No, the "It's" up there is antecedent-ed by the public sector unions, specifically the police union. Local government, like all government, is about being reelected. They can spend like that, in a way no sane business person would dream of spending, because it isn't their money.

Incompetent? Perhaps as good stewards of the public trust. But then, if they were good stewards of the public trust they wouldn't have gotten elected. The public service unions would see to that.