrowing limit, thoughts of multibillion-dollar bond issues are ludicrous.

Fortunately, cooler heads have prevailed. Today marks the City Council’s deadline for directing the city attorney to draft language for any measures on the November ballot. The council should move ahead only with what is affordable and sensible right now.

The most expensive proposal is not a bond but a special tax of nearly $700 million to rebuild and maintain 4,260 miles of crumbling city sidewalks. To make their point, city staff members presented a map of the city marked with claims for injuries and requests for repairs. Think of a pin cushion that can’t hold any more pins and you’ll get the idea. This is a citywide problem that merits action, and the council has indicated support.

As for the bond measures, the easiest to endorse is one that has broad support from Mayor Richard Riordan and the council and has been studied for more than two years, a $178.3-million proposal to build or expand 32 library branches around the city.

Matters aren’t as clear-cut on other proposals. The full council will vote on a last-minute request for $45.5 million in bond money for improvements at the Los Angeles Zoo. Use of city money for that purpose is not advisable at this point. City Councilman Mark Ridley-Thomas also brought forward a very late request for $45 million for Exposition Park improvements. The details of those improvements will be important to its fate.

Yes, the city needs many other capital improvements, particularly in the case of the Police and Fire departments, but there are other factors to consider. As stated, Los Angeles already carries considerable debt. There is also a caveat to be attached to our improving economy, and that involves the possible dampening effect of the continuing Asian crisis on Southern California’s trade-dependent economy. And voters may be asked to support a statewide $9-billion education bond.

Those are some of the reasons why not to expect widespread enthusiasm from Los Angeles voters about a big local bond measure. Less is more here, and that’s something for the City Council to bear in mind.