GUESS WHAT! Howard Jarvis Taxpayers have sent a CEASE AND DESIST letter to Chico Staff, “advising against filing a validation action for a $146 million pension obligation bond…”

4 Jun

I got good news from council member Kami Denlay last night, I been too busy to post it.

Hello Juanita!
Since our previous emails we received a cease and desist style letter from HJTA. They outlined all of the same issues you have mentioned, as well as those issues I echoed at the April 26th meeting (violations of State Constitution, etc).
The City’s movement on the bonds is now temporarily halted until council is briefed on the legal letter from HJTA. I look forward to hearing how my colleagues respond now that our concerns have been further validated by this new HJTA action.

Talk about a gobstopper.

Ms. Denlay also sent me a screen shot of the letter, but I can’t cut and paste from it and have no link to refer to. So I’ll just give you some highlights.

This letter advises against filing a validation action for a $146 million pension obligation bond indebting the city of Chico’s Taxpayers without their approval.” They cite a resolution “to that effect” passed in April of this year. They also cite the California Constitution, as did Denlay when she voted NO to Staff’s proposal.

“No county (city etc) shall incur any indebtedness or liability … without the assent of two-thirds of the voters…”

Please note, they don’t say “tax” or “bond”, they say “debt” and “liability”. This leads me to question the whole “Unfunded Actuarial Liability” that Staff is always telling us is the responsibility of the taxpayers. Bull shit!

Hey, you know what else – the county has been pursuing a Pension Obligation Bond as well. Excuse me while I send a copy of this letter to the Board of Supervisors.

4 Responses to “GUESS WHAT! Howard Jarvis Taxpayers have sent a CEASE AND DESIST letter to Chico Staff, “advising against filing a validation action for a $146 million pension obligation bond…””

  1. Dave June 4, 2021 at 2:43 pm #

    Now we need to kill all those tax increases Coolidge is gunning for. Make him and the rest of the Council reform the pensions and OPEB!

    • Juanita Sumner June 5, 2021 at 10:42 am #

      I agree. Ventura County Taxpayers Assoc suggests that employees make bigger contributions and retire later. Or at least raise the age at which they can start collecting their pension.

  2. Dave June 4, 2021 at 10:08 pm #

    I spoke with Kimmelshue’s aid and was told the supervisors have decided not to pursue a POB. And apparently they made that decision not because a POB is very risky and an all around bad idea, but because they plan to dump money from the PG&E settlement into the pension UAL, so they don’t think a POB is “necessary” at this time. (They’re also going to use the money to go on a bureaucrat hiring spree but that’s another ridiculous story.)

    Why should money from PG&E for the fire settlement go to the pensions? That money should go to fix the damage done by the fire and if it’s already been fixed it should go to prevent future fires or to fix the terrible roads or why not give it back to the county’s taxpayers who are also PG&E rate payers? After all, WHERE do they think PG&E got the money they have to give to the county? They got it from us, the rate payers!

    But they are going to throw this money down the pension rat hole, just like they do with the money for the roads and so many other necessities.

    Why or why do we have such awful politicians???

    • Juanita Sumner June 5, 2021 at 10:43 am #

      Yes, this is outrageous. I don’t know how these people can show their faces in Paradise.

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