The board that oversees the Los Angeles City Employees’ Retirement System will meet Tuesday to consider cutting its “assumed rate of return,” the yearly expected earnings for its investment portfolio, from 7.5% to 7.25%. The move is expected to shift about $38 million in retirement costs onto the city’s general fund, which pays for police patrols, firefighter staffing and other basic services, in mid-2018. The pension board also has the option to pursue a more dramatic step: taking the investment assumption to 7%, which would add $93 million to the city’s yearly pension burden, officials said.
As inspectors assess the damage and investigate what caused the explosion, Saturday’s incident is emblematic of the challenges facing the nation’s largest municipal utility as it plays catch-up to update its aging power grid, officials said. The blast provided another example of the city's deteriorating infrastructure, which has made headlines after epic bursts of aging water pipes, crumbling sidewalks and gaping sinkholes. There are 70 large transformers in the utility’s network, and 20 of them still need to be replaced at a cost of about $5 million each, officials said. The utility’s ongoing Power System Reliability Program seeks to upgrade or replace thousands of smaller transformers, power poles, circuit breakers and other equipment. Wright said the utility is trying “to make up for what is several decades of deferred maintenance. The concern is that we need to get ahead so that reliability increases.”
In a report last month, the analysts noted while 16% of properties statewide were sold in 1977-78, just 5% were sold in 2014-15. Less turnover means tax rates don’t get recalibrated, resulting in less revenue for government services. But the report concluded that’s likely to change, as more than half of California’s homeowners are 55 or older. The homes of baby boomers, as their lives come to an end or when they seek alternatives like assisted living, will end up on the market. The property tax rates for new owners will be set by higher purchase prices. The impact could be substantial. The report pointed out that the typical homeowner over the age of 65 has been in that house for at least 20 years. Many of those are in Southern California.
Upscale jeans maker True Religion Apparel Inc. said Wednesday that it filed for bankruptcy reorganization, making it the latest Southern California apparel firm to falter as people embrace online shopping. But True Religion said that in tandem with filing under Chapter 11 of the bankruptcy laws, its owner, TowerBrook Capital Partners, a private equity firm, reached a proposed deal with lenders to slash True Religion’s debt by about three-quarters as it continues operating.
In a state that prides itself as a global leader in protecting the environment, recycling rates for beverage containers have dropped to their lowest point in almost a decade amid the continued closure of centers that pay for bottles and cans and the fallout from changes to California's recycling program. Beyond the environmental concerns, the financial effects are also growing — pinching large supermarket chains and low-income residents. . . . RePlanet, a recycling collection network that partners with grocery chains to provide nearby recycling centers, announced in January 2016 that it would be closing 191 of its recycling centers in California. Scientists make water bottles the old-fashioned way to see if they were toxic to early Californians The company said it was shutting the locations in part because of a reduction in state fees and declines in the commodity pricing of aluminum and PET plastic. It also cited rising operating costs, such as increases in the minimum wage and requirements for health insurance and workers compensation insurance.