Incumbent councilmember Steve Diels and activist Dawn Esser are running a contentious race for the position of city treasurer, marked by vastly different ideas of what the treasurer should earn and why.
The North Redondo Beach Business Association organized and hosted a candidates forum last Thursday at which Diels and Esser fielded questions about their backgrounds and their vision for the treasurer’s office, which affords its occupant a $116,950 salary plus benefits and a pension. The election, made necessary by the resignation of longtime treasurer Ernie O’Dell, will be conducted via citywide mail-in ballots next month.
Esser introduced herself as a finance professional with nine years of corporate and banking experience, 11 years as CFO of a manufacturing and import business, and a real estate and financial investor. She holds an MBA from Loyola Marymount University.
Diels, who termed out of his District 4 seat two weeks ago, introduced himself as the CFO of a multimillion-dollar Redondo Beach enterprise, and a public servant who has served on numerous political committees. He holds an MBA from Pepperdine and is a doctoral candidate at present.
The crux of Diel’s campaign has centered on reducing the treasurer’s salary because he believes “we are spending too much money to manage our money,” he said Thursday.
“The treasurer’s salary is simply too high…what we pay is just not normally done in small cities,” he said. He has proposed reducing the salary to $25,000, a change that would require amending the city charter.
Diels noted Thursday that the treasurer in Hermosa Beach earns $28,000 and in Manhattan Beach, $12,000, comparing both to the six-figure salary the treasurer earns in Redondo Beach and to the Redondo Beach mayor’s $12,000 income.
“The city treasurer takes home basically $10,000 a month. It’s absolutely out of balance,” he said.
Esser disagrees, and believes the way to cut costs within the department is to de-authorize the deputy treasurer’s position – incumbent Frank Rowland intends to retire in December – and replace it with a half-time “support person.”
(Several days after the candidate forum, the City Council did de-authorize the deputy treasurer position, which will save $60,666 this financial year and $121,331 the following year.)
She is adamant that the city needs a full-time treasurer to perform duties that are crucial for maintaining its financial integrity.
“I do not see how the treasurer’s position could be done on anything but a full-time basis right now because you still need to have the oversight on the fiduciary management of the investment portfolio, tax administration duties… you need someone there managing outside auditors and making sure that is getting properly done,” she said.
She added she is not looking to maintain the pay rate for her own benefit but for that of the city.
“I have no problem reviewing what the city treasurer’s salary or compensation should be,” she said. “I’m not taking this job on to have a full-time job and get a salary… I am running to help serve this community and this city and to ensure there’s the right financial person [doing the job].
“…Hermosa Beach and Manhattan Beach [treasurers] have no input on the revenue side, it’s purely fiduciary. They do not have those checks and balances so you cannot compare… the duties are not the same. The treasurer still needs to have that independent input and duties on revenue and expenditure side, to have the proper checks and balances.”
Diels supports the outsourcing of investment management to professionals he said are “more knowledgeable than internal staff, have more resources, and cost less.”
Esser agrees, but believes the outsourcing should be conducted on a non-discretionary basis, because voters “trust the treasurer they elect, so that person should have the final say.”
In his closing statement, Diels said he wants to be treasurer because he sees “something that needs to be fixed” and wants to fix it.
“It’s obvious we need some updates in that department and I’m just asking for the voters’ permission to allow me to do that,” he said.
“…We simply cannot tolerate waste. There was a time when we earned millions of dollars in interest income, that was great, no problem with the treasurer’s budget. Right now our income is below our expenses and it simply can’t be sustained and so I have come out with this platform to fix the situation.”
Esser, in her closing statement, said she is the right person for the job based on her experience, proven trustworthiness, and desire to be transparent.
“You have to know that your city treasurer is going to follow sound financial practices and you have my promise,” she said. “I will always give you facts straight.”
Ballots for the all-mail run-off can be submitted through July 23.
