Watch the video – the consultant describes POB’s as “issuing debt to pay off a portion of that UAL…” Morgan and Coolidge need to have their mouths washed out with soap.

6 May

Andrew Coolidge told a room full of people that “my friend Juanita Sumner is a liar...”

A friend of mine told me, “when you call a liar who has called you a liar, a liar, it just sounds like the biggest pissing match in town…” How true. Well, get out your hip waders, cause the piss is running deep these days.

Have you watched the video of the September 23, 2020 Finance Committee meeting yet? Don’t take my word for it, watch the video. And do me a favor – if you hit this link and it doesn’t work, get right back to me at “Comments” here and I will repost it.

https://gofile.io/d/8JVqub

I wrote a letter to the Enterprise Record hoping more people would watch the video. If you watch the video, you’ll see why our clerk Spike Presson does not usually make these recordings available to the public.

Mayor Andrew Coolidge and Councilman Sean Morgan have denied that a Pension Obligation Bond is new debt.

I have a recording of the 9/23/20 Finance Committee meeting at which consultants Mike Meyer and Eric Scriven of NHA introduced the POB to committee members Sean Morgan, Ann Schwab and Randall Stone. Meyer described POB’s as “issuing debt to pay off a portion of that UAL (aka, ‘pension deficit’).”

According to Wikipedia, “a bond is an instrument of indebtedness, of the bond issuer to the holder.” Investopedia defines “issuing debt” as “a financial obligation that allows the issuer to raise funds by promising to repay the lender…”

Meyer described a scheme by which bond issue (borrowed money) would be invested in the stock market, in an attempt to make enough money to pay both the bond debt and the UAL.

The consultants pointedly ignored the obvious solution – employees need to pay more. Currently they only pay between 9 and 15% for pensions of 70 – 90% of salaries of over $100,000/yr.

City leaders also need to better manage employee costs. Even while UAL payments have increased by millions, at the cost of city infrastructure and services, the UAL has grown 43% over 5 years. Instead of observing attrition measures recommended by the Government Finance Officers Association, management has added three new management positions, raised the police chief’s salary by $30,000/yr, and raised the clerk’s salary by $10,000/yr.

POB’s are a crackpot scheme at best and Coolidge and Morgan should be ashamed for perpetuating misinformation.

The video is available at https://gofile.io/d/8JVqub

Juanita Sumner, Chico CA

2 Responses to “Watch the video – the consultant describes POB’s as “issuing debt to pay off a portion of that UAL…” Morgan and Coolidge need to have their mouths washed out with soap.”

  1. Dave May 6, 2021 at 6:55 pm #

    Coolidge and Morgan talk as if there is little or no risk. At one of the council meetings Morgan rhetorically asked, “How do we not do this?” Thus making it sound like it’s a no brainer.

    Regarding the new debt, Morgan either wasn’t listening at that meeting or he’s lying. The bottom line is either Coolidge and Morgan don’t understand how POBs work or they are liars. Either way, they have no business running Chico.

    My suspicion is that Coolidge and Morgan do understand the risks but will go ahead anyway because they are beholden to the special interests. And they figure if it blows up it would be after they are out of office and if not, they will just blame it on the consultants. And the consultants don’t give a cr@p. They get our money no matter how it woks out.

    I think the rest of the members that voted for this haven’t a clue. They are blissfully ignorant and merely empty suit order takers for the special interests.

    I have to give Denlay credit for voting against this madness. I hope she can stand up to the special interests when the vote comes on whether to move forward with the sales tax increase.

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: