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These public agencies need to clean house before we should even consider revenue measures

15 Apr

Oh for cripe’s sake, another letter from the Measure A people. Like a friend of mine has observed, they are still really mad they didn’t get this measure past the voters. I was hoping they’d just stomp their foot and disappear through the floor, but you can bet they’ll be back in 2022.

Letter: Reflecting on the failure of Measure A

By  |

Great and timely article in the Sunday, April 5 Enterprise Record regarding “No Sports.” For those of us who sports and athletics is such a large part of our lives it is hard to not get our daily “Sports Fix.” We know professional, collegiate, high school and other amateur sports will resume as we recover from this COVID-19 Virus. Our hearts go out to those directly infected with the virus and all of us indirectly affected by staying home and not participating in work or athletic activities. It is a good time to reflect on why Measure A failed and how to move our local recreation and sports programs forward.

In the beginning I was in favor of Measure A. Over the course of the campaign I changed my opinion that the measure would fulfill our facility and program needs. There are too many reasons to cite in 250 words for the failure. No sunset and a CPI were two along with few specifics on what facilities were needed and would be provided by the parcel tax if passed. CARD ignored half of the electorate when they planned the measure.

We need to analyze what facilities are really needed and what programs need to be re-energized and focused on. The October 2018 facilities assessment study should have done this but did not. It was an overall marketing study of the amateur sports market with two of the three proposals being private/public partnerships with no explanation by CARD.

— Terry Cleland, Chico

Cleland is right about the the “no sunset” and annual increase with the Consumer Price Index – the measure was bad. He is also right about the lack of specifics – the measure promised nothing, except more revenues for CARD to spend as they pleased.

But he left out the bond measure – General Manager Ann Willmann admitted several times that the parcel tax proceeds were not nearly enough to pay for any of the over-the-rainbow projects mentioned in the Measure A campaign. Willmann said they would use the parcel tax proceeds to secure a $30-something-million bond, the debt service for which would have cost $2 million a year while only providing $1 million for projects. A million dollars a year? Let me put that into perspective – several years ago, the city of Chico spent a million dollars “upgrading” the public restroom at One Mile. Get it? 

Cleland also neglected to mention the pension deficit, or the fact that a simple majority measure goes into the General Fund, to be spent at the pleasure of the board and staff. He wouldn’t admit – the salaries and pensions at CARD are not sustainable, that they have bottomed out the General Fund to pay down the deficit created by their employees’ unrealistic and unreasonable “shares”. Willmann admitted many times they had deferred maintenance while paying their pensions.  

I feel Cleland is trying to nudge the conversation away from the fact that CARD is poorly managed and is not fulfilling their mission statement. 

Cleland attended CARD General Manager Ann Willmann’s “informational” propaganda sessions. He heard her tell the group that CARD is without debt, and he sat right behind Dave Howell as he corrected Willmann. Howell quoted the latest figure on CARD’s Unfunded Pension Liability as $2.7 million, because that was the figure Willmann had recently given the Enterprise Record. She admitted to him and the rest of us that it is actually over $3 million. How does it grow so fast? Because, only 5 years ago, agency management was paying NOTHING toward their own pensions. CARD was paying, in total, less than 10% of the cost. These agencies have put off paying the pensions, because they expect the taxpayers to foot it. 

As of 2017 Willmann was only paying 2.5% of the cost of her pension, with an annual salary increase, that’s why CARD’s deficit is growing so quickly. As of 2019, she was paying 8%, with another salary increase, up to $127,000/year. 

If you want to see the consequences of this kind of pyramid scheme, read the latest CalPERS “actuarial valuation report” for CARD.

https://www.calpers.ca.gov/page/employers/actuarial-services/employer-contributions/public-agency-actuarial-valuation-reports

Just type “Chico Area Recreation District” into the search engine.

Look at what CalPERs will expect CARD to pay in “catch up” payments within the next few years – and then remember, the taxpayers pay ALL OF IT, in addition to half the payroll contribution. 

And here’s another lie Willmann floated to the public during her little propaganda blitz – she said that CARD has no control over the shares or amounts they pay to CalPERS. “this needs to be handled at the CalPERS level and the legislative level…” she lied. 

Here’s two holes in that lie – 

  1. If it’s out of the agency’s hands what they pay to CalPERS, why are the city of Chico and CARD’s payments so radically different? CARD pays 14%, while the city of Chico pays 21 – 31%.  You can see the city even negotiates different payments for different employee groups, as well as very different shares per employee group. 
  2. According to the report linked above, “The employer contributions in this report do not reflect any cost sharing arrangements you may have with your employees.”  There’s the truth – Willmann told the public at those sessions that the board doesn’t have any control over the shares. Liar. 

Okay, here’s where it gets even murkier – Willmann claimed in those sessions that her 8% was more than half of the agency’s cost – she bragged about that repeatedly.   But, when I asked her, in front of the rest of the group, why the city and CARD pay totally different percentages, she would not answer me in the meeting, saying she needed to check her figures. No, it was because she didn’t want to tell the others the truth – her 8% is not MORE THAN half of what the agency pays, it’s not even half.  She admitted to me via email later, the agency pays 17%.   “ The Total Normal Cost is then split in to the Employee Contribution Rate and the Employer Normal Cost Rate. I was incorrect regarding our Total Normal Cost, it is currently 17.127% for our classic members not 14%.”

Why did she tell everybody else CARD only pays 14%? Obviously, Willmann knows the truth, she knows she pays less than half, but misleads the public, because it’s in her best interest to do so. 

 And, here’s the real pig sticker – the taxpayers not only pay over half the payroll portion, but make the entire “catch up” payments on the resulting Unfunded Accrued Liability. 

So, in answer to Mr. Cleland, I’ll say, before I would even consider a revenue measure for this sad little agency, I would demand the following (and this is just for starters) :

  1. new general manager 
  2. Tom Lando off the board
  3. ratify a new agreement with employees that they work toward paying more of the agency’s payroll costs (a LOT more)
  4. ratify a new agreement with employees that they will pay the same “share” toward the “unfunded liability”, or “catch up” payments

Meanwhile, we do need to poke our legislators to dump the California Rule, and to start dissolving CalPERS and working toward a more sustainable pension system for our certainly needed but much overcompensated public employees. 

Next time we’ll apply the same argument to the City of Chico, who may not be discussing their one cent sales tax increase measure in front of the public right now, but I assure you they are planning to put it on the 2020 ballot. You can find the same actuarial report for the city at the website I linked above, just punch in City of Chico. 

Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf

Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf

Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf

Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf

Barbara Gore: Imagine the level of hysteria that would ensue if people spoke of the flu in the same manner they speak of the coronavirus.

7 Apr
By  |

In the March 13 Enterprise-Record, there was an editorial putting this coronavirus in perspective and I quote, “The flu infects 1 billion people each year worldwide, killing as many as 650,000. In the U.S. so far this season, flu afflicted up to 49 million people, resulting in as many as 52,000 deaths. Imagine the level of hysteria that would ensue if people spoke of the flu in the same manner they speak of the coronavirus.”

I’ve been pondering this editorial ever since, wondering why it became this huge crisis, with people panicking and then the different countries and now the US shutting down and shutting people in? Of course every life is precious but in this case, what about the 52,000 lives lost to the flu just in the US?

Unless the staggering number of losses, due to the flu are a misprint, could someone please explain to me the difference? And one more thing, in an attempt to save thousands of lives, millions will be ruined — no jobs, no paychecks, many becoming homeless, more needing welfare to survive. Businesses being closed not just for now but forever. The enormity of it is mind-boggling.

— Barbara Gore, Durham

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Will states use COVID-19 funds to bail out pensions? Let’s talk about true pension reform first

31 Mar

https://www.realclearpolitics.com/articles/2020/03/30/dont_let_states_rob_covid-19_funds_to_bail_out_pensions.html

Don’t Let States Rob COVID-19 Funds to Bail Out Pensions

COMMENTARY
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By Ted Dabrowski & Mark Glennon – RCP Contributors
March 30, 2020

Now that Congress has passed its broader humanitarian aid packages in response to the COVID-19 virus, it’s likely that the nation’s most fiscally irresponsible states will request bailouts for something completely unrelated to the virus: their bankrupt pension plans.

Bad as that may be, it’s likely some sort of assistance will materialize from Congress. If that happens, any support should be conditioned on pension reform.

It’s not a stretch to think that federal money will somehow find its way into the nation’s most dysfunctional pension plans. New Jersey’s Phil Murphy, governor of a state with one of the worst pension crises in the country, is seeking a multi-billion-dollar, flexible block grant. Meanwhile, Chicago Mayor Lori Lightfoot, whose city is already junk rated largely due to pensions, has warned “this is a B-sized problem, meaning something that can only be solved with billions in needed stimulus support from the federal government.”

With the shortfall in pension funds exceeding what Stanford’s Pension Tracker says was $5 trillion even before the meltdown, you can bet those governments most mired in pension debt will seek additional help. They could demand direct aid for their state and local pensions, or for their own operations that indirectly support those pensions. But states and cities that bankrupted their funds through corrupted governance long before the current crisis shouldn’t get a free pass.

Many states, including Illinois, New Jersey and Connecticut, have refused real reform for decades, wreaking havoc on their residents and the retirement security of their workers. That’s reason enough to require preconditions for any federal support.

The rationale for requiring reforms with any aid is threefold. First, supporting irresponsible states with no strings attached is fundamentally unfair to those states that have already enacted major reforms. Second, structural reforms reduce the risk of future federal bailouts by setting those states on a path toward stability. Third, requiring reforms would reduce the cost of any potential federal aid to those states.

Illinois is a perfect example of a state that shouldn’t be bailed out at the expense of fiscally responsible governments. Gov. J.B. Pritzker, the state legislature and Chicago Mayor Lightfoot all reject structural pension reforms that would fix Illinois’ problems. They continue to block efforts to amend the state’s pension-protection clause through a constitutional amendment and they refuse to authorize the option of municipal bankruptcy, something that only requires a legislative majority.

Instead, like their predecessors, they’re protecting the status quo. As a result, Illinois’ Net Primary Position – basically its net worth – has worsened by $190 billion since 2001. Those losses resulted primarily from growing unfunded pension and retiree health insurance liabilities. Illinois’ pension crisis is now the nation’s worst, both in terms of total shortfall and on a per capita basis, according to Moody’s Investors Service. The agency rates Illinois just one notch away from junk.

Conditions in New Jersey are no better. The Garden State’s pension funds were flush at the turn of the century, but since then, gross bipartisan mismanagement and pension holidays have led to near insolvency. S&P warned in June of 2019 that: “[The state’s] inability to contribute [its] annually determined contribution after 10 years of national economic recovery raises questions about what could happen in another recession.”

Connecticut is also swimming in unfunded pension and retirement health care debts. Those obligations equaled nearly 40% of its GDP in 2018 – the highest among all states, according to Moody’s. And like Illinois, the state has resorted to decades-long reamortizations and is considering asset transfers instead of real, structural reforms.

If that’s not evidence enough, consider this. In 2018, the plans for Chicago’s 30,000 active and retired public safety workers were just 22% funded. The funding for Kentucky’s 90,000 state workers was even worse, at just 16%. And the plan for New Jersey’s 136,000 public employees was only 32%. All those workers lost their retirement security due to politicians’ corrupt practices long before the current crisis.

The unwillingness of such states to make hard choices on their own is precisely why any help from the federal government must come with preconditions.

Defined contribution plans, cost of living reforms and increased retirement ages are all part of the suite the federal government should require. And for states that have constitutional protections, lawmakers must commit to removing them or lose out on aid.

Whether the federal government eventually provides direct aid to state and local governments remains to be seen. However, it’s imperative that any such support not be used to bail out pensions or enable irresponsible states to further ignore their retirement crises.

Ted Dabrowski is a former international managing director for Citibank and current president of Wirepoints, an independent, nonpartisan research and news organization focused on fiscal and economic policy.

Mark Glennon, a former bankruptcy lawyer and venture capital investor, is executive editor and founder of Wirepoints, an independent, nonpartisan research and news organization focused on fiscal and economic policy.

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As city leaders posture over the coronavirus, the real epidemic in Chico is crime

28 Mar

This morning I saw the paper – my teeth are old, and my dentist told me, if I didn’t quit grinding them all the time he would be taking them out. So, I when I read the paper, or watch the local news, I’ve adopted the habit of holding my mouth open, teeth wide apart – I know, it looks stupid, but it’s going to save me a fortune in dental work.

Cause today, right there on the front page, was a picture of a business I remember since very young childhood. The door was covered with plywood – oh wow, just like the post office annex! There was council woman Kasey Reynolds, owner of Shuberts, flanked by Chief Sitting Lame Ass and Mayor Again? Ann Schwab. I wonder if Schwab was wondering what I was wondering – why didn’t they hit Campus Bicycles?

I’m just so sick of the lawlessness. Oh sure, I better not congregate with my congregation in church, and any business that dares to stay open is shamed, bullied, and threatened into closing up shop while still cajoled to pay their employees. But St. Patrick can continue to take over Downtown Plaza with his “feedings” and the NVHRC can still hand out free needles to heroin and meth addicts and dealers every Sunday.

Oh sure, you know the PUBLIC employees don’t miss a paycheck, even though they have been on reduced hours, most of them off on Fridays, since long before the Coronavirus Panic.

Wow, this is a lot better than grinding my teeth.

The president says it’s “time to get back to normal.” I agree. I think the county and city need to end their imaginary state of emergency, because it is creating a real state of emergency. So I wrote a letter to the editor  about it.

As city leaders posture over coronavirus, the real epidemic in Chico is crime. 

During the week of March 5, a fire was started in a trash bin inside the post office annex at the main branch on Vallombrosa.  There are over 3,000 mail boxes in that annex. The mail that was in the boxes on the night of the fire is still being held indefinitely while the matter is being investigated. Box holders are expected to line up at the main desk during business hours to collect their mail. I got no response from the police chief or the fire chief when I asked if any suspect was charged. 

Sometime overnight March 27 Shubert’s Ice Cream front door was taken off  by a person caught on security camera wearing a mask and using bolt cutters. This criminal act was done right out on a public street in a well-lit area. 

Whether or not Shuberts was a political target, criminals have become more brazen as the coronavirus shutdown continues, while the talking heads Downtown discuss “suspending the rules”. I agree with President Trump – this country needs to pull it’s collective head out of it’s collective ostrich hole and “get back to normal.” As long as transients are allowed to congregate for feedings at Downtown Plaza or free syringes at Humboldt Park, I think it’s safe to get out and have an ice cream with your friends, and talk about the upcoming election.

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Prepare instead of panic

24 Mar

The weekend after the Camp Fire, my husband and I and our adult son, two dogs, and two cats, found ourselves jammed into our tiny studio apartment. The sky was still black day and night, and ash was raining everywhere. The temps stayed in the 30’s all day. We knew by that time that my son’s little cottage in Paradise was toast. And, we were starting to run out of groceries and clean clothes. 

While we enjoyed milling in the Safeway parking lot, masks on, flagging down old friends who had been driven into town by the fire, the store itself was overcrowded and the shelves were looking frazzled. Chico Walmart had  been stripped of everything we needed – air mattresses, sleeping bags, toilet paper, shelves bare throughout the store. 

So we got up that Sunday morning and we headed for Red Bluff hell bent  for leather, to shop at their Walmart. We wanted out of Chico, out of the smoke, out of the crowds, off the backed up streets. The skies lightened as we sped up 99, by the time we got to Red Bluff you could actually see blue sky. 

That was also my first experience with a Walmart Superstore. I’d heard about it, mostly from friends who didn’t like Walmart. My Red Bluff friends said it was bad for the local economy, but also joked how many former lumber mill employees had found jobs there. Me, I’ve long gotten over any revulsion for Walmart. It’s about the only place I can afford to shop anymore. I think they’ve got better as a business under the scrutiny of the 80’s and 90’s, and I think they offer good jobs for a significant portion of the local populace, including older people who still need to work. 

So I stood marveling in the gigantic entryway. It was a real life “Me-ga-lo Mart” from King of the Hill. I wondered if Chuck Mangione was camped out under the paper products display. It was like an entire mall, all in one enormous room. And, unlike a lot of the retail scene in Chico, everything was sparkling clean and in perfect order. 

The greeter smiled us in, and we walked as if in a dream. Our clothes were scruffy and covered with dog hair, we looked like The Bride after she escaped her desert tomb. Suddenly we noticed other scruffy ragamuffins – fire evacuees. We were all headed for the camping section, where my husband and I got one of the last of the air mattresses. Sleeping bags were also flying off the shelves. We also needed a heater and a few other household items, clothes – our son had escaped with his cats and his car and the clothes on his back. Since he’d been headed for work, at least he had his lunch and Kleen Kanteen.

When I saw the grocery section I had to hold myself back. We were sharing a tiny counter-top refrigerator/freezer, so I had to make sure not to buy too much stuff. The produce section was as nice as Raley’s in Chico, with tons of fresh stuff, even a big organic section. We found a bigger selection of various products, with a range of affordable prices, than we have found at any store in Chico. So while I didn’t intend it, I’ll admit, I hoarded a little. My son exclaimed, as we unpacked our booty, “Mom, you have enough sugar here for Armageddon!” Well,  a lady likes to have some things…

A year and a half later, after a summer of PG&E shut-offs (a rolling blackout by any other name still stinks), my husband and I are more “prepared”.  I decided it’s okay to “hoard”, especially if you make a consistent habit of it and build your stockpiles slowly. Oh my god – yesterday I saw a younger couple, with very serious masks and gloves, piling huge quantities of food on two of those warehouse style dollies. They looked at me with that crazy shine in their eyes.  Don’t do that, it makes it hard for everybody. Make a habit of being well stocked ahead of time. 

I don’t know if the rest of you have noticed – prices at grocery stores are going up – one store we shopped yesterday had essentially stuck another dollar on every product I bought. I know because I buy the same stuff. It’s really disgusting to see how they act during a crisis, but you saw what happened to the housing market in the year after the Camp Fire. People kinda suck. 

So here’s my “Stuff to Hoard” list. Make your own, based on your lifestyle. But yeah, get ready for the next panic, and don’t be caught with your pantry down. 

  • toilet paper – I know, people have always looked at me funny with my 18 pack, but who’s laughing now?
  • Kool Aide – makes crappy water taste better. If you’re on Cal Water you know what I’m talking about. 
  • sugar – geeshy sakes folks, don’t ever get caught in the “Kool Aide with no sugar” dilemma
  • I drink coffee, so I never have less than two pounds of beans on hand
  • powdered milk/canned milk – and I’m weird, so I keep a pack of yogurt starter too
  • propane for your camp stove – get a 4 pack, it’s cheaper
  • I hoard dry goods, stuff like rice, barley, flour, yeast, salt, etc. These don’t take up much room in airtight containers
  • gas for your generator

 

 

 

 

 

Chico’s Tax Swindle: City bureaucrats expect YOU to pay higher taxes in order to fund unaffordable pensions

24 Mar
Posted on  by liberty530

While your retirement investments implode in what is shaping up to be the worst economic downturn since the Great Depression, city bureaucrats expect YOU to pay higher taxes in order to save their multi-million dollar pensions.

Over the years tens of millions of dollars that should have gone for roads, infrastructure and other necessities has been siphoned off to CalPERS in a futile attempt to fund ridiculous and unaffordable pensions.

Recently the city experienced a surplus in excess of $3 million. What did they do with the money? They didn’t spend a penny of it on the roads and instead shipped $400,000 of it off to CalPERS for pensions. (See https://chicotaxpayers.com/2020/03/15/time-for-true-pension-reform/ ) This is ON TOP of the money they already sent to CalPERS for the fiscal year!

In today’s ER city bureaucrat Constantin says the tax increase is “absolutely needed.” From the ER:

It’s likely, Constantin believes, that the city’s “most substantial needs” would be addressed.

It’s likely? He believes? Those are weasel words, folks. The ER goes on:

And yes, said Constantin, it could be used for pensions.

Hah! Ya think? OF COURSE IT WILL BE USED FOR PENSIONS!

If you want to read the rest of Constantin’s drivel you can read it here

City executive says proposed sales tax hike is absolutely needed

If voters are stupid enough to pass this tax increase it will only enable them to continue what they’ve been doing for many years.

You may never be able to afford to retire but the city council and Constantin believe you should pay MORE TAXES so city bureaucrats can retire as multi-millionaires! ARE YOU GOING TO LET THEM GET AWAY WITH THAT?

LET THE CITY COUNCIL KNOW YOU WILL NOT PASS THEIR SALES TAX INCREASE AND DEMAND THEY REFORM THE PENSIONS!

As the city shuts down, if you want to stay engaged, you’ll have to try Chico Engaged!

21 Mar

The city of Chico announced they will shut down all meetings to the public, opting for social media to keep the public informed. For months now they’ve been toying with a website called “City of Chico Engaged,” or “Engage Chico.”  I’ve looked at it a few times, and the comments I saw did not seem related to any agenda items, people were using it as a suggestion box. 

Until recently. A lively discussion has come up regarding the sit-and-lie and crimes against property ordinances. Alex Brown has agendized a discussion of overturning these ordinances, and finally, the lobster pot might be overturned. We can hope.

I signed up for the site because I thought I had to have an account to be able to read the discussions. But, from what I can see, the site is no easier to see now that I have an account. This is important because this stuff is all supposed to be public information. We’ll see if this site gets any better as more people sign on. 

But don’t forget to unsubscribe from mailings – or you will get an email every time somebody makes a comment on a conversation you’ve read, commented or voted on. 

https://chico-ca.granicusideas.com/

 

 

A guide to staying politically active in the age of COVID-19

Write Early and Write Often

20 Mar

The early bird gets the worm. A local newspaper owner and editor I know told me, “Write early and write often.” He’s right – start before the ER announces their election cut-off, build your argument slowly and consistently, and then summarize in your last letter. 

I’ve been watching the agendas and reports for various meetings, available here:

http://www.chico.ca.us/government/minutes_agendas.asp

This is something you can do if you want to be more involved – read the reports.  You’ll see stuff that makes you want to write a letter to the editor. I did – I read the report for the now-cancelled March 17 city council meeting, and I thought other taxpayers needed to hear about it. 

Chico City staff recently reported $3,050,000 in “unanticipated revenues” in this year’s budget, “$2,550,000 in additional sales tax revenue, $400,000 additional property tax in lieu of vehicle license fees and $100,000 additional short-term rental transient occupancy tax.”

Staff claimed Camp Fire evacuees had heavy impacts on Chico streets, now we see, they were also making a significant financial contribution. Why isn’t this money being put in the street fund?

Citing city budget policy, staff claims “unanticipated revenues”  are “dedicated to long-term liabilities and replenishing reserve and internal service funds to established targets. ”  How could they have not anticipated these revenues, having acknowledged other effects of the sudden population influx? And since the city has admitted to deferring street maintenance for years because of a shortage of funds, shouldn’t they replenish the street fund?

Staff instead suggests uses for these funds that are not covered by the above policy:  $1,405,000 to guarantee airline service,  $350,000 toward the city’s Community Choice Aggregation scheme, $100,000 to remove the BMX track from the fairgrounds to accommodate homeless services, $30,000 for questionable district maps, $250,000 for a “remodel” of Fire Station 1, and $515,000 for the “Homeless Solutions Project”. 

Putting $400,000 toward the long-term pension liability may fit policy, but I find it questionable – staff already transfers millions a year into that fund from other funds that remain in the red.

This appropriation shows how capriciously staff and council spend our money in their own interest, on their own agenda.   Is this an agency you want to trust with a sales tax increase?

Juanita Sumner, Chico CA

 

 

 

 

 

 

 

A budget surplus generated by the Camp Fire influx should go toward the roads – instead $taff wants to put it in the Pension Stabilization Trust and “Homeless Solutions”

15 Mar

As you may know, the city of Chico has cancelled the March 17 meeting because of coronavirus.  The agenda was full of contention, and they expected a big turnout, so heeding the governor’s recommendation against gatherings of over 250 people, they postponed the meeting until the first week of April.

They were scheduled to discuss overturning both “sit-and-lie” and the “crimes against property” ordinance, but the item that caught my eye was the extra $3,050,000 they found in the budget and what $taff wants to do with it.

Here’s the agenda they posted for March 17 before they cancelled.

http://chico-ca.granicus.com/GeneratedAgendaViewer.php?view_id=2&event_id=332

To make a long story short, after pointing a dirty finger at the Camp Fire refugees, blaming them for “overwhelming” the streets and sewers, and using them pretty blatantly as an excuse for a sales tax increase, the city of Chico actually PROFITED FROM THE CAMP FIRE. To the tune of an extra $3 million+.

I believe this money should go into the streets fund, since city mangler Orme and public works director Erik Gustafson have claimed the refugees caused massive damage to our streets. They’ve already decided to raise sewer fees. $3 million would be a nice chunk for the road fund. And, $taff has admitted deferring maintenance while taking money from the road  fund to transfer into the Pension Stabilization Trust, so I believe it would be a good use of one-time money to pay that back. Instead $taff has come up with their own wish list:

Grant Match for AIP Grant (Runway)       $1,405,000
Community Choice Aggregation Loan     $350,000
BMX Relocation Project                            $100,000
Redistricting Demographer                      $  30,000
Fire Station #1 Remodel                           $250,000
Pension Stabilization Trust                    $400,000
Homeless Solutions Project                      $515,000

Every item on this list concerns me.

First, I think it’s foolish to spend one-time money on the airport, the airport should provide it’s own steady stream of revenue. That hasn’t happened for years, and using one-time money to prop up airline service is a mistake. Sure, they need to fix the runway, that is what lost them the contract for serving the fire planes. That money should have come out of the airport budget years ago, instead they constantly raided it to pay salaries, benefits, and the pension liability. If you don’t believe me, pull Mark Sorensen over at a stoplight and ask him. 

Same for Community Choice Aggregation – Mark Orme’s Music Man pitch for the city to buy electricity and re-sell it to residents, using PG&E infrastructure. This scheme will never pencil out for the ratepayers, but will be a new and steady revenue stream for the city.  Using one time money to jump start a scam like this is just the beginning. 

As for the BMX relocation – they should have to pay for that out of the annual $4 million they receive for “consolidating” transient services on the site formerly leased to the group  that built the BMX track.

I haven’t read the report on the fire station “remodel” but that money should come out of the public safety fund, which eats about half the city budget.

The last two items I find completely insulting.

$515,000, taken from people burned out of their homes and still on the lamb, for something as vague and amorphous as “Homeless Solutions Project”?  Those people, including my son, had to  find their own solutions, but now they are expected to pay for the warming tents and other “solutions” to keep the junkies happy? GFY City of Chico.

But most outrageous is that $taff must get their thumb in the pie – $400,000 for the Pension Stabilization Trust. Scott Dowell, Mark Orme and Chris Constantin like to brag about their “aggressive payments” toward THEIR pension deficit with OUR money. Meanwhile, they pay very little out of their own pocket toward their own benefits, and this has created the “unfunded pension liability” in the first place. 

Last year I asked Scott Dowell about the “shares”. Employees are divided into groups that pay different shares. Two main groups – “safety” (cops and fire) and “miscellaneous” (everybody else)  are divided into sub groups “classic” and “PEPRA”.  “Classic” means, hired before 2013, when the Public Employee Pension Reform Act went on the books. This law requires employees hired after 2013 to pay 50 percent of employer cost for their pensions. 

I didn’t get that, I thought the law meant employees would pay 50% of total cost. Silly me! It means they pay 50% of what the agency they work for has agreed to pay CalPERS. That varies with agency – for example, CARD only pays 14% total. The city pays more, but still not enough.

Notice management (Orme, Constantin, and Dowell) pay the second lowest contribution, even though they brag about picking up 3% of the employer contribution. 

Group                             Employer Cost                           Employee Cost*

Miscellaneous  Classic    10.235%                                    11%                            Total: 21.235%    (leaving roughly 79% for the taxpayers)

PEPRA                             10.235%                                     9.75%                       Total: 19.985%    (leaving roughly 80% for the taxpayers)

Safety Classic                  18.843%                                    12%                           Total: 30.843%    (leaving roughly 70% for the taxpayers)

PEPRA                              18.843%                                   15%**                        Total: 33.843%   (leaving roughly 66% for the taxpayers)

*Includes 3% cost sharing of employer cost. Note CPSA employees pay 6% of employer cost.

**CPOA PEPRA pay 15%; IAFF PEPRA have ratified an agreement to pay 12%.

City of Chico employees are paying, or are nearly paying, HALF of the CalPERS pension costs.

So, the city pays different shares and totals than CARD, and even by group. And while they pay more than CARD, the highest total is only 33.843% of cost. That leaves the rest for the taxpayers. I know, they claim they will make it up on the stock market – but they keep lowering their anticipated returns, and demanding more and more from the various agencies (taxpayers). 

I was unsure about how it works in $$$$, so I asked Scott Dowell for the figures on an employee making about $220,000/year (obviously a “classic” or management employee). Here’s what his staffer sent me:

A Miscellaneous Classic Employee earning a base salary of $220,000 has a PERS contribution of:

Employer:           $22,517 (10.235%)

Employee:          $24,200 (11.000%)

Total:                     $46,717 (21.235%)

An employee retiring with a salary of $220,000/year would get a base pension of $154,000. With cost of living increase, it will go up every year, adding to the liability. For example, ex city manger Tom Lando got a base pension of about $135,000 when he retired almost 15 years ago. Today,with COLA, he is taking almost $155,000/year. Just in pension, he also gets healthcare and other perks that we pay for. 

Here’s a stumper – sit down and hold onto your seat – Lando never paid anything toward his pension. At that time, the city paid the “employer paid member contribution,” meaning, we paid Lando’s entire share.  That scam went on until the taxpayers figured it out, and only now are employees beginning to pay anything. Any reform would have been something, but it’s not enough. It’s not true reform.

True reform would be dissolving CalPERS and hiring new employees who will pay their own pension costs. An agency contribution should be warranted by years of service and dedication, not a given. And, since CalPERS is 64% funded at this point, retirees will get over 50% of their anticipated pensions, which are based on some pretty generous, even outrageous salaries in the first place. 

Don’t be afraid to speak up, don’t be intimidated by union members telling us we’re ripping them off – BULLSHIT! Time to press for TRUE PENSION REFORM!

 

 

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CARD still won’t acknowledge the real reason they lost Measure A – the bond

14 Mar

Thoughts vary on Measure A’s defeat

By  | lurseny@chicoer.com | Chico Enterprise-Record

CHICO — There were various take-aways from Measure A’s failure on the March 3 ballot, some of them local and others beyond the control of the Chico Area Recreation and Park District, which hoped for success in order to trigger improvements.

The last break-down in votes released by Butte County’s election office on March 6 was 18,440 votes against or 52.44 percent, compared to 16,724 yes votes, with 47.56 percent.

The measure would have put an $85 annual tax on every commercial and residential parcel in CARD’s district

CARD was proposing that a $36 million project fund be created by borrowing if the parcel tax was approved. The parcel tax would have raised $3 million annually, with $2 million going for debt service and $1 million available.

Two-thirds vote

CARD General Manager Ann Willmann was disappointed, but said she wasn’t surprised, although a campaign team worked diligently to answer questions and convince voters.

“Surprised it failed? I’m not because a two-thirds measure is tough no matter who or what is putting that measure forward,” Willmann said Wednesday in regards to the need for a two-third supportive vote among active voters.

Because the measure was a tax, it took a larger percentage of support to pass.

CARD Chair Tom Lando initially was against CARD pushing forward with the measure, with the city considering a sales tax increase and other community issues such as safety and roads. Lando said he came around, but was still doubtful of the two-thirds vote needed.

“I always thought two-thirds vote would be difficult to get. I still believe the improvements are extremely important to the community’s future,” he said Thursday.

Lando said he was surprised that the measure didn’t get a majority at least, but also attributed that to the change from polling to mail-in ballot, along with fewer participating voters, among other factors.

There was opposition from the start, from answers to the consultants’ telephone surveys last year to public feedback and comments at community meetings, along with a robust anti-Measure A campaign.

Asked about the factors in the failure, Willmann said. “Some of the public feedback I got included that people were not interested in paying more taxes, and that they would like to see other changes in the community before CARD’s projects,” she said in reference to public safety and roads.

That anti-tax sentiment was felt beyond Butte County, with tax measures in Shasta and Tehama counties, along with the Bay Area and statewide failing March 3.

Other challenges to Measure A included the fact there was no sunsetting of the tax, and its link to an ever-increasing consumer price index, which meant the tax would go up.

CARD’s board had originally wanted the parcel tax as high as possible — at $110 — but later adjusted the level to $85. It also established priorities to be taken that reflected the master plan, capital improvement plan, facilities age and changes to existing park needs.

One of the major benefits would have been the pursuit of an aquatics center to replace an antiquated public pool that had been closed.

Lando said he thought the emphasis was too much on the swim center, “and not enough about kids, adults, year-round sports etc. It was broader than the aquatics center.”

Lando noted that the issue of pensions and paying them off hung over CARD.

“Even though we said — truthfully — that there’s a plan to pay off unfunded liabilities, people weren’t sure. Pensions are hanging over people’s heads.”

Measure’s cost

Overall, CARD spent roughly $132,500 on creating the measure, with $24,500 for EMC Research on a public survey, and $18,000 to Clifford Moss for structuring the revenue measure and communications. It also will owe the Butte County about $90,000 for placing the measure on the Chico ballot, although the county’s bill has not come through.

By law CARD could spend no public dollars on promoting or marketing the tax measure.

Willmann participated in a private campaign of support that did not come from the CARD budget or work on CARD time. Residents for Safe Chico Parks and Recreation raised money and created a campaign team that helped promote Measure A. Willmann said she volunteered with this group, working nights and weekends outside of her general manager’s job.

“It’s important to follow the rules and regulations as far as public entities using tax dollars to promote something. I gave up (private) time to make sure I was not on work time or using district resources (for the campaign),” she said.

Funding that group raised was used on signs, advertising, mailers, the phone bank, texting, newspaper ads and a consultant’s time.

Regarding the possible success of the proposed retail sales tax increase that the city is examining, Willmann said, “A lot will depend on how the proposal is structured. They’ll learn from our mistakes.”

Lando acknowledged that issues such as public safety and roads towered over recreational needs in voters’ minds, but at some point, the district’s needs must be discussed.

Next steps

Asked about what’s next, Willmann said, “We’ll look at tapping into our own budget and reprioritize the projects that use funds over a longer period. Rather than doing 10 things at a time, only one or two at a time.”

“Where do we go from here?” Lando said. “I think we need to figure out how to move the improvements needed along

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