Archive | October, 2022

Those pesky rules!

6 Oct

The proponents of Measure H are really running a hard campaign, and they aren’t letting rules get in their way. The flyer I received the other day is full of those promises they can’t make for a simple measure.

That first line is really troubling, insinuating the city only has $3 million in the road fund. The city received 10’s of millions in emergency funding for the Camp Fire and later for COVID, over $12 million in American Rescue Plan Funding just two months ago. And they claim there’s only $3 million for road maintenance? Meanwhile, they “allocate” pension funding out of all the funds, including the roads fund. Barbara Martin, who was just promoted to Administrative Services Director, told me that a percentage of payroll for each department fund is allocated to the Pension Stabilization Trust. That, remember, is in addition to the “payroll’ share, going to the annual “catch-up” payments made at the end of the fiscal year.

The second claim, housing – I think I covered that pretty well in my last post. They’ve already given over $32 million in emergency funds to developers to build low-income housing that isn’t needed, which will tank the housing market for a few years before attracting thousands of new residents with whom we will have to share our deteriorating infrastructure. ‘Nuff said?

Public Safety? What does this paragraph even mean? It’s so full of vague phrases – “increase proactive policing”… “expand training”…”protect 911 emergency response times“…? No, they can’t make specific promises, but what the hell are they even insinuating here? I really don’t think they could tell us, they’re just saying what they think the voters want to hear. Their promises aren’t worth the flyer their printed on. A 2/3’s measure would have specific amounts dedicated to specific programs, written directly into the ballot measure.

I saw a sign like this in Kasey Reynold’s front yard. In the ballot measure, it says she’s not supposed to campaign, as a council member, but I guess that doesn’t include her yard. The only others I’ve seen were being removed by a Cal Trans worker from the public right-of-way along Hwy 32.

“Make Chico Better” ? That’s their slogan, I think it’s really weak and insulting. First of all, Reynolds, along with Morgan, Coolidge and Tandon, signed the Shelter Crisis Designation, and then proceeded to lumber through that Warren vs Chico lawsuit like Godzilla in a Lego village. That has led us to the state of perdition we find ourselves in, and every time they promise us they’re going to fix it, the judge hits the entire town with a cease and desist order. Our parks are trashed because of decisions council has made, and we’re on the hook for $1.5 million/year to maintain the $3 million pallet shelters for the next 5 years? They can’t even tell us, but they expect us to raise our sales tax to pay for it. They’re not saying anything about that in their flyers or signs or social media.

Furthermore, it’s insulting in that we’ve watched them reeling in the money hand over fist, do they really think we believe they don’t have enough money to fix our roads? They just raised sewer rates (Dave corrected me, it was 67%, not 60 as I reported) but they need sales tax too? They’ve been permitting unprecedented levels of new housing – most of which will generate new property taxes, permanent prop tax that will increase incrementally every year – but they still need a sales tax increase? They think we don’t know about the “catch-up” payments? They sure don’t mention that either. I hate being treated like I just fell of a turnip truck.

We have to ask ourselves, when will it stop? Here’s that answer – when we vote NO on Measure H.

And finally, here’s a tactic that really made me disgusted with the H proponents – they just won’t follow the rules. I found these pictures at the Yes on H Facebook, identified as a city employee taking a group of kids door-to-door to hand out Yes on H flyers and signs. I asked the clerk, and she said that while city employees are allowed to do what they want on their own time, they’ve been informed that they are not allowed to wear their city “uniform”. Look closer at the picture – not only is the city employee pictured wearing a city logo shirt, he’s got them on three of the four kids.

https://www.facebook.com/YesOnHChico

Yeah they’re adorable, but rules are rules. Especially when they’re made by the people who are running the measure.

I think H proponents should have to remove these pictures from their Facebook site, but I’m not going to pull the clerk’s ear any further, I trust her to do whatever is appropriate. The city of Chico put this measure on the ballot, and they make and enforce all the rules for the campaign.

Many campaign donors look at it like more of an investment – take Measure H donors, please!

6 Oct

It’s always good to see who is behind a campaign and how much money they’ve put into it. Sometimes we find, these donors look at campaign contributions as more of an investment than the rest of us.

Here’s the link to the most recently filed report from Chicoans For The Sales Tax Measure 2022 — aka, Yes on Measure H. It’s a quick read, but very interesting – thanks Dave for the Heads Up.

https://public.netfile.com/pub2/RequestPDF.aspx?id=204866944

The biggest donors on this report are the Chico Police Officers Association and local developers Slater and Son. The CPOA was also the biggest donor behind ill-fated CARD Measure A. The Chico Police Department is also the biggest expense the taxpayers have, taking over half the new budget of $211 million. The salaries lead the pension deficit, so the cops also have the biggest pension deficit. Generous contributions to candidates at election time have kept council members from pressing CPOA members to pay more rational shares of their pensions and benefits.

Meanwhile, developers Howard and son Brandon Slater enjoy their fair share of public housing contracts, most recently receiving the contract for the new Jesus Center and transitional housing on Fair Street. That project is funded by the city of Chico.

I don’t know about you, but I’m not seeing the housing shortage the city (and Measure H proponents) are claiming – read this article, this is what I see whenever I drive around town.

https://krcrtv.com/news/local/nearly-1400-affordable-housing-units-in-chico-proposed-while-camp-fire-survivors-move-out

CHICO, Calif. April 16, 2022 — Construction of affordable housing in Chico is picking up, while tenants are moving out.

Brendan Vieg, the City of Chico’s community development director for planning and housing, released the new development statistics during the Chico Chamber of Commerce’s community development update Thursday.

Affordable housing, historically not comparable to those numbers, is keeping up this year. Vieg says 476 affordable housing units are currently under construction via apartments, duplexes and more. This work can be seen at the 59-unit project located at the old Jesus Center near downtown, the 60-unit project at the intersection of Bruce Road and East 20th Street, 97-unit Laval Ridge project off State Route 32 and east of Bruce Road, the 100-unit Creekside Place project across from Marsh Junior High School and the 106-unit North Creek Crossing project inside Meriam Park.

And a lot of it is being built with public money – “Those affordable housing projects represent solely those that have already broken ground, but something both the in-construction and in-development projects share: where the funding is coming from.

“Vieg says a total of 10 projects are being funded through disaster tax credits and CDBG Disaster Recovery Funds. Chico received over $32 million of this post-Camp Fire due to the influx of around 20,000 people who were displaced and eventually moved there in 2018.“

The Measure H flyer I received today claims that the revenues from H “would support“, among other things, “housing“. So you see, Slater and Son are making an investment, not a donation. They will receive millions in funding out of those revenues. There’s no oversite on jobs like that, when it’s taxpayer money, the sky is the limit. No fiscal responsibility, no competitive nature, the contractor charges what they want once they secure the contract.

Howard Slater used to say something along the lines of “for every dollar you spend in planning, you save $7 in building…” Well I’d say, he’s using the same philosophy in regards to greasing the wheels that turn his business empire – the public trough. For every $30,000 donated, you get how many million in return Howard?

And we must realize, the cops look at it same. Every election the CPOA are the biggest donors.

I’ll add this last “I told you so” – when Paradise was burnt to the ground and people fled for their lives, city of Chico management treated them like a pack of fleas, claiming they were overwhelming services like roads and sewers. Orme cried poormouth while receiving millions in disaster relief. I told you all that was BULLSHIT, and here’s staffer Vieg admitting it.

“Over three years after the blaze, these people are moving out.

“‘Our population swelled to over 112,000,” says Vieg. ‘Based on the Census, they have come in with a number of 101,475. So that’s kind of a big reflection of, again, a greater out-migration in our community.'”

At the time, Orme claimed 120,000. He used that number to file for and receive millions in disaster relief. Council spent the money as they saw fit – doled it out to their buddies in the unions and the developer community.

The most interesting reports come after the election is over, because the smart ones don’t donate until the last quarter. That would be the Service Employees International Union, which is the biggest union Downtown. That’s another time, on This Old Lady.

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Chico Says No: There is no bigger reason for the City’s financial predicament than spiraling pension and other post employment benefits (OPEB) costs.

3 Oct

 Investigating the “Chico Says No” site further, I found this really good essay on Chico’s unfunded pension liability.

https://chicosaysno.weebly.com/unfunded-liabilities.html

Something I’ve tried to remember to include in the pension deficit conversation but often forget, is OPEB – other post employment benefits. Yes, there is also a separate deficit on employee health benefits, for the same reason there is a pension deficit – our city employees expect very nice benefits – health insurance, vision, dental, life insurance, etc – but employees don’t make realistic contributions. Listen, the only reason they discuss the pension deficit AT ALL is that we’ve continued to press them about it for years. As we’ve kept pressing, they’ve raised employee contributions, by very tiny increments. The taxpayers pick up over half the “payroll” share and ALL the “catch-up”, or deficit payments.

And here’s what’s weird, like the author points out below – the catch-up payments get bigger every year, taking more money from the General Fund every year, but the deficit just keeps getting bigger. More about that tomorrow – or you can look at the budget yourself, here:

https://chico.ca.us/sites/main/files/file-attachments/2022-23_city_annual_final_budget.pdf?1664554257

And now, from the Chico Says No website:

Why are the streets crumbling in Chico?  Why is the rest of the infrastructure in sad shape?  Why have City services declined?  And why has this happened while City revenue continues to rise?  The fact is the City has never had more money to spend and the infrastructure has never been worse.  Why do our local politicians and bureaucrats continually cry out for more money and raise fees and taxes?

There is no bigger reason for the City’s financial predicament than spiraling pension and other post employment benefits (OPEB) costs. These costs are referred to as unfunded accrued liabilities (UAL) meaning there has not been enough money put aside to pay for them.  Despite higher fees and taxes, despite money that is supposed to be dedicated for essentials like street maintenance being siphoned off to meet these costs, they continue to spiral out of control.

The City Council wants tax increases and although no City Council member will tell you the truth, the reason for these tax increases is to deal with the UAL.  It is unconscionable that our local leaders will not level with people like you who have to pay for this.

If you read nothing more on the subject, read this article:

Californians face a wave of local tax hike measures

Although it is over two years old it applies even more today because the problem is even worse today. The article states:

“Local governments and school districts always tout these measures as necessary expenditures to rebuild crumbling schools, maintain overused parks and provide better police services, but don’t be fooled. Every new local tax these days is, essentially, a pension tax. These governments write the ballot summaries and provide ‘voter information,’ so they are able to sway the discussion away from the true causes of their fiscal peril.“

And remember, no city in California has solved its UAL predicament by raising taxes or borrowing more.  All that can do is increase the cost to taxpayers and postpone the day when there will be no choice but to reform these liabilities.

Don’t vote for the politicians’ tax increases.  Don’t let them borrow more.  Instead, demand accountability and demand they reform the out of control unfunded liabilities before they cost taxpayers even more.

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New group comes out against Measure H: Chico Says No

2 Oct

https://chicosaysno.weebly.com

VOTE NO ON MEASURE H

Why Should You Vote No On the Chico City Council’s Measure H Sales Tax Increase?

  • There is No Guarantee How the Money Will Be Spent

The measure contains a long list of possible uses for the money (many vague) but no details, dollar amounts or completion dates are assigned to anything.  Instead of necessities like street maintenance, the money can be spent on unsustainable employee costs, boondoggles and possibly hundreds of millions in new bonds (debt)! Remember, the money from the garbage tax was supposed to be spent for street maintenance but was siphoned off for the pensions. And that is only one example of our money being mismanaged!

  • There is No Citizen Oversight Council

Our city councils have proven over and over they can’t be trusted to spend our money wisely.

  • The Tax is PERMANENT Despite What The City Says

The ballot measure deceitfully says the tax will be in effect until “ended by voters.” Do you think the City will ever put a repeal on the ballot?  Of course NOT!  So it will require professional signature gathers to collect in excess of 12,000 signatures to get a repeal on the ballot and that will cost thousands of dollars.  Who is going to pay for that?  No one!  You will NEVER get a chance to repeal this tax.

  • The Tax is REGRESSIVE

Working people, poor people and those on fixed incomes will pay a disproportionate amount of their incomes and savings for this tax. In 2019 a City consultant said the per capita cost would be about $200 a year and that’s before the worst inflation in forty years.

  • This Is No Time for Another Tax Increase

Inflation at a 40 year high, looming recession, 22.4% of Chicoans living in poverty, record debt, taxes and the cost of living are already too high, etc.  And the City just passed a 67% sewer rate increase! Among other taxes, the City already taxes us 5% on gas, electric, telecom, water and has “franchise fees” of 2% on gas and electric and 10% on garbage. We have enough taxes!

  • The City’s Revenue Has Been Growing for Years

The City has never had more money to spend and the streets and the rest of the City’s infrastructure have never been worse.  The City’s revenue is up 40% FY15-16 through FY20-21 and when the audited financial reports come out for last fiscal year revenue will be up again. (As usual, the City doesn’t publish the audit financials until 6 months after the FY closes!)

  • The City Has a Spending Problem, Not a Revenue Problem

For many years money that should have been spent for essential programs like infrastructure maintenance has been siphoned off for massive unfunded liabilities which continue to grow anyway.  These liabilities are unsustainable. A tax increase will NOT solve this problem but only enables the City to delay taking action resulting in more tax increases later.

Instead of voting for a tax increase, demand the City Council reform these unsustainable liabilities so they are not passed down to your kids and grandkids! Download this flyer here and distribute it to everyone you know! Thank you!

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