I read Bob Mulhullond’s letter to the editor – I won’t print it here, because it was about as poorly written as the “Argument Against” Measure H that he and Karl Ory tried to submit to the ballot pamphlet in 2022. But, he made a good point – as soon as Chico City Council, knew they had Measure H, city manager Sorensen (and clerk Presson) got 5 and 7% raises.
In 2012, when I started this blog, then city manager Brian Nakamura reported a $68 million pension deficit, now it’s over $92 million. In order to get us back on our financial feet (he said… ), Nakamura not only fired a bunch of staffers, he got management to pay a share toward their own pensions, a first. That was good for us, but not enough.
After Nakamura left, Mark Orme followed, instituting the “Pension Stabilization Trust”, and the city started funneling millions out of the General and other funds to make the annual “catch-up payment”. That was bad for us. That’s when they shifted the major burden of the pension deficit from the employees to the taxpayers. At first it seemed to work – at least once I saw the pension deficit start going down.
But that was short lived, the deficit at first stalled, then started to grow more every year as they added more police positions and increased salaries across the board. Then suddenly, over 2021-22, it went UP by $28 million – given the millions they’ve been paying to CalPERS in catch-up payments, that’s shocking. Here’s why – they added at least four new management positions over the last few years, all over $100,000 in salary, with really nice packages. And now we see our pension deficit went up $28 million over that period?
So I thought I should add to Bob’s letter.
A letter mentioned recent management salary increases. Here’s what that means to the pension deficit – $92,247,723, and growing exponentially like a pack of rabbits.
Management pays the least amount toward their own pensions and benefits – 10.5% of a pension worth 70% of their highest year’s salary. The city borrows the rest from CalPERS. That’s how the pension deficit was created and continues to increase despite millions in “catch-up payments”. Catch-up payments are made annually, in addition to the regular CalPERS monthly contribution. This year’s payment is budgeted at about $18 million. It’s spit on the griddle folks – the pension deficit grew by $28,000,000 over the 2021-22 fiscal year, despite an $11,000,000 catch-up payment.
Where do they get the money to pay increased salaries and the corresponding increase in costs? From the General Fund, including Measure H monies.
When Mark Sorensen was a member of city council, consultant Chad Wolford reported that our city was “management top-heavy” – too many redundant management positions with high salaries and low contributions. Subsequent consultants have told council that their biggest problem is the increasing cost of CalPERS. Why then do they continue to create new management positions and give out raises, while telling us we need to pay a higher sales tax if we actually expect to get any services?
It’s distressing that as soon as they have a sales tax in the can they go about divvying up the pie among themselves, but that’s what we get for giving them a general tax measure.
Juanita Sumner, Chico CA
Chico Taxpayers Association 
Excellent article Juanita. Once again you have exposed the cavalier use of taxpayer dollars by city leaders. I would like the taxpayers to ask for accountability and transparency from city leaders. It’s your money Chicoans.
It’s so frustrating Scott – it’s like the Emperor and his new suit! We’re looking at Mark Sorensen, buck naked, with his dirty little mitt in the cookie jar. But people still don’t get mad? Thanks for saying!
Juanita. You made an interesting point about former city manager Nakamura. Nakamura was reportedly in fear for himself and his family from Chico PD “peace officer’s and their supporters. Nakamura was just doing his job. Shame on those who bullied them.
I have also been bullied by members of the city agencies – in one incident my husband and I were followed out of a night time meeting by the president of the firemen’s union, who appeared to be intoxicated, and wanted to argue with my husband, even though it was I who stood up to the podium to make a statement.
I’ll tell you what I know about cops and fire – they don’t do it for the good of the community, and some of them are the worst kind of trash you’d want to meet on a dark corner.