City Finance Issues: Please Pay Attention, This Is Important
Finance & Leadership Is at a Crossroads
Special Joint Meeting of the City Council and The Finance Commission
Monday, June 17, 2024 | Current South Pasadena finance director John Downs explained to the City Council and Finance Commission how he proposes to use SLFRF (COVID Emergency Reimbursement) funds to cover ongoing spending shortages. However, City Councilmember Braun and Finance Commissioner Sheila Rossi are questioning the validity of this maneuver.
Letter to the Editor | by Civic Finance Expert Josh Betta
The questions and conclusions in my opinion allow the South Pasadena City Manager, Arime Chaparyan, to make the right choices before publishing critical agenda items for the June 27th council meeting. She has the opportunity to offer the City Council a choice on how to move forward with solving the budget debacle.
Last June 2023, the city council was promised by city manager Chaparyan to get the finances in order by the six-month review. Notably, Councilmember Braun cautiously voted to approve the budget last year based on that promise.
The Last Special Joint Meeting | Monday, June 17, 2024
The last meeting left the public amazed at the poor decision-making from the city manager’s office and some city council members. This has resulted in:
- Failed finance records and reporting
- Multimillion-dollar discrepancies
- Highly concerned finance commission questioning how the council can decide the way forward.
Expert Opinion on Situation
Here is my professional opinion based on the Finance meeting on June 17:
Established:
The City Attorney has advised that City Manager Chaparyan does not need to act under the City Council's instruction unless directed by a majority vote in a public meeting.
Following That:
Ms. Chaparyan is not currently under city council's instruction for her publication of the June 27th Joint CC/FC meeting agenda and associated reports and attachments, including PowerPoint slides.
Critical Moment in City’s Financial History
Ms. Chaparyan’s decisions now will mark a significant moment since the 2020 CityGate scandal and coverup, a crisis highlighted by Jon Primuth as a continuing issue in 2022. Especially significant since she admitted the failure of her efforts over the past three years.
Consider these two critical matters:
ONE: Resolution of Continuing Appropriations
Will Ms. Chaparyan present this resolution to the council? This resolution allows the council to vote to extend the current fiscal year before adopting a new budget. Will public officials deliberate whether solving existing issues before taking further steps is in South Pasadena’s best interest? This raises questions about political integrity.
TWO: Use of Financial Software
Ms. Chaparyan declared on June 5th that she will not use the Excell software purchased from NHA Associates to produce five-year financial projections as required by a council vote in May until after adopting her proposed FY 24-25 City Budget. This refusal could be seen as an abuse of power.
Final Notes
Ms. Chaparyan has until close-of-business tomorrow, June 20, to define her career and that of the 2024 City Council.
Conservative decision-making is always best in financial matters, whether personal, corporate, or public.
In your service,
Josh Betta
Josh Betta was the first permanent finance director in the City of Bell following the 2010 municipal scandal. He was South Pasadena’s finance director from 2001 to 2008. His daughter, Keena Betta Moro, was co-valedictorian of the SPHS graduating class of 2005. Go Tigers.
Reverence Finance Articles 2024
City Finance Issues: Editorial | Mid-Year Report by City Manager Falls Far Short of Expectations
Same Point Last Year, June 2023
Budget Rejected | City Council Left With Many Questions as Process Stumbles
OpEd | City Budget Problems: A Response to City Council
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