A One-in-Four Chance
Posted by on Monday, May 23, 2011 Comments (126)
On Tuesday the Council will discuss the fiscal reform proposals that Mayor Reed has researched and constructed. It will not be not an ordinary city council meeting but instead a major discussion being held in big cities across the country.
Last week, the Council had a study session regarding the City’s retirement system. From my view, the presentation given by staff, which included the director of retirement services, Russell Crosby, was one of the best I have seen. A step by step explanation of the retirement system was provided.
It is clear that the retirement system itself does not scale. Through no fault of the individual retirement participant, the system itself is structured on a poor foundation that will eventually collapse .
The meeting included candid comments from Mr. Crosby. The most notable comment was the “death spiral,” which is when you have employee-to-retiree ratio parity. For example, in the past, the City has had as many as six employees supporting each retiree. That has now dropped to approximately 1.3 employees-to-retiree and continues to fall as the baby boomers retire and live longer.
The city pension system is like a mini Social Security system that constantly requires new people paying in to keep it afloat. Some use the “Ponzi scheme” analogy when it comes to defined benefit plans and there appear to be similarities. San Jose has funded a portion of the total amount it needs to cover all those who are eligible, which is unlike Social Security, which is not funded but rather has a file cabinet in Virginia of IOU’s passing it on to the next generation.
Some say just don’t worry and pay later. The City cannot emulate the issuing of IOU’s as the Federal government has done and raise the national debt to pay retirees. If San Jose stopped paying the minimum annual payment the pension fund would run out of money in approximately eight years. So, some might say, well let’s just pay half the payment. Well, that would allow the payments to go further past eight years but not much more as there will be additional costs to not making the full annual payment.
To some extent you may think of the pension system as something one could walk away from, like a mortgage payment on a house that is underwater. But since the taxpayers are on the hook and retirees are dependent that changes the analogy. It would be like walking away from a house, however, the difference is you have left your friends inside the house with no food or utilities and they are bed-ridden.
One stat that basically admits the retirement system does not scale is that the fund has only a 25 percent chance of actually earning the assumed rate of return. Anytime it does not hit the assumed rate of return, it creates an unfunded liability. Personally, I would not do something so important in my own life if I only had a 25 percent chance of making the goal. If we want a higher likelihood of hitting the assumed rate of return then we must lower the rate. But that will require more revenue going into the pension system in the short term, which equates to more cuts in services, thus layoffs or raising taxes and seeing the new revenue only going to the pension system.
The Retirement Reform Budget Study Session is available here. I highly recommend downloading the presentation and reviewing it as I feel it is one of the best presentations given to the Council on the retirement system and contains much more information than I have written in this short blog post. I have already shared it with a few retirees that have emailed me on the topic. Accurate information is beneficial as demonstrated by the police union hiring an independent actuarial who confirmed that changes must happen to the pension system.
On another topic the total amount of sick-leave liability on the books today is $114,825,100. Approximately $20 million could be paid out this year based on individuals with the ability to retire.
On to happier matters: Congratulations to the Lincoln Glen Little League for hosting the 2nd Annual Challenger Game. The Challenger Game includes mentally and physically challenged 5-18 year olds who each get a buddy from the Little League to play a baseball game. Puts life in perspective.
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Comments (126)
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Just like Coffee Mon, May 23, 2011 - 10:17 am
The only reason I enjoy Monday mornings is Pier’s column. I look forward to it. Always a straightforward explanation of a pertinent topic.
Very refreshing, like that first cup of coffee in the morning.
Right Mon, May 23, 2011 - 7:34 pm
That and you work for him
Pierluigi Oliverio Mon, May 23, 2011 - 10:38 pm
Thank You.
I am more of an oatmeal person myself.
Pierluigi
Bugsy Tue, May 24, 2011 - 7:55 am
That explains why you eat up everything Chuck Reed says! Chuck Reed looks like oatmeal!
BWAHAHAHAHAHA Tue, May 24, 2011 - 7:31 pm
Too funny!
Officer X Thu, May 26, 2011 - 4:12 pm
I JUST now read this comment about Mr Oatmeal! Friggn hilarious! LOL.
D6 retiree Mon, May 23, 2011 - 10:22 am
Yes, Pierluigi, it is very annoying; the fact that all these people are living longer lives after retirement. What these retirees need to do is realize what a burden they are placing upon the system and the taxpayers. They need to hurry up and DIE. Then all that money that they didn’t collect will get folded back into the system. Sound like a good plan?
Repo Man for Retirees Mon, May 23, 2011 - 3:41 pm
“They need to hurry up and DIE. Then all that money that they didn’t collect will get folded back into the system. Sound like a good plan?”
Actually other countries are doing that. Pension and medical benefits ends at age 70.Then you are on your own. So after 70 years old you are forced to die and fade into the system. What they do the retirees above 70 will hook up to their daughter/sons’s health insurance coverage.
Circa 2016. City of San Jose Department of Retirement Service and Death Panel Review Committee:
Sir, our system pays you benefits at 1.5% at 65. Do you like the lump sum payment or your checks to go to your funeral services account?
Pierluigi Oliverio Mon, May 23, 2011 - 11:05 pm
Living longer is a good thing however demographic trends affect actuarial costs and must be funded by either current employees, taxpayers or retirees. Same is true with Social Security.
Pierluigi
Tina Morrill Tue, May 24, 2011 - 12:07 am
Pierluigi,
Thank you once again for the informative post. I too look forward to Mondays to read your new blogs. (And no, SJI readers I do not work for him: I am an unpaid fan.
)
However Pierluigi, I am not sure I agree w/your comment that “living longer is a good thing…” because quality of life is the deciding factor as to whether one enjoys their “golden years” and living longer. With senior services dissapearing and “shut ins” getting few if any visitors, well, I’m not sure myself that I would be looking forward to blowing out yet another candle come my birthday. If services were restored and seniors started getting the care, attention and respect they deserve, well that would be a different story. (Bring on the candles!)
Tina
johnmichael o'connor Tue, May 24, 2011 - 9:35 am
Ah, The Entitlement Generation.
Tina Morrill Tue, May 24, 2011 - 6:18 pm
Johnmichael,
Yes, I do believe people (all people) are entitled to respect, simply for the fact that they are human beings with feelings.
As for as my “generation?” I’m in the murky area between the Boomers and the GenXers. What does that make me? Probably confused. :-D
Cheers,
Tina
Anonymously Tue, May 24, 2011 - 9:20 am
No, actually it is the City’s responsibility. San Jose contracted an employee to do job X with the expectation of certain pay/benefits.
Simply becuase San Jose failed to estimate how many future employees would be paying into the system is not justification to abandon your contractual obligation. The City already got 25-30 years of the service they expected and contracted and the City must live up to their end of the bargain. It’s very simple. The failure of past or curent City leadership to spend prudently does not absolve that contract nor obligations. You sir, and your elected comrades are on the hook- NOT the employees.
You are responsible for telling your constituants the truth. That City management erred and created a STRUCTURAL defecit. Paying billions for SJC, City Hall, redevelopment, low income housing… list goes on. Our elected have not prioritized necessary services for in excess of 10 years, and are not positioning themselves to do so in the future.
johnmichael o'connor Tue, May 24, 2011 - 9:24 am
Yeah, we can set up our own mini ObamaCare death panel to evaluate which retirees get medical care and which don’t. “Too sick to live”, that’s our motto.
fire-d up Mon, May 23, 2011 - 10:54 am
“For example, in the past, the City has had as many as six employees supporting each retiree. That has now dropped to approximately 1.3 employees-to-retiree and continues to fall as the baby boomers retire and live longer”
...and don’t forget all the people you have laid off and are GOING to lay off in the future-those are less employees to pay INTO the system. Talk about cutting off your nose to spite your face.
Really Mon, May 23, 2011 - 11:13 am
And just who put us in this mess? Yup, ghosts of past city council, the very one you sit on. And Pete Constant wants to work on a plan? What plan to pad and protect the very pension he receives. And why punish those who barely get by on their pensions by lowering their COLA to 1%.
johnmichael o'connor Tue, May 24, 2011 - 9:36 am
Still better that Social Insecurity—no COLAS for 2 years now, yet Congress raised its own pay.
retired and tired of all of this Mon, May 23, 2011 - 11:08 am
Can you tell me why the city cannot sell the 92 million police substation that has been mothballed and will never be opened. Not when we don’t have the manpower now and your city council plans to lay off hundreds off officers?
Pierluigi Oliverio Mon, May 23, 2011 - 11:09 pm
Who is in the market to buy a police substation?
Pierluigi
Bugsy Tue, May 24, 2011 - 8:00 am
Why dont you have the police move into the new up to date substation and close down the nasty dirty ugly and outdated station they are in now! Sell off the old station as one big parcell with the old city hall!
robbie Tue, May 24, 2011 - 11:12 am
No worries…...the citys plan is to fire/layoff as many cops as they can, then move the skeleton crew that is left down south, so the city can either sell or give away the land the current station sits on
Retired Tue, May 24, 2011 - 3:03 pm
the building was never completed, wiring and such. It is just a big useless building the city could sell for 50K at least. The city has never updated the old building, cannot tell you how many times the bathrooms, elevators and numerous other things don’t work. People working in 4X4 working spaces. Your right about the building, problem is the city does not care. Of course, no problem building a new city hall for where can watch the birds and name them.
Pierluigi Oliverio Tue, May 24, 2011 - 11:04 pm
The Police Chief would need to present pro and cons of leaving main station for the new sub station.
Pierluigi
Bugsy Wed, May 25, 2011 - 1:55 pm
You mean Debra Figone needs to present the pros and cons? She is the Chiefs Puppet Master!
Mayor Chuck Weed Thu, May 26, 2011 - 5:28 pm
Have you seen the lovely crop of 6’ high weeds growing around the new police substation? Just spectacular.
Retired Tue, May 24, 2011 - 2:35 pm
It’s a empty building! I am sure some company would love to take over a new, never been occupied building. Heck, if you sell it for 50K that’s almost half of the city deficit.
johnmichael o'connor Tue, May 24, 2011 - 5:06 pm
Retired, or mathematically challenged?
$50K is not half the city deficit, Einstein. $50k is $50 thousand, not $50 million.
Can we retire your dumb ass from this blog?
And to think that after your years of “dedicated service”, we’re now paying you a pension. The mind boggles. Please don’t tell me that you worked for the City of San Jose, and we’re now paying you big bucks in retirement. Although, I guess it’s better that you’re retired and can do no more harm.
Oh, I must have missed it—you were being sarcastic. Nah, you’re just ignorant, that’s all.
Pierluigi Oliverio Tue, May 24, 2011 - 11:06 pm
It was designed to be used as a police station. Not sure a company would appreciate the holding cells.
Pierluigi
Robert Cortese Wed, May 25, 2011 - 10:16 am
Oh cmon PLO you can’t figure out what kind of company would appreciate holding cells?
What about high security data centres? Lockable rack cages (conveniently the size of a cell)
See what I did there? I took your “not sure” to a “oh yea”
I’m sure there’s a lot of other companies that would appreciate holding cells. In the early early 90’s, I delivered Pentium chips from a wholesale supplier (Ingram Micro) to various shops around the bay area. Because of the rash of armed robberies for various PC components at the time, Ingram had 3 levels of security before they’d even let you in the door. Once you got in, chips were locked in a steel cage (although, I can’t see why cells couldn’t be used for the same purpose)
I love how you always throw out “It can’t be used like that” without even using a drop of imagination. You must be fun at parties.
Bugsy Wed, May 25, 2011 - 10:32 am
If thats the case then why dont you make the new sub-station into city hall and use the holding cells as the redevelopement agencys and the city managers offices. They are a bunch of crooks anyways! And If there are some cells left, put chucko and double dip disability fraud porky Pete in there also!
Retired Tue, May 24, 2011 - 4:55 pm
This is just what I am talking about. Give us an honest answer. The building is not fine tuned for a police station, any major or growing company could take over this building and add a huge $$$$ to the city.
what is wrong with taking a hit but add money to the general fund?
Officer X Tue, May 24, 2011 - 7:00 pm
You and your gang are hypocrites laying down your decrees of fiscal reform from the HALF-BILLION $ city hall inside a one of it’s kind glass dome. The, “I was not on the council to vote for it” BS does not hold water. You sure do enjoy the leather don’t you. At the PD we can’t even afford certain invesigative tools that would help us solve crimes. We turn away victims unless a councilman calls a chief and so on,...to do your bidding. You are hypocrites and NOW,...the entire city sees you without your masks. Wake up! Your decrees are stirring the masses to anger. Even now you are fueling the fire of your next opponent. Enjoy your ride, this could very well your only term as a city councilman.
Please just quit.... Thu, May 26, 2011 - 10:09 am
Officer X, just quit your job alreasy and make it easier to choose who gets laid off.
Officer X Thu, May 26, 2011 - 4:12 pm
LOL, I love your response to opposition. We should quit, go away, be gone. BTW, that is always a LOSING position. I’m sure that would have been your response to Caesar Chavez and others who opposed “city hall”. Sorry Charlie, I’ll call ya Charlie since you can’t even pick a name. Charlie, 100% of CSJ employees oppose you and substantial percentage of citizens are starting to see mayor Reed for who he really is. But I do suppose you could fire them employees who oppose your position and start over. LOL,...good luck. BTW, expect your taxes to increase. Chuckie and his successor will need millions to fight a losing battle in the primary and appellate courts.
Really Tue, May 24, 2011 - 8:56 pm
its an abandoned building, and you want to build a ball park!
Sick Time Mon, May 23, 2011 - 11:22 am
What do you suggest the council do with all the sick time, vacation and comp time that has been rightfully earned by city employees. Do they just need to not show up to work in order to burn it down. They have a right to be paid for time they have earned.
Disco Inferno Mon, May 23, 2011 - 8:54 pm
Burn it, Baby burn…let the muthaf%$#*& burn (sick leave)!!!
If I were a City employee, I will burn all my sick leave and save some in case of catastrophic illness. At least, your accrued sick leave monies are not doubly taxed upon retirement. Use your sick leave now, its at 100% rate compare maybe zero if Chuck Reed’s plan goes through…imagine 1.5% at 65 years old to retire?
Also you can help your fellow city workers in deep financial needs by your taking sick leave, vacation or comp time creating overtime to cover you.
Oh no, I spilled the beans!!! I hope the unions will put a clause for its union membership that sick leave abuse err , I mean usage cannot go against his/her job performance.
In Theory.... Tue, May 24, 2011 - 9:02 am
In theory, that sounds like a good plan for some. But from what I understand, the police department is already short staffed, so that really wouldn’t be creating overtime, it would be creating unsafe situations for the officers without having “fill” units, and less units to respond to calls for service. Not to mention I would think the pd has rules in place for “x” amount of days taken as sick leave where you would have to prove some sort of malady to account for your absence.
Pierluigi Oliverio Mon, May 23, 2011 - 11:10 pm
I think capping the sick leave payout and/or paying the sick leave pay out over 10 years are options.
Pierluigi
Bob Wed, May 25, 2011 - 11:51 am
Yes it was an option….one the police Union offered and the City swatted it away like a spoiled child not wanting to eat his veggies, but desires more candy!
Here's another solution Tue, May 24, 2011 - 7:28 pm
I copied and pasted the post I wrote in another thread:
To eliminate the need to pay out unused sick leave, why not let the employee take those hours and put them toward their retirement hours? For example, if I have 800 unused sick leave hours, why not let me apply those hours to my time in service, so that I can retire earlier? That way, you do not have to pay it, I can retire at a percentage of my salary and City can rehire someone under reformed structure. People are saying employees are not offering solutions, but these blogs are full of solutions. Nobody is listening, so here is yet ANOTHER solution that is win-win, instead of the City’s take-take. I would bet that many, many employees would agree to this.
Richard Duncan Mon, May 23, 2011 - 11:30 am
Pierluigi,
Based on the power point you provided it looks like the only way to guarantee a realistic rate of return is 4 percent after after paying fees. This makes sense. The retirement board should be honest and set a rate of return that can actually be achieved.
Pierluigi Oliverio Mon, May 23, 2011 - 11:12 pm
I think the new Retirement Board that has financial experts will lower the rate of return in the near future.
Pierluigi
Paul Moore Wed, May 25, 2011 - 8:40 am
Historically the Retirement system (managed by stake holder) has achieved rates of return much higher than 4%. There isn’t much anyone can do about market corrections unless they have a top-of-the-line crystal ball. Even though the retirement lost about $1billion dollars in the last major correction the 5 year rate of return is better than 4.5%.
Yes, I looked at the “study” material. But for the life of me - I cannot understand why a 4% rate of return is better than the 7-8% the board shoots for now!
Flucuations in the rate don’t affect the City’s contribution at all. When the fund makes more the City pays their fixed rate of “x%” and achieves the mythical “pension holiday” when it makes less the employees contributions increase to pick up the slack.
Why -other than San Jose City leaderships penchant for underachieving - would lowering the rate of return be a good thing. Its all about making more!
Greg Howe Mon, May 23, 2011 - 11:54 am
Pierluigi,
Wondering if you could, in the scope of your neighborhood meetings, schedule a presentation on the sources and uses of funds within both the Capital and Special Accounts?
Like many SJ residents, I’m perplexed about how and why money goes into those accounts and why, seemingly, darn near every dollar has some sort of legal restriction attached to it in terms of where it can be spent.
Many residents greatly resent the continued loss of neighborhood services and, were we equipped with a better knowledge of the approximately two billion dollars of budget beyond the General Fund, we could likely innovate methods to change the course of this “restricted money” through charter amendments, local ordinances, etc.
For far, far too long, SJ taxpayers have been on the short end of the stick, with politicians, developers and lobbyists controlling a giant portion of our tax dollars. As the City Council overtly ignores this issue, it’s time for a grassroots movement to take back control of our hard-earned money.
Great Comments Mon, May 23, 2011 - 1:25 pm
Greg,
Great comments. I would also like to see the NON PROFITS operating in the city of San Jose. I would like to see the support that the city pays into them and the returns for the last five years. We know the power of them. Currently in San Jose you can get stopped with no license and not get your car towed. (4 TIMES) This epidemic of give aways is the down fall of the city. At one time if you had no license your car got towed and held for 30 days. Release was met by having insurance license and current registration. I don’t even think that is required.
GRASS ROOTS IN SAN JOSE NEEDED NOW!
johnmichael o'connor Tue, May 24, 2011 - 9:41 am
No, because the poverty lobby and the illegal immigrant lobby won out over cops and law abiding citizens.
Robert Cortese Mon, May 23, 2011 - 2:57 pm
Greg,
How do you feel about the RDA getting shut down by Jerry Brown?
I have mixed feelings. On the one hand, there is a benefit to having tax spending decisions made by local government. On the other hand, we’ve seen years of boondoggles and developer kickbacks such as the yet to be opened San Pedro open market, we gave Mc Enery $6m for what was it.. 5 years ago?
How hard is it to bulldoze a site level and lay some concrete? Not like they’re building the adobe towers there. I bet a trip to home depot, a few day laborers, and a cement mixer full of concrete would have it done in a day.
You’re right Greg. I feel shortchanged. Monies going to empty promises, nothing ever getting built. Council blaming pensions and deflecting litigatious decisions to the voter while throwing a huge media blitz to sway votes?
And stealing signs.
How much did McEnery, Swenson, and other big name developers contribute to the V & W stuff I wonder?
It just seems to me that these guys want “Business as usual” when times have changed. Economy has changed. I can barely afford to pay my property tax every year, yet these developers get my tax dollars and don’t have to build anything?
So when we fire everyone, cut services, and destroy pensions, what promise is there that what’s left will not go to these clowns?
I think this is the message that voters need to be aware of. Sure, we’ll let you make cuts if you say we need them, but we need assurance that no more money will go into developer boondoggles. Nobody gives me a break on my property tax, why should they get free money?
Giving 200 cops the pink slip while saying “Sorry guys, we had enough money to save you but it was “restricted money” so we’re gonna use it on a Stadium” is BS.
Real leaders suffer with their troops. Here’s an example of Douglas Mac Arthur doing just that.
http://mypetjawa.mu.nu/archives/Douglas_MacArthur-returning.jpg
Knee deep in the muck like everyone else.
Maybe our leaders just lack that moxie that generation had. Our society has moved on from substance to image. How many “Don Rocha is handsome” articles were thrown around in the d9 race? (not hating, he is very handsome, but I just don’t think good looks = substance for leadership)
I stopped going to open forum the same reason I’m probably going to stop living in San Jose (planning on a nice riverside house in Rio Vista) and the same reason at some point I’ll stop reading SJI. It’s all just going through the motions, but with no real substance. No matter what any of us do or say, these folks are going on with their plans. Not really anything we can do to stop the machine that’s been created.
They’re just going through the motions here, like the pope waving hello from the safety of his popemobile. Or the council pretending to pay attention during open forum.
All a bunch of little popes, sitting up there in the safety of their council chairs. Waving at nobody in particular, yet waving at everyone.
Yah, I’ve had enough. Within 2 years I’m out of here if I don’t see a change.
How soon Mon, May 23, 2011 - 5:32 pm
How soon do you think the grand jury will convene and the and investigations will start?
Robert Cortese Mon, May 23, 2011 - 7:25 pm
Investigate what?
We’re talking about masters of spin, policy and law here. Everything they’ve done is legal.
An investigation would just cost money and lead nowhere. I’m sure the Grand Jury already knows this.
Greg Howe Mon, May 23, 2011 - 7:45 pm
Robert,
The RDA has been nothing more than a slush fund for the City Council to stuff money into the hands of developers. The developers, in turn, give wads of dough back to the Council Members under the guise of campaign contributions. Those contributions are truly quid pro quo, nothing more.
The hugely fat Capital and Special Accounts pay for big city attributes - a statement of stupidity - the Gonzo Dome and City Hall, a stadium to memorialize Reed, rail projects for choo-choo engineer Diridon’s personal amusement, and the never ending blackhole of money pits, the airport. Most of our politicians need these things because they have small winkies, and big city trappings make them feel better about themselves.
johnmichael o'connor Tue, May 24, 2011 - 9:54 am
“we gave Mc Enery $6m for what was it.. 5 years ago?”
And look what he built. I can’t decide whether the new building with the corrugated plastic facade looks more like a muffler shop, a quick lube shop, or a tire shop.
It sure blends in great with the Peralta Adobe, too, doesn’t it?
“It just seems to me that these guys want “Business as usual” when times have changed. Economy has changed.”
That’s exactly why the public employee pension system and their vacation time accrual system must change.
“No matter what any of us do or say, these folks are going on with their plans.”
Yup, all these BS community meetings on what we taxpayers want is just so much BS. Bread and circuses.
They may listen, but they implement what they wanted all along.
I’ve lived in Willow Glen since 1980; worked in SJ since 1973. I like my home, but this city sucks. Thinking of moving to Campbell. They’ve got it goin’ on. Check out the difference between Old Campbell Avenue and Lincoln Avenue, where car and parking are four letter words.
Robert Cortese Tue, May 24, 2011 - 2:47 pm
>>And look what he built.
He finally built it? Jesus that took a long time (he was given the money when cousin Dave was still in council) What’s the address? I’ll check it out today.
johnmichael o'connor Tue, May 24, 2011 - 5:24 pm
Robert: It’s at San Pedro & St. John, right across from Tom McE’s other monument to his historical predilection—The Fallon House, which now lies fallow, after a rehabilitation cost to the taxpayers in excess of $5million.
Oops, I almost forgot the Statue of Capt. Fallon, another McEnery boondoggle, which resided in a warehouse in Emeryville or thereabouts for a dozen years or more at some undisclosed cost to the taxpayers (before it was installed at Julian near Hwy 87) because the Mexican lobby was pissed off that SJ had a statue of Tom’s favorite almost nobody white guy instead of their favorite almost nobody Mexican guy.
So what great Mexican hero did we end up memorialized in a statute, in order to assuage the Mexican lobby for being dissed by Tom and his white guy friends in government, at a cost to the taxpayers of $500k—Quetlcoatl, the regionally famous giant turd across from the Ste. Claire Hotel @ Market & San Carlos.
When you’re an insider, good stuff happens for you. Get used to it. It’s been happening for millenia.
Robert Cortese Wed, May 25, 2011 - 8:04 pm
John: This thing right?
http://shup.com/Shup/510694/IMAG0738.jpg
From what I hear about what they’re pitching for the place, I’m worried if it’s successful.
I have enough issue with cops coming down to 7 Bamboo (on the rare occasion that I call) Now with 200 officers laid off, I bet I can guess where priority will go if it’s a choice between giving us a hand with out of control folks, or giving that place a hand.
johnmichael o'connor Thu, May 26, 2011 - 9:35 am
your link wouldn’t open.
Pierluigi Oliverio Mon, May 23, 2011 - 11:14 pm
I think that is a good idea Greg. Would like to have the people who are active on this blog attend. Restricted money can be a good thing since guarantees government delivers certain items or services.
Greg Howe Tue, May 24, 2011 - 7:31 am
Thanks, Pierlugi, I would be most interested in attending. I’m certain many other bloggers would attend as well.
Anonymously Tue, May 24, 2011 - 9:26 am
So you can guarantee that SJC will operate because of specialized untouchable funding, however cops and firefighters must be laid of because of the structured nature of the General Fund? That sounds almost 180 degrees incorrect.
SJ Resodent Mon, May 23, 2011 - 12:34 pm
Be honest! Even if ALL Unions gave more than the City wanted back, Pensions are going to the ballot. This is all about eliminate
The middle class! Give up your “AAA” bond rating, then I will vote for reform!
That's going to be pretty easy. Tue, May 24, 2011 - 7:49 pm
Once mayor files for fiscal emergency, the City’s municipal bond market will be disrupted. Property values will decline. It will depress the business market. No one is going to want to do business with SJ, fearing SJ will not be able to pay it’s debts. What is this mayor thinking?
B. Franklin Mon, May 23, 2011 - 12:53 pm
Pier,
Can you outline the benefit plan of Council? Time in tenure and what they get. Medical pension etc. Can you also outline the same for the City Mgr. I understand city gov is under a different fund. I just cannot find it on the computer. Thank You
Pierluigi Oliverio Mon, May 23, 2011 - 11:20 pm
A current or former councilmember serving two 4 year terms would qualify for a pension at 60 for approximately $12K. No eligibility for health care after their time on the Council.
I cannot speak of the City Manager position as most come and go from cities every 5 years or so.
Pierluigi
Paul Moore Mon, May 23, 2011 - 1:22 pm
“...the City has had as many as six employees supporting each retiree. That has now dropped to approximately 1.3 employees-to-retiree and continues to fall as the baby boomers retire and live longer…”
How much has the (1) years of eliminating positions in the City affected this ratio, and (2) how much did the huge number of layoffs in the last couple of years affect this ratio and, (3) After the City completes the next round of layoffs (in about 5 weeks) how low will the ratio be?
I understand there is some sort of balance required to fund this system - employees/city contributions/minimum rate of return on investments to retirees drawing a check. But by the CIty DRASTICALLY reducing the employee/city contributions through layoffs combined with the $1bil loss due to the market crash it could be honestly argued that the City exacerbated the problem and artifically accelerated the death spiral.
The question is: WHY would the City do such a thing?
The answere is: Because when the City refunds the employee contributions after they lay that employee off, don’t they also refund themselves the City ‘s portion paid for that employee?
It is a Win/Win for the CIty Layoff and collect what they paid for every laid off employee.
Officer X Mon, May 23, 2011 - 2:18 pm
Love the “death spiral” slant! LOL,...sounds like a completely UNBIASED presentation. Did the POA attorney participate or was it simply the music YOU wanted to hear. The absurdity coming from the 1/2 BILLION $ city hall just never stops. The hypocrisy will never stop. Save the money now,...the CSJ will need it to fund a defense from the multitude of lawsuits…
Bronco Bummah Mon, May 23, 2011 - 7:42 pm
> Did the POA attorney participate or was it simply the music YOU wanted to hear.
The POA attorney?
That’s certainly not an unbiased contribution.
What the hell would that add to the discussion?
We wouldn’t be in this mess if the first Governor Jerry Brown Thing hadn’t given the public employees the “right” to unionize and hold the public hostage.
Anonymously Tue, May 24, 2011 - 9:26 am
Every worker has the right to unionize, public or not. Specifically, public safety employees cannot strike, for obvious reasons. The “check & balance” present in our government that accounts for the inability to strike is binding arbitration. That is, a State arbitrator decides which group has the most fair offer.
Jerry Brown did not give anyone the right to unionize. He also had nothing to do with binding arbitration. He may have been the Governor when public employees began getting better benefits- we could certainly debate that… You appear to be ignorant of the history and specifics of this portion of the discussion though. The folks on this board would be glad to educate you on the facts, but your spouting of half-truths is not helping to find a solution.
Bronco Bummah Thu, May 26, 2011 - 11:26 am
> You appear to be ignorant of the history and specifics of this portion of the discussion though. The folks on this board would be glad to educate you on the facts, but your spouting of half-truths is not helping to find a solution.
Oh wow, Mr. Anonymously. You seem very wise.
You can be my encyclopedia.
From now on, whenever I feel the urge to spout a half-truth, I’ll check with you.
Will there be any charge, or will the POA pick up the tab?
The education you provide will be unbiased, right?
Pierluigi Oliverio Mon, May 23, 2011 - 11:13 pm
I do not believe the POA attorney attended.
From what I understand the debt service on the new City Hall will increase over time perhaps why then CM Reed voted against.
Pierluigi
Reed Voted No Just Once Tue, May 24, 2011 - 8:16 pm
It is true that Reed voted on one occasion against a new city hall, but thereafter he maintained his silence if he had any genuine reservations about the new city hall.
He refused to oppose Measure I and was silent on that political campaign.
He supported every one of the bizarre finance moves including the move to “capitalize interest” on the bonds sold to collect design and construction money. [Capitalized interest meant that the interest owed to be bond-holders was simply added to the debt, not paid off, and that was decided right away with Reed’s support.]
Officer X Wed, May 25, 2011 - 9:57 am
My point is that you on the council are hearing what YOU want to hear. Of course the POA perspective was not represented. The venue for that will be a court of law since there are no fair shakes or good faith bargaining with this mayor, whom you support. As well,...you are ignoring, to your political peril, the waste of funds that will result from a ballot measure and future legal fight. I realize you may not care and consider the reform far more important. If that is your position I think those on this forum would like to hear that so that your position is accurate when you are running for re-election.
Pension and Contracts Ponzi Scheme Mon, May 23, 2011 - 2:36 pm
” One stat that basically admits the retirement system does not scale is that the fund has only a 25 percent chance of actually earning the assumed rate of return. Anytime it does not hit the assumed rate of return, it creates an unfunded liability.”
Sounds like decades long Ponzi scheme by labor union controlled retirement boards that stuck taxpayers with billions in pension costs, sick leave payouts excessive benefits and pensions
Rather than ” pay as you go ” where BOTH city / taxpayers and employee pay now for future pensions
Council went along with underfunding so they could payoff Council’s political friends who not have gotten their tax millions
If you think pension underfunding problem was $2-3billion political sweetheart deal go look at many billions taxes wasted and lost on Council political friend’s sweetheart deals:
- under market property sales( like Baseball and Soccer Stadium land with tax millions city paid improvements
- 100’s under market city property leases many at $0 and $1 to political insiders
- very highly profitable sports team, parking, city and airport building contracts
just tell us the truth Mon, May 23, 2011 - 3:12 pm
Tell us what all council members make with all your benefits and what is your pension package after serving only 4+ years compared to city employees who have worked for 30 years.
How about some real truth?
Bonus pay Mon, May 23, 2011 - 7:38 pm
Don’t forget the huge hidden bonus pay.
Pierluigi Oliverio Mon, May 23, 2011 - 11:24 pm
Answered this question above.
Pierluigi
Please Answer Pier Wed, May 25, 2011 - 6:23 am
Could you answer in simple facts please.
How much retirment to you earn per year worked in your retirement plan. ie; 1%, 2%, 3%.
How much do you pay into your retirement plan
How much do you pay for your medical.
When are you vested.
And the main question I have is why are your benefits posted on the city web site for all to look at when all the other bargining groups are posted?
Anonymously Wed, May 25, 2011 - 11:39 am
And… is it true that Council/Mayor/City Manager pensions are through PERS and not the City retirement plan?
And… does that mean that Reed’s ballot measure to change the City retirement pension would not affect you since you are part of PERS?
Joe Average Mon, May 23, 2011 - 3:54 pm
We either eliminate the defined benefit system, or it will end itself.
Adjusting retirement ages, return assumptions and benefit amounts only prolongs the inevitable. Even the most draconian adjustments might prolong it one generation. It’s a ponzi scheme and we all know what eventually happens.
Should it end itself, there will be more pain to retirees, employees and residents than anyone can possibly imagine. The very people you bureaucrats are trying to help will be ruined.
Do what’s right and not what’s politically expedient.
I would like a breakdown Mon, May 23, 2011 - 4:03 pm
I want to know how employees who retire this year can cost the City $20 million in sick leave pay out. That doesn’t sound right. Break it down, please. Thank you.
Pierluigi Oliverio Mon, May 23, 2011 - 11:27 pm
So the total sick leave liability is approximately $114 million. The $20 million number are employees that could retire this year. However some will not so it may be lower however we do not know until it happens.
For example I have a friend in PD that may retire early to save the job for someone with less seniority. That than increases the sick leave payout. Or someone who could retire chooses to stay longer lower the sick leave pay out in this fiscal year.
Pierluigi
Officer X Wed, May 25, 2011 - 10:31 am
“For example I have a friend in PD…”
Sir, YOU are NO FRIEND to police officers in this city. YOU support this mayor in ramroding historic layoffs and a stripping of pensions such that officers have fled for their financial lives and those remaining are at the bottom of the industry. God help this city survive this mayor and YOU, his co-conspirators.
I expect the usual no comment.
He must be in hiding Mon, May 23, 2011 - 4:16 pm
Pier,
You seem to answer all the questions that best moves your political agenda. Why not the one’s on this todays topic? Could it be that fresh cop of coffee is cold?
Oopsie Pier Mon, May 23, 2011 - 4:42 pm
Guess you’ve never read the story about Pandora’s box. We readers are smarter than the mayor gives us credit for. And no, I don’t work for the city. There is a threshold city hall is reaching any day now. You can only get away with so much Tom foolery before we all stop what we are doing and take a moment to ask what you are doing. I for one would not want to have to face re-election with all of these basic questions unanswered because they surely will be asked again during campaign season.
Keep asking the tough questions of the rest of the council. I’d also suggest distancing yourself from the mayor. His time is almost up. But your career is still young. Like the cowboys say, “careful you don’t hitch your wagon to the wrong horse.”
yea yea yea ... Mon, May 23, 2011 - 4:57 pm
Let me guess part of the GOP to privitize Police fire Ect.. Keep buying these idiot lines and watch you will have black water issuing you tickets. Right now you have a police force that aside from what he mostly bull mercury news is doing a really good job. In San Jose you had the safest City for many years with fewer cops than any other City its size. Why because of proper management and hirring standards. You had good people who wanted to do a good job. sure there were a few issues granted but as a whole the residents pay far less than most Cities as the City grew the police force grew slower and still maintianed its service.
Now the greedy 1% want everything. They want to get ride of unions. why because big power and big oil do not like paying union wages. If city employees worked for mimium wage those elected officals would have vast amounts of cash to steer into their rich friends pockets in trade for fundraisers.
The very first thing San Jose needs to do is get rid of Reed and the entire city council city manager as well. elected people who have never held office and are not corrupt. Then do the math.
Reed has done the math and it shows he needs to get rid of 300 plus cops so he can show where there money will come from to build his standium. a stadium for the rich. tickets will cost at least $50 each a hot dog $8 a family of four will spend $400 to see a single game. in this economy I will watch on TV.
Maybe its time for the elected officals to stop spending money on their rich friends and start paying bills. Oh wait that will never happen because rich people like money and if they Mayor will not give them great deals where they get tax payer money for free they will not hold fundraisers.
Reed and his staffers collect what a million dollars a year in fundraising in a bad economy? so when the money goes into his pocket he is able to manage very well.
retired Mon, May 23, 2011 - 5:41 pm
It’s about time you and your cronies start telling us the truth. I am sick and tired about putting the blame on the unions. You and the mayor have wasted millions, and you want to add a downtown ball park. Please, get real, what is more important - wasting more money on buying land which MLB will not approve or saving us our basic services.
Pierluigi Oliverio Mon, May 23, 2011 - 11:31 pm
If Baseball ever happens there will be an election and plenty of debates but that is a whole other topic. Did you check out the presentation from the study session?
Pierluigi
Retiredq Tue, May 24, 2011 - 4:53 pm
Don’t need too. We do not need the A’s quit wasting out money.
Robert Cortese Tue, May 24, 2011 - 10:20 pm
http://haxbox.stashbox.org/1119543/plo.png
Thought you’d like to see that PLO. One of my facebook friends posted that (via someone else, and they posted it via someone else, and so on)
So ya, folks are working to oust you. People with a pretty decent amount of political power. Just thought I’d be a friendly little birdy and let you know.
Due your homework Mon, May 23, 2011 - 5:59 pm
Close the airport for three years. It cost over a one billion dollars a year to operate. Adding up to 3.5 billion dollars in savings. It’s an unfunded liability! Time to pay the bills Chuck.
Yea yea Mon, May 23, 2011 - 7:43 pm
Actually the airport is funded by the airlines if I am correct. The parking alone makes big bucks for the city. It’s the only money maker the city really has.
Pierluigi Oliverio Mon, May 23, 2011 - 11:24 pm
Really? The City of San Jose should close the Airport?
The expansion was all approved before I got on the Council however it is what it is and we should try and compete since we will have the same mortgage payment whether it is closed or open.
Pierluigi
Good Money After Bad Tue, May 24, 2011 - 8:53 am
Yes. Good thinking. Let’s just keep throwing good money after bad, and keep feeding this albatross.
Geez. Don’t you see the irony of your statement? It is that mentality that has led us into this mess, and apparently we are going to stay in this mess.
Downtown girl Tue, May 24, 2011 - 11:43 am
Just last week, I was traveling through the San Jose Airport. It is just beautiful. But it was a bittersweet experience, as I mulled over the fact that it is overbuilt, thus expensive to maintain, that it’s hard to get places outside San Jose on non-stop flight, and that flights are sometimes more expensive than from Oakland or SFO. Oliverio is correct that we have what we have and must manage it, but these facts will always keep us at a competitive disadvantage. He is incorrect, however, that the stadium is another subject that we need to debate later. The airport is the model for the mistake that San Jose is heading into when it builds a stadium. The time to understand that is now, with the airport as a blatant monument to the willingness of the political leadership in San Jose to bow to private interests. I’m being polite in my language here. Some of you might come up with something more colorful than “bow to.”
Greg Howe Tue, May 24, 2011 - 7:51 pm
Small winkies made them do it.
Tom Jefferson Wed, May 25, 2011 - 6:38 am
Using your same logic, we sould open up the police sub-station, fire stations, librarys etc because we have morgages for them. Oh brother! I have lived her for 30 years and have flown out of SF or Oakland much more than SJ. Closeing the airport actually makes sense when examining the cost benefit to everyday citizens.
Bronco Bummah Tue, May 24, 2011 - 8:36 am
> Close the airport for three years.
Sorry. I haven’t been paying attention.
Could someone please explain what is the heartburn over the airport?
To me, it’s unthinkable to close the airport, even if it is named after a dubious and mediochre Democrat politician. Without a major hub airport, San Jose would probably turn into Coalinga or Chowchilla. The passenger traffic is, of course, important. But every day zillions of packages and technical experts fly out of the airport to destinations all over the world to deliver vital parts and expertise to industrial operations and businesses all over the world.
Delaying the dispatch of those packages and experts by an extra hour probably would cost the world economy billions of dollars over the long run.
I will grant that San Jose Airport might be mis-managed, and that braindead politicians and “smart” urban planners may have screwed things up monumentally, but, to quote the great transportation policy guru Jesse Jackson: “mend it, don’t end it.”
John Galt Mon, May 23, 2011 - 6:30 pm
City employees have finally gotten religion! They are now preaching the Word that the City should run it’s finances responsibly. Hallelujah!!
For years the City mismanaged taxpayers money and you never heard a peep of protest from our hardworking union employees. They were cashing in big time so don’t rock the boat, right?
Now that they’re own portion of this spending orgy is threatened they suddenly seem indignantly concerned that the City has been wasting money.
An objective observer might conclude that these city employees are a bunch of spoiled whiners whose opinions now count for nothing.
Downtown Cigar Tue, May 24, 2011 - 8:46 am
John,
I think the unions have been fighting the city every contract. I can remember the big flap about the downtown wrap around snake. I can remeber why we hired a city MGR. I can remember when they took most of the power from the mayor. I can remember when almost every 6-8 years we had one of our elected officials leave out the back door of City Hall. I can remember the steady growth of Non Profits being supported by the city and then running the city. The list goes on. I think an independent audit with a break down of ALL money coming into the city will show the city pours more money to these non profits and others than meets the eye.
I also remember people laughing at my slave wages as a union person when people were riding the dot com ride. Now that it’s over we now have to listen to people like you. With your thinking it won’t be long before someone buys a car and the car company comes back and takes the car back. Your car lasted more than 5 years sir. We think it lasted to long and we want more money.
John Galt Tue, May 24, 2011 - 10:57 am
DC,
I agree with you about the non-profits.
I agree with you about the turd statue.
For the past 20 years I have actively told my councilperson, “You will not get my vote if you continue to waste money in this fashion.”
I was in a tiny minority. The candidates for whom I vote usually get less than 1/3 of voter support and I know that city employees are not among them. And don’t give me this, “Show me your data- You can’t prove that.” BS. I know.
Along with the non-profits, the developers, the racial minority activists, and the turd sculptors, the public employee unions were telling these same councilpersons, “You’ve got our support as long as you keep approving more money for us.”
The public employee unions have a lot of power. Had they used their influence to help elect responsible spenders we would now have a San Jose that knows the proper duties of a city government and could afford to generously pay and fully staff our police, fire, libraries, public works, and parks departments. The people you guys have endorsed have been ‘big government’ types and have recklessly gotten the City involved in many areas in which it has no legitimate business. Now the City’s spread so thin that we can’t afford even the basics.
You all have had a big part at my expense. I would have treated you fair and square- I DID treat you fair and square. But you got greedy. Now, if you’ll permit me to mangle and mix my metaphors, your greedy chickens are coming back to haunt you.
Blair Whitney Tue, May 24, 2011 - 10:40 pm
CG - I remember most of the same stuff, but its all a little muddled and confusing in terms of who hired whom and when and why and all that payolla stuff.
But I really like your comment about the car at the end. It reminds me of an interest and true policy development that the auto industry has agreed to not support cars over 10 years old with parts as a way of forcing people to retire and replace. Interesting…I guess it does help the environment with reduced emissions and improved fuel economy, etc, but its another example of our forced consumerism where we have to buy the goods we’re given and like it.
Speaking of which, do we get still have to pay taxes toward the city if they stop providing us real and tangible services (libraries, parks, pot hole repair, etc.)? Just wondering…
Officer X Tue, May 24, 2011 - 7:06 pm
Now I just pity you John…
THE VILLAGE BLACK SMITH Mon, May 23, 2011 - 9:00 pm
ROBERT CORTESE
“REAL LEADERS SUFFER WITH THEIR TROOPS”
YOU WERE OBIOUSLY NOT AROUND FOR THE BONUS REBELLION, UNDER HOOVER AND GENERAL DOUGLAS MCCARTHUR. IT WAS THE SADDEST TIME FOR OUR VETERANS,AND OUR COUNTRY, AND INSURED THE ELECTION OF ROSEVELT.
I FIND A CORELATION TO THIS VERY FACTUAL TIME IN OUR HISTORY TO WHAT IS HAPPENING IN OUR VILLAGE OF SAN JOSE DE GUADALUPE.
I HAVE WATCHED THIS NONSENCICAL CHARADE OF AN A’S STADIUM FOR YEARS. AT WHAT PRICE? 200 YOUNG COPS, 700 PUBLIC SERVANTS? COMMUNITY SERVICES CUT, LIBRARIES AND FIRE STATIONS CLOSED. WE WILL ALWAYS REMEMBER THE EGO OF “GONZO THE GREAT”.
OK, I WILL AGREE WE HAVE TO WEED OUT THE AGRESSIVE FOLKS THAT ARE COSTING THIS CITY BIG BUCKS IN LAW SUITS FOR ABUSIVE BEHAVIOR., AND MANY OF THE COUNTY AND CITY’S GOOD OLE BOY’S APPOINTMENTS.
WHEN I SENCE THAT A BASEBALL STADUIM WILL BE BUILT ON THE BODIES OF HUNDREDS OF UNSUSPECTING CITY EMPLOYEE’S FAMILIES,AND SERVICES, I AM ABOUT TO GET SICK TO MY STOMACH.
LIKE MCCARTHER, WE ARE ABOUT TO DRIVE THE FOLKS THAT GAVE THEIR ALL TO ENSURE THIS NATION WOULD BE SAFE, FROM OUR ENEMYS, TO THE END OF THEIR ENDURANCE. ONLY TO FIND THAT WE WERE THE ENEMY TO OUR OWN. PLO YOU HAVE A GIFT FOR SUCKING UP.
I cannot attend the city council meeting tomorrow , as I had planned. My Grand Daughter is graduating from James Lick.
My hope is that you will give those that are passionate about their community their two minutes and not dishonor them by limiting them to 1 minute, as you have done in the PAST. It’s never to late to support community,even at that late in the evening. I was to speak on, given a chance , entirely NEW leader ship will give us hope for the future of our community.
RDA? Who goes down town any more these days. We have become San Francisco like. We are like 6th and Market in that great city.
SANTANA ROW IS THE SPIRIT OF SILICON VALLEY NOW!
DEAL WITH IT!
GO SHARKS!!!!!! BRING IT HOME!!!!
THE VILLAGE BLACK SMITH
Slum Dog Mon, May 23, 2011 - 10:23 pm
George Carlin (RIP) sums it all!...A true genius and a prophet?
http://www.youtube.com/watch?v=hYIC0eZYEtI
That was so true Tue, May 24, 2011 - 7:21 pm
And what a shame. That is what we are seeing, today. We should take heed as to who we start voting in, in the future.
Jeeper Tue, May 24, 2011 - 9:13 am
The issue isn’t that there is a 25% chance of achieving the target return. The issue is that when the targeted return is achieved, some is paid out to retirees as a “bonus” and some is used to reduce the city’s payments into the system.
Over the past 30 years, the S&P 500 has returned an average annual return of 10.74%. There has been significant variation, from a low of -37.22% in 2008 to a high of 38.05% in 1995. 6 years were negative, a total of 12 were less than the 8% target.
Markets go up and down. It’s the euphoric behavior prevalent when markets go up significantly that creates the problem. People assume things have changed, and therefore decide less can get paid in and more paid out.
It’s not an issue of inadequate or risky returns. The actuarial numbers would work if the system were on autopilot and not subject to the meddling of commissions and politicians.
just Anon 4 now Tue, May 24, 2011 - 11:49 am
Mr. Oliverio:
Thank you for sharing the Powerpoint download. I might have been more impressed with the slideshow if I were to have heard the presentation that went with it. I’m not impressed with random slides that show quotes from the different studies. I would like to see a counter presentation to be better informed. I hope you would too.
Also, this information is based off last years figures. We have had quite a rebound in the stock market. How will this affect the charts and figures in that presentation?
Just for the recorded, I subscribe to the notion that there is an unfunded liability but I’m less convinced as to what degree. Moreover, I’m less convinced with Mayor Reed and his ability to handle the problem.
Pierluigi Oliverio Tue, May 24, 2011 - 11:03 pm
You can view the video of the study session on the web:
http://sanjose.granicus.com/ViewPublisher.php?view_id=2
5/18/11 Retirement Study Session
As far as stocks rising the retirement funds are invested in items other than stock. The S&P 500 is less than 10 percent of the portfolio. Your question was discussed in the study session.
Pierluigi
Just Anon 4 now Tue, May 24, 2011 - 11:52 am
It should be noted that during “surplus” times the City’s normal contribution to the plan was offset. That is to say that the City paid less into the retirement fund during good times. This would have resulted in $120 Million and even more in today’s market (rather then a year ago)
Legal, but just not wise. It is my understanding that employees contributed the same during these times and didn’t payless into the system.
My point: Sticking it to the employees who have planned on these retirement pensions just isn’t right. My opinion.
Judy McDowell Tue, May 24, 2011 - 2:47 pm
Thanks for posting the Study Session slides, Pierluigi. It actually seemed like a grown-up presentation, and I hope the Council will be serious about considering it.
Pierluigi Oliverio Tue, May 24, 2011 - 11:15 pm
Thank you Judy.
Hope all is well.
Pierluigi
Just Anon 4 now Wed, May 25, 2011 - 10:35 am
“a grown-up presentation”
I’m confused. This is City Hall. Aren’t they supposed to give “grown-up” presentations there? You almost sound surprised. Judy is this first time you have seen a “grown-up” presentation or just there at City Hall?
Just poking fun. The comment was kinda funny.
Taxpayer Tue, May 24, 2011 - 4:39 pm
San Jose will NEVER solve it’s budget problems until
1) Average resident can read and understand where all taxes go without having someone having to explain it to them
Council and City Hall has for years purposefully hidden where taxes go because if taxpayers knew they would be very upset and would demand changes or recalls Budget problems are because City Hall lied to public about when taxes were going or what were true costs of city services
2) Pay as you go for all city expenses and put money aside for future expenses
To replace police cars divide cost by number of years before replacement, then put aside that amount each year, same for pensions, streets etc -
Otherwise Council and City Hall will always play political games and spend taxes, run up debt and have taxpayers in future have ” bad choices ” of higher taxes , low services and city staff as we now have
3) Compare San Jose against other cities and publish San Jose nationally used performance measures
Stops the political game plating and lying to public about what really happens when San Jose developed standards are used ( SJ Fire response time 8 min at 80% coverage ve national standard 6 mim at 90% coverage )
4) Fix low jobs, low numbers of businesses and low tax revenue historical problems causing most of structural budget deficits
Compare San Jose tax revenues per resident and we are in middle of many other cities but we have very low numbers of employees with average cost per employee until recently
If pension system would of been “pay as you go ” to fund pensions instead of using taxes for 100’s millions per year for political payoffs to insiders, campaign contributors, non essential city owned buildings many of which should never been built and non city organizations
History will repeat structural budget problems unless we stop political diversion of taxes and pay for adequate staff at reasonable pay and essential city services first before everything else Whicgh San Jose has been TOTALLY UNWILLING TO DO - in past and NOW
Retired Tue, May 24, 2011 - 5:17 pm
I looked at your picture slide show. I suggest you fire all police officers and fire fighters and hire private security officers so we can all live in fear or just move to
Oakland.
Steve0 Tue, May 24, 2011 - 8:27 pm
Amazing. The Mercury News reports the city council will pay the Mexican Heritage Plaza $600,000 next year. How many police officers will lose their jobs to keep this failed experiment limping along. Do the unions support this reckless spending? If the city can mothball the Southern police substation, we should do the same for the Mexican Heritage Plaza until the financial crisis is resolved.
Blair Whitney Tue, May 24, 2011 - 10:48 pm
That was a fun and entertaining council meeting. Rode the motorbike down and parked it next to expensive new motorcycles in the garage and took the elevator up to the council level where some nice girls from the labor council gave me an agenda and asked me if I wanted a “shame” sign or “not wisconsin” sticker to wear.
Ended up sitting next to someone holding the aforementioned “shame” sign on my left and a guy sporting the wisonsin sticker on my right while I watched the political theater for about an hour.
I was actually impressed with the depth of engagement and knowledge both at the dais and in the audience. As I was jotting notes about the reform study points on the overhead I asked my neighbors about an acronym and they explained the SRBR. One neighbor even pulled out a 67 page briefing packet marketed up with questions and notes and showed me the couple of pages on the issue (Talking about the balance in both public safety and non public safety balances in the Supplemental Retiree Benefit Reserve.)
Left after public comments got going with the first few speakers because I felt like it would be nice to get some coffee and watch the debate but the council chambers have a no food/beverage rule. Luckily the overflow chamber wasn’t so strict so I strolled into that with a coffee and enjoyed a little more political theater in comfort before growing bored and wandering out to rediscover downtown.
Popeye’s has a nice deal on Tuesdays/Thursdays, but its a little crowded and dirty. Ernie Glave is still holding court on the 2nd floor of the Bank of Italy building and regailed me with war stories from Saipan and WW2. Wandered back to city hall and collected my motorbike and felt like it was an nice way to spend an afternoon in San Jose and probably a better deal than paying for Pirates 4 in 3D/Imax.
Oh, and about the pensions and stuff, I downloaded the power point and took notes from the council meeting, but would like to digest all this for a few days before getting passionate or political. But I do love a good public policy debate and hope it turns out well for the future of our community. Seems like prudence would best be served by careful consideration followed by deliberate action to attain positive long term and sustainable outcomes.
ben Tue, May 24, 2011 - 11:36 pm
Ha i chuckled a little when Oliverio stated that he had a friend in PD. Oh there I go laughin again. The city leadership are seriously driving this city into the ground and it has been really sad to watch this happen over past couple years. And Chuck and city council seem to not care. Pathetic!!!
Me too Wed, May 25, 2011 - 3:24 pm
I almost asked him “YOU have a friend in the PD.” It was a statement that appeared really out of place.
Pierluigi Oliverio Thu, May 26, 2011 - 12:25 am
Actually more than one.
Pierluigi
Officer X Thu, May 26, 2011 - 10:08 am
Pier:
You have a political knife buried in their guts and you claim to be their “friends”!? Puhleez,...YOU are truly diluted. With “friends” like you who of your SJPD “friends” need enemies? Mayor Reed and his co-conspirators, that includes YOU, are stripping SJPD to the metal framing and you think you have true friends here. Wake up and smell the coffee, you do not. YOU are hated here and your support of this historic campaign against unions, specifically here @ SJPD, will never be forgotten.
BTW,...do your “friends” a favor. Do not out them. They will wonder why fewer officers will join them for coffee or a meal break. They will wonder why others are whispering when they approach. They will wonder why _____________. You get the point.
P.S. Come the Nov ballot, PLEASE do not steals our signs again. A repeat performance might actually require a DA to consider criminal charges.
Joke Thu, May 26, 2011 - 10:25 am
Just because you went to high school with them doesnt mean there your friend. They talk bad about you behind your back.
To Officer X Thu, May 26, 2011 - 2:43 pm
Your vieled threat of what might happen ot an officer if they are friends with a Councilmember reminds me of the movie Serpico. As an earlier post in this forum stated to you, if you are that disillusioned, please quit and find a line of work that better suits your demeanor. Your personal attacks on the Mayor and Council who are trying their best in these difficult times is astonishing if you truly are a police officer. The majority of the San Jose Citizens support them.
Officer X Thu, May 26, 2011 - 3:51 pm
Whaaaaaa,...please. Spare us the boring typical “play nice” lecture. This is not an elementary school playground. This is SJ politics and your beloved could give a damn about right or decent, regardless of it costing citizens their very lives. That said, if the kitchen is too hot for ya,...you know the saying goes.
BTW, no vieled threat. I promise to not have coffee with another officer. Call IA. Yes, I am a SJ police officer, not a robot. You should be thankful. Have a nice day
to Officer X Thu, May 26, 2011 - 7:02 pm
I find it amazing on this site; the Councilmembers are cordial, state their case in their responses and stick to the facts while it is people like you resort to name calling, misleading statements and think you know what everyone is thinking. And you call it politics, I call it being a baby when you don’t get your way.
Officer X Fri, May 27, 2011 - 9:20 am
You are amazed because you are sadly naive and apparently believe that being cordial means you are sincere and that must also mean you are being truthful. You sound like a “useful idiot”. No offense intended, every politician needs them and Reed the Terrible has thousands. Ignorance is bliss.
BTW, if you think your beloved mayor is sticking to the facts you are now absurdly naive. Sorry, I digress. See above regarding same.
Unions will continue the fight and you will foot the bill in primary and appellate courts for years to come. I know you’d prefer to censor us or have us just go away. Won’t happen. If you can’t take the opposition don’t post. Maybe then you won’t have you delicate sensibilities ruffled. But really, have a nice day. No offense intended. It is, after all, “just the facts ma’am”.
Mike Wed, May 25, 2011 - 8:12 pm
I understand what Mayor Reed and Councilman Oliverio are trying to do but I also understand that case law does not work in same direction.
The city is unlikely to prevail in a lawsuit over the proposed pension cuts to existing employees and it makes me wonder if bankruptcy is the ultimate plan. So far the mayors position is “take it or leave it”. If it isn’t, then I would strongly suggest serious give and take negotiation. At present the unions are probably running scared and the city is in a very strong position. Should this end up in court the city negotiating position will be much weaker.
A bankruptcy is rare for a city and it usually means a bunch of screw-ups were running things. I hope the city leaders are planning events instead of reacting to them.
WRONG! Thu, May 26, 2011 - 9:02 pm
“At present the unions are probably running scared and the city is in a very strong position.”
Really, really wrong.