Category Archives: Firefighter and Police Union Compensation and Pensions

Firefighter and police union salaries, benefits, and pensions are by far the most excessive of all government employees because their unions are the most politically active to campaign hire their own bosses who will determine their compensation and pension increases. The firefighter and police unions have been pushing cities, counties, and the state towards bankruptcy, and they already bankrupted the city of Vallejo, California.

Welcome to the City of El Segundo $100K+ CalPERS Pension Club!

Posted on March 25, 2014 by Mike

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 25, 2014

Below is a list of City of El Segundo, California employees who retired with California Public Employees’ Retirement System (CalPERS) pensions paying them $100,000 or more per year. The highest annual pension for El Segundo is $198,272.04. El Segundo is a small City with about 5.5 square miles of land area and about 16,849 residents in 2012.

CalPERS pensions are Defined Benefit Plans that guarantee retirees their full pension payments, regardless of how much was paid into the pension fund and regardless of the performance of the pension plan’s investment portfolio, with taxpayers obligated to make up the difference. In contrast, 401(k) plans, which are common in the private sector, are Defined Contribution Plans, where the benefits paid out to retirees depends on how much was paid into the retirement plan, and on the performance of the investment funds the employees individually selected from the available choices.

The CalPERS pensions are so high because the City employee salaries are so high, especially for the firefighter and police employees, and because the City provides the employees with the maximum allowable pension formula. The annual pension income from firefighter and police CalPERS pensions is 3% of the single highest year salary for each year they worked, up to a maximum of 90%, with retirement at age 50 or 55. Upon retirement, firefighters and police live just as long as miscellaneous (non-safety) employees – about age 83 for the men and 85 for the women – and the life expectancy keeps increasing over time with medical advances.

Thus, the taxpayers end up paying for at least two fire and police departments – the ones doing the work, and the ones enjoying long lavish retirements while receiving multi-million dollar pensions.

The salary upon which CalPERS pensions are based includes all those “Special Compensation” add-ons in the union contracts, that average an additional 33% on top of base salary for El Segundo police and firefighters. “Special Compensation” is paid even for things that are already existing job requirements or are unrelated to the job, including wearing a uniform and having a driver license.

For example, fire engineers (second-level firefighters) whose job description includes driving the fire engine are paid additional “Special Compensation” under their union contract to have a driver license to drive the fire engine. All “Special Compensation” increases the salary counted towards the pension payout and the pension cost to the City’s taxpayers.

The elected City Council controls pension costs in three significant ways: (1) Amounts of employee salaries, which are increased by pay raises and “Special Compensation”; (2) Percentage of total pension contributions employees are required to pay; and (3) Pension plan options the City provides.

Firefighter and police pensions pay 3% of their single highest year salary for each year worked, up to 90%. El Segundo Mayor Bill Fisher supported firefighter and police pay raises of 11.25% to 32.3% over three years, plus additional 5% annual “Step” raises, approved 4/7/09 and 12/2/08, jacking up pension costs.

The El Segundo City Council can save more than $3.3 million yearly by requiring City employees to pay half their total pension contributions, as allowed under state law effective 1/1/13. The City now pays 71% to 94% of total pension contributions.

The City Council can save several million more yearly by eliminating automatic additional 5% annual “Step” raises, and “Special Compensation” for things that are existing job requirements or are unrelated to the job.

These savings must be negotiated with the City unions later this year, after the April 8, 2014 election. Measure A is on the ballot for that election. Measure A bundles ELEVEN TAX HIKES in one ballot measure. The Measure A tax windfall will weaken the City Council’s bargaining position and preclude these savings. … Continue reading →

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Government Employee Compensation and Pensions, Measure A - 5 New Taxes and 6 Tax Inceases, Politics, Tax Policy and Issues | Tagged , , , , , , , , , , , , , , , , , | Comments Off on Welcome to the City of El Segundo $100K+ CalPERS Pension Club!

Frustration – Letter to the El Segundo Herald by Richard J. Switz

Posted on March 22, 2014 by Mike

Frustration

Make no mistake; my ideology is conservative, and I experience frustration daily about runaway spending at the national level. However, this situation needn’t necessarily apply to residents having a 90245 zip code. Currently there is a lot of community unhappiness about the cost of doing business in El Segundo…else, why is Measure ‘A’ on the ballot? Our elected officials must be held responsible, since only they have authority to tax and spend in our town.

Candidates Fuentes and Dugan are both skilled practitioners of modern management and leadership principles used by local major corporations. Such skills are sorely needed to help right the ship, since we are clearly on an unsustainable fiscal path using current practices. Efficient management and leadership provide the key to improvement, combined with a lot of tough love to effect the changes.

Drastic improvements won’t happen overnight. After all, we have experienced nearly two decades of government wherein our representatives seem more concerned about pleasing outside interests and providing employee perks rather than serving the needs and wishes of our voters. Otherwise, how does one explain granting $150K salaries for mid-level managers and shuttering City Hall every Friday … Continue reading →

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Government Employee Compensation and Pensions, Letters to the Editor, Politics, Tax Policy and Issues | Tagged , , , , , , | Comments Off on Frustration – Letter to the El Segundo Herald by Richard J. Switz

Eleven El Segundo Police Department Positions “Eliminated” were Actually 911 Dispatchers Transferred to the South Bay Regional Public Communications (SBRPC) Authority

Posted on March 22, 2014 by Mike

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 22, 2014

Mayor Bill Fisher Continues his Campaign of Deception as He Runs for Re-Election

El Segundo Mayor Bill Fisher wants voters to believe he reduced the City’s wildly excessive and unsustainable employee compensation costs by reducing City employee salaries by significant amounts. He also wants us to believe there were substantial numbers of City employee layoffs. These are not true.

The Schedule of Authorized Employees in the Fiscal Year 2011/12 City of El Segundo Adopted Budget (B11 – Employee Summary) deceptively reflects 11 Police Department positions as being eliminated.

11 Emergency Dispatchers who were transferred from the City of El Segundo to the South Bay Regional Public Communications (SBRPC) Authority to handle El Segundo 911 calls appear in the FY 2011/12 El Segundo City Budget as eliminated Police Department positions and implied layoffs.

In fact, those positions were transferred to another government agency. The positions were not police officers. They were 911 emergency dispatchers in the Police Services Support Employees (PSSE) union. They were transferred to the South Bay Regional Public Communications (SBRPC) Authority when the City shut down its 911 emergency dispatch center and went back to its previous practice of contracting with the SBRPC Authority for emergency dispatch services.

Thus, it is misleading to characterize these 11 Police Department employees as layoffs, because each one was still employed doing the same work for the City and ultimately paid by the City. The City still paid their salaries and benefits through the City’s payments to the SBRPC Authority. Each dispatcher was given $3,000 in transfer compensation and a guarantee that his or her base salary will increase or remain equivalent upon transfer to the SBRPC Authority. … Continue reading →

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Government Employee Compensation and Pensions, Politics | Tagged , , , , , , , , , , , , , , , , | Comments Off on Eleven El Segundo Police Department Positions “Eliminated” were Actually 911 Dispatchers Transferred to the South Bay Regional Public Communications (SBRPC) Authority

2009-2010 City of El Segundo Separations due to Budgetary Reasons Mostly Early Retirements

Posted on March 21, 2014 by Mike

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 20, 2014

Mayor Bill Fisher Continues his Campaign of Deception as He Runs for Re-Election

El Segundo Mayor Bill Fisher wants voters to believe he reduced the City’s wildly excessive and unsustainable employee compensation costs by reducing City employee salaries by significant amounts. He also wants us to believe there were substantial numbers of City employee layoffs. These are not true.

Fisher supported wildly excessive pay raises of 11.25% to 32.3% over three years for the already overpaid firefighter and police unions and their managers. These raises were approved by the City Council on April 7, 2009 and December 2, 2008, long after the Great Recession began, and include retroactive raises effective 6 and 9 months before they were approved on April 7, 2009. These raises were in addition to the automatic 5% “Step” raises firefighters and police are given each year for the four or five years after they year they are assigned to a new job position.

See City of El Segundo Can Save $3.3 Million Per Year in Employee Pension Costs for more details and documentation on those raises.

City employees received huge permanent pay raises, but most of their “concessions” were temporary, with the net result being increased employee compensation and increased pension costs to the City. Concessions included things like temporary one-time “unpaid” furlough days, which are like unpaid vacation days, and temporary suspension of cash-outs of accumulated unused vacation and sick leave hours. The firefighters and police were paid “Special Compensation” for those “unpaid” furlough days, which averages 33.5% of their regular earnings.

The alleged “reductions in salary” were achieved by temporary unpaid furlough days, temporary suspension of cash-out of accumulated unused vacation and sick leave hours, temporary reduction in overtime hours in 2010, and early retirements – many of them with lucrative and expensive incentives. No employees had their hourly pay rates reduced.

There were 26 City employee separations in 2009 and 2010 for budgetary reasons, and only 5 of those were layoffs. The rest were early retirements.

The employee separation data is shown in the following table … Continue reading →

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Police Union Corruption, Political Corruption, Politics, Union Corruption | Tagged , , , , , , , , , , , , , , , , , | Comments Off on 2009-2010 City of El Segundo Separations due to Budgetary Reasons Mostly Early Retirements

A Correction is In Order – Letter to the El Segundo Herald by Mike Robbins

Posted on March 20, 2014 by Mike

A Correction is In Order

The 3/6/14 Herald article, “Council Holds Off on Rec and Parks Fee Decision”, contained misinformation. City property tax revenue is more than $6 million – not about $1 million as the author misinterpreted from Mayor Fisher’s obfuscation.

The property tax revenue numbers I cited at the 3/4/14 Council meeting are from official City of El Segundo public record documents and are presumably correct. Based on those documents, I stated during the meeting that El Segundo property tax revenue for fiscal year 2012/13 was more than $6.3 million, is at a record high for at least since FY 2000/01, is 46% and about $2 million higher than FY 2000/01, has had an average annual increase of 3.6% and more than $166,000 per year, and has increased in 9 of the last 13 fiscal years.

See the article, “Wrong Time to Raise Taxes and Fees in El Segundo”, at PublicSafetyProject.org. In includes a bar chart showing property tax revenue from FY 2000/01 through 2012/13, the data for that chart, and a link to the City public record document that is the source of that data.

Fisher wants voters to believe property tax revenue is to blame, not big pay raises. … Continue reading →

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Government Employee Compensation and Pensions, Letters to the Editor, Political Corruption, Politics, Tax Policy and Issues | Tagged , , , , , , , , , , , , , , , | Comments Off on A Correction is In Order – Letter to the El Segundo Herald by Mike Robbins

Fire Union Bankrolling “Yes on A” Campaign – Letter to the El Segundo Herald by Marianne Fong

Posted on March 20, 2014 by Mike

Fire Union Bankrolling “Yes on A” Campaign

Be sure to read the entire Measure A arguments and rebuttals in the Sample Ballot. Mayor Fisher put Measure A on the April ballot – BEFORE the City Council will negotiate new long-term union contracts later this year. Measure A weakens the Council’s bargaining position, and Fisher wants us to vote before we know the size of pay raises he will put into those contracts. That is bad timing!

The fire union PAC gave $5,000 to the “Yes on Measure A” campaign – just for starters. The fire and police unions spend lots of money in City elections to put a thousand times more in their paychecks and pensions. They ratchet up their pay and pensions – and our taxes and fees!

In 2009, average firefighter annual individual total compensation was $211,000. The highest was $342,000. The average for police officers was $178,000 and the highest was $304,000. Fisher supported big pay raises every year since then. … Continue reading →

Posted in El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , | Comments Off on Fire Union Bankrolling “Yes on A” Campaign – Letter to the El Segundo Herald by Marianne Fong

City of El Segundo Can Save $3.3 Million Per Year in Employee Pension Costs

Posted on March 15, 2014 by Mike

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 14, 2014

El Segundo Mayor Bill Fisher, and City Council Members David Atkinson and Marie Felhauer who give Fisher his Council majority, claim the City Council no control over City employee pension costs. They claim that is all determined by California state law. This is not true. They make this claim to deceive El Segundo voters into approving the massive Measure A tax increases on residents and businesses on the April 8, 2014 city election ballot.

This article explains how the City Council has significant control over employee pension costs, how the City Council increased employee pension costs, and how the City Council can save $3.3 million per year in employee pension costs.

The City Council controls employee pension costs in three significant ways:

  1. The amounts of employee salaries, which are increased by pay raises and “special compensation” add-ons;
  2. The percentage of the total CalPERS pension contributions employees are required to pay; and
  3. Which pension formula and other pension options are provided to City employees.

Every pay raise increased the City’s CalPERS pension costs.

City employee annual pension income is a fixed percentage of their single highest year salary, including all those redundant and non-job-related “Special Compensation” union contract add-ons, for every year they worked. Firefighters and police get annual pension income of 3% of their single highest year salary for each year they worked, up to a maximum of 90%, with full retirement after 30 years at age 50 or 55. This corresponds to pension benefit formulas of 3% @ 50 and 3% @ 55, respectively.

Mayor Fisher supported wildly excessive and unsustainable pay raises for the already over-compensated firefighter and police unions that helped launch his political career with lots of campaign support, and for their managers to prevent “salary compaction”. Fisher supported pay raises ranging from 11.25% to 23% for the firefighter and police unions, in three or four installments over three years, and single pay raises ranging from 14.9% to 32.3% for their managers, during the first three years of the Great Recession. All of the raises were approved well after the Great Recession started, and many included retroactive pay raises effective up to 6 and 9 months before the union contracts were approved. The firefighter and police union contracts included additional 5% annual “step raises”, and additional periodic “longevity raises”. … Continue reading →

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , | Comments Off on City of El Segundo Can Save $3.3 Million Per Year in Employee Pension Costs

Ballot Argument and Rebuttal Against El Segundo Measure A Tax Hikes

Posted on March 14, 2014 by Mike

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 14, 2014

The Measure A tax hikes will appear on the ballot for the April 8, 2014 El Segundo General Municipal Election.

Measure A creates four new taxes on residents, nearly doubles five existing business taxes, and creates a new parking tax. Measure A will cost residents and businesses an estimated $6.6 million each year in the first three years. However, all residents will pay the business tax increases that are passed on to them as customers in addition to the four new taxes imposed on residents.

The Measure Tax hikes are permanent. There is no sunset clause (expiration date). It has become clear that most or all of the Measure A tax hikes will go to pay for excessive and unsustainable past and future City employee pay raises and benefits and pension increases – especially for the firefighter and police unions and their managers. Measure A is not intended to help the City engage in responsible spending during a temporary economic downturn. Recessions are temporary, but apparently, wildly excessive and unsustainable City employee union and manager pay raises are permanent.

Measure A was put on the ballot by a vote of the El Segundo City Council. Council Members Suzanne Fuentes and Carl Jacobson requested a sunset clause so the taxes would expire after a few years and the Council would have to come back to the voters for further tax hikes, but they were denied that request by Mayor Bill Fisher and his Council majority including David Atkinson and Marie Fellhauer.

Here are the official Argument Against Measure A and Rebuttal to Argument in Favor of Measure A that appeared in the Sample Ballot and Voter Information Pamphlet mailed out by the El Segundo City Clerk’s office. … Continue reading →

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , | Comments Off on Ballot Argument and Rebuttal Against El Segundo Measure A Tax Hikes

Feels Measure “A” Too Important – Letter to the El Segundo Herald by Scott Houston

Posted on March 13, 2014 by Mike

NOTE:

This letter to the El Segundo Herald newspaper is proof that Scott Houston supported the ELEVEN tax hikes in Measure A on the April 8, 2014 El Segundo General Municipal Electionu ballot.

Feels Measure “A” Too Important – Letter to the El Segundo Herald by Scott Houston

I wanted to stay quiet. But this conversation is too important not to participate in, speak up and urge every El Segundo voter to support Measure A. We’ve been down this road before and, once again, our City finds itself in a precarious financial situation. Even with the additional revenues gained from the Chevron tax settlement agreement, our City will be running significant deficits of nearly $6 million for the foreseeable future if we do not address our structural deficit. That is why I am supporting Measure A.

Our City Council has worked diligently to maintain our services with less. And our City employees have borne the brunt of cuts due to our financial state – in fact, there are now about 20% fewer employees at City Hall struggling to provide the same levels of service we are accustomed to. Something has to give. We cannot continue cutting our way out and decimating the community we love.

While not a panacea, I believe Measure A is a major step forward in the right direction to finally address our city’s ongoing budget crisis. Let’s work together as a community to give our next Council the resources needed to balance our city budget. Please vote Yes on Measure A on April 8.

– Scott Houston

NOTE BY MICHAEL D. ROBBINS:

The City of El Segundo’s taxpayers are probably paying about $8 million per year in excess compensation to the city’s firefighter and police “association” (union) members and their managers. That is a great sum of money for small-town El Segundo. The firefighter and police unions ratcheted up their total compensation (salaries, benefits, and employer-paid pension contributions) to wildly excessive and unsustainable levels by endorsing, contributing money to, and campaigning for the City Council candidates who would give them the largest pay, benefits, and pension increases, and raise taxes to pay for it all.

That is why El Segundo firefighters (and those of many other California cities) are paid about $150,000 to more than $330,000 in total compensation each per year. When the firefighter and police union members get large unjustifiable compensation increases, their managers get even larger increases to avoid “salary compaction”.

Scott Houston is a firefighter and police union puppet. He supports them and they support him. Houston supports Measure A on the April 8, 2014 El Segundo city election ballot to pay for past and future excessive and unsustainable firefighter and police union pay raises and the resulting pension increases. The current firefighter and police union contracts expire on September 30, 2014, and the City Council will negotiate new labor contracts with the unions later this year.

If the voters reject Measure A, the firefighter and police unions will have to give back some of the excessive increases they received as rewards supporting the campaigns of City Council candidates. There is a conflict of interest when government employee unions campaign to elect their own bosses who will negotiate with them and decide their pay raises and pension increases in secret meetings.

Scott Houston ran for El Segundo City Council twice – in April 2010 and April 2012. Each time the El Segundo Police Officers Association (union) gave him their endorsement, a huge cash campaign contribution, independent campaign expenditures, and additional campaign support. Houston lost both elections due to strong grassroots campaigns against him.

Scott Houston supported Measure P, the firefighter union’s initiative (4/10/12 election), which was defeated by 90.1 percent of El Segundo voters. It would have disbanded our local fire department and transferred our fire and paramedic services, and firefighters, to the Los Angeles County Fire Department for inferior services. It would have eliminated 31 percent of our on-duty firefighters, two paramedic squads and all three paramedic transport ambulances, doubling hospital transport times. But it would have protected the firefighters from much-needed pay cuts. … Continue reading →

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Measure P - Firefighters Union Initiative, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption, Videos | Tagged , , , , , , , , , , , , , | Comments Off on Feels Measure “A” Too Important – Letter to the El Segundo Herald by Scott Houston

El Segundo Herald Misreports City’s $6.3 Million Property Tax Revenue as $1 Million

Posted on March 8, 2014 by Mike

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 8, 2014

The El Segundo Herald, a small town newspaper in Southern California, misreported the City’s $6.3 million annual property tax revenue as “about $1 million”. A correction is in order. Given that gross understatement of property tax revenue, voters may vote for Measure A, a massive tax hike on the April 8, 2014 City election ballot that will cost residents and businesses an estimated $6.6 million each year in its first three years. All residents will pay the business taxes that are passed on to them as customers.

According to the March 6, 2014 Herald article, Council Holds Off on Rec and Parks Fee Decision, by Brian Simon:

“Responding to comments from former Councilmember Mike Robbins about the City’s property tax revenues being at an all-time high, Fisher responded that those dollars still only amount to two percent of the general fund, or about $1 million annually. El Segundo receives 6.2 cents on the dollar for its share of property tax revenues, compared to a County average of about 11 cents.”

That is a strange mistake, given my statements during Public Communications at the March 4, 2014 Council meeting that El Segundo property tax revenue for fiscal year 2012/13 was at a record high of $6.3 million, and that I posted an article with a bar chart showing El Segundo property tax revenue going back to fiscal year 2000/01 at PublicSafetyProject.org, in the article titled, Wrong Time to Raise Taxes and Fees in El Segundo. That article includes a table with the revenue data used to create the bar chart, and a link to the City Hall document from which the data was obtained.

Here’s that bar chart:


Bar chart of the City of El Segundo, California property tax revenues for fiscal years 2000/2001 through 2012/2013, using data from official City of El Segundo records.

It’s worth noting that property values in El Segundo are probably significantly higher than most other cities in Los Angeles County, which helps compensate for the lower percentage of property taxes coming back to El Segundo compared to the average for cities in the county. The fact that property tax revenue is at a record high level shows property taxes are not the cause of Fisher’s budget deficits. Fisher gave big pay raises to City employees … Continue reading →

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , | Comments Off on El Segundo Herald Misreports City’s $6.3 Million Property Tax Revenue as $1 Million