Schnirman targets overtime in Long Beach

Long Beach City Manager Jack Schnirman lambasted eight city departments Tuesday night for exceeding their annual overtime budgets by 40 percent just halfway through the fiscal year -- part of what he said is a city financial crisis whose depth is still unknown.

But a resolution to legally declare a fiscal emergency was tabled at the City Council meeting at which Schnirman spoke, when council members said they wanted to hear more public feedback and sit down with the city's unions first.

"The more we started digging in, the more we realized we needed our union partners at the table with us," Democratic Councilman Mike Fagen said. "This is going to be a far-reaching change in how the city spends their money."

The discussion resumes at the Feb. 7 meeting. But Tuesday night, the Democratic-majority council and newly appointed Schnirman presented a huge audience with hard facts about the city's finances and its current $83 million budget.

Among the findings: Overtime has increased by 66 percent since 2006. Three departments had exceeded their budgets for temporary workers by Jan. 6. And the running tab of unbudgeted expenses this fiscal year is $734,887.88. The fiscal year began July 1.

Those unbudgeted expenses include nearly $400,000 in personnel movement, such as year-end hirings and promotions within departments, some of which occurred after the city borrowed $1 million to make payroll.

"I understand that there were a series of 11th-hour promotions and hirings," Schnirman said, adding that staff will be reviewing them for "budget availability and reasonableness."

Another unbudgeted expense listed was the $130,000 Metropolitan Transportation Authority payroll tax. "The city is aware that that exists and did not budget for it, and the city has no plan to deal with it," Schnirman said of the previous administration.

He and the council said they were startled at what they found in their first 10 days in office. Other findings were equally dismaying, Schnirman said.

The city did not track spending that totaled less than $500. The city was paying for delivery of Newsday to at least one employee's home. Instead of set policies regarding sick leave, benefits and the termination process, Schnirman said he was told it was "at your discretion."

Schnirman said one reform under way will inject consistency into personnel policies.

The council also passed a resolution that requires city managers to move to Long Beach within 90 days of being appointed, an announcement greeted with resounding applause.

"The city manager will be spending his money here, eating in our restaurants, shopping and paying taxes here," said council president Fran Adelson.

Schnirman, former chief deputy supervisor in Brookhaven Town and most recently vice president of management consulting at Bowne Management Systems, said he is looking for a house in Long Beach.