On April 19, the Los Angeles City Council unanimously voted to adopt far-reaching financial policies designed to rein in budget-busting actions that have contributed to the city’s chronic structural deficits. The policies included radical yet prudent proposals that will yield the City of Los Angeles several million dollars over the next several years.

While many city departments have been forced to deal with high staff vacancy rates, a few people argue that our structural deficit problem is more illusory than actual. The argument is that the City Council and mayor balance the budget every year, thus there is no reason to take any action.

That argument is overly simplistic. Many vital city services have been curtailed in the name of balancing the budget. Libraries, recreation and parks facilities, police and fire have all offered fewer services to the public than they should because we lack the money for full funding. Additionally, the ongoing hiring freezes have created millions of dollars of operational ineffectiveness.

The council has voted in a new era of financial discipline. This includes setting goals for full cost recovery for all existing services; developing policies that create regional or national alliances of local governments to lobby the state or federal government for grant funds to meet new mandates such as stormwater and alternative fuel requirements; and adopting a moratorium on any new programs that impose additional mandates on the city over and above what is required by law or established standards.

A combination of these short-term policies, together with the long-term financial policies, will have a lasting effect on adequately funding the most vital services that Angelenos are entitled to.

As part of the new fiscal policy, the council approved its Budget and Finance Committee’s recommendation to balance the city’s revenue against its expenditures. In other words, we must not spend any more than we receive.

In the same spirit, the city will boost its reserve fund policy from the current 2 percent to 5 percent of the general fund. The boost will involve gradual and practical increases over a short period of time. That way, we will be better prepared to handle major catastrophic events and unforeseen dips in revenue, which may hamper the government’s ability to meet its basic obligations.

These policies have far-reaching implications that include better credit ratings resulting in lower debt service and savings of over $200 million. Such savings, when realized, will help ensure that we keep our promise to the business community to reduce business taxes while increasing the quality of life by offering more services.

The financial policies package still needs further refinement. That includes addressing a special-events fee waiver that costs the city $10 million a year; a non-profit leasing policy where the city leases real estate for $1 per year; construction fee waivers; and the Los Angeles Convention Center fee waivers where groups hold events at the convention center free of charge.

While we await the refinement of the rest of the package, the baton has now been passed to the public to keep pressure on City Hall to not only deliver the rest of the package, but to make sure that the city strictly adheres to the new rules.

*Bernard Parks is L.A. city councilman for the Eighth District.