Connect with us

Finance

LA City Council sends back financial report on cost of safe streets measure

Published

on

LA City Council sends back financial report on cost of safe streets measure

LOS ANGELES (CNS) — The City Council Friday asked its staff to perform further financial analysis of how the passage of a street safety measure on the March ballot would impact the municipal budget and existing programs that do similar work.

Matt Szabo, the city’s administrative officer, provided the council with an updated report on the implementation costs related to the Healthy Streets LA ballot measure, a resident-led initiative that would require the city to install street modifications described in its Mobility Plan 2035 whenever street improvements are made to at least one-eighth of a mile of roadway.

The Mobility Plan 2035, a 20-year city planning document for improving L.A. streets and promoting other modes of transportation such as walking, biking, or other transit options, was adopted by the City Council nine years ago. But since then, the city has only implemented 5% of the plan — with some staff from the Department of Transportation calling it “aspirational.”

According to Szabo, Measure HLA would cost the city $3.1 billion over 10 years, which is an additional $600 million from his original estimate in November 2023. He noted that, if approved by voters, the measure would become effective roughly five weeks after the election.

The report came before the council as a “note and file,” meaning it required no real action from the council. But several city council members criticized the report for not providing an accurate financial analysis and failing to provide a complete picture of what Measure HLA means for the city.

Advertisement

“I have some real concerns about some of the multipliers we’re using in terms of the costs,” said Councilman Bob Blumenfield, who chairs the council’s Budget, Finance and Innovation Committee.

He added, “I feel like I need to mention that when you talk about multiplier, you also need to talk about both sides of the equation as well.”

The city of Los Angeles has a “serious” traffic safety problem, he said. In 2023, traffic violence took the lives of 336 Angelenos and over the past five years more than 1,500 residents have been seriously injured annually.

“While we can’t put a price on a life, certainly traffic violence affects all of us,” Blumenfield said. “Just less than 24 hours ago, there was a women killed in my district walking across Ventura Boulevard at an unmarked crosswalk, which we intend to ultimately mark.”

He also pointed out that the U.S. Department of Transportation has reported that the value of human life at $11.6 million dollars, and the value of a traffic-related injury is $210,000. The economic cost of traffic deaths and injuries in Los Angeles is more than $4 billion a year, he said.

Advertisement

“When we talk about the cost of traffic safety measures, we should also keep that in mind in terms of the enormous cost that we have right now of not putting in critical traffic safety measures.”

Szabo said the measure would not provide any financial resources to the city to implement the plan, meaning city officials would have to work with existing pools of funding to meet its requirements.

The estimates were conservative, he said, not including escalators. He highlighted mobility plan components — the bicycle lane network, which is 376 miles of planned bike lanes; the bicycle enhanced network, 238 miles of protected bike lanes or bike paths; and pedestrian enhanced districts, and 1,120 miles of sidewalks, that are required to be in good repair and ADA compliant.

It’s estimated that it would cost $670 million to fully establish the bike lane network, $420 million for the bicycle enhanced network and $2 billion for sidewalk repairs.

“There a are number of other priorities, a number of programs, that will have to compete for the same dollars that will be required to implement the mobility plan,” Szabo said.

Advertisement

Streets for All, the organization that led efforts on the ballot measure, has criticized the CAO’s numbers, stating that it would actually cost $286 million over 10 years to implement pedestrian enhanced districts and bike networks.

While Blumenfield stated he did not support Measure HLA because of the possible legal issue attached to it — voters would be able to sue the city if it fails to adhere to the measure — he said aspects of the report conflated prices. He said he would dig into a few areas such as the cost of street resurfacing, implementing American Disability Act compliant curb ramps, street repaving costs, and sidewalk repairs.

He noted that the city is already legally required to make certain modifications to streets that are listed in the mobility plan, mainly ADA requirements.

Szabo noted that costs would increase if the improvements took more than 10 years, ending in 2035, since “costs go up every year.”

Szabo also raised concerns over a backlog of sidewalk repairs, of about 7,700 requests, at some 3,500 to 4,000 locations across the city, costing nearly $900 million over five years to eliminate.

Advertisement

Councilwoman Traci Park called HLA an “unfunded mandate” and questioned staff whether the mobility plan, as enforced by Measure HLA, if approved, would impact the city’s Pavement Preservation Program.

Park has come out against the measure alongside certain groups, including firefighter unions, who have concerns about how the measure will impact their response times to medical emergencies if traffic lanes are reduced to accommodate bike lanes or other features.

A representative from StreetsLA, also known as the Bureau of Street Services, said the measure could lead to the deterioration of streets as a result of delays to repavement and resurfacing services, and increase the city’s liability.

Council President Paul Krekorian and Councilwoman Monica Rodriguez expressed their concerns on how HLA would interact with the city’s sidewalk repair efforts and impacts to the General Fund, respectively. Szabo reiterated that sidewalk repairs are done during resurfacing efforts and performed to conform with ADA.

Councilwoman Imelda Padilla, who had concerns with HLA, zoned in on grant funding, and elicited a response from Szabo acknowledging that the departments need a coordinated office for grant work.

Advertisement

Both council members Eunisses Hernandez and Hugo Soto-Martinez were frustrated with the report.

Hernandez noted that the city made a $1 billion investment in the Los Angeles Police Department to cover raises, and the city needs to invest in safer streets “because we have failed to save lives.”

Krekorian also made a point that HLA may inhibit Metro transit projects or construction, so that will be another topic to look into at the committee level.

Councilwoman Nithya Raman said the mobility plan may have some intersection with existing obligations.

“I’m not quite sure how those overlap with what is required of us in the mobility plan and what additional costs we would be incurring from doing this work under the aegis of the mobility plan,” Raman said. “I think untangling that will help us have a much more straightforward discussion.”

Advertisement

Copyright 2024, City News Service, Inc.

Copyright © 2024 by City News Service, Inc. All Rights Reserved.

Finance

Tech trade needs 2 things to remain 'in favor' this year

Published

on

Tech trade needs 2 things to remain 'in favor' this year
MJP Wealth Advisors chief investment officer Brian Vendig sits down with Morning Brief host Julie Hyman to discuss the tech trade’s (XLK) outlook for 2026. To watch more expert insights and analysis on the latest market action, check out more Morning Brief.
Continue Reading

Finance

Promising UK Penny Stocks To Watch In January 2026

Published

on

Promising UK Penny Stocks To Watch In January 2026
The UK market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting global economic interdependencies. Despite these broader market pressures, investors may find intriguing opportunities in penny stocks—smaller or newer companies that can offer a mix of affordability and growth potential. While the term ‘penny stocks’ might seem outdated, their potential remains significant for those seeking financial strength and…
Continue Reading

Finance

Why Chime Financial Stock Was Music to Investor Ears in December | The Motley Fool

Published

on

Why Chime Financial Stock Was Music to Investor Ears in December | The Motley Fool

The company appears to be effectively serving its often-overlooked customer base.

The holiday month brought fintech Chime Financial (CHYM 3.13%) one of the best gifts a stock can receive — a substantial bump higher in price. Across December, Chime’s shares rose by more than 19%, lifted by a set of factors that included a recommendation upgrade from a prominent bank and a positive research note by an analyst who’s now tracking the company.

Good as gold

The bullish tone was set by that upgrade, which was made before market open on Dec. 1 by Goldman Sachs pundit Will Nance. According to his new evaluation, Chime stock is now a buy, up from Nance’s previous tag of neutral. The new price target is $27 per share.

Image source: Getty Images.

According to reports, the analyst’s move is based on the company’s new Chime Card, an innovative credit product that represents an evolution of the secured credit card (i.e., plastic that must be backed by a user’s actual funds).

Advertisement

In Nance’s estimation, as a next-generation credit product, the Chime Card should earn more “take” (i.e., fees derived from use) and thus higher revenue and profitability for the company than many anticipate. The prognosticator wrote that “attach” rates — i.e., Chime customer uptake — could also be notably above current expectations.

On Dec. 11, a new Chime bull emerged. This is B. Riley analyst Hal Goetsch, who initiated coverage of the company’s stock with a buy recommendation. This was accompanied by a price target of $35 per share, which is well higher than even Nance’s very optimistic assessment.

Goetsch waxed bullish about Chime’s high growth potential, according to reports. He opined that the company is doing well servicing its target segment of customers traditionally shunned by established banks due to poor credit histories, among other perceived flaws. It has also cleverly partnered with lenders and other financial services providers to offer attractive products such as the Chime Card.

Chime Financial Stock Quote

Today’s Change

(-3.13%) $-0.87

Current Price

Advertisement

$26.95

Executive shifts

Finally, Chime promoted no less than three of its executives to new positions. It announced in the middle of the month that former chief operating officer Mark Troughton had been named president, and Janelle Sallenave replaced him as chief operating officer (from chief experience officer). Vineet Mehra, meanwhile, became chief growth officer; previously, he was chief marketing officer.

All three appointments, announced in the middle of the month, were effective immediately.

Advertisement

As the year came to a close, it was apparent that the company had executives who were eager to keep contributing to its success. That, combined with those bullish analyst notes and the somewhat under-the-radar success story that the Chime Card appears to be, makes this fintech’s stock well worth watching. This is one of the more innovative young businesses in the financial sector at present.

Continue Reading

Trending