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Speak now or forever hold your hands over your behind

13 Mar

I was thrilled to  read letters from Dave Howell of Chico and Steve and Lorraine Christensen of Oroville. I speak to people all the time who feel Californians pay too many taxes, but people seldom get around to writing letters about it. I think it’s important to let your “civic” leaders know how you feel, let them know you’ve had enough, let them know you’re ready to do something about it.

Now that the city of Chico has made it clear they will pursue a tax measure, I’m not mincing words – Mark Orme needs to  go. Old Yiddish proverb – when the fish stinks, it’s the head of the fish that stinks!

Orme claims he’s done a lot to lead out city out of deficit, but he’s overseen the siphoning of money from various departments into the pension deficit. Rather than fess up and pay more of his own salary toward his pension, he continues to take pay increases while offering up a mere 11% of his base salary toward his benefits, FURTHERMORE adding a tax deferred IRC 457 to his package. This guy is enriching himself out of the public cookie jar, time to slap his hands.

Write those letters!

  • letters@chicoer.com
  • chicoletters@newsreview.com
  • debbie.presson@chicoca.gov

At the February 27 Finance Committee meeting, city manager Mark Orme said he has resisted revenue measures in the past, but that Chico’s current situation calls for a new tax to mitigate the impacts of the Camp Fire evacuation.

City staff has been  calling for a tax increase since well before the Camp Fire.  They wanted to tax our cell phones. Then they said garbage trucks were wrecking our streets and added a franchise fee to our rates. Long deferred street and park maintenance. Transients  straining public safety agencies.  Now it’s the evacuees.

But on February 27 Orme finally acknowledged the “elephant in the room” – pensions. The city spends almost $20,000,000 annually on pensions. About $8,000,000 of that goes to the pension deficit.

Orme insisted staff has learned to “live within our means.” Really? The city manager’s base salary has gone from $192,000 to $207,500 since his hire,  but his total pay is over $225,000,  including perks such as a $400/month car allowance. Tack on another $82,000 in pension and health benefits, including $18,000 for an IRC 457 added to his contract just last year.

Orme only pays 11% of his base salary for a pension of 70 percent of his highest year’s salary at age 60.  This is how the deficit was created, the employees expect a lot but only want to contribute a  fraction of the cost.

The question isn’t whether we need a new tax, but why the taxpayers should bear the burden of a pension deficit created by public employees.

Juanita Sumner

“Why is there always enough money for large pensions and raises (and propaganda) for bureaucrats yet never enough money to maintain the streets?”

4 Mar

I want to thank Dave for writing this kick-ass letter to the Enterprise Record last week. I know it ran either the day before or the day of the Finance Committee meeting last week and I know Mark Orme read it. Now I also know I’m not the only person who has a problem with paying for a campaign to raise my taxes to pay  for the pension deficit created by years of entitlement. 

Orme mentioned the pensions, but would not admit they are the real drive behind a revenue measure. He said they want the money to either  fix streets or hire more cops. But we’ve all seen the method by which they transfer money from every department into the “Pension Stabilization Trust” and the “UAL” fund to pay down a deficit that the employees created themselves by not paying enough into their own pensions. 

Write your own letter folks – don’t be an ostrich, stick your head up and be heard. 

Why is there always enough money for large pensions and raises for bureaucrats yet never enough money to maintain the streets?

And now our city council members have decided there is plenty of money in city coffers to propagandize the public, so they are giving tens of thousand of our tax dollars (and most likely more later) to a PR firm to sell us another bond measure (just another type of tax increase) or a sales tax increase. And this does not include the cost of the city bureaucracy’s staff time. Is this how you want your hard-earned tax dollars spent?

And whatever tax increase they sell you will be just a down payment as the city’s unfunded pension liability will only get worse. Just wait for the next recession and stock market plunge. Then the politicians will spend more of your tax dollars to sell you yet another tax increase.

I urge everyone to read the long time political watchdog and journalist Dan Walters’ editorials: “Despite law, politicians use taxpayer funds for campaigns,” “Local tax hikes cleverly packaged,” “Cities should fess up about taxes, pensions,” and “Property tax surge reveals the truth: Local tax hikes are all about pensions” athttps://calmatters.org/articles/author/dan-walters/. (Some of these editorials ran in the Chico ER.)

As Walters notes, “With very rare exceptions, however, officials who place the tax increases on the ballot will not publicly say the extra revenue is needed to offset rising pension costs. Rather, on the advice of high-priced consultants, they say the money is needed for popular police and fire services and parks.”And he says, “The League of California Cities has raised the alarm about ‘unsustainable levels’ of pension costs. Isn’t it time for the cities themselves to be truthful when they ask voters for new taxes?”

Our community is in a state that has some of the highest taxes and living expenses in the nation. And if the local politicians have their way your taxes and expenses are going up. Also, wages in Butte County are in the bottom 10 percent of the larger counties in the nation. California has the highest poverty rate in the nation at 19% and Butte County is even worse at 21%. It is unfair to increase this community’s tax burden while government employee pensions go unreformed.

It is long past time for politicians to spend within our means and represent us instead of special interests at our expense.

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Who’s responsible for these elephant turds?

2 Mar

At last week’s Finance Committee meeting (Feb. 27) Mayor Randall Stone (Chair) and council members Sean Morgan and Ann Schwab heard a consultant’s pitch for a revenue measure campaign, starting with the usual “survey”. City mangler Mark Orme made some interesting comments before introducing the consultant.

Orme stated that since he came to the city in 2013 he has “resisted” revenue measures. “I think there needs to be a high level of trust within the community that those funds are going to be spent prudently.” 

I always wonder about public sentiment. Do most Chico voters trust the city council and staff to use their money wisely? And here’s the scary question – what would they know about it?

Orme feels that he and staff have “created a higher level of trust.” opining, “We have learned to live within our means.”

Orme reminisced about his arrival in Chico in 2013, reminding us that the city “has been through hard times.”  He talked about “lost” staffers as though they wandered away in a storm or left for better digs elsewhere. No, hit man Brian Nakamura was hired, long time staffers were fired, or in some cases, simply encouraged to take a position in another city. “Hit Man” brought in former co-workers as new management and skipped off to his next assignment. Over the next year or so staff was pared down until there were no more workers, just management. And management salaries have continued to get higher – now in excess of $200,000/year – while they only pay 11 percent of their pension cost.

So I’d really like to ask Orme just whose means he’s been living within.

He certainly did mention the pensions – “one of the big elephants that cruises through any government living room…” He acknowledges the pension deficit. But here’s where the fiction continues – “The city  didn’t create it…”

I have to take exception with that last claim.  Looking at Orme’s contract here, it’s not hard to see what really happened.

Click to access OrmeEmploymentAgreement10-2017.pdf

“WHEREAS, the Council desires to have Orme participate in CalPERS cost sharing, and pay three percent (3%) of the Employer’s cost, in addition to Orme’s contribution for CalPERS;”

On “Exhibit A” you find the employee share, Orme’s contribution, is 8%. Plus 3% of the “employer share” equals 11%. For 70% of his $207,500 salary at age 60. The city payment has been increasing every year, I  believe they now pay 39% but it might be more. CalPERS is constantly demanding more. The other 50 or so percent rides on the stock market. This hasn’t worked out so far – CalPERS promises 7% return but has been lucky to see 1%. This has caused the PENSION DEFICIT, aka PENSION LIABILITY.

Not only that, but Orme, as well as other management staffers, have recently added a IRC 457 plan to their contracts. In addition to their salaries and CalPERS contributions paid, they get tax exempt “deferred” compensation.

“Plans of deferred compensation described in IRC section 457 are available for certain state and local governments and non-governmental entities tax exempt under IRC Section 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years.“

“Effective from the first pay period in January 2017 considered in calculating the maximum IRC 457 plan limit and annually, City agrees to contribute nine thousand dollars ($9,000) , to Employee’s IRC 457 plan. Additionally, effective October 5, 2017 the City agrees to contribute four and fifty-two hundredths percent (4.52%) of base salary to Employee’s IRC 45 plan.”

See, the city most certainly did create the deficit, because they’ve continued to agree not only to CalPERS stipulations but to bigger and bigger salaries (and therefore PENSIONS) and more generous contracts all along. Since 2013, Orme’s salary has gone up almost $20,000. Laying off people who made $35,000 – 65,000 a year while raising management salaries by 10’s of thousands is like taking 5 steps backward and no steps forward. As Orme acknowledged last Wednesday, we now get no services.

“Now we’re a city that’s living within their means that isn’t meeting the needs of the community…”

We need to ask ourselves, what the hell is the use of a city that doesn’t meet the needs of it’s community?

Orme casually mentions the elephant in the room – he is the elephant in the room. Somebody better get him a shovel, he has a huge pile of crap to clean up.

 

 

 

 

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FPPC: local prosecutors failing to file charges in cases where public officials have used public funds for political purposes

26 Feb

Busy little bees.

The city and CARD are still worming their way toward separate tax measures. It’s starting to look like CARD will go with a parcel tax. The city, meanwhile, has yet to decide what kind of measure they will flop out – the Finance Committee is hearing a $25,000 proposal from  EMC Research to conduct a “survey”.

It is illegal to spend taxpayer money to campaign for a tax measure, and I would think it’s illegal to use tax money to hire a consultant who promises to run the campaign for you. But it seems the agencies who would investigate and prosecute this illegal behavior are squabbling over who is supposed to do it.

https://www.latimes.com/politics/la-pol-ca-campaign-funds-misused-20190214-story.html

“With local prosecutors failing to file charges in cases where public officials have used public funds for political purposes, the state Fair Political Practices Commission is proposing their powers be expanded to allow the FPPC to prosecute misuses of taxpayer dollars.”

But as you might guess, local agencies are not too keen on being watched by outsiders – the good old boy system by which county and city administrators scratch each others’ backs is way too entrenched in Butte County.

The Times reports that “In response, the California State Association of Counties is filing a lawsuit to prevent such enforcement.”

Wow, that’s pretty blatant, isn’t it? Now the counties are spending taxpayer money making sure they  don’t get prosecuted for the illegal spending of taxpayer money. Koyaanisqatsi.

So I wrote a letter about it. Write yours too. 

“Last month the Fair Political Practices Commission revealed 34 allegations made since 2015 concerning public agencies misusing taxpayer funds for campaign purposes. Unfortunately  the agency lacks the authority to prosecute misuse of public funds, a power reserved for city and county prosecutors and the state attorney general.

Apparently, no local law enforcement agency has followed through on any of the allegations, prompting the FPPC to ask the state for the power to prosecute in these matters.

Does anyone  really believe that a local DA or city attorney would prosecute a public agency for raising taxes? FPPC commissioner Brian Hatch calls that “political suicide”.

Both the city of Chico and Chico Area Recreation District continue to spend taxpayer money on consultants who promise to help them pass their separate tax measures. Their consultant EMC Research claims “Great campaigns don’t just happen. That’s why we offer a full suite of political research and predictive analytics to help your candidates, organizations, and ballot measures succeed.”

Is this why you pay taxes? To hire people to raise your taxes?

Contact FPPC Chair Alice Germond <agermond@fppc.ca.gov> and tell her you support her efforts to impose stiffer penalties on those public agencies who flaunt the law and continue to undermine voters’ rights across the state.

You might also want to contact Chico city council at debbie.presson@chicoca.gov and the CARD board at annw@chicorec.com and let them know how you feel about paying for their campaigns to raise your taxes.

Juanita Sumner, Chico”

 

 

 

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Chico city council plays their little violin for the “homeless” while sticking it to the rest of us with Utility Tax

13 Feb

I received two rate increases in my last PG&E bill, one a “general rate case application” and the other for the decommission of the failed Diablo Canyon Nuclear Plant.

I also got a letter from Cal Water detailing their pending rate increase. A CPUC hearing held in Chico this week drew a few protesters, but I’m unaware of any city council member or county supervisor who bothered to show up. 

It’s better to approach the CPUC directly, anyway. The hearings are just a dog-and-pony show required by law, overseen by shills hired away from the utility companies. It’s a good idea to write to the CPUC – in past a CPUC commissioner actually turned down a water rate increase, asking for further hearings, because he’d had so many protests from ratepayers. That increase went through, but not at the original amount requested by Cal Water.

There is a “formal protest” option, but it’s not for the faint of heart. The local CPUC rep told me I should get a lawyer to fill out the forms when I inquired about it. He said they’re very complicated and mistakes will result in your complaint being round-filed. I asked then-supervisor Maureen Kirk to do it but she turned me down. The city of Chico didn’t even discuss my suggestion that they mount a formal protest. That’s frustrating, because we pay for the city and county to have a lot of legal counsel, more than any of us could afford. And that’s what it takes, paying a lawyer.

But why would the city lift a finger to stop utility rate increases when they collect millions in utility tax – about $7 million last year. The budget projection for this year was over $8 million, but that was before the Camp Fire drove who knows how many refugees into residence in Chico. Whether they live in hotels or rentals or have bought homes, they will contribute to a heavy spike in utility tax. 

So, I’m actually hoping this nasty weather we’re having right now will result in higher PG&E bills, maybe people will get pissed off enough to start rattling their chains. Our city leaders are always posturing, posing and primping. Ann Schwab’s proposal for a rent control ordinance is a pretty brassy beginning to her 2020 campaign – she’s already pulled her papers. Randy Stone and Scott Huber have pasted their faces all over the “warming tents” – Stone has pulled his papers for 2020 and Huber used “the homeless” as his 2018 campaign. 

I think these petty gestures are very insincere, so I wrote a letter to the editor about it, see below.

REMINDER! start gathering together your utility bills, UT rebates will be available starting May 1. More about that later!

Chico council members have made goodwill gestures toward the growing low-income population in our town but have yet to offer anything of substance.

An ordinance to protect renters from landlords?  California tenants already get a minimum 30  days (60 days after one year’s tenancy) notice for any change in tenancy. Local jurisdictions mandating their own reasons to evict is contrary to state law.

A $100,000 budget for warming tents that attract less than a dozen street people? There are three publicly-funded shelters in town, as well as CHAT’s rotating “Safe Space”. 

These  gestures seem little more than grandstanding when council tacks a fee onto our PG&E, Cal Water and landline phone bills. Currently the city taxes our utility bills at the highest rate allowed – 5 percent. Utility Tax is one of the  city’s biggest revenue sources, raking in almost $7 million last year. While the city incurred some costs with the evacuees, UT revenues are sure to spike in 2019 – all those new residents, and rate hikes coming from Cal Water and PG&E. 

I saw no member of council at the Cal Water rate increase public hearing. Nor has the city mounted any formal protest against PG&E’s plans.

If council members sincerely want to help low income folks, they would reduce the UT, and protest the rate hikes. Instead they are using expensive staff time to figure out how to get us to approve yet another tax on ourselves.

Empty gestures are easily made with other people’s money. Let’s see something that really matters.

 

 

 

 

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Dan Walter: School officials and school unions are teaching students that it’s all right to run up credit card bills, blame others for overspending and then cross their fingers that someone will bail them out

11 Feb

After I wrote my analysis of CARD’s use of their expensive Cal Park Lakeside Pavilion facility, I read this piece by Dan Walter:

https://calmatters.org/articles/commentary/school-districts-set-poor-example-for-students/

Walters is talking about various California school districts, but what he says also applies to our local recreation district – ” it’s all right to run up credit card bills, blame others for overspending and then cross their fingers that someone will bail them out.”

That’s becoming standard public agency policy these days, and it’s not just the pensions, but poor spending decisions by policy makers. I mean, blatant decisions, like spend $385,000 on a remodel for council chambers, or paying a million borrowed dollars on a crapped out old building and then several hundred thousand fixing it. 

But most poor spending decisions seem to involve public salaries and benefits. Walter reports ” In 2017, when Sacramento Unified’s teachers were threatening to strike, Sacramento Mayor Darrell Steinberg mediated a new contract that gave teachers an 11 percent raise. Later, it emerged that the salary increases would come from a reserve set aside for pension fund payments.”

In Chico, both the city and CARD have set up “pension trust” funds, allocating money from other city funds, to pay down their pension deficit. this is in addition to what taxpayers already pay toward pensions on a monthly basis. We pay their payments monthly, and then we’re on the hook for an annual payment that increases every year – this year, $7,598,561.  Former CARD finance director Scott Dowell now runs the city finances, so he set up both funds. He says these funds save money by avoiding penalties from CalPERS. What it amounts to is embezzling money from one fund to another so you can spend it any way you want. 

In Sacramento, contrary to the  rules for one of these “trusts”, they spent the money to give their teachers an 11 percent raise. Of course, you know what those raises are going to do to those teachers’ pensions, right?

As soon as Chico Unified passed Measure K in 2016, district finance mangler Kevin Bultema told the board they were still looking at deficits caused by raises given teachers. He told me in an e-mail that if they didn’t get more money they’d cut programs. 

Walter’s point in this piece is that the schools are setting a poor example for the kids. I’d say,  government in general is setting a poor example for everybody. 

 

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“Special meeting” of city council, held at Cal Park Pavilion on Saturday at 8:30am in a dumping storm – think they really wanted anybody to show up?

6 Feb

I’ve signed up for various city meeting agenda notifications, and the other day I got a notice for a special city council meeting. It bugged me so much wondering what they were up to, I got out on the highway in a howling rainstorm to drive up to California Park Lakeside Pavilion to find out.

It just seemed weird. Saturday before the Super Bowl, weatherman making winter storm warnings, and they decide to have an 8:30 am meeting at the Pavilion.

I arrived with a few minutes to spare, following Mayor Stone into the  building. I found the rest of council and various staffers making their greetings and chit chat in one of the small meeting rooms that line the main hall. A big blue sheet was hanging on one wall next to the viewing screen. Three tables were set up in the middle of the room and a line of folding chairs was set along one wall.

A man immediately walked up and admired my rain boots. I must admit they are very attractive, and practical too. We introduced ourselves. His name was Scott Winter, and he said he would be running the meeting. His business, he said, was “Human Performance,” or, “how to get people to show up.”

So, I had to ask him, it just popped out of my mouth – if you want people to show up, why would you have an 8:30 am meeting on a Saturday in a howling storm at an out-of-the-way building with  little or no notice to the public?

Dammit, no wonder I can’t make friends or influence people, my mouth has no damned kill switch.

He looked shocked, and then recovered, saying he needed a room that would accommodate “everybody”, as well as his big blue sheet – he gestured toward the wall with the big blue sheet.

Well sheesh, there’s walls all over council chambers, and that accommodates hundreds. There are two meeting rooms at the city chambers that are at least as big as the room they used at the Pavilion.

The meeting got started, Winters showed a video of another consultant who talked for about 15 minutes about “collaboration,” and how you have to let your defensive down to be constructive when working with a group. 

After the video Winter handed out a sheet of questions each person was supposed to ask themselves about their own defense mechanisms. 

And then, Winter handed out sheets of sticky sided paper, several sheets for each council person, and asked them to list their goals for council in the coming year.

Suggestions ranged from “more enjoyable council meetings” to “more money for the city” and “house all homeless” Some of the suggestions were repetitive – that’s what the big blue sheet was  for – Winter hung the sheets of paper on the sheet and the group went about trying to put the suggestions in groups.

Meanwhile, we members of the public sat along the wall, being told we were not allowed to participate. 

Wow, this guy sure knows how to get people to SHUT UP, not sure if he really wants to get them to SHOW UP.

By about 10am the consultant and some members of the group started to get a little peevish. Not everyone was cooperative, I won’t say who, but I could tell Winters was  getting impatient. Nothing was being accomplished, and several members of council expressed confusion over what they were being asked to  do, and what was meant by some of the suggestions on the board. Most were vague to the point of stupid.

Winter had to get on his soapbox and remind these people, they have lost the trust of the public, been sued for Brown Act violations, and needed to start being more transparent. That, apparently, was the dilemma that necessitated a “special meeting.” 

At this point I had to leave – my time is worth something. I wasn’t being allowed to contribute, the public had been let in out of legal necessity. And I’d heard plenty.

I had to wonder, what is Scott Winter’s time worth?

So I wrote a note to staff and asked – Winter got $3,000 for his day playing little children’s games and calling a bunch of brats on the carpet. Another $472 for the room at the Pavilion. 

Why was this a “special meeting”? Why not schedule and notice a regular workshop? Winter told me it was because he is very busy, but his friend Mark Orme had called him in Poland to tell him it was really important so as soon as he got home they’d made arrangements for the meeting. I didn’t ask him why the Pavilion, I think it’s pretty obvious they didn’t really want anybody to show up.

 

 

City staff using Camp Fire to justify sewer rate increase

1 Feb

According to a rambling letter from Stephanie Taber, somebody is running a survey to determine whether “the voters” want to support a sales tax increase for street maintenance. I’ve been waiting for such a survey, but of course I know they won’t sent it or call it to me. These consultants very carefully vet their audience and contact those who are most likely to support these increases. It’s not an attempt to see what people want, but to plant ideas in their heads, and talk them into coughing up more money.

Right now the city is using a very embedded local media to run their initial campaign. Public works director Eric Gustafson was on the news recently, showing us floating piles of poop down at the sewer plant, trying to tell us the Camp Fire evacuees are putting a strain on our sewer system.

Here’s my first question – why didn’t any of this come up during past discussions of new subdivisions? Why not during the approval of Air BNB? 

I’ve heard them discuss the sewer plant – a year and a half ago, at a discussion of  cost allocation,  the sewer plant manager complained that salaries and benefits are eating up all the money at the sewer plant and they would need a rate increase or the sewer fund would go into deficit. Looking at the latest version of the city of Chico budget shows the sewer plant fund is running in deficit. 

Click to access 2018-19CityAnnualFINALBudget.pdf

The sewer budget is divided into different categories. I used the ‘F’ search to scan down for each mention of sewer fund activity. As of July 2018 most of the totals are shown in parenthesis, which means “deficit”. Those funds not shown in deficit only have about  $100,000 or less. But look at the revenues they take in – where does all that money  go? Look at the top of the expenditures page 61/312 – “debt principal” and “debt interest”. 

That’s allll about the pensions, Honey!

Here’s how the city hides payments toward the pension deficit

Again, on page 62 – another couple of million goes to “debt principal” and “debt interest”. 

Millions of dollars for their pension funds, but no money to run the plant? 

Gustafson contradicts himself in the news story too.

“Before the fire, Chico’s wastewater treatment facility processed about 6 million gallons of waste on average per day. Since then that amount has gone up to 7 million. Biosolid production has gone up 70%, while overall waste and sewage flows are up 17%.

Gustafson tells Action News Now, the facility is able to handle a capacity of 12 million gallons of waste per day. But, the city is currently equipped to take on an amount over a decade of growth, rather than overnight.”

He says capacity is 12 million gallons, but complains that waste production has gone up to 7 million. That leaves room for quite a bit more poo poo. What is this man trying to pull here?

“‘If those increased flows continue, there will be increased costs, and we will have to go to council for increased funds,’ Gustafson says.

“Chico Public Works is now working on a rate analysis to determine if a rate increase should happen to help with waste processing costs and fixing the 90-year-old underground plumbing system that supports the city.”

Now they’re mentioning the 90-year-old underground plumbing system that supports the city?  This never comes up during discussions of approving ginormous new subdivisions. 

Here’s the real reason:

“Chicoans now pay the lowest sewer rates out of all cities in the area: $22.98 per month. Compare this to Orland’s $26.10, Sacramento’s $32 and Napa’s $42.83.

Chicoans still pay the same rate, but new development has added many, many new customers since the rate was increased. And, again, the sewer plant is only operating at a little more than half capacity.

See how these people try to spin a story to make us think we need to raise our own taxes? 

This is what Steven Greenhut is talking about in “PLUNDER!” These employees are in position to tell us whatever they want. They have a local media that is more than willing to run their propaganda campaign. It’s up to the rest of us to pay attention and say something.

From Ch 12 Action News Now

CHICO SEWAGE NUMBERS SPIKE POST-CAMP FIRE

The amount of human waste production in Chico has shot up by amounts normally seen over a 10 year period.

Posted: Jan. 29, 2019 11:46 AM
Updated: Jan. 30, 2019 10:06 AM
Posted By: Stephanie Lin Action News Now

CHICO, Calif. – The City of Chico has seen a population explosion, and it’s not just the roads that are impacted. Post-Camp Fire sewage production numbers are at an all-time high.

Action News Now reporter Stephanie Lin sat down with Public Works’ Eric Gustafson for a closer look at the cause behind all the waste. He reports seeing an average of a million gallons extra per day being pushed through the city’s treatment facilities.

“Multiple family members or friends are staying in one household,” Gustafson explains, “so that’s double the flow from one household but the [charged sewage] rate is still the same.”

The same idea applies to those living in RVs connecting to sewer hook-ups on one shared property. Then there’s all the septage from Cal OES, FEMA, and PG&E base camps. Add all these sources together, and you’ve got one big costly problem.

“If those increased flows continue, there will be increased costs, and we will have to go to council for increased funds,” Gustafson says.

Chico Public Works is now working on a rate analysis to determine if a rate increase should happen to help with waste processing costs and fixing the 90-year-old underground plumbing system that supports the city.

Chicoans now pay the lowest sewer rates out of all cities in the area: $22.98 per month. Compare this to Orland’s $26.10, Sacramento’s $32 and Napa’s $42.83.

Before the fire, Chico’s wastewater treatment facility processed about 6 million gallons of waste on average per day. Since then that amount has gone up to 7 million. Biosolid production has gone up 70%, while overall waste and sewage flows are up 17%.

THIS DOESN’T MAKE SENSE –  Gustafson tells Action News Now, the facility is able to handle a capacity of 12 million gallons of waste per day. But, the city is currently equipped to take on an amount over a decade of growth, rather than overnight. 

Public Works plans to present their rate analysis to city council late spring. Once that is done, the public will also be able to chime in.
No rate changes will happen until there is at least a 51% approval. Conversations also continue with state legislators to hopefully find a fast fix to the sewage problem.

In the meantime, the work continues to maintain the expected quality of life for Chicoans and their new neighbors.

“We want Paradise folks to know they are welcome in Chico, and hope they can find a bit of normalcy,” Gustafson emphasizes.

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Don’t be fooled – City of Chico’s proposed tax measure is all about the pensions

21 Jan

The city of Chico is ramping up their tax increase campaign, with city staffers soliciting the news paper for stories about funding shortages, and lately, using the Camp Fire as an excuse to seek a revenue measure.

There’s been more traffic in Chico since the Camp Fire, and that’s not changing anytime soon

No mention of the dramatic uptick in home sales and how the outrageous price increases will affect property tax valuations. No mention of the effect that 29,000 people swooping down on your retail sector is going to have on sales tax revenues. No mention of what full capacity motels will contribute in “Transient Occupancy” or “bed tax”. Property, sales, and TOT are three of the four biggest revenues our city receives. The fourth is Utility Tax, and that’s going up with increases in PG&E rates. It’s a win-win all the way around for City of Chico, but they cry poormouth and want a revenue measure.

Stand up people, and let them know what you think of this attempt to embezzle more taxpayer money into their own pockets. I sent the following letter to the Enterprise Record this morning. 

City staff says traffic congestion and accidents are up in Chico and asks more money for road improvements, police and fire staffing. Despite an unprecedented increase in property tax valuations, sales tax receipts and TOT due  to Camp Fire evacuees, council has directed staff to look into putting a revenue measure on an upcoming ballot.

Dan Walters opines most local revenue measures are “all about the pensions.” I agree. The mayor of Capitola admitted, “ if we put a measure across for pensions it would be doomed for failure immediately”, so their November ballot measure read “to help fund youth programs, protect parks, beaches and open space, and support local businesses.”

Pension liability is the difference between what is paid into the California Public Employee Retirement System, and what employees expect to get in retirement. City of Chico employees pay less than 10 percent of their pension cost, while the taxpayers pay roughly 30 percent. That leaves the city an unfunded liability of over $129 million.

In 2018 city staff made a $7,598,561 annual payment toward their pension liability. Part of that money is allocated from each department fund, based on total department compensation. The rest of the annual payment is allocated from the General Fund.  Council approved allocations are how they transfer money from one fund to another in order to avoid spending restrictions – like spending public safety or road funding on their unfunded pension liability.

Despite any promises to the contrary,  the city’s proposed revenue measure is all about the pensions.

Juanita Sumner, Chico

 

Here’s how the city hides payments toward the pension deficit

18 Jan

I got the agenda for next Wednesday’s City of Chico Finance Committee meeting – if you want to know how your money is being spent, these are worth a read:

Click to access 1.23.19FinanceCommitteeAgendaPacket.pdf

The agenda includes the Finance Department’s monthly report – make yourself read through the gobblety-gook of numbers and acronyms, it gets easier to pick things out. Use Google search for any term (including acronyms) that you don’t understand. 

I like to scan down and look for certain things – I like to see where revenues come from, I like to see where they’re spent. They move this money like peas under nut shells – certain funds are restricted to certain uses, but somehow they manager to “allocate” money from one fund to another, and then they can spend it the way they please.

You need to remember this when the city starts talking about their revenue measure. Right now the talking heads – including members of the public that have too much influence over council – are arguing between a sales tax increase measure and a bond. Whichever way they  go, they will need to decide between a “special” tax and a “general” tax. Currently, a “special” tax requires 2/3’s voter approval, while a “general” tax only requires a simple 51 percent. 

But it doesn’t really matter in the end, because once they get the money, they can “allocate” it right into their own pockets. 

Look at the report and watch for the word “pension”. Right away I find “CalPERS UAL payment” – that’s for the unfunded pension liability – the difference between what public employees have paid for their retirement and what they expect to get. Last May city Finance Director Scott Dowell informed the Finance Committee that the city’s UAL is over $129 million. 

The UAL payment is made once a year. This payment is separate from the regular pension payments made monthly – those are mushed in with salaries and benefits, you’d have to ask Dowell exactly what the city pays per month. 

The 2018 pay out for the UAL is $7,598,561. That’s seven million, five hundred and ninety-eight thousand, five hundred and sixty-one dollars. Say it out loud a few times, you pay for it.

Because this money doesn’t come from the employees. They pay anywhere from two percent to nine percent of their monthly pension costs. The taxpayers float another 25 – 30 percent. The rest makes up the floating liability. Here’s how the city of Chico transfers this liability onto the backs of the taxpayers.

When I asked Scott Dowell where the money for these payments comes from I got the following answer:

Fund 903 has two inflows:

1.       Each City fund that has payroll is charged a percentage of payroll for the applicable share of the estimated annual unfunded liability payment.  That amount is transferred to Fund 903 from each applicable fund.  These transfers are used to pay the annual unfunded liability payment to CalPERS out of Fund 903.

2.       The second inflow is a direct transfer from the General Fund to the Fund 903 approved by the City Council.  There was an initial transfer from the General Fund to Fund 903 of $541,455 for the year ending June 30, 2017.

Let’s look at that.

1.        this is how they hide the payment – “transfers” – they take payroll money. Look at the budget, you see “salaries and benefits” in each department’s expenditures, nothing about paying down the UAL.

2.        and there it is – “a direct transfer from the General Fund  to the Fund 903 approved by the City Council.”

The General Fund is a cookie jar with no restrictions. I’ve sat at meetings and watched money being transferred from other, restricted funds, into the GF, so they can spend the money the way they want. This is “allocation.” 

So when they tell you a  tax measure will be devoted to “street maintenance” or “public safety,” here’s what that means. 

  • CalPERS unfunded pension liability payment for 2018 – $7,598,561.00
  • Roughly half goes to “Safety” (cops and fire) – $3,660,240.00
  • An increase over last year ($6,547,673) of $1,055,888.00

 

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