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How The Right Steps In The 2019 Budget Make Your Tomorrow Better

“Giving money and power to government is like giving whiskey and car keys to teenage boys.”

—P.J. O’Rourke

Ventura faces severe revenue shortfalls in six of the next seven years, the size of those during The Great Recession. Ventura is on pace to lose over $9.07 million over the next six years. You should be concerned about the financial conditions in the City of Ventura, and you should also know this budgetary crisis is avoidable if the City Council acts this year.

Ventura’s General Fund Financial Outlook For The Next 10 Years

Ventura city staff calculate the city’s revenue and expenses for the next ten years [see graphic]. Costs will exceed income for six consecutive years beginning in the fiscal year 2020-2021—that’s next year.

Budget projection shortfall

Pensions are the main reason for the rise in expenditures. Annual pension costs will climb to $31.48 million from $19.71 million by the fiscal year 2025-2026. That’s an $11.63 million increase. The city projects property and sales taxes to increase by only $10.6 million over the same period. Not a rosy outlook.

Budget negatively impacted by pensions

Next year (the fiscal year 2020-2021), Ventura faces a $2.52 million deficit because of the $2.17 million in rising pension costs.

Pensions cause budget deficits

The city staff estimations are optimistic. They do not factor in a recession, which some believe is imminent. If a recession comes, people will lose jobs. Also, if a recession hits, property and sales tax revenues will suffer and projected losses may be even worse. What’s more, the city plans to add no money to reserves in the fiscal year 2019-2020. Current reserve levels for the City of Ventura will keep the city government running for only 45 days.

Wasn’t Measure O supposed To Save The Budget?

Measure O passed three years ago and will continue for the next 22 years. It brings in $10.8 million in additional sales tax revenue each year. Still, it isn’t enough to cover the projected shortfalls. Why is that?

There are several reasons why Measure O can’t save the city’s budget. First, there is no consensus among the City Councilmembers about how to use Measure O money. Alex McIntyre, Ventura’s new City Manager, asked all seven Councilmembers individually how they would spend it. All seven Councilmembers gave differing opinions on how to use the Measure O taxes. Without clear direction, it’s difficult for the City Manager to focus the city staff on what’s most important for our city. Confusion over Measure O is one example of how the City Council is dysfunctional on the budget’s priorities.

vultures eyeing the budgetA second problem is how special interest groups lined up to get their share of Measure O. At the May 20th City Council meeting, Councilmembers Lorrie Brown, Jim Friedman and Mayor Matt LaVere tried to move funds from Measure O to the General Fund for Fire Station No. 4. The Star report said the Fire Department union members felt insecure (sic) about Station No. 4 funding coming out of a temporary tax fund. (The tax lasts for 25 years)

In 2016, The City Council sold Measure O to voters with the promise that Fire Station No. 4 would remain open with its funds. Voters agreed to the idea of a temporary 25-year tax. VFD is now trying to persuade the City Council that when Measure O expires, there may not be funding for Fire Station No. 4. They fearmonger that response times to calls will increase, and lives could be lost. A 4-3 vote defeated the motion.

While this City Council takes precious time debating moving funds from one column to another, the growing unfunded pension obligations put pressure on the entire city budget, even with Measure O.

The Canaries In The Coal Mine

The canary in the coal mine foretells budget problemsEconomic disasters are all around us. There is no reason to think that Ventura is immune to them. The City of Oxnard is preparing to lay off hundreds of employees. They also plan to close a fire station and reduce the number of fire personnel available to respond to emergencies. The Oxnard City Manager says, “We are down to bare bones.” What’s happening in Oxnard is a preview of what could happen in Ventura unless the City Council acts quickly.

Ventura County Medical Center is losing over $40 million per year. That adds more unemployment to our community. With the City of Ventura own forecast of financial shortfalls, the City Council would do well not to ignore the economic disaster warning like ‘a canary in a coal mine.’

How Do We Fix The Budget?

Ventura's budget has always been suspectThe budgetary crisis is entirely avoidable if the City Council acts now. The solutions are simple, but they are not easy. It requires significant political will and resolve.

Improve The Budgeting Process

Currently, the City Council approves the city’s annual budget one year at a time. It doesn’t consider subsequent years’ financial demands. Given that the 10- year forecast shows losses for the next six years’ budgets, to ignore the next six years will be pushing the problem “down the road.”

Now is the time to change this systemic shortsightedness. City Councilmembers have the opportunity to discuss budgeting on at least a 3-year basis, not one year at a time.

Not Filling All Open Positions In City Hall

To balance the budget over the next six years, the city staff has two potential solutions. They can increase revenue through taxes and fees or reduce expenses. Since it’s not easy or popular to raise taxes and fees, the alternative is to cut costs.

Ventura City Hall, city budget

The single largest expense category is city employees. Cutting staff is the obvious choice to reduce expenses. To avoid the unpopular cutting of current employees, the City Council can take a less unpleasant path and cut positions in the budget that the city never filled.

There are currently sixty unfilled positions at City Hall. If each vacant position costs the city $100,000 per person (salary, overtime, retirement and benefits), the cost to budget for these open positions adds to the projected deficit (losses).

If the city reduces the unfilled positions to thirty instead of sixty, the savings to Ventura would be $3 million per year. A $3 million reduction in expenses will balance the budgets for the next six years.

This decision puts the City Council on the horns of a dilemma. Should they hire all sixty positions now and later fire employees during the budget shortfalls? Alternatively, should they hire only thirty people knowing they can add personnel if the city’s economic situation improves? Eliminating unfilled staff positions is less disruptive to city government than laying people off.

Economic Development

An alternative toward improving the budget is to attract new or expanding businesses to Ventura. Several Councilmembers understand this and agree. More business and local jobs are the best solution for filling the budgetary shortfalls. More jobs generate more sales tax, encourage community spending and increase property values. Higher property values increase property taxes and reduce blight.

economic development adds to the budgetImagine the stimulus to the community of filling the old Star Free-Press building or the Toys-R-Us location would have.

The city has already taken the first step in this direction. City Manager, Alex McIntyre, has moved the Economic Development division under the City Manager from under Community Development. Elevating the reporting of this department to the City Manager signals the increased importance economic development has for the city.

Empower The Economic Development Manager

Another simple step the city could take would be to empower the Economic Development Manager (EDM). The EDM must have readily available an inventory of all commercial locations, complete with square footage, zoning, parking, pricing, and a list of commercial real estate agents and contact information.

The City Council must be ready to provide incentives to new or expanding businesses. The incentives must include fee reductions and process simplification to entice the companies. One such motivator must be a single contact within the city who will guide the relocation process through the bureaucracy.

Finally, the EDM must identify and target new commercial business to locate in Ventura.

Each of these positive steps toward economic development has one drawback. They are long-term solutions. None of them will happen quickly enough to fix a budget by next year.

Streamline the City Hall Experience

The city has started reorganizing boards and commissions that oversee Planning, Design Review, Historic Preservation, and other committees filled by residents appointed by the City Council. While this is a good start, it must go further.

Reducing boards and commissions saves staff time in preparing and attending meetings. The staff attends about 20 meetings a month. Fewer meetings will allow more time for the employees to better supervise operations in planning, design review, code enforcement, etc.

The city must look at other ways to reduce staff time in other duties—especially if the city hires only thirty of the sixty unfilled positions. All staff operations should be scrutinized to end obsolete or redundant activities.

Revamp Ventura Fire Department

Now is a good time to modernize the fire department. Ventura Fire operates in much the same way it did 100 years ago except the needs are far different:

  • Building codes are stricter making fires less frequent
  • More buildings have sprinkler systems
  • Over 75% of calls are for paramedics

Each fire station has paramedics on duty to serve those calls. In addition to Ventura Fire, each medical emergency requires an ambulance from a private company in case a victim needs transporting to the hospital. Rolling a fire truck plus an ambulance seems like duplicated efforts.

VFD adds pressure to city budgetAny change to the Fire Department would likely be unpopular with the public. That makes it a subject considered by Councilmembers, to be too controversial to discuss.  The fire department union will become protective of their fellow firefighters and will want to preserve the status quo.

As they have in the past, the unions will apply pressure to the Council. Since four of the seven elected Councilmembers received campaign contributions from Ventura Fire in their last election, the politicians will likely concede as they have in the past. Ventura Fire Department needs reorganizing. Now is the ideal time to do it.

Editor’s Comments

The community will not support another tax rate increase. Pension costs already absorbed the entire $10.8 million raised by Measure. Still, citizens ask why the city doesn’t repair their streets and sidewalks. We can’t hope for an economic miracle to increase revenue, so the city must take steps to curb expenses. Ventura must:

  • Lower expenses by not filling all open positions at City Hall. Add those costs back into the budget
  • Design and target new commercial businesses to locate in Ventura
  • Offer incentives and fee reductions to bring more jobs to Ventura
  • Streamline the City Hall process and operations to reduce staff time. It will accelerate the processing time for building and licenses
  • Streamline medical response procedures within Ventura Fire. Find ways to reduce fire department costs for those calls. Dispatching a private ambulance and fire trucks with paramedics every time is expensive
  • Hold in-depth discussions at the City Council to expand budgeting to a 3-year basis, not one year at a time

INSIST THE CITY COUNCIL MODERNIZES THE BUDGET PROCESS

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2019 State-of-the-City

What You Missed In The 2019 State-Of-The-City Speech

“The great enemy of the truth is very often not the lie…but the myth, persistent, persuasive and unrealistic.”

—John F. Kennedy

2019 State-of-the-City Address

Mayor Matt LaVere filled his 2019 State-of-the-City address with images of a utopian Ventura. Unfortunately, it lacked specifics on addressing Ventura’s most pressing issues.

The mayor laid out his seven goals for 2019-2020. His vision included several goals that his predecessors didn’t achieve. Six of the seven were unmeasurable. What’s more, many goals are mere rhetoric and very little substance.

VENTURA’S HOMELESS CENTER

2019 State-of-the-City AddressTopping the mayor’s list of priorities was opening a permanent, full-service homeless shelter by December 31, 2019. The date gives this goal specificity. Opening the center doesn’t begin to solve the problem, though. Mayor LaVere and the City Council equate opening a homeless center with improving Ventura’s homeless situation. They are not the same thing.

Homelessness has risen the past three years to 555 persons from 300 in 2016. In that time, the city has increased spending on the homeless. The problem continues to grow despite spending more tax money to solve it.

The Council and city government are hoping the new homeless shelter will stem the tide. A closer look at the facts, though, shows their hope is not well-founded. There will be 55 beds, and it will cost Ventura $712,000 per year. Filling every bed will still leave 500 homeless persons on the street. The shelter will serve only10% of the homeless population.

2019 State-of-the-City AddressWhat’s more, the City Council conflates opening the center with helping the homeless. The goal shouldn’t be to have beds available. That’s an intermediary step. The goal should be to get the homeless off the street and return them to a healthy way of life.

The real solutions to homelessness—a very complex problem—was missing from Mayor LaVere’s vision. There are examples of successful programs in other cities. Looking at successful programs, like the one in Providence, Rhode Island, would be a step in the right direction.

UPDATE THE GENERAL PLAN

The second goal was to reinitiate the General Plan update. Ventura city government will conduct public outreach throughout 2019. Other than holding several long-overdue citizen input meetings, the outcome will be unmeasurable.

The city must try new, innovative ways to reach citizens. Otherwise, it will miss valuable input. Young people are most likely to be underrepresented. Our younger citizens are generally absent from public meetings. Yet they will live with the consequences of the General Plan.

The mayor and City Council are relying upon the voters to be content that the city was doing the outreach.

ECONOMIC DEVELOPMENT

2019 State-of-the-City Address

The third goal is to create a comprehensive economic development strategy. The strategy would include several key focus areas, including:

  1. Auto Center and Focus Area 1
  2. The Johnson Drive corridor. Mayor LaVere cited the North Bank Apartment project as an example.
  3. Front Street. The mayor wants to turn it into Ventura’s version of Santa Barbara’s Funk Zone.

Missing from the address is the vital fact that economic development begins with other people’s money. It takes investors willing to put up the capital to improve the business environment. How will the City of Ventura invite and welcome investors who want to start or move their business in Ventura?

Santa Barbara’s Funk Zone succeeds because the city made it easier to rebuild in the area. Developers lament that Ventura’s city government makes it difficult to do business. Stifling regulations, fees and planning delays force investors to look elsewhere. The new economic development plan should have one single goal to stimulate growth. Force the city to review, streamline or remove building codes and regulations wherever possible.

VENTURA BEAUTIFUL

2019 State-of-the-City AddressMayor LaVere’s fourth goal is to beautify the community. He wants to end what he termed “blight.”

Like the economic plan goal in the 2019 State-of-the-City address, this goal relies on “other people’s money.” Homeowners must invest in eliminating the so-called blight. There is no compelling reason for property owners to reinvest in some properties. The same stifling regulations and fees that deter investors hurt homeowners, too.

Following the Thomas Fire, the city reduced the building permits and fees for rebuilding. If the mayor is serious about improving blight, offer similar reductions to anyone enhancing their property. That would be measurable.

COASTAL AREA STRATEGIC PLAN

The fifth 2019 State-of-the-City goal is also unmeasurable and unspecific. Mayor LaVere says we must develop a Coastal Area Strategic Plan. He contends we need this because of climate change. He offered no further details.

The same faults of gaining input for the General Plan apply to the Coastal Area Strategic Plan. Find ways to reach all citizens.

BUILDING COMMUNITY

Mayor LaVere’s sixth goal is for the Ventura community to come together by building parks. Building community was a goal of both Mayor Erik Nasarenko and Mayor Neal Andrews. Three years and three administrations later, this goal remains.

2019 State-of-the-City AddressThe mayor hopes to achieve this goal by building community parks. The Westside Community Park set the model. Mayor LaVere’s first target is Mission Park.

Like the other goals, rebuilding Mission Park lacked specifics, budgets, timelines or measurable results. Moreover, this plan has one fault the others don’t have, public safety.

2019 State-of-the-City AddressMission Park is home to a growing number of Ventura’s homeless population. To prepare the area, the homeless must move elsewhere. The 55-bed homeless shelter isn’t the solution. Also, even if we scatter the homeless, there are safety issues. Someone would have to clean the discarded needles, drug paraphernalia and human waste from the park.

STOPPING THE BLEEDING

2019 State-of-the-City AddressThe need for key personnel is a huge problem. To fulfill any of our mayor’s goals requires adequate staff. The final 2019-2020 goal is to stabilize and strengthen our city government. The city has eight unfilled, critical managerial positions and dozens of vacant jobs. The city will achieve none of the other ambitious goals if there aren’t enough workers at City Hall.

We know this is City Manager Alex McIntyre’s responsibility. In February, he requested six months to fill those positions. Four months remain. He needs time to recruit qualified people and offer competitive compensation. We hope Mr. McIntyre will fill those roles soon, but if he doesn’t, how will the City Council help and support him?

EDITORS’ COMMENTS

This year’s 2019 State-of-the-City speech was platitudes, a utopian vision and fuzzy logic. Those may have worked when we were a quaint beach town, but they don’t work today.

These are challenging times for the city. An understaffed government is trying to do the people’s work, but it’s hard. Issues like homelessness, economic development and community building, are secondary to the daily duties.

Mayor LaVere presented his vision of what Ventura could be. Unfortunately, he may have made promises his administration can’t keep. Worse still, his optimism lacked specifics and failed to address Ventura’s most pressing issues: employee retirement costs, water costs and public safety. Nonetheless, if the commitments are vague enough, no one will be able to measure if we keep them or not.

FORCE THE CITY COUNCIL TO BE MORE REALISTIC WITH ITS 2019 STATE-OF-THE-CITY GOALS

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three unaddresed issue

Unaddressed Issues That Threaten Ventura’s Quality Of Life

overcoming unaddressed issue

Three unaddressed issues will be difficult to overcome.

VREG’s STATE OF THE CITY

[THE UNADDRESSED ISSUES MAYOR NASARENKO NEGLECTED TO DISCUSS]

No doubt that Ventura is a magnificent place to call home. On many aspects, VREG agrees on more points with our Mayor and City Council, than disagree. Ventura’s citizens are proud of our fine police force and our fire department. Our city employees are a dedicated group of men and women, who work hard and serve the community well.

THREE UNADDRESSED ISSUES

Some issues Mayor Nasarenko highlighted in his State-of-the-City speech are ones VREG has written about for years. Ventura has several issues that need attention before they grow out of control.

Mayor Nasarenko identified water and pensions among those issues in the State-of-the-City. The impending Brooks Institute lawsuit was conveniently overlooked. The mayor was short on details on how to solve them.

WATER: UNADDRESSED ISSUE #1

overcoming unaddressed issue

Water has been an unaddressed issue for over 37 years.

For 150 years, Ventura has failed to find an alternative source for water. In fact, with the loss of the Ventura River water wells, there are fewer resources. In 1972, Ventura opted to import 10,000 acre feet of water from the north. Ventura has paid and continues to pay for that every year without any pipeline with which to receive it. In 1989, the community faced a drought, and 52% elected to pursue desalinization. 48% chose to build a pipeline as an alternative. For the last 26 years, nothing has happened.

Now, with another 7-year drought which may be ending, a recent editorial in the Ventura County Star on the water crisis states:

“The department’s poor handling of Ventura’s water has created an avoidable “perfect storm.

“The loss of Lake Casitas water will force it to adapt cross-town pipelines and start pumping east-side water to the west side to meet demand. Continued implementation of the horribly timed housing boom on the east side will further exacerbate water shortages and leave residents with high-priced/low-quality water and not enough of it.

“Meanwhile, the city is frantically trying to dig replacement wells rather than moving ahead with new ones, and consumers’ water bills will go even higher to offset that cost.”

In January, the Ventura City Council authorized a $430,976 study (or as low as $297,176 depending upon the results of the engineering study) to research the cost to connect to the State Water Project. The State Water Project that has existed for 46 years. Yet, Ventura cannot use it without extra infrastructure.

CITY COUNCIL NOT CONSIDERING ALL AVAILABLE OPTIONS

Our Mayor has also shared that Ventura is looking at potential sites for a water reuse plant. Dubbed the Ventura Water Pure, the plant is an advanced treatment facility. It will take 8 years to build the treatment facility. Projected costs range between $120 million and $142 million.

Water from this treatment facility could cost less than state water and would be more reliable. It is also about half the cost of energy-intensive desalinated water. From the start, such a plant could yield about one fourth of the city’s current annual water demand. According to our Mayor, the plant could later expand to meet future supply needs of Ventura.

One advantage of connecting to the State Water Project is that it will not take 8 years like the Ventura Water Pure plant will require.

Is there another water rate increase in the offering?

PENSIONS: UNADDRESSED ISSUE #2

overcoming unaddressed issue

Pensions are an unaddressed issue Ventura struggles with.

CalPERS annual billing for pensions is rising faster than employee contributions. As a result, the city continues to lose ground on employee pensions. The city’s annual cost of $16 million is projected to be $25 million by 2023. Ventura’s CalPERS payments are rising at over $1 million per year. Because CalPERS lowered its rate of return to 7% from 7.5%, add another $750,000 to the $1 million annually.

While our Mayor acknowledges the problem, he offers no solutions.

BROOKS INSTITUTE LAWSUIT: UNADDRESSED ISSUE #3

In August 2016, VREG concluded a lawsuit over Brooks Institute was inevitable. The lawsuit will come at taxpayer expense. The City Council and the City Manager downplayed the possibility at the time. This may have been an attempt to deflect the seriousness of the problem.

Fast forward to Feb. 8, 2017, one week before the Mayor’s State of the City. Ventura is now suing Brooks.

Editors’ Comments:

City government tries its best to serve our citizens.  Like any community, there are also areas that either need improvement or simply require attention before big troubles get out of control. This is a collective reminder that we, as a community, through our elected officials, still have work to do in vital areas in order to sustain our way of life.

THINK VENTURA SHOULD TACKLE AT LEAST ONE UNADDRESSED ISSUE?

[WRITE YOUR COUNCILMEMBER]

Click on the photo of a Councilmember to send him or her a direct email.

Erik Nasarenko,
Mayor

Neal Andrews,
Deputy Mayor

Cheryl Heitmann

Matt LaVere, Ventura City Council

Matt LaVere

Jim Monahan

Mike Tracy

Christy Weir

Editors:

R. Alviani          K. Corse          T. Cook         B. Frank
J. Tingstrom    R. McCord       S. Doll          C. Kistner

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City Council Lacks Financial Literacy

City Council Lacks Expertise On Pension And Budget Matters

Insanity: doing the same thing over and over again and expecting different results.
—Albert Einstein,

THE FIREFIGHERS PENSION INCREASE – A CONTRACT?

[ NOT!]

In previous editions we informed you that in 2008 the City Council, on a vote of 4 to 3, increased the Firefighters salary and retirement benefits.  They voted to increase those benefits from 2% to 3% even though they knew (were told) they did not have the money to fund it.  The vote resulted in an approval of a Memorandum of Understanding (MOU) with the union.

bad city council contract

City Council approves an 11% increase in firefighters’ pension.

The issue had to be revisited because of the failure of the City Council to obtain an actuarial report from CALPERS on what it would cost to increase these benefits.   To “try” to fix the problem the Council, at their regular meeting on April 26, 2010, was presented with a report from the CALPERS actuary, Bill Karch.  He informed the council that the “present value” of the cost of the increased benefits (in addition to what we are already obligated to pay) would be $5,047,760,  that the city would have to pay $548,271 this year, and a sum yearly thereafter to fund the $5.4 million increase.  He didn’t say how much we would have to pay beyond 2010.

An actuary is a specialized, mathematical expert trained to compute values for present and future events. Actuarial “present value” calculations convert future occurrences, such as retirement payments, to a present dollar value.   The “present value” of benefits represents the total dollars needed today at an estimated investment rate of return to fund future benefits for members of the pension plan.  The lower the rate of return (say 4.5%) the more you have to pay up front now to meet the future payment demands.  The higher the rate of return (say 7.75%) the less you have to pay now.

The CALPERS actuary used a rate of return of 7.75%.  Interesting choice given that CALPERS lost $55.2 billion (25% of its value) in 2008-09, and just billed the State of California f $600,000,000 this year to pay for unfunded pension liabilities, but we digress.  None of the Council members asked about the investment rate of return that was used to make his calculations and/or whether the 7.75% rate of return of interest was a reliable dollar estimate in today’s market, and/or whether we should use a lower rate of return, to predict how much our present pension obligations would have to be increased in order to fund and pay future pension obligations.

Subsequent to the Council meeting Mr. Karch was asked in an email from VREG if he could calculate what the present value of the increased obligation if 4.50% was used, and how much more Ventura would have to pay this year. That number was selected because actuaries today conservatively use 3% to 5% as the investment rate of return in making such calculations. Mr. Karch declined.  His response was that we could get that the data if VREG made a Freedom of Information Act request through formal channels; and, by-the-by send a large check to pay for the voluminous computerized report.  Well Bubba I guess we know who that fella works for!

So in a state of blissful ignorance Council members Fulton, Brennan, Monahan and Tracy voted yes.  Council members Andrews, Morehouse and Weir voted no.  The deciding vote was that of Deputy Mayor Tracy, who in casting his yes vote stated:

“…what is clear tonight is that we are not deciding on whether or not we give our firefighters an enhanced retirement program.  That decision was made two years ago.  We have received (a) very competent legal opinion that frankly we have no choice but to honor that contract…”

Bad city council contract

City Council negotiates questionable contract with Ventura firefighters.

What the Deputy Mayor was referring to was a letter from a law firm named Liebert Cassidy Whitmore of San Francisco, attached to the Administrative report for Agenda item #8, which concluded – “Once approved by the City Council, the memoranda of understanding (MOU) between the City and the Association (firefighters) became a binding and legally enforceable agreement…”.

Just prior to the vote the City Manger, Rick Cole, advised the Council that the reason for the public hearing on the actuarial valuation was to let the public know about the cost of the increase, referring everyone to Government Code section 7507.  Connect this reference with the Deputy Mayor Tracy’s statement and we arrive at the crux of the problem — was there a valid contract?

Read Government Code § 7507 and you decide.  That code provides:

“The legislature and local legislative bodies shall secure the services of an enrolled actuary to provide a statement of the actuarial impact upon future annual costs before authorizing increases in public retirement plan benefits…”

The future annual costs as determined by the actuary shall be made public at a public meeting at least two weeks prior to the adoption of any increases in public retirement plan benefits”.

The letter written by the San Francisco attorneys, LIEBERT, CASSIDY WHITMORE does not address this error. For reasons that are not apparent, these high priced legal types did not even discuss this issue.

A mutual mistake of law and/or fact is always a good defense to breach of contract action.  If both parties to a contract operate under a mutual mistake of fact that there has been compliance with the law, and in fact there has been no compliance with the law, there is no contract

Questions for our readers:

  • Why a letter, bearing the legend “CONFIDENTIAL—ATTORNEY CLIENT PRIVILEGED”, which does not discuss a critical legal defense, would be attached to a public document?
  • Why not a single firefighter asked to speak in support of the measure when the room was packed with the fire folk, who were straining at the bit to get more benefits?

Curious that , but we leave “that” to your speculation.

Editors Comments:  

An actuary report was NOT presented prior to the decision to increase benefits in August and October of 2009, thus was not enacted as required by the California Government Code. The attempt to finesse this critical error, by pretending it could be presented after the fact, on April 26, 2010,  ignores the underlying issue – THE RIGHT OF THE CITIZENS OF THIS CITY TO KNOW IN ADVANCE WHAT AN INCREASED PENSION BENEFIT WILL COST BEFORE THE CITY COUNCIL MAKES A DECISION.   The firefighters’ will of course dismiss this as a mere formality.   This contract should be rescinded and an accurate and reliable actuarial report provided to the citizens of this community.

 

FROM READERS OF THE MARCH EDITION OF RES PUBLICA

[THE PIPER WOULD PLAY A FAR DIFFERENT TUNE IF THREATENED WITH THE LOSS OF HIS PIPE]

This regarding the Pension Reform Committee appointed by the Ventura City Council:

“Very interesting news letter this time as always.  Only one public member appointed to the “ad hoc” committee. All the rest have a vested interested in the system. What would happen if the no guts council just plain and simple told the unions that from now on the fire and police will have to pay at least 1/2 of their contribution. Would the fire and police walk off?  If so I am sure they can replace the lot.  The problem as I see it is that all the cities have to ban together so that there will be a closed door to bouncing around of personnel.”

—K. Weber

THE COUNCIL ACCEPTS VENTURA’S NEW BUDGET

[A SORRY EXCUSE, AT BEST]

            Another letter concerning the current budget format mandated by the City Manger for use in 2009-2001 (called a Budget Book).  We mentioned in our last issue that the current “Budget Book” looked useless and appealed to you for help.

“Regarding the City’s budgeting process and the budget document itself, I spent some time looking at it after reading your latest publication and you hit the nail right on the head.  It is most assuredly not a decipherable budget document.  It lacks clarity and the detail required for the average lay person to begin to understand it, much less a person with a financial background.  I’m not even sure that it meets the minimum legal requirements, as promulgated by the State Controller’s Office.

I am a C.P.A., have a Masters degree in Public Administration, and have worked in government finance and budgeting for the past 29 years and, without a doubt, this is the most sorry excuse for a budget document that I have seen in my life.

In Santa Barbara County, we have developed a true program/performance-based budget that actually links dollar amounts with stated goals and performance measures.  Not only can you clearly and easily see the amount of money, staffing, and other resources allocated to each program area within each department of the County, but you can also see the performance and outcome measures associated with each individual program area.  In other words, as a taxpayer, you can actually see what you’re getting for your dollars.

The firefighter pension increase is just another example of the arrogance and disconnect with reality coming out of City Hall these days.  I certainly hope we can make some changes in the next election.  We definitely cannot continue down this path or bankruptcy becomes an inevitability”

—M. Gibson, CPA and 2009 candidate for Ventura City Council

 

EDITORS’ CORRECTION

Last month we reported that the Firefighters pension increase was 50% (2% to 3%). The City Manager corrected us and pointed out that it was ONLY 11%. .  After his response we received the CALPERS actuary report and confirmed that our report was in error. Under the current pension plan it is a 20% increase if the Firefighter retires at age 50, and an 11% increase if the Firefighter retires at 55.  That aside, this correction does not excuse the ridiculous statement by former Councilmember Ed Summers that it was only a 1% increase. It is still hard to believe he wants to be the County Treasurer.

 

EDITORIAL

The City Council is called upon to make many difficult and complex decisions concerning the financial welfare of this community, but one of the greatest decisions they will have to make concern the pension contracts with the public employee unions now and in the future.   Except for members of the public employee unions there is not a single informed individual in this society that would disagree with the conclusion that our pension system is bankrupt and unsustainable. The collective decisions of our City Council are costing the citizen’s of Ventura for decades in the future. Not to ask the hard questions, when asked to approve a new liability of $5.4 million dollars, such as the interest rate used for the assumptions of a pension increase, or to discuss if the right questions were asked and answered in a legal opinion statement, borders on malfeasance. It is not enough to say, “the report was too lengthy” or “we didn’t have enough time”. If decisions need to be delayed and other opinions sought, the City Council needs to control that process and remember the admonition of Jean-Jacques Rousseau to ”keep your experts on tap and not on top”.

 

Editors:

B. Alviani       S. Doll           J. Tingstrom

K. Corse         B. McCord    T. Cook

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City Government Clueless About What Citizens Need

“The characteristic complaint of our time seems to be not that government provides no reasons, but that its reasons seem remote from human beings who must live with the consequences”—William Brennan, U.S. Supreme Court Justice

THE END OF THE FIRST DECADE

It is the end of the first decade of the 21st century.  This first ten years have been marred by war, scandal, fraud, economic failure and government malfeasance at all levels. Venturans will also be happy to turn the page and try to rebuild.  The questions is whether local government can provide the insight and leadership to achieve prosperity, or will be mired in the failed policies and decisions of the past.

THE NOVEMBER 3RD ELECTION – BEFORE AND AFTER

[THOSE WITH INTEGRITY AND THOSE WITHOUT]

We start with glimpse of the events leading to the last election. It was not pretty and hopefully is not an indicator of how the politics of city government will perform in the next ten years.

Police Association Smears Candidate Andrews

Prior to the last election the Ventura Police Association commissioned a telephone poll (push poll) for the specific purpose of trying to eliminate Councilman Neil Andrews.  A push pole is a seemingly unbiased telephone survey that is actually conducted by opponents of a particular candidate in order to smear or disseminate negative information about that candidate.

Police in city government

Police Association interjects itself into city government

Then immediately prior to the election came the mother of all polished and salacious brochures. You know, the one about Neal Andrews taking public money to the tune of $20,000.  None of it was true, but the policemen in charge didn’t care about that. They too have a right of free speech, even rotten speech and fraudulent utterances.

It didn’t work. The voters wisely returned Mr. Andrews to office.  He was elected to his third term of office, and was the next highest vote getter [9,246] next to our newbie retired chief Mike Tracy [9,777].

Councilman Andrews. of course, was punished for his position when the majority of the Council at their December meeting. The Council refused to elect him as the mayor of this fine city or even the position of Deputy Mayor.  Councilmen Andrews and Morehouse were in the minority.   The Ventura County Star published an editorial castigating the members of the council who condoned this miserable spectacle.

THE UNFUNDED PENSION PROBLEM PLAGUES GOVERNMENT

The unfunded pension liability of this city is the biggest problem facing this community, and will be the focus of VREG in the first quarter of 2010.

CalPERS increases unfunded pension liability costs to Ventura

Councilmember Andrews believes city government should bear all the cost of police and fire pensions.

Councilman Andrews is  the only elected official  who has not lost focus on this enormous issue.  His public position, and one that he has espoused for years, is that the benefits of the members of the public unions, particularly police and fire,  are excessive and must be changed from a defined benefit plan to a defined contribution plan.  That of course is not to the benefit of the union members because they want all they can get — FROM YOU.

This is real.  If you do not believe this City has a serious debt problem you are not paying attention.  Attached is a letter which VREG published in April 2009, titled “THE SPECTRE OF BANKRUPTCY”. The unfunded liability for the City of Ventura,  as of June, 2007, totaled  $294,673,595.  We believe the 2008 Comprehensive Annual Financial Report will reveal that the debt picture  has improved somewhat and will report on that analysis in our next issue. VREG will also sponsor a public forum and speaker on this issue in the first quarter of 2010.  We will announce the time and place.

A MESSAGE FROM A CITIZEN

[WHAT OUR CITIZENS WANT FROM GOVERNMENT— PAY ATTENTION CITY COUNCIL]

Just before Christmas the Ventura County Star published a letter from one of our citizens.  With his permission we publish that letter as a message to start the new year:

WHAT CITIZENS WANT

Re: Your Dec. 12 editorial, “Council’s Action a slight to voters”:

I concur with the editorial that called the selection of Mike Tracy as deputy mayor as a slight to voters.  I have no problem with Tracy and feel he will do a great job, but as a brand-new, untested councilman he hardly deserves to be appointed deputy mayor.

Skipping the popular, at least with the public,  not electing Neal Andrews [as Deputy Mayor] is truly an insult to the people who voted.  What the City Council and city manger do not understand is that there’s a reason no new tax measures have been passed.  The voters are unhappy with the way things are going.

I was particularly irked by Councilman Brian Brennan’s comments after Measure A failed.  He basically said the public wants more city services, but doesn’t want to pay for them.  I think he is wrong.  I believe the public wants basic services and is willing to pay for them.  Those services, in my opinion are:

  • Well-maintained streets and storm drainage.
  • Library services at the Helen Wright Library.
  • Adequate police and fire protection.
  • Safe neighborhood parks.
  • Being able to move about the city without harassment by professional bums.
  • A city that encourages a Walmart, which would provide tax revenue and jobs.
city government should stop wasting money

One reader wants city government to stop wasting money.

What I believe citizens do not want are:

  • Large, expensive sports complexes.
  • Expensive housing projects for “struggling artists”.
  • Worthless and expensive bus-stop art at the mall.
  • Exorbitant pensions.
  • City leadership that seems to enjoy punishing the public for not going along with their agenda.
  • And, finally, a city leadership that thinks residents who do not agree with them are just ignorant.

I feel better now.

—Ray Holzer

Editors’ comments:

          Thank you Mr. Holzer.  Could not have said it any better.

Editors:

B. Alviani        S. Doll           J. Tingstrom

K. Corse          B. McCord    T. Cook

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