The conversation about the Downtown sewer job and proposed remodel has finally turned around. I was frankly shocked when Mayor Kasey Reynolds closed the meeting last week after council failed to come together on any one of the proposals.
Watching the meeting on the city website, and then again watching the clip on the local news, I was also shocked but not surprised to see riff-raff behavior in the chambers. Some people think they can get their way by bullying others, and oftentimes it works. When you really care about something you need to learn to deal with bullies without bullying. You ignore them, and you stand by your beliefs.
I contacted Reynolds, and she assured me that she is also leaning toward a simple and realistic plan to fix the sewers and return Downtown streets to “what we’ve known”. She cited fiscal concerns, and indicated that a lot of the bicycle bullshit is about chasing funding “from Sacramento“. Unfortunately, at least half of that taxpayer based funding goes to city salaries and pensions, while only “43% to 50% of the total project budget directly covers labor and materials (known as hard costs), based on studies of multi-family housing projects and general construction breakdowns…”
Some council members seem to think money grows on trees, not out of the hard work of taxpayers. They won’t acknowledge what their little pet projects do to the cost of living in our town. The other problem with the Sacramento funding is that is requires a lot of matching funds from city coffers.
We all watched the 20th Street bicycle/pedestrian bridge go over budget year after year, finally costing over $23 million. $1 million of that came from the city of Chico – from the Fire Victims Trust Fund, along with local developer fees and transportation funds. Money that should have gone toward other uses that have been largely neglected.
How often do you think you will use that bridge? See any fire victims up there? How are the streets in your part of town? Ever wonder why the price of housing keeps going up-up-up? Gotta watch the bouncing ball Folks.
So I’m watching this conversation, hoping that the vocal minority will not get their way.
And I was also somewhat relieved by the show of leadership from Kasey Reynolds. Yes, I’ve complained about Reynolds’ past actions, I haven’t agreed with her very many times. I’m disgusted with the sewer rate increase and I believe they should take up Bennett’s request for another vote. But I’m with her on the Downtown sewer job.
My husband reminds me that they were going to do a traffic circle there at Bidwell Mansion, for the same kind of state funding, but public outcry changed the vote of one council member and that little boondoggle went away.
Well, Wolcott finally printed my response to Bill Smith, regarding public salaries and where to find out more info. The more people who know the truth, the closer we are to a real conversation about public employee salaries and benefits, and the consequences of “kicking the can down the road“.
Speaking of the can being kicked down the road, Smith also mentioned the sewer rate increase. A can, a stinking can, that has been kicked around for probably 50 years or more. They’ve known the pipes were old, and leaking, leaking POOP, but they just kept kicking.
Anybody remember Chico City Council member Colleen Jarvis? Before she died of cancer in 2004, I sat in on a meeting in which she and other former council members Dan Nguyen-Tan, and Scott Gruendl discussed the last sewer rate hike – from around $25 a month to $45 a month. Jarvis wanted to be straight with the public, do the whole thing up front, tell everybody the truth. DN-T and SG both wanted to phase it in – they were a couple of total pussies, they were afraid of the public reaction. Council voted for the phase-in, meaning the sewer fund, already in trouble, would fall farther and farther behind. Fast forward today – there are still 100+ year old pipes running under Downtown and the older parts of the city, and I’ll guess they don’t even have the money to hire a consultant.
This can has been kicked around for years, without much public scrutiny. Now this sewer rate increase has finally wakened the mob – I’ll tell you what, you don’t mess with people’s toilets. When I picked up Sunday’s paper, I noticed a letter that echoed my thoughts, from a lady named Emily Martin.
“A 200% increase in five years is not responsible governance; it is the result of long-delayed decisions, now shifted abruptly onto residents.” Yup, can kicking. And then, thehanding of the bag, to the taxpayers, who get left holding it.
What about Measure H? Council member Addison Winslow says that money can’t be used, because it’s General Fund money. He says not everybody uses the sewer, so the city can’t use GF money to fix the sewer. What an idiot – or does he think we’re all idiots? Martin puts him right. “That argument falls apart, even under basic scrutiny,” she responds. “We all fund services we don’t directly use…” including schools, roads, and emergency services.
Council also makes the rules for the spending of city money, without any scrutiny from the public.
She concludes, “Chico deserves a more transparent approach that reflects shared benefits and shared responsibility.” Yes, that would be nice – instead we got a mailed ballot that was deceptively printed to look like JUNK MAIL (thanks for looking out for us City Clerk Debbie Presson!), and failure to submit a written letter of protest was marked as a YES vote. Winslow sat in on that decision, a sham ballot that resulted in a FOREVER change to the rate mechanism. Without any future public vote, they can raise the sewer rate whenever they want, for whatever reason they want.
Martin echoes a letter I sent weeks ago – families and businesses are already struggling, this is just another nail in the coffin of our local economy. “This kind of increase will force real cuts to essentials and to the local businesses that keep Chico thriving.” On that note, I’m about to head for Oregon, to buy my taxable essentials. My family does little to no taxable shopping in Chico, although we did have our tires that we bought in Oregon rotated at a Chico shop and then treated ourselves to an oil change for the trip. But I realize, I’m retired, and my kid lives in Oregon – this isn’t feasible for working families. It would suck to be a family with kids in this town, unless you’re one of the privileged teat suckers known as “public servants“.
Emily, the only way to turn this decision back is to vote out the bad actors. Reynolds, Winslow and Van Overbeek are up, and they need to be turned out, like that carton of milk on the back shelf of your fridge.
Well next week Council will discuss a change that will further restrict your right to have any voice in these rate increases – they are changing the procedure to eliminate your right to sue if you were left out of the rate protest. Meaning, if you threw that ballot out thinking it was junk mail, or didn’t get around to sending it in time, didn’t understand it, didn’t hear about it, etc, you lose your right to protest further rate increases.
Read the staff report, these people want you out of this process.
NOTE:As of today (4/5) this letter (sent 3/25) has not been printed in the ER. Nobody has answered Bill Smith, including Wolcott/ER staff. I guess I’ll wait a full two weeks (this Thursday 4/9) and send it again!
I was laying the Sunday ER (3/15) under my cat dishes when I noticed a letter from Bill Smith, asking about the sewer bill and the pensions. Short and to the point!
Before I start paying three times my current sewer bill, I would like to take a look at the current city employees’ salaries, what their anticipated retirement will be, and what already retired city employees are drawing in retirement. Where can I see this? — Bill Smith, Chico
Thanks Bill, good questions. I’ll answer here. It took Wolcott 10 days to print my last letter, sent on the 14th, even though I saw letters that had obviously been written AFTER mine, and printed within a day or two. Neither Wolcott or his usual pile of dipshits bothered to answer Bill Smith. The paper is in trouble, but I’m going to continue to send letters, please do same.
Bill Smith (3/15) asked about city salaries, anticipated pensions, and what retirees are already drawing in retirement. He asked where he could get this information.
Both sites depend on public agencies, like the city of Chico, to provide this information. Because of delays in compliance, the figures are two years out of date, but accurate. You will find records dating back years, with annual salary increases, as well as benefits packages and total compensation.
Transparent California also figures the employee’s personal pension deficit, using pay and years of service. Employees pay between 5 and 11% toward their own pensions (70 – 90% of their highest year’s pay), the rest rides on the market and ends up on the backs of the taxpayers.
Please come to chicotaxpayers.com to join the conversation.
I was looking into the proposed sewer rate increase for Chico and I found a discussion on Redditt that indicated people are pretty pissed off. I had read about a proposed 65% increase, but at last week’s meeting, they were saying like a 400% increase. We’re looking at the average customer paying almost $100 a month for sewer service. I knew that sewer “rate mechanism change” would be bad. This is what the real cost of living is about – you can’t just build more housing, you have to consider all the other costs.
I have believed for a long time that city leaders just want working class people out of town. One council and staff after another have tried to turn Chico – starting with Downtown – into a Destination! High-end restaurants, outdoor dining, now alcohol allowed outside – that’s not a family atmosphere, and the only working people they want Downtown are table waiters, bartenders, and cashiers.
Shop owners are leaving in droves, citing the parking kiosks, but I think that was just the last nail in the coffin. For years downtown businesses have been paying higher rent for less services, even while paying into a protection racket known as the Downtown Business Association. Remember when “Community Development Director” Leo DePaola was sticking Downtown businesses with rapacious fines for vandalism caused by transients?
Wait until they gut the streets for the sewer job. And if you have a minute, read the reports – there really are “secret tunnels” under Downtown, only not for opium dens, but for utilities, and for those old delivery elevators that used to open up down into the basements of various businesses. I’ve actually seen those used. These “tunnels” don’t all connect, and some of them are flooded. Last I heard the city isn’t even sure where they all are.
City of Chico officials and employees think of the rest of us as cash cows. They want us to pay for a mess they’ve been massaging for years, demanding more money from the taxpayers, just to feather their own nests, while they kick the poop can down the road.
So I wrote a letter about it!
After I sent my last letter, I received an agenda for the March 5 Finance Committee meeting. I was unable to attend, but heard later they are discussing a much higher sewer rate increase than I had read in a previous report.
City leaders like to talk about making housing more affordable, whether it’s rentals or private homes, but they fail to discuss the reality – just because a person can get a house, doesn’t mean they will be able to afford all of the associated costs. We’ve all watched PG&E and Cal Water rates rise steadily over the past 20 years, and now the city is sticking their thumb in the pie with their sewer rate increases.
Not to mention, a 5% tax on Cal Water and PG&E bills, as well as franchise taxes on PG&E and Comcast. They also have a franchise deal with the garbage companies.
These costs directly affect the cost of housing.
Where will the money go? Think you’ll see any work in your neighborhood? The Pension Stabilization Trust takes a percentage from every city fund to make the CalPERS deficit payment – will the sewer fund be exempt from the “catch-up” payments?
Well, since I wrote that last post and sent my letter off to the Enterprise Record, I received a Finance Committee agenda regarding the sewer rate hike discussion, scheduled for last Wednesday. The agenda report said they were trying to decide between phasing the rate hike in over 5 years, or just sticking it to us all at once. I was not able to attend the meeting. Judging from a letter I saw in the ER (which ran prior to mine, which is odd because it was sent after the meeting, but whatever…), they decided to stick it to us – the writer claimed they will be raising the monthly fee to $98, not the $38 I had read in an earlier report.
I hope you learned your lesson to check your mail carefully, because a lot of people threw those away as junk mail, and now here we are. Yup, this is a permanent tax, allowing for an annual increase without any further notice or hearings. Where do you think that money goes? Don’t expect improvements in your neighborhood anytime soon – right now, the city is busy hooking Paradise up to our sewer plant, and getting ready to tear up Downtown streets for a completely new sewer system.
Spend much time in Paradise? Been Downtown lately? Be sure to use the toilet, cause you’re paying for it.
I don’t join many clubs, but I’m happy to be a member of Howard Jarvis Taxpayers Association because they take their job more seriously than our elected leaders take theirs.
For a donation of as little as $15 you can help HJTA spread the word about taxpayer rights and use their legal muscle to hold public agencies accountable. When concerned Chicoans contacted them about Council and Staff’s illegal attempt at a Pension Obligation Bond, HJTA quickly filed a Cease and Desist order, threatening to sue the city of Chico if they moved forward without putting a bond measure on the ballot.
I just received their free newsletter, a story about trash franchise fees caught my eye. It looks like the franchise fee the city added to our trash bills is illegal. The California Supreme Court upheld that decision in “Zolly vs the City of Oakland. The franchise fees were found to be a tax, and needed to be put into a ballot measure.
When the city made that deal, Brian Nakamura said it was about “getting all these trucks off our streets” by eliminating consumer choice. Then he told us the franchise fees would go toward repairing the damage done by the trucks. Neither of those promises were kept – every year the franchise fees are dumped into the General Fund and used for whatever whim of council.
I don’t know about you, but I’d rather see a total resurfacing of my street – a major “feeder” to many neighborhoods, overdue foe 30 years – than a stupid ass skating rink for the use of the priveleged few.
But you know, it’s the privileged few who run our town and make the rules to their advantage.
According to HJTA legal council Laura Dougherty, we can challenge our city’s franchise fee. In fact, during that first conversation back in 2012, our new city manager Mark Sorensen, then a council member, said this: “Let’s call it what it is, a trash tax.” Looks like Sorensen knows it’s illegal, but now that he’s yanking a $211,000/yr salary out of the city coffers, he’s keeping his trap shut.
So I’ll do some research as to how we would submit a protest to the trash franchise. Laura Dougherty says, “Hopefully all a ratepayer needs to do now is send a copy of the Zolly decision to their city…” I’ll get back to you with whatever I find out.
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!
About a month ago I realized the city would have to move forward with their sales tax measure, that the deadline was approaching for them to turn it over to the county clerk for the November ballot. My husband reminded me that school would be out soon, with Memorial Day on the horizon, so we decided to take our last swipe at a vacation before the roads became clogged and gas prices went any higher, and before I got distracted with various election issues.
We went up to Portland to see relatives. Oregon is strange country. You drive over the border into the State of Jefferson, and the signs change immediately. Within a mile, “FUCK BIDEN” speaks prominently, in bold, capital letters, from barns, sheds, dead tree stumps – big, professionally made signs, you bet. The Oregonians are willing to spend money declaring their dissatisfaction with the federal government.
Then you get to Portland, where they seem to love the government. They use public transportation, they embrace high-density living, and they pay car registration fees based on the fuel efficiency of their car. To me, that’s like showing a stranger your panties.
I’ll tell you where the Oregonians have the right idea, they are one of only five US states that have NO SALES TAX. (the others being Alaska, Delaware, Montana, and New Hampshire).
I’ll be honest, I have never understood sales tax. To me, it’s a blatant, “in your face because I can... ” TAKING. It’s a shake-down, a racket. We already pay fuel and car taxes for the roads, which are embezzled away to pay for bike trails and trains to nowhere. We already pay developer fees on our homes, and then property taxes, which are directed not only into the pensions but into the pallet shelters, the cooling tents turned shooting galleries, and the constant state of emergency that is created in a town where certain people are not held responsible for their behavior. Pay a sales tax to a government that does nothing to secure your safety or even the safety of the supply chain? That’s a racket, wake the hell up. Why don’t you just go Downtown and give your purse/wallet to the first creep that holds his hand out?
Of course BC opined recently that “If you want perfect streets, perfect parks, top notch City services with free candy for the kids and a well functioning municipal government, you have to have lots of money. That is a tax increase.”
Well, I saw all those things in Portland. I might have to post a blog about the parks I’ve seen there, city parks, gorgeous. Incredibly maintained natural areas, restored forests and marshes. The streets, even in my son’s older, high density neighborhood, are in perfectly good condition – no potholes that void the warranty on your tires. You can walk the length and breadth of the city on safe sidewalks. Portland also has a state-of-the-art sewer system, integrating their old sewer system with new technology.
Free candy for the kids? Well, I don’t know why I’d want that, but what they do there is “food truck courts”. They have solved that problem with restaurants and food trucks, by designating a city-owned parking lot, located away from “brick and mortar” restaurants, for food trucks several nights a week. They’ve furnished tables and a little plaza, family-friendly setting where you can get a cheap meal, hang out with friends, from a different truck every night.
Did you know, Chico City Plaza was set up for food trucks, with electrical outlets and specially-built curbs to pull in the trucks. But it has never been used for that. In fact, the last time I looked, the fee schedule for Downtown Plaza was really onerous. That’s why Chico Farmer’s Market would not locate there, insisting instead on making a pretty behind-closed-doors deal with Chico City staffers to use the city parking lot instead.
BC is arguing an old line – give us the money or it will get worse. The city of Chico has admittedly deferred services and infrastructure maintenance for years, while paying increasing payments to CalPERS. In 2018, the California League of Cities, of which Chico is a long time member, released a report saying, in part, “City pension costs will dramatically increase to unsustainable levels, (2) Rising pension costs will require cities to nearly double the percentage of their general fund dollars they pay to CalPERS, and (3) Cities have few options to address growing pension liabilities.“
The report first suggested creation of a pension stabilization trust – a fund dedicated to pensions. The next suggestion was a revenue measure. Followed by this dark advice: “Change service delivery methods and levels of certain public services: Many cities have already consolidated and cut local services during the Great Recession and have not been able to restore those service levels. Often, revenue growth from the improved economy has been absorbed by pension costs. The next round of service cuts will be even harder.” In other words, starve the taxpayers for services and they’ll pass your revenue measure.
Since 2018, we’ve seen the institution of two dedicated pension funds, meaning, they can only be used to pay the pension deficit. Those funds are siphoned from every department, ahead of any infrastructural or service needs, just TAKEN. They are used to make the annual “catch-up” payments to CalPERS, which are growing every year, millions of dollars taken from infrastructure, public safety, and every day services like development support
Ever wonder, why is housing getting so expensive when they’re building like crazy? Well, that’s because every few years they raise developer fees, which are essentially a tax, and which drive up the cost of housing, no matter how much you build.
The city of Chico has a lot of taxes you might not know about. The garbage “franchise fee” (trash tax), the cable “franchise fee” (tv tax), PG&E franchise fee (PG&E tax, which does nothing to secure our safety from wild fires). There’s some you might have forgot – look at your utility bills, how much are they shagging you in “local” or “Utility User Tax”? The city raises no protest when Cal Water or PG&E raise rates, because it means MORE UTILITY TAX. There are some I’ve probably forgot here, suffice to say, the city of Chico already has their hand in your wallet/purse, and there you are, being asked for an increase in Sales Tax?
There it was, in last Tuesday’s agenda. Here’s the report:
I’m thrilled to see some pushback against the city of Chico’s sales tax measure. For example, yesterday and today there were letters from names I haven’t seen in the letters section before, both calling the mailed “survey” into question. I’ve seen similar remarks, some of them very angry, on various social media sites, including Newsbreak.com
There has also been a city employee named Jeremy Lazarus, who has been trolling my posts and trying to deny that the city of Chico’s biggest debt is the pensions. He’s told me I don’t understand, and I should “get a clue”. Ironically, Transparent California reports that when Lazarus was hired by the city of Chico in 2019, he already had a personal pension debt of $24,305.22, created by his abysmally low employee contributions in Glenn County. The little trough skipper.
Hey, you think Lazarus and other city employees have been told to troll the social media sites to spread the hype? While I have no evidence of that locally, I can relate that my son, when employed by a West Coast city for a short internship, was told to engage people regarding any negative information he heard about his employer, and set them straight. So I know it happens, and I won’t be surprised when I find out City of Chico employees are told same about the tax measure.
One letter writer brought up a point that also troubled me – the survey lists services that are all important, that every city needs to supply, or why be in the business of being a city? They tell us to rank these services – that’s bullshit folks, they are trying to Sophie’s Choice our asses. In the 1979 novel, later made into a very popular movie with Meryl Streep, Sophie is told she must choose between her two small children, one or the other, and that the one she doesn’t choose will be summarily executed.
The city’s survey says we must choose between essential services – “Public Safety, Addressing Homelessness*, Road Maintenance, Parks, Conservation*, and Economic Vibrancy*”. This isn’t really a choice, it’s a threat to cut one or all of these services if we don’t pony up a sales tax increase. (* These ridiculously specious terms deserve their own blog post)
Here’s what they left out – I just opened the city’s 2021-22 budget, here:
I did a routine F-search with words like “pension stabilization trust”, or just “pension”, and here’s something new I found – “CALPERS UNFUNDED LIABILITY RSV FUND” – that’s Fund 903, page 115. That is separate from the “PENSION STABILIZATION TRUST FUND”, Fund 904, page 116. I knew about the PST, and so should you, cause I’ve mentioned it here about 365 times. But wow, another fund I haven’t heard of, with a 2021-22 balance of over $11.6 million. These bastards are finding new nutshells to hide their peas under every time I turn around!
Revenue sources for this fund include transfers from the General Fund. The description for this fund – “Fund to account for annual payments of CalPERS Unfunded Liability.” Apparently, they use this fund to provide revenues for the “Pension Stabilization Fund,” out of which they make the payments to CalPERS. See what I mean about nutshells?
And how is it funded? “Each department will set aside a set percentage of payroll costs to fund the annual payment of the CalPERS unfunded liability. A target reserve of 10 percent of the annual unfunded liability expenditure will be retained in the fund.“
There it is – they’ve been TAKING 10 percent of the liability – now over $150 million – siphoned from existing funds – the road fund, the park fund, the sewer fund, etc. That’s why the street in front of your house looks like something from Downtown Kyiv right now, and the city is talking about taxing you based on the volume of water you get from Cal Water.
I guess I should thank Jeremy Lazarus for challenging me to prove this. He’s been calling me out, telling me to “get a clue.” Well, thanks, you Idiot, I got it, I got it good.
Chico Taxpayers Association 