Charter

L.A. City Charter Amendment LA election guide: Overhauling public works

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Proponents of the measure say Los Angeles is falling short in providing basic services, including street and sidewalk maintenance, upkeep of streetlights and trees and other services administered by the Department of Public Works.

The measure is intended to streamline public works decision-making to improve city services and add new sources of revenue by leveraging existing resources such as underutilized city land.

Measure LA’s perhaps most controversial element is the proposal to increase the power of the director of public works while reducing the sway of the Board of Public Works or potentially eliminating it.

The director would be able to manage public works projects, including construction, buying or leasing property, exercising eminent domain with City Council approval, granting street permits, regulating parking and recommending budgets for the department.

An opponent of the measure, Rodriguez said the Board of Public Works was established to provide independent review of city contracting, with commissioners’ decisions made in public meetings.

“Removing this important check and balance would reduce public scrutiny and weaken accountability over billions of taxpayer dollars for public projects,” Rodriguez said in her ballot argument against the measure.

Commissioners are appointed by the mayor. They work full-time on the board for five-year terms administering the Public Works Department while assisted by several bureau heads and the director of public works.

Proponents of the measure say the current system of overseeing public works is ineffective because responsibility is spread among multiple officials, commissions, agencies and bureaus.

“Angelenos see the results in crumbling streets, buckled sidewalks and streetlights that stay dark,” proponents said in their ballot argument.

Another key element of the measure is establishing a two-year budget cycle for the city, which currently adopts its budget annually. Under Measure LA, the mayor would be required to submit a proposed two-year budget to the City Council by April 1. A two-year budget would enhance planning for infrastructure improvements under another new requirement that the city adopt a Capital Infrastructure Plan.

Most major U.S. cities rely on multiyear capital improvement plans to schedule spending on roads, bridges, parks and buildings.

A long-term infrastructure plan administered with two-year budgeting “sets clear priorities, identifies the projects that need to get done, and plans how to fund them over time,” proponents said.

Currently, the charter prohibits the city from mortgaging city-owned property and prevents it from operating purely commercial or industrial businesses. The measure would remove these restrictions to raise new revenue.

Easing restrictions on operating a business also would allow the city to use its intellectual property to sell merchandise with city logos, as is done in other cities including New York, Yaroslavsky said.

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Revolut Fast Tracks to Wall Street With Conditional US Charter

Revolut gets an OCC thumbs up to launch a US bank, but lending ambitions are another issue.

Technically, financial technology company Revolut is already a bank across several regions—it holds licenses in the U.K., France, Mexico and Australia.

Now, in the U.S. market, it is one step closer to bankhood.

The London-based startup announced Thursday that it has received conditional approval from the U.S. Office of the Comptroller of the Currency for a national bank charter. The move would help the company grow its customer base from 80 million to 100 million by mid-2027.

It also exemplifies Revolut’s agility as a fintech compared to traditional banks, which typically take years to pull off similar expansion efforts.

“Legacy banks are working with legacy systems,” David Tirado, Revolut’s VP of Profitability and Global Business, told Global Finance in an interview last year. “Revolut, on the other hand, built our proprietary technology from the ground up with a global mindset. While competitors struggle to scale across different markets and regulatory landscapes, our systems were designed for this from day one.”

What Else Does Revolut Need?

Revolut still needs a green light from the Federal Deposit Insurance Corp. and the Federal Reserve, as well as final sign-off from the OCC, before it can open the proposed bank.

Once fully approved, Revolut said it would offer U.S. customers loans, credit cards, FDIC-insured deposits, and access to stablecoins and cryptocurrencies.

In a prepared statement, Revolut founder and CEO Nik Storonsky said the conditional approval was “an important first step towards establishing the proposed Revolut Bank US,” adding that it gives the company “the foundation to build in the world’s largest financial market.”

The U.S. bid follows Revolut’s expansion across Latin America, where the company recently launched a bank in Mexico and is pursuing licenses in Brazil, Colombia, Peru and Argentina. This year, Revolut has also obtained banking licenses in France, Australia and the U.K., a payments license in the United Arab Emirates, and is seeking a banking license in South Africa.

The company claims to add roughly 1 million customers every 17 days.

What About Lending?

Whether Revolut can become a customer’s primary financial institution without being a major loan underwriter remains to be seen. Revolut’s consumer lending segment remains small relative to its tens of billions in customer deposits. Still, it’s worth noting that the so-called neobank’s loan book, as of March, is up 120% year over year at $2.9 billion.

Felipe Peñacoba Martinez, CEO of Getnet Platforms Payments Hub and former CIO at Revolut Bank (EU), told Global Finance in June: “Revolut is aware this takes time, and they’re going slower than in other areas.”

Ultimately, the central question facing the industry is whether fintechs like Revolut can scale core banking products faster than traditional incumbents can modernize their digital ecosystems.

Anthony Noto covers corporate finance and private credit. Contact him at anoto@gfmag.com

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