FR EE
MONDAY, MAY 10, 2004
Volume 3, Issue 154
Santa Monica Daily Press A newspaper with issues
CITY HALL: DOLLARS & SENSE
The Mother’s Day rush SUPER LOTTO PLUS
1-5-11-28-38
A month-long series examining Santa Monica City Hall finances
Meganumber: 5 Jackpot: $13 million FANTASY 5 3, 8, 15, 31, 34 DAILY 3 Afternoon picks: 1, 8, 4 Evening picks: 3, 8, 1 DAILY DERBY
City Hall keeps bond rating high in trying times
1st Place: 08, Gorgeous George 2nd Place: 12, Lucky Charms 3rd Place: 05, California Classic
Race Time: 1:47.53
NEWS OF THE WEIRD
BY JOHN WOOD
by Chuck Shepard
Daily Press Staff Writer
MORE SCENES OF THE SURREAL ■ In December, police in Lewiston, Maine, chased down a patient from St. Mary's Regional Medical Center who, apparently fed up with his hospital regimen, had fled the building on foot, clad only in his gown in the icy rain, and dragging his wheeled IV pole behind him. And Gary C. Laine, 48, wanted on a fugitive murder warrant from California, turned himself in to police in Kerrville, Texas, in February and, apparently seeking to look cooperative, had already handcuffed himself before walking into the station. QUOTE OF THE DAY
“People who like this sort of thing will find this sort of thing they like.” – Hilary Corke
Carolyn Sackariason/Daily Press
People line up Sunday in front of 7-Eleven on Wilshire Boulevard to get their last-minute Mother’s Day bouquets. A team of workers furiously tried to keep with the demand.
While it may be lacking in a surplus of cash, at least City Hall has good credit. Santa Monica is the only city in California that has a triple-A bond rating from all three of the major rating agencies. So when officials from City Hall need money and decide to issue a bond, they can be confident investors will be interested. The triple-A rating also means low interest rates for City Hall. This will be the third consecutive year of budget deficits within City Hall — totaling $28 million. This year, city officials must close a $4 million deficit. City Hall in
2002 faced an $8 million shortfall, and was able to cut $2.2 million in operating costs and $6.6 million in capital improvement projects. In 2003, City Hall plugged a $16 million shortfall by cutting expenses and increasing revenues. Thirtyone positions were eliminated with City Hall as part of the cuts. But a good bond rating helps. It’s the result of prudent forecasting and conservative budgeting, said Steve Stark, the city’s finance director. In evaluating a bond, raters look at four indicators — the city’s overall economy, its debt, financial history, and the philosophy of its management team and policy makers. See BONDS, page 5
Susan McCarthy: On the top of her game Community profiles is a weekly series that appears each Monday and delves into the people who live, work and play in Santa Monica.
INDEX Horoscopes
BY CAROLYN SACKARIASON Daily Press Staff Writer
Gem, hop on the computer . . . . . . .2
As a child raised in the suburbs of Washington D.C., City Manager Susan McCarthy grew up surrounded by politics but it wouldn’t be until she was an adult that she would realize how much it had an impact on her. Decades later, McCarthy oversees more than 1,000 employees within City Hall, manages the day-to-day operations of one of the most dynamic and diverse cities in the world, and handles a $350 million budget. McCarthy, 58, came to Santa Monica in 1974 after her husband, Kevin, was hired as a researcher for the Rand Corp., a
Local The surf is up . . . . . . . . . . . . . . . . . .3
Opinion Citys problem is its name . . . . . . .4
National Alaskans prepare for spring . . . . . .8
Politics The Nader factor . . . . . . . . . . . . . .10
Classifieds The classiest gig in town . . . . . . .13
People
job that he still holds today. Just before moving here, McCarthy was working as a transportation planner for the state of Wisconsin while Kevin was in the doctoral program at the University of Wisconsin-Madison. To stay apprised of what was going on in the world, McCarthy cherished her grandmother’s gift of the Washington Post mailed each week. “I knew about Watergate long before it appeared in the papers in the Midwest,” she said. “I would say that I’ve been a policy buff for a long time.” Coming to Southern California was the “other side of the world” in McCarthy’s mind. But after
walking the streets of Santa Monica in search of an apartment with a map given to her by employees at her hotel — the Travel Lodge on Ocean Avenue — she had found her new home. A graduate from Mt. Holyoke in New England, McCarthy embarked on her career in city government a year after she moved to Santa Monica. She has been involved Santa Monica’s business off and on for the past 20 years. In college, McCarthy studied economic and urban geography. She was interested in “central place theory,” the circumstances of why, how and where cities develop. See MCCARTHY, page 6
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Buffett in trouble with City Hall . .16
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