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Loyalton Calif cuts pensions – why can’t Chico do same?

27 Aug

Thanks to Jim for picking up this article, from the Los Angeles Times, about a little town not far from Chico.

http://www.latimes.com/politics/la-pol-ca-loyalton-calpers-pension-problems-20170806-htmlstory.html

I think we have a similar situation here. Early in the 2000’s, a city council including current county supervisors Maureen Kirk and Larry Wahl, at the behest of then city manager Tom Lando, signed an MOU with city employees, attaching salaries “to revenue increases, but not decreases…”  

Staff then went on a permits binge, permitting development all over town, houses piled into Grandma’s back yard, raising city revenues and salaries along with them. Staff got 14, 19, 22 percent raises over a very short period.  Lando’s own salary went from around $65,000 a year to over $120,000 a year within a very short time. 

When this scam was figured out by the public, they stopped it, but started paying the “employer paid member contribution” –  the city started paying most, even all of the employee’s pension share.

We’ve been screeching about that, so lately they just  raise the employee’s salary to cover their new pension share – they are determined that the taxpayer will foot the bill for these pensions (the following list is from 2012, remember, these people get cost of living increases) :

https://chicotaxpayers.com/2012/01/30/heres-why-lando-wants-to-raise-your-sales-tax/

Tom Lando hasn’t been pumping the sales tax increase lately, but I’m sure he’s behind it. Lately, in his position as Chico Area Recreation District Board member, he’s been pushing for a bond on our homes. It doesn’t matter which agency gets the money, as long as they pay their CalPERS deficit with it. 

Loyalton only had four employees – can we do the same thing? I think we can sue the city for the outrageous raises given these pensioneers – spiking – right before they retired, like Lando. But I’m not a lawyer. 

What do you think? 

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Sales Tax Increase Anyone?

30 Jul
 

The headline read, “Chico government can’t be trusted with tax increase.” The letter implied current city management is deceitful in its handling of city finances. Nothing could be further from the truth. If the letter writer attended monthly Finance Committee meetings, any accusation of supposed mishandling of taxpayer monies could be explained. I know, I attend those meetings.

Since our new management staff (Mark Orme, city manager, Chris Constantin, assistant city manager, Scott Dowell, administrative services director, and Barbara Martin, deputy director-finance) took office many positive changes in financial reporting have taken place. Detailed financial reports are presented at both the committee meeting and at City Council meetings. Those reports are published online for all to see and pick apart if the public chooses. I cannot recall the letter writer coming forward with a question, comment, or criticism this entire year.

Most of the letter seemed focused on past majority driven ultra-liberal councils (2004-2012) and the old management team that was either unwilling or incapable of controlling their spending. Things have changed dramatically. All it took was one conservative council member and the Grand Jury report of May 2013 to shed light on the mismanagement of taxpayers’ money.

I have no misgivings in suggesting that the city raise sale tax by one-quarter of 1 percent (7.25 percent to 7.50 percent) equaling $4-$4.5 million annually. I will gladly pay that extra 12 cents on a $50 purchase if that meant we could repair/replace our hazardous city streets in this century.

— Stephanie L. Taber, Chico

 

My response to Taber, e-mailed 7/29/17 (we’ll see if this is printed, ER staff removed similar comments I made on Taber’s letter )
We have been assured that all Chico’s financial problems have been put to bed under our “new” staff.  
Former finance director and current assistant city manager Chris Constantin instituted the policy by which whenever a fund is in deficit money is “administratively” transferred from other funds. For example, the gas tax, which most people believe is dedicated to road repairs and improvements is routinely “allocated” for  salaries, pensions and benefits, just like when Jennifer Hennessy was our finance director.
Current administrative services (finance) director Scott Dowell was with Chico Area Recreation District when they failed to make recommended repairs to Shapiro Pool, instead spending $400,000 on a “side fund payoff” to CalPERS.   When he left that agency CARD had over $1.7 million in pension deficit for less than 35 employees, despite spending over $300,000/year in regular payments.

The city’s pension and benefits liability is now over $180 million, and the state is demanding an escalating payment scale. Meanwhile, we continue to pay the majority of our employee benefits, giving them raises to cover their increased shares.  We will never get out of our financial morass until our management staff agrees to pay 50 percent of their own pensions and benefits without corresponding salary increases to cover it.

A quarter cent sales tax increase would be spit on a griddle.

Juanita Sumner, Chico

JetChico presentation tonight – small airports cannot support themselves, will need heavy subsidization from taxpayers

25 Jul

Yesterday I received this agenda for an Airport Commission meeting tonight:

http://www.ci.chico.ca.us/government/minutes_agendas/documents/Agenda20170725finala.pdf

I’ve signed up to received these agendas for various meetings Downtown, they’re usually sent out the Friday before the meeting. Why only a day ahead? Probably because city staff doesn’t  really don’t want the public to get wind of what they’re talking about with JetChico, the group that is working to get taxpayers to subsidize commercial air service at Chico Airport.

jetchico.org

Wanna be Turlock?”?   Really?  Ooooo! Trash talk!  

This group is shady, they don’t say who they are – you have to attend their meetings – at a winery? – to find out what they’re up to. Or you can attend tonight, or you can watch it online.

 

I hope you will – I cannot attend, I’d already committed myself to a work week out of town by the time I got the notice.

Or you can read JetChico’s reports – it’s all there. I read their financing reports, and what I see is, they expect to get most of their money from grants and bonds – tax money.  The reports are pretty damning, and make it pretty clear – small airports cannot support themselves, they need over 50 % subsidization from the tax payers, most of whom will never fly.