Re: Its starting to look like about 40% of total city taxes go to pay fire and police retirements... many, rank and file, over $100,000 a year.

On Apr 5, 8:52 am, "George Z. Bush" <georgezb...@xxxxxxxxxxxxxxxxxx>
wrote:
Why exactly am I supposed to give a good fiddle-de-fart about the economic
woes of some two bit town in La-La Land that I never heard of?


because its typucal. and indicator... sort of like hearing a about an
epidemic of flue in NYC... its relevant because the disease spreads,,,
and ends up infecting everybody.

same with economics

Phl scott



 My town
faces its economic problems by either (1) taxing itself to provide the
moolah to pay for what it needs, or (2) floats a bond issue to borrow the
money to pay for what it needs, or (3) takes another look at what it thinks
it needs and can't live without and then wields a pitiless knife on the rest
of it, or (4) asks the state legislature to give it the authority to either
run a lottery or to sell raffle tickets or to open up a friendly,
neighborhood cat house.  No need for you guys in La-La Land to reinvent the
wheel....it's all be done already elsewhere and all you need to do is to
pick something to go after and stop bothering us.

George Z.



phil scott wrote:
this is in Hemet calif...total budget 40 million dollars,  of that
about 31 million goes to fire and police and their retirements..
leaves 22% for running the rest of govt.

from the Valley Chronicle
http://thevalleychronicle.com/articles/2008/04/04/news/01nhemet.txt

Hemet is in 'crisis state'

FINANCIAL WOES: Interim city manager says city could be short $5.5
million for 2008-09.

By CHARLES HAND

The Valley Chronicle

Hemet's budget is in worse shape than the preliminary reports from
the
Finance Department indicated.

"As I see it, we're in a crisis state, Interim City Manager Len Wood
told the City Council in a special meeting this week. Without
substantial spending cuts, the city will be $5.5 million in the hole
by the end of the 2008-09 fiscal year, he said.

Already, Finance Director Laura Nomura has let the council know that
a
drop in income resulting primarily from decreases in auto sales and
retail spending will leave the city $3.1 million short by the end of
the current fiscal year in June if measures are not taken to reduce
spending.

It is even worse than that, Wood said this week, because the lighting
and landscape maintenance district is $1.3 million in the hole, the
public safety community facilities district is nearly $1.6 million
short, and the refuse collection fund is more than $800,000 short,
bringing the deficit to about $6 million.

What Wood did not offer the council this week is a detailed plan to
get out of the financial hole. He did, however, ask the council for
the go-ahead to meet with department heads and labor unions in a
quest
for ways to bring the budget into balance, which he got.

He also recommended loaning $4.9 million to the general fund from
targeted funds.

He has already been meeting with department heads, he said, and has
come up with a preliminary plan. It includes holding the line on the
general fund balance with a hiring freeze, a spending freeze, and a
search for alternative revenue sources.

Wood did not say what he would seek from the unions, but he said
modification of labor contracts is one of the options for reducing
spending.

Salaries and fringe benefits account for 78 percent of spending,
while
operations of one kind or another account for the rest.

All departments are already under instructions to reduce spending by
at least 5 percent and hiring has been frozen, as has equipment
replacement.

Assistant City Manager Duane Baker also assured the council that he
is
working on an enhanced economic development plan to generate more
income. Economic development is Baker's primary responsibility.

The foundation of the drop in retail and automotive sales is the
slowdown in housing sales, which not only reduced the fees collected
by the city for processing development projects, but has reduced the
economic activity in the region.

Wood said the looming budget deficits stand in stark contrast to just
one budget year back when the city was looking at a surplus of nearly
$550,000. "The budget situation looked pretty good," he said.

At the start of the 2007-08 budget year, the projection was for a gap
of $2.5 million between income and budgeted spending. In addition to
across-the-board spending cuts the city was seeking additional cuts
even before the end of the budget year to avoid a bigger deficit by
year end.

Efforts to balance the current budget included the elimination of 34
jobs, 11 of them occupied and 23 of them vacant.

Overtime was also eliminated.

Together, the economy measures produced spending reductions of about
$3.2 million, Wood reported. "Everything looked pretty good," Wood
said, but the continuing decline in revenue requires even more cuts.

By year's end, he said, the city will probably see sales tax
collections of no more than $9.5 million, down from the $12.5 million
expected for the year.

The city's total budget is about $40 million.

Public safety consumes 78 percent of that and the remaining
departments for the rest.

Though council members spent more time listening than talking, Mayor
Marc Searl said he believes Wood's approach is a good one while
Councilwoman Robin Lowe expressed a degree of optimism. "I think the
city will come together. We'll weather the storm," she said, but
added: "It won't be pleasant

**** end quote****

with those fire and police retiring at age 51, to draw often well over
100,000 dollars each per year, many over $150,000per year... and about
double that when you add in their life time medical care coverage..
you can see where the problem is!!

Stated in a report by Novatto city council,  about 50% of its police
and fire budget goes for retirement costs!   so that it seems in a
typical city about 40% of all taxes collected go to pay police and
firemens retirements?      its worth parsing out.

In oregon it seems those are entirely finded by the police and firemen
themselves...not so in calif apparently.   or its supposed to be
funded by those union investments, but if the investment funds tank,
which many are tanking, then the city guarantees the retirement
benefit..something like that.

 few of us in the private sector can afford any of that....we get to
die in many cases if we cant come up with the cash... meantime thee
police are out stalking us for petty traffic violations to raise
funds ... the fines ovten over $200 and doubling our insurance rates.

This mess is simply not sustainable... its about to hit the fan in
many cities..and is starting to make headlines.

Phil scott- Hide quoted text -

- Show quoted text -

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