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

When should kids start learning about money? Advice from local financial advisor

Published

on

When should kids start learning about money? Advice from local financial advisor

When should kids start learning about money, and preparing for adult expenses like rent, car payments, and insurance?

It’s a question asked recently by an ARC Seattle viewer.

We took the question to Adam Powell, Financial Advisor at Private Advisory Group in Redmond. Powell talked with ARC Seattle co-anchor Steve McCarron to share insights on the right age to form money habits, common financial mistakes parents unknowingly pass down to their children, and practical tips to set kids up for long-term financial success.

Find more ARC Seattle stories on our YouTube page.

Comment with Bubbles
Advertisement

BE THE FIRST TO COMMENT

Watch ARC Seattle weekdays from 7 to 10 a.m. and 10 to 11 p.m. on KUNS, The CW Network.

Continue Reading

Finance

Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning

Published

on

Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning

LOS ANGELES (KABC) — Many Gen-Zers are adopting a financial approach that prioritizes quality of life in the present, a trend that’s being called “soft saving.”

Bob Wheeler, a CPA, described the mindset as a shift in how young adults balance their current lifestyle with longterm planning.

“It’s really a financial approach of ‘I want to make sure I have a good quality of life, and I’m thinking about the future,’ but not as much as the present,” Wheeler said.

For many Gen Z consumers, that can mean spending more on experiences – like vacations or concerts – rather than saving for major purchases like a car or home.

Wheeler said the approach can offer emotional benefits.

Advertisement

“I think there are definitely benefits, I mean, less anxiety, feeling like life is what you want it to be, fulfillment, versus saving for later on,” he said.

Still, financial experts caution against ignoring longterm stability. Wheeler encouraged young workers to take advantage of employer-sponsored retirement plans.

“They’re not going to do the max. They’re going to do enough to make sure they’re getting the match from your employer, so maybe they’re doing 3% or 5%. Maybe they’re not maxing out their IRAs. Maybe they’re doing $2,500,” he said.

He also stressed the importance of building an emergency fund, typically enough to cover six months of expenses.

“I want people to enjoy their life now because tomorrow is not promised,” Wheeler said. “I also just really reiterate to them ‘and you need to have some money set aside because we don’t know.’”

Advertisement

But saving for a home may not be practical for everyone. In some places, renting can be cheaper, and tenants avoid maintenance costs.

Copyright © 2026 KABC Television, LLC. All rights reserved.

Continue Reading

Finance

Local M&A advisory firm Matrix acquired by banking giant Citizens Financial – Richmond BizSense

Published

on

Local M&A advisory firm Matrix acquired by banking giant Citizens Financial – Richmond BizSense

Matri x Capital Markets Group is now a division of Citizens Financial Group. (Image Courtesy Citizens Financial Group)

Matrix Capital Markets Group is used to helping businesses line up mergers and acquisitions.

For its latest transaction, the Richmond-based M&A advisory and investment banking firm was itself the subject of the deal.

Matrix was acquired last week by Rhode Island-based banking giant Citizens Financial Group.

Advertisement

Matrix, along with its nearly three dozen employees, including 20 in Richmond, are now operating as a division of Citizens, within the $226 billion bank’s investment banking arm, Citizens JMP Securities.

Financial terms of the deal were not disclosed. It involved an asset purchase that bought out Matrix’s 15 shareholders.

The deal ends Matrix’s 38-year run as an independent firm, a notable streak in an industry where consolidation of smaller firms into larger ones is common.

Matrix was founded in Richmond in 1988 by Scott Frayser and Jeff Moore and has since hit its stride by building a niche in handling deals for companies in the downstream energy and convenience retail sector.

Advertisement

The firm has been run in recent years by president Spencer Cavalier and Cedric Fortemps, co-head of the firm’s largest investment banking team.

Fortemps said Matrix began to search for a larger acquirer last year.

Cedric Fortemps

Cedric Fortemps

“The board decided to see if we could find a partner and a transaction that could build on what we’ve built thus far,” Fortemps said.

Matrix enlisted investment banking firm Houlihan Lokey to help in the search and negotiate on its behalf, along with the law firm Calfee as its legal advisor.

Advertisement

Fortemps said Citizen rose to the top of the pack of suitors in part due to JMP Securities’ track record of acquiring smaller firms like Matrix.

“They have acquired four other firms very similar to ours. Seeing the successes they had with those groups… the playbook is really to let the firms continue to operate the way they had,” Fortemps said.

Matrix’s Richmond office in the Gateway Plaza building downtown will continue to operate, as will its second office in Baltimore.

The Matrix brand will continue to be used for the time being but will eventually be phased out.

Fortemps said the firm’s success and particularly its growth in recent years has been fueled by its expertise in working deals for downstream energy clients – such as wholesale fuels distributors, propane and heating oil distributors – and convenience store and gas station chains.

Advertisement

Matrix’s rise in that sector began in 1997, when it hired Tom Kelso, who lived in Baltimore and owned a heating oil fuels distribution business. Kelso, who would eventually serve as the firm’s president prior to Cavalier, had a vision to launch an M&A firm for that industry.

“It took seven to eight years to grow it but eventually we were able to get a reputation of really high quality work and those successes on smaller transactions resulted in us being considered for larger deals,” Fortemps said.

Today, 21of the firm’s 26 investment bankers work on the team that handles deals for those industries. It controls about 40% market share for the M&A market for those sectors, Fortemps said.

The firm closes nearly two dozen transactions a year over the last five years and has closed 500 deals since its inception.

The typical value of its deals is more than $20 million, though the transactions it has closed over the last three years in the energy and convenience retail sectors have grown to $140 million per deal, Matrix said.

Advertisement

Its largest deal to date was closed last year, involving the $1.6 billion acquisition of convenience store chain Giant Eagle.

Matrix also works deals in other industries such as lubricants distribution, automotive after-market suppliers and car washes, as well as outdoor recreation and the marine industry.

After decades of representing buyers and sellers in M&A, Fortemps said the Citizens deal was a new experience for the Matrix team: being the target of the transaction, rather than the ones facilitating it.

“It certainly made me appreciate everything our clients have to go through on the other side of the table,” he said.

Advertisement
Continue Reading
Advertisement

Trending