Penman Delivers 'State of the City' Address

It was mostly good news Wednesday as City Manager Don Penman gave the "State of the City" address to a rapt crowd gathered at the Woman's Club of Arcadia.

He said the main concern for the new fiscal year is "dealing with the economy" and also spoke on a range of matters he deemed worthy of attention from officials and the public.

"[The economy] has been tough on everyone, and Arcadia is no exception," Penman told the audience of 60 attendees, most of whom were members. "Arcadia is more fortunate than most cities—we have not cut any core services but trimmed costs by at least  $1.5 million."

Penman outlined a relatively sound financial picture compared with other municipal governments but made no specific mention of the .

"We have our challenges, but I would say that we are much better off than most cities," he said.

This fiscal year, which starts July 1, Arcadia won't face layoffs, and the city is "maintaining our core level of services to the community," said Penman. "We have strong reserves and just received a AA+ rating from Standard and Poor’s for our bond rating on the Santa Anita Grade Separation bond issue."

The aforementioned project assigns $17 million, $8 million of which was approved by Arcadia voters, to build a bridge to accommodate the Metro Gold Line railway between Santa Anita and First avenues, documents show. The city is finalizing negotiations with the Gold Line Construction Authority, and Penman expected work to begin later this year.

The city manager, who began his career in Arcadia government in 1974 as a USC grad student intern, said downtown planning designed to lure new businesses and a corresponding parking study inspired by the coming Gold Line are presently in the works.

Officials are still concerned about what the state will do, "as historically they have taken from local government" during recessions, said Penman. "The biggest challenge is maintaining services in this tough economy."

The city manager noted that Arcadia's sales tax and "transient occupancy tax," which is a levy on hotel owners and key source of municipal revenue, have not returned to the level of four years ago.

Penman also said 77 percent of the city's General Fund budget goes to and benefits. He called for pointed attention to public employee pension reform because "big increases in retirement rates have added costs to the city budget."

Arcadia's top unelected official also spoke on the following issues:

• Leading projects of the Youth Master Plan just completed: and .

• Mercedes-Benz – The city is "working on an agreement for an expanded dealership which will include a new showroom on Santa Anita and bring in more sales tax," Penman said.

• project next to will bring 43 lower income rental units for seniors. It has been approved and is under construction. 

• – Officials are "working with them to get a new tenant into the Robinsons May space," said Penman. Permits have been issued for a Red Robin restaurant in the property's outdoor area, and further expansion could take place on the east side of the mall.

• Santa Anita Racetrack – Fall meet will return in 2011 in place of , however nothing new to  report on the negotiations with the racetrack. No project is being considered. 

• . Penman cited issues with Hollywood Park's poor attendance and inability to handle large events that will bring needed tourist dollars into city coffers—big-ticket racing dates instead should be given to Santa Anita, Del Mar and the Pomona Fairplex.

• Baldwin Avenue is vibrant but needs some improvement such as signage, facades and landscaping.

• Renovation – Arcadia received a grant to install energy-efficient windows and new air conditioning in portions of the original structure built in 1948. The project will also clean up and improve the building, add fire sprinklers, make Americans with Disabilities Act improvements and repair the building's exterior.

• Street improvement projects from $1.7 million in federal grants include Santa Anita at Foothill, Duarte Road and Live Oak Avenue; repaving projects on Duarte and Santa Anita—next will be Huntington Drive, then Baldwin at Foothill.

Information on the budget is available on the city's website.