Here’s a fun match up between pension watchdog Steven Greenhut and the head of the OCEA public employees’ union, Nick Berardino. The subject of yesterday’s debate was “Can pensions be reformed co-operatively?”
Who won?
Molly McClannahan used to call Alan Morton “The Conscience of Fullerton.”
At some point back in the 1990’s, the city retained an expensive consultant to design a sign to be painted on the Union Pacific bridge (my idea) over Harbor Blvd. Alan voluntarily designed the “Welcome to Downtown Fullerton” sign on his home computer, saving the city thousands of dollars.
Alan would constantly question city staff’s wisdom of using legal size paper for staff reports instead of letter size, which is what they use today. Staff’s answer was that they had no choice because the file cabinets were designed for legal size paper.
One of my all time favorite council meetings (I’ll have to YouTube it someday) was when Alan chucked an illegally placed Sa For Council sign during the public comments and the sign almost hit Sa en la cabesa. You go Alan!
I believe it was the great recall that really got Alan energized as an activist. From there, it was off to the races for Alan. He continuously ragged on the council to televise council meetings, and now they are. He would speak on almost every important item on the council’s agenda. His activism helped save Fullerton taxpayers millions of dollars.
Recently, at the ripe age of 86, Alan was having breakfast with three of his buddies. While chatting with one of the servers, Alan took a deep breath and that was it for our feisty old Friend. Alan gave of himself and asked for nothing in return. People like Alan Morton are Fullerton’s Future.
Last week we looked at the number of FSD employees who make over $90k. Now let’s see the salaries of Fullerton Joint Union High School District teachers and administrators for the 2009-10 school year.
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Wow. Four hundred and thirty-two of them earn over $90,000 per year. Some of them teach a little extra summer school while others get stipends for CERT training, coaching badminton or being a leader. There’s also a secretary and a couple of custodian supervisors who earned over $60k in overtime alone.
You can look at this data any way you want, but it’s hard to deny that Fullerton’s educators are very well compensated. The myth of the “poor, underpaid teacher” is crushed.
Bonus Trivia
Which FFFF blogger spent several years molding the young minds of Fullerton’s high schoolers back in the 1980’s?
The other day someone remarked that Don Bankhead has never accepted the blame for any of the bad votes he’s made since the beginning of his 23 year reign on the city council.
Twenty-three years at the helm…surely there must be at least one single thing that even the most narcissistic of government officials would accept partial blame for, right? Well, how about Fullerton’s pension crisis? Don Bankhead voted for every single pension and salary spike put in front of him over the last 23 years, and has done absolutely nothing to curb the excesses that have brought hundreds of millions in debt upon the shoulders of Fullerton Taxpayers.
Let’s see what he has to say for himself:
Who’s fault is it? Oh, it’s the stock market’s fault!
Nobody could have possibly predicted that stock investments carry an inherent risk, and that their value may not increase forever, and that by boosting these pension commitments, Bankhead was dumping ever-increasing chunks of risk onto future generations of Fullerton taxpayers. And of course the unions would never try to talk an unsuspecting buffoon into boosting their benefits at the very peak of a cycle, where smooth sailing into a rich eternity seems practically guaranteed.
Nope, none of this is evident to the dim bulb who went along with the biggest series of heists in Fullerton history. It’s all somebody else’s fault, and there’s nothing that he can do about it now.
Sadly, nobody has had the heart to tell Don Bankhead that the pain of nearly two hundred million dollars in pension debt will be shared by his very own children and grandchildren.
How’s that for a legacy?
It’s almost April. Our wise and courageous city council is already wading through wage negotiations with the city employee unions for the upcoming budget year. How did we get this far without adding up Fullerton’s total unfunded pension obligation? Oh well, here it goes…
|
Pension Plan
|
Total Liability
|
Market Value of Assets
|
Unfunded Liability
|
| Fullerton Public Safety |
$324,288,070
|
$197,444,920
|
$126,843,150
|
| Fullerton Miscellaneous |
$202,257,209
|
$136,167,010
|
$66,090,199
|
That’s a grand total of $192 million in what is essentially “pension debt” for which we have no foreseeable plan to pay, even when we include all of our future contributions and expected market gains.
The pension plans are already paying out $9 million more per year to retirees than they are taking in via contributions, so there’s no help there. But our required contributions are increasing significantly, starting this year.
With no perceivable way out of this hole, maybe it’s time to hit the road and put it all on black.
All of these numbers came from the 2010 CalPERS reports for Fullerton’s Public Safety and Miscellaneous pension plans.
Well, sure you do. Sally can help.
http://www.youtube.com/watch?v=YeH14bh6ciULast night’s Fullerton City Council meeting brought out a number of people concerned that their water rates will be going up. I would like to thank each and everyone of them for taking an active interest in our City! A few of them stood and spoke before the council and many approached me after the meeting. They expressed a wide range of emotions and sentiments.
Disgust. Distrust. Anger. Fear.
There was the universal disgust that goes with the realization that Fullerton’s leadership has been absent for decades. There was the feeling of distrust that comes when someone feels they have been lied to about where the money goes. Many were angry that this report was not commissioned decades ago. Then there was fear. Many are fearful that the few businesses in Fullerton who are heavy water users will soon pack up and head out of state to more business-friendly areas. Others are fearful that they will have to leave, unable to afford the higher costs.
Those who sat through the 2-1/2 hour meeting observed many things.
Most notably, at least one councilman had serious trouble staying awake for the meeting. Death by PowerPoint I believe was the cause.
Mayor Jones repeatedly used Hitler as some sort of misplaced analogy to the gross mismanagement of our water system for nearly a century. There were several people who were clearly disgusted with his remarks.
Mayor Pro Tem Bankhead, who is a representative for the City on the Orange County Water District Board, bragged that the board hasn’t raised their tax on the City’s pumping efforts in a year even though a few key executives received raises. OCWD charges Fullerton taxpayers somewhere in the neighborhood of $236 per acre-foot of water that the City pumps.
The franchise tax was mentioned several times. I pointed out that the tax should be eliminated completely which would allow the City to NOT raise water rates AND address the urgency of the neglected system. I did misspeak on one key matter. Specifically, I said that it would be better for the general fund to take the 10% hit rather than the taxpayers. Actually, the water utility franchise tax ($2,474,860 FY2011) accounts for about 1% of the total budget ($180,802,880 FY2011), not 10%. Cutting the franchise tax would increase the water fund from $27,728,430 FY2011 to $30,203,290!
So, the bottom line is that we have the funds to fix the water system but the City Council will need to adjust the City’s priorities.
Those in land development, engineering, construction or anyone else who rides Fullerton’s roads knows that the City’s priorities are out of order. City Hall places too much emphasis on housing and transportation boondoggles while ignoring the skeleton and muscle of the City’s infrastructure. It causes me to question whether or not our City leaders (are there any at City Hall?) have planned for repairing and replacing our roads.
Those interested in protecting the City’s infrastructure from further neglect while protecting the pockets of taxpayers are urged to attend the Water Rate Study workshops in the coming weeks and months.
Let’s hope the city council comes to its senses and votes NO on raising our water rates and associated taxes 91% over the next 10 years. Friends, I’d like to thank Greg Sebourn for bringing this issue to our attention. As many of you may remember, Greg ran for Fullerton city council last year and received 6,375 votes. Here is Greg’s take on the proposed rate increase:
Fullerton Water Rates to Double
This Tuesday night the Fullerton City Council will direct staff on the implementation of a water rate study. Based on the proposal from the City’s consultant, Municipal & Financial Services Group (MFSG), the new rates will be increased by 10% for 5 years then 3.5% for another 5 years amounting to a 191% increase by 2021.
The reason for the tax hike is clear. MSFG says, “It should be noted that the planned spending on mainline replacement over the projection period is significantly more than the City has undertaken in the past. At a cost of approximately $190 per linear foot of line the City plans to replace approximately 6 miles of mainline per year at a cost of over 6 million per year. At this pace it would take the City 400 years to replace the entire system (which consists of approximately 420 miles of pipe).”
MFSG’s proposal spells out how exactly we got into this mess in the first place. Unfortunately, this proposal and the implementation should have been undertaken decades ago. Oddly, the proposal notes that the City could just ignore the problem (like they have been doing for so many years).
Read the rest of “Fullerton Water Rates To Double”
Check out this clip of resident Barry Levinson challenging the city council to tackle our unfunded pension liability problem at the February 2nd council meeting.
Once he gets past the dreary numbers, Barry suggests that the city manager obtain outsourcing bids to create a dollar baseline as a heavy bargaining chip during the next set of negotiations with the unions.
The lumbering Mayor Pro Tem, both a recipient and perpetrator of the ridiculous pension scheme, became agitated and cut Barry off several times, but Barry got his point across in the end.