Pension Obligation Bond on the agenda for Tuesday night, please contact your district representative and tell them this is a bad idea

17 Apr

well, I got the agenda for next Tuesday’s city council meeting, and there it is – staff is bringing forward the Pension Obligation Bond for council’s approval. Four votes is all it takes to “validate” a tax, the proceeds of which will be used exclusively to feather the nests of employees who refuse to make rational contributions to their retirement.

I’ve written here, I’ve written letters to the editor, and I’ve written emails to my district rep, Kasey Reynolds, as well as other members of council. I’ve tried to tell them what I have found in my research regarding POB’s. I’ve read various financial journals, I’ve read reports from public agencies, and the only good things I have read about these bonds come from the Consulting firms that are paid to implement and manage these funds. The Consultants who presented this plan to Chico city council admitted many times there are great risks to implementing these bonds. They also told Council that there would need to be a new Revenue stream to service this Bond, or the payments would be coming out of the general fund at the expense of infrastructure and services. They even mentioned a California City that had to lay off police officers when they could not make the payments on their POB.

Let me explain again how these bonds work. The city has a unfunded balance on employee pensions. With council’s approval, staff will sell bonds, and invest the proceeds in the stock market hoping to make enough money to pay back not only the bond loans, but the unfunded pension liability. If you don’t see the ridiculous nature of this plan, I just don’t know how to get through to you. I just can’t understand a person that would think this is a good idea.

The consultant also explained, that if the city does not come up with a new revenue source to secure this Bond, they will be forced to bottom out the General Fund to make the payments when the stock market doesn’t perform as hoped. This bond supersedes ALL other city debts and expenses- streets, sewer, cops and fire – OMG! – even CalPERS! The consultants mentioned a California jurisdiction that had to lay off cops.

So when I wrote to my District representative, Kasey Reynolds, this morning, I tried to be polite but I really don’t think she’s reachable. She thinks she’s been elected to do whatever she wants, when she’s supposed to be listening to those of us she supposedly represents. I’m afraid that the amount of money she receives from public employee unions during elections has turned her head. I really don’t think she’s qualified or competent in representing the public. She has too many conflicts of interest.

I’d say same for the other four quasi-conservatives who got their seats by promising fiscal responsibility, while taking money hand-over-fist from the unions and their supporters, like Citizens For Safe Chico. CFSC is just a front Pac for Chico PD.

Reynolds is up in 2022, along with Brown and Huber. I have told her, there are a lot of unhappy conservatives in my neighborhood – her tiny new district. . I also think there are more liberals in her new District than conservatives. So, if some unhappy conservative decided to run against her, I think a liberal with a good game plan could blow them both out of the water.

It’s time to remind Reynolds and the other supposed conservatives how they got elected, and who elected them. With these new districts, it takes hardly any votes to get elected. You may have noticed that Schwab lost her ass because she didn’t take Breedlove seriously enough. I believe Coolidge rode into office on the votes that Randall Stone lost to Lauren Kohler. So let’s give Reynolds and the rest of them a good dose of reality before Tuesday night.

That’s firstname.lastname@chicoca.gov. Or you can send an email to the clerk at debbie.presson@chicoca.gov and ask her to forward it to full council.

I wrote this post because last week I read a letter to the editor from some lazy idiot ( I’m sorry to insult this person but I just get so frustrated sometimes…) complaining about rate increases from Waste Management, as well as their threats to fine customers for over-filled bins or contamination in the recycling bins.. That franchise deal with the city was rolled out in 2016. I went to various meetings, and I wrote letters to the editor and I wrote blog posts about this deal. I’m not bragging when I say that my participation in those meetings led Council to reject a proposal to make trash service mandatory, as well as yard-waste service. But I was not able to stop them from allowing the hauler to make annual rate increases and to impose onuris fines. I’m saying, if more of you lazy-asses had shown up at meetings, and contacted your psuedo-representatives, you wouldn’t have to be writing your whiney little letters now, would you?

So, excuse me for being a little short, but PLEASE get off your dead ass and contact your representative about this POB, cuz I don’t want to read your whiney little letters to the editor in five years about how your streets are crapped out, there’s no cops, whiney, whine, whine.

4 Responses to “Pension Obligation Bond on the agenda for Tuesday night, please contact your district representative and tell them this is a bad idea”

  1. Julie April 23, 2021 at 9:38 am #

    While I admit to being a lazy leftie I don’t understand how POBs are a conservative/liberal issue.

    We all know Chico is grossly mismanaged no matter which party has been in charge. Most of this information came from you. Because of your blog I wrote my letter on Chico engaged objecting to POBs which was, of course, not even read out loud at the closed meetings. It’s literally the least I could do, but what a depressing experience, no matter what political views you have.

    • Juanita Sumner April 23, 2021 at 11:43 am #

      Julie, thank you for writing to Engaged, I have not had a chance to make my comments. Frankly, a lot of times I forget, and other times, I’ll admit, I just don’t think it matters. But at times like that, I have to remind myself – I’ve been doing this for almost 15 years, and there have been little victories that are worth keeping it up. There is no sin in being discouraged, the sin is in giving up, and then expecting to complain about everything! (I’ll credit Tyler Perry with the first part of that statement)

      I’ll tell you what, don’t expect the Talking Heads to kiss your ass when you criticize them or their ideas.

      I just mention the “conservative” tag because traditionally, conservatives are anti-tax. I think most people expect them to scrutinize these issues in favor of the public. The Five all ran on “conservative” platforms, but now Coolidge brings forward a tax that doesn’t go on the ballot – TAXATION WITHOUT REPRESENTATION. Where the hell is Paul Revere when you need him?

      Luckily, I got a note from Kami Denlay, and she says she “can’t” go along with this scheme because it goes against the California Constitution as well as the US Constitution. We’ll have to keep an eye on her.

  2. Julie April 23, 2021 at 3:34 pm #

    I know conservatives have that reputation, but it’s not so much they anti-tax as anti-wealth tax as far as I can tell. I’m against regressive taxation and asset inflation (increasing property tax) and for raising capital gains tax above a certain amount. Also, it is the progressive website Naked Capitalism that has been banging the drum for years about Calpers corruption and incompetence.

    Anyway, i don’t see a lot of liberals OR conservatives paying much attention to how our tax dollars are spent, except…you. At any rate, playing the stock market with public money and without our consent is wrong. These elected and non-elected officials can gamble their own cash to fund their pensions, let’s see how that works for them.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: