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Week in review

December 06, 2008

The level of budget-cutting next year may be much as it was this year, city officials told the City Council on Tuesday, with city revenue sliding into what could be an $8-million budget shortfall.

The same economic recession that pushed down city revenue in the first quarter was expected to continue through the fiscal year and cramp City Hall as it prepares to draw up another budget plan for next fiscal year.

 The City Council, faced with losing up to $8.7 million a year in telephone user taxes because of antiquated code language, voted unanimously Tuesday to place an updated tax on the April 7 ballot.

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The new tax codes would update definitions of rapidly changing communications technology — such as Voice Over Internet Protocol and packaged cellular charges — to capture more uses and retain Glendale’s 40-year-old claim on the utility users tax, which directly finances public safety, libraries, recreation and other city services.

Two state assemblymen who represent Glendale — each just elected to his second term in the Legislature — are moving up California’s political leadership ladder.

Democratic Assemblyman Paul Krekorian, of the state’s 26th District, has been tapped by Speaker Karen Bass to be the party’s assistant majority floor leader, while Republican leader Mike Villines asked Assemblyman Cameron Smyth, of the 38th District, to chair his party’s caucus.

As assistant majority floor leader, Krekorian, 48, will help lead Democrats by ensuring party continuity among the 80 Assembly members and working with Republicans to advance Democratic legislation.

As caucus chairman — the second-highest-ranking Republican position in the state Assembly — Smyth will act as a liaison between Villines and the 32 Assembly members of his party.

General Growth Properties Inc., the fiscally troubled owner of the Glendale Galleria, announced last week that it had reached an agreement with its creditors to delay payment on a $58-million debt until Dec. 11.

The announcement followed an extension the company received for a two-week extension on $900 million in outstanding mortgage loan payments at two Las Vegas malls that had been due amid persistent questions about General Growth’s long-term financial solvency.

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