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The City that Cried Fiscal Wolf|
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RE: http://www.pressdemocrat.com/article/20080725/OPINION/807250325
In good times and bad times, boom times and bust times, war times and peace times, the City of Santa Rosa has always declared itself on the edge and in need of tax and fee increases. The taxpayers of Santa Rosa have tolerated very high utility rate increases (nearly 10%), special taxing districts, city fee increases that exceed the rate of inflation and wage growth and special taxes imposed with and without voter approval. Now that the fiscal wolf is on their downstep will the fiscally weary town's people believe the cry of wolf they have heard so many times before? It is hard to say. Part of the question lies in packaging -- can the City roll out police, fire and safety as they did for Measure O? It doesn't seem likely if one option is to redirect Measure O Funds. Can the City convince Santa Rosans that this would be the final tax increase that would actually stabilize the City's finances? No, I think the City will have to make the case that although its ambitions outspend its means, that its citizens share in those ambitions. They must answer the question of what Santa Rosans are receiving from their City that citizens of neighboring communities who pay lower taxes and fees do not get. This will not be easy with the PDs reports of numerous employees earning more that $100,000 per year, the growing pension and post employment benefits liabilities from years of too true friendly labor relations and a business community that is likely to see an additional sales tax as a further drag on the local economy in times when money is tight and the labor market is loosening. |
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There is no post employment liabilities for SR employees except for top management. Employer and employee pay into CalPers for retirement which ends upon termination of employment. Retirement is funded totally by the contributions made during employment and the investments and interest earned by CalPers. All medical costs ($1400+ per month for me) are borne by the retiree. As a retiree I know how much the city pays on post employment benefits liabilities - zip zero nada.
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Medical benefits are paid for City employees from retirement through age 65 years old. The most recent actuarial study shows unfunded liabilities for "gap" medical of approx. $47 million. You can get the info from the audited financial statements at City Hall. I don't where you got you info from, but the benefits apply to more than just management and PERS does not pay benefits for medical prior to the age of 65.
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Well mepstein, I don't know how your figure came to be but as a recent city employee retiree, none, I repeat, NONE of my medical or any other benefit is paid by the city - it is totally deducted from my retirement check to the tune of $1400 per month! That's where I get my info from! With medical costs increasing each year on average of 6 to 10% I anticipate that within 10 years or so I will be paying all of my retirement towards medical. Where the city's unfunded liability comes from I do not know - I just know the rank and file city employee retiree of which I am a part of is not costing the city one cent!
Perhaps some examination of the city's figures are in order - They cry wolf so much I would not be surprised if this number is highly inflated or even fraudlent. |
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Within the last two years quite a few of the now sitting CC voted to SPEND the emergency fund on pet projects. I believe that was about $7mil (seven million dollars) or more? That money would be a great boon to the city now, but it's gone? How about it?
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Every city I am aware of is always crying poor mouth. According to the sewer bond prospectus, Rohnert Park netted $3,966,000 from sewer operations last year. According to a PD article published on 8/24/06, the city has cost overruns from the original $800K to $4M on the new city hal which stil isn't finished. Last week we learned that the chief of police is retiring at age 54 with a $184,000 a year pension. The city council does not complain that it cannot afford these things. It only complains that it cannot afford the proposed sewer rate roll back. Now that the city knows there will be a rate roll back measure on the ballot it removed the prospectus from its website.
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You are confusing the County of Sonoma with the City of Santa Rosa. The City does not pay anything once an employee has retired. |
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The City that Cried Fiscal Wolf
