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

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?

City facing $178,075,000 in unfunded street projects, less than $2 million in the street improvements fund

18 Aug

Speaking of the proposed sales tax increase – “to fix the roads” – here’s another knee slapper – the city needs over $178 million to bring our streets up to standard, just to mitigate the effects of new construction. Here’s the link to that report in next weeks Finance Committee agenda.

http://www.ci.chico.ca.us/document_library/minutes_agendas/finance_committee/8-23-17FinanceCommitteeAgendaPacket.pdf

Right now city staff is wrestling with developers like Bill Webb, who feel the city is expecting too much of the money to come out of new construction fees.

The report is difficult to understand, but what I’m guessing is, they don’t want to pay the “Urbanization” fee at all, they think the taxpayers should have to pay to fix the streets. But, I’ll give it to staff – they make a very good argument, pointing out the obvious – new development, especially these high density subdivisions that are going into Grandma’s backyard all over town again, generate more traffic and the developers/homebuyers who build them should have to pay for the added impacts.

What about the proposed sales tax increase? Taber admitted, “The city would only raise 4 to 4.5 million per year if they increased the sales tax by a quarter cent. ”

Well, like I said – $4.5 million compared to $178 million – that’s a little tiny bubble of spit on a great big griddle. According to the Finance Committee report linked above, just one of five currently approved projects – a stretch of Humboldt Road that has been heavily impacted by new development – will cost over $6 million. Other’s ranged between $800,000 and just over $2 million.

But, $4.5 million would cover the increasing amount CalPERS is demanding to cover our pension deficit – $800,000 now, expected to increase to $1.5 million within the next three years, and on up from there. Meanwhile, Chico City Council is handing out raises that increase the deficit while refusing to ask employees to pay more out of their own paycheck.

Tsk, tsk, get good tires on your car.

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Categories Chico bankruptcy, local sales tax increases, local tax increases, Pension Time Bomb, public employee contracts, public employee unions, public safety issues, Uncategorized

The city budget is just a suggestion! See how they appropriate our money into their own pockets

13 Aug

The city of Chico posts the budget online:

http://www.chico.ca.us/finance/documents/2016-17CityAnnualFINALBudget.pdf

But the budget isn’t set in stone, rather merely a suggestion. Every month you will find appropriations – departments go over budget, and council just routinely approves mo’ money, mo’ money, mo’ money. The memo below is on this coming week’s council agenda, available here,

http://chico-ca.granicus.com/GeneratedAgendaViewer.php?view_id=2&event_id=270

Here we have an appropriation for the fire department – oftentimes it’s either cops or fire. The chief has given us a “partial” list of “unanticipated” costs, without any explanation. What, for example, did Chico Fire have to do with the “Oroville Spillway Incident”? What were they doing at the Santos Fire?

And how could we miss – $73,000 for “Unanticipated Retirements and Lay-offs”?

This is how they fritter our money, right under our noses. This is why the state has their nose up our ass for fraud.

Meeting Date: 8/15/17
TO: City Council
FROM: Bill Hack, Fire Chief
RE: FY2016-17 Supplemental Appropriation/Budget Modification No. 2017-FD-004

REPORT IN BRIEF:

Throughout a fiscal year there are unanticipated costs incurred by the Fire Department. These costs are generally
associated with emergency response to large incidents or multiple medium sized incidents within the City of Chico,
unanticipated retirements or long-term absences, and other anomalies. The Department attempts to absorb all
unanticipated costs in the current adopted budget. However, depending upon the timing and/or amount of the
unanticipated costs it is often impossible to do so.

For Fiscal Year 2016-17, the Fire Department incurred at least $192,000 in unplanned expenses. The Department
was able to absorb approximately half of the unanticipated costs, but due to the magnitude and timing of the events
the department was unable to absorb $101,602 in expenses

A partial list of the unanticipated Fire Department costs for Fiscal Year 2016-17 is included below:

Oroville Spillway Incident (Partial Reimbursement Pending) – $25,000
Santos Fire – $20,000
Pay-outs for Unanticipated Retirements and Lay-offs – $73,000
Fire Investigations (Complex) – $10,000
Retroactive Salary Payments due to a processing error (2015-Present) – $27,000
Emergency Call-Back Coverage – $12,000
Other (Long-term Leave) – $25,000

Tags: Bill is a Hack Chico CA

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Categories Chico bankruptcy, local sales tax increases, local tax increases, Pension Time Bomb, public employee contracts, public employee unions, public safety contracts, public safety issues

Sales Tax Increase Anyone?

30 Jul

Taber’s letter

Letter: No mismanagement of city finances under new staff

POSTED: 07/27/17, 1:53 AM PDT

0 COMMENTS

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

Tags: Stephanie Taber Chico Ca

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Categories Airport tax, Chico bankruptcy, local sales tax increases, local tax increases, Pension Time Bomb, public employee contracts, public employee unions, public safety contracts, swimming pool tax, trash tax Chico, Uncategorized

You heard it in the Enterprise Record: “Chico Government Can’t Be Trusted with Tax Increase”

22 Jul

I wrote a letter to the paper in response to Stephanie Taber’s suggestion of raising sales tax to support salaries and benefits Downtown, it ran yesterday, now it’s gone! You have to know it was there and search it! How LOW will they GO?

That’s how Dave Little treats people he doesn’t agree with, he just squelches their letters. He’s a very “Little” man, his testicles have to be put in the microwave every morning.

So, I ain’t proud – here’s the link:

http://www.chicoer.com/opinion/20170720/letter-chico-government-cant-be-trusted-with-tax-increase

And here’s the letter:

A letter writer has suggested a sales tax increase to “fix a couple of major roads a year”.

Chico has reached financial crisis because of employee overcompensation. In 2013, third-party auditors found a $15 million deficit. Council cut workers and services, while raising management compensation to unprecedented levels. By October of 2016 we were one of six cities in California being investigated for fraud, having exhausted our emergency fund and outspent revenues for six years.. We are still on the state’s “watch list”.

To avoid further audit, staff cooked up an “aggressive” repayment plan, purporting to raise employees’ share of compensation costs. But the increased shares came with salary increases that more than covered the new CalPERS shares. According to publicpay.gov, the city now has a $180 million deficit and will soon be paying more than a million a year to beat it down.

According to California Policy Center, “As Chico recovers, new development projects have been downsized to reflect the city’s long-term financial reality.” Staff has spent all the money on management pensions and benefits, there’s no money left for road base, asphalt, or qualified workers needed to fix the roads.

Proponents of a tax increase measure say the money will be dedicated to the roads – don’t believe it. Staff has instituted a “fund allocation” policy – they move money from one fund to another like peas under walnut shells.

Juanita Sumner, Chico CA

It’s sad to me that we have such poor media here, Dick Little and Melissa Dogtree are just government shills. We have a council that plays lackey to the staffers who are ripping us off because all but one member of our council either get public pensions or are married to one.

Tags: Chico Enterprise Record, Chris Constantin Chico Ca, Mark Orme Chico Ca, Stephanie Taber Chico Ca

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Categories Chico media is a disappointment, local sales tax increases, local tax increases, Pension Time Bomb, public employee contracts, public employee unions, public safety contracts, swimming pool tax, trash tax Chico, utility rate increases

City manager Mark Orme, Assistant City Manager Chris Constantin behind the chatter for a sales tax increase

23 Jun

I’ve been trying to engage our city “leaders” regarding the trash tax – according to City Manager Mark Orme, “the Muni Code Ordinance (which is on Tuesday’s [June 20] Council meeting) is going forward for final reading. This allows for the City to entertain the Franchise Agreements (Ordinances) which will come back on August 1^st – originally they were anticipated to return in July, but due to the Council’s, yours, and other members of the public’s feedback/input we are negotiating further to ensure clarity and that the best deal is had, under the circumstances. Therefore, the action for Tuesday will lead to further discussion and approval or disapproval of the new franchises in August.”

I have a lot of problems with this “franchise agreement”, the main problem being that it is a tax in disguise. We all know the city is standing in front of a pension shitstorm with a tennis racket – their tennis racket appears to be a quarter cent sales tax increase. At the May 16 city council meeting – at about 1:14:44 – local government shill Stephanie Taber got up to the podium and told council we need to raise taxes. Here’s the link –

http://chico-ca.granicus.com/MediaPlayer.php?view_id=2&clip_id=673

I was not surprised, but since Taber used to be a regular attendee of the old Chico Taxpayers Association meetings, I had to ask her what the hell she was thinking.

“Wow, what a tiger you are! Raise Taxes!

I got a better idea Steph – why don’t you just get out YOUR own checkbook, donate all the money you want to the salaries and benefits, and leave the rest of us out of it.

Thank you! Juanita”

She replied,

“First off, let me say that I would, along with other Chico residence have to “open my checkbook” and pay whether the city did this as a sales tax or GO bonds that would affect property taxes..either way I’d have to pay too.

The city would only raise 4 to 4.5 million per year if they increased the sales tax by a quarter cent. Many of the city streets now utterly failing (there is a list in the 17/18 budget and discussed at Finance) would cost at least that much to now totally dig up and replace because of lack of maintenance during the Schwab years. That is when millions of gas tax money was diverted to maintain S&B for city employees and to keep her in office along with Holcomb, Gruendl, Walker, Nickel, Flynn and that whole regressive crew.

The sales and/or GO Bonds that I think we must look at would be only used for infrastructure. The funds coming in would be ear marked and put into a separate account that could be verified and restricted. We’ve seen this new administration’s (Chris Constantin in particular) ability and willingness to do that and as long as we have fellow concerned citizens willing to spend a bit of time following the income and expenditures in a particular account I don’t see a problem. Problems arise when administrations lie and hide as our state government is doing with the gas tax increase that the voters had no opportunity to weigh in on.

I’m a bit surprised that this is seen as a “Republican” /”Democrat” issue … there is no ideology involved in this.. it is simply a recommendation that we raise revenue (tax or GO Bonds) for a specific problem, infrastructure, that would benefit the entire city. Today we are currently short 14 to 16 million and that figure will only go up if we sit and do nothing..to me that is not an option.”

Signed, “st“

She always blames everything on the liberals, even now that the conservatives have been in power for almost two years. She also seems to forget all those meetings we sat at over the years, watching money transferred out of whatever restricted fund and into the General Fund. She even mentions the gas tax, which went entirely to salaries and benefits through “allocation” – a process Chris Constantin formalized as the rule of law almost as soon as he got hired here. It’s now policy to keep funds balanced through transfers, any time a fund is low it’s city policy to take money from other funds to balance it, restrictions my ass. At least before we saw when funds went into the red, now they just cover up with “allocations”. There’s a budget “appropriation” – that means “taking” – in almost every fucking agenda.

“Today we are currently short 14 to 16 million and that figure will only go up if we sit and do nothing…”

Who the Hell is “we”? I think the word we’re looking for here is “them,” or how about, “embezzlers…“

I will say, she’s got a point – “Problems arise when administrations lie and hide as our state government is doing with the gas tax increase that the voters had no opportunity to weigh in on…” you mean, like the garbage tax Steph?

But there you see the puppet master – “The funds coming in would be ear marked and put into a separate account that could be verified and restricted. We’ve seen this new administration’s (Chris Constantin in particular) ability and willingness to do that…”

I’ve known this woman for some years now, I’ve watched her face light up every time Chris Constantin or Mark Orme paid her special attention. One day Mark Orme just put his arms around here after a meeting and gave her a big squeeze. These guys have her in their back pocket. It’s their work she’s at now.

I heard it from a little shill…

Tags: Chris Constantin Chico Ca, Mark Orme Chico Ca