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No on Measure A – Letter to The Beach Reporter by Michael Robbins

No on Measure A

Mayor Fisher claims the “business community” supports Measure A, and the City Council has no control over employee pension costs. Not true.

Most El Segundo businesses oppose Measure A. Ninety percent are not Chamber members, and the Chamber board did not allow its general membership to vote before supporting the tax hikes.

City Council controls pension costs in three 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 percent of their single highest year salary for each year worked, up to 90 percent. Fisher supported firefighter and police pay raises of 11.25 percent to 32.3 percent over three years, plus additional 5 percent annual “step” raises, approved 4/7/09 and 12/2/08, jacking up pension costs.

The 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 percent to 94 percent of total pension contributions.

The council can save several million more yearly by eliminating automatic additional 5 percent annual “step” raises, and “special compensation” for things that are existing job requirements or unrelated to the job.

These savings must be negotiated with the city unions later this year, after the April election. The Measure A tax windfall will weaken the City Council’s bargaining position and preclude these savings.

See PublicSafetyProject.org for more information. Vote “no” on Measure A.

Michael Robbins
El Segundo Continue reading

Posted in Beach Reporter Letters, 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, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Police Union Corruption, Political Corruption, Politics, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on No on Measure A – Letter to The Beach Reporter by Michael Robbins

Not happy with Measure A – Letter to The Beach Reporter by Marianne Fong

Not happy with Measure A

Mayor Fisher is threatening to contract out our fire services to county if we don’t approve his Measure A tax hikes. These are empty threats. There’s no advantage in outsourcing. It would reduce services – not save money. Ninety percent of voters rejected Measure P to outsource fire services. Clearly, we can do a referendum against an ordinance to outsource services.

Last year City Council raised Chevron’s taxes by more than $8.5 million on average per year for 15 years. And the council can save many millions of dollars per year by getting the employee compensation and pension cost increases under control.

All residents will pay much more of the $6.6 million annual Measure A taxes than the “Yes on A” campaign mailer claims. We will pay the new business taxes that are passed on to us as customers, in addition to the new taxes on our electricity, water, gas, landline and cellular telephone, cable TV, satellite and Internet bills.

The money won’t go for schools or infrastructure. The city attorney said the resolution on how to spend the money is not binding, and only language in the ballot measure can be binding. Fisher chose the nonbinding route – he refused to put language in the ballot measure for money to schools and infrastructure.

The new taxes will go for huge past and future fire and police union pay raises and resulting pension cost increases, as in the past. That’s why the fire union donated $5,000 to the “Yes on A” campaign.

Marianne Fong
El Segundo Continue reading

Posted in Beach Reporter Letters, California, Doug Willmore's Great Chevron Shakedown, 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, 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 | Tagged , , , , , , , , , , , , , , | Comments Off on Not happy with Measure A – Letter to The Beach Reporter by Marianne Fong

NO ON “A” – Letter to the El Segundo Herald by Art Lavalle

NO ON “A”

You already live in one of the most heavily taxed states in the country. Why would you want to add to your family’s burden? City operating costs have not gone down as claimed. They will not, until we have a council that is willing to confront the unions and demand realistic pay and retirement contracts for city employees. Look at all the new construction in town in the last few years on top of the Chevron settlement. Each provided large amounts of additional revenue to the city. Yet, the increased inflow will never be enough to pay for the city employee’s union contracts that your council has approved. Do not give the council more money to waste. Look at the candidates that receive backing from these unions. The cities unions are backing candidates that will give them more of your tax dollars.

– Art Lavalle Continue reading

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, 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, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , | Comments Off on NO ON “A” – Letter to the El Segundo Herald by Art Lavalle

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

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!

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

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

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

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

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

El Segundo Firefighters’ Union is Bankrolling the Measure A Campaign to Hike Taxes

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

March 6, 2014

The El Segundo Firefighters’ Association (the official name of the firefighters labor union) is bankrolling the “Yes on Measure A” campaign to create four new permanent Utility Users Taxes (UUTs) on residents, nearly double the four existing business UUTs, increase the hotel Transient Occupancy Tax (TOT, or “bed tax”) by 25%, and create a new 10% parking tax.

The “Yes on A for El Segundo’s Future” campaign committee filed its first campaign finance disclosure form, FPPC Form 460 (“Recipient Committee Campaign Statement”), with the El Segundo City Clerk on March 3, 2014. It reports $12,500.00 in total contributions received, including $5,500 monetary contributions and $7,000 in nonmonetary contributions. The committee reported spending $10,266.64. Those are large amounts of campaign money for small-town El Segundo with a population of only about 16,720 residents and about 10,784 registered voters. And that is just the beginning of their campaign!

The two monetary campaign contributions were a $5,000.00 contribution from the El Segundo firefighters Political Action Committee (PAC) and a $500.00 contribution from Sandra Jacobs, the current chairman of the El Segundo Chamber of Commerce, and a former El Segundo Councilmember and Mayor who ran as one of three firefighter and police union sponsored City Council candidates.

Here are the data entries from the Schedule A of the Form 460:

DATE RECEIVED CONTRIBUTOR AMOUNT RECEIVED THIS PERIOD CUMULATIVE TO DATE CALENDAR YEAR
02/11/2014 El Segundo Firefighters PAC (#1231824)
P.O. BOX 55
El Segundo, CA 90245
$5,000.00 $5,000.00
02/12/2014 Sandra Jocobs
402 Hillcrest St.
El Segundo, CA 90245
$500.00 $500.00

Click HERE to view or download the “Yes on A” tax hikes FPPC Form 460 (536 KB PDF file).

Measure A will be decided by voters in the City of El Segundo, California on Tuesday, April 8, 2014. The El Segundo firefighter and police unions have much to gain in pay raises and increased pensions if Measure A passes. The two unions have a long history of endorsing, contributing money to, and campaigning for the City Council candidates and ballot measures that will put the most money in their paychecks and pensions, and then raise taxes and fees on residents and businesses to pay for it all.

The El Segundo firefighter and police unions have used this racket to ratchet up their total compensation to about $150,000 to more than $330,000 per individual per year.

The average 2009 firefighter annual individual total compensation was $211,000 and the maximum was $342,000 – before multiple large pay raises after 2009. The average 2009 police officer annual individual total compensation was $178,000 and the maximum was $304,000 – before multiple large pay raises after 2009. The firefighter and police managers get big pay raises when their subordinates get pay raises, to avoid “salary compaction”.

Police Chief David Cummings was given a 23% raise for his last year before retirement. As a result, he was paid a total of about $597,000 in 2009, the year he retired, in total Annual Compensation plus his CalPERS pension income while working half-time for 11 weeks as Police Chief after his retirement. His annual CalPERS pension income is now listed as $198,272.04 on the FixPensionsFirst.com web site.

The firefighter and police unions in El Segundo and other California cities have been pushing their city employers down the road towards bankruptcy. The City of Vallejo, California, is just one California city that filed for bankruptcy due to their firefighter and police unions. … 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 El Segundo Firefighters’ Union is Bankrolling the Measure A Campaign to Hike Taxes

Which El Segundo City Employee was Paid Nearly $600,000 in His Last Year?

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

March 3, 2014

Firefighter and Police Unions are Breaking the City’s Budget

Generally, El Segundo sworn firefighters and police officers are by far the highest paid City employees. Their “associations” (unions) endorse, contribute money to, and campaign for the City Council candidates who will give them the biggest pay raises and increases in benefits and pensions, and then raise taxes and fees on residents and businesses to pay for it all. Their total compensation, including salary, benefits, and pension contributions paid by the City’s taxpayers, has been about $150,000 to more than $330,000 per individual per year.

The managers’ salaries, benefits, and pensions are increased along with those of their subordinates, to prevent “salary compaction”, and to maintain a minimum 5% higher level of compensation than their subordinates.

Existing sworn police and firefighter employees, including managers, can retire as early as age 50 (police) or 55 (firefighters) with a guaranteed annual pension income of up to 90% of their single highest year salary, including all the “Special Compensation” add-ons in their union contracts for things that are already a requirement of the job or are unrelated to the job.

Thus, Mayor Bill Fisher increased the employee pension income and the pension cost to the taxpayers for the police and firefighter employees (and for all City employees) every year of the Great Recession, because he gave them all excessive and unsustainable raises every one of those years!

City of El Segundo $100K Pension Club

Here is a list of retired El Segundo City employees in the “$100K Pension Club”, i.e., with CalPERS pensions paying them in excess of $100,000 per year guaranteed by the taxpayers regardless of pension fund investment performance:

http://www.FixPensionsFirst.com/calpers-database/?first_name=&last_name=&employer=EL+SEGUNDO

Highest Paid El Segundo City Employee in Calendar Year 2009

Former El Segundo Police Chief David Cummings was the highest paid City employee in calendar year 2009. He retired in 2009 with about eleven weeks left in the year, and had total 2009 compensation of about $596,657. This included his City contract income and his CalPERS pension income while he continued working as the El Segundo Police Chief after his retirement. Cummings’ post-retirement City employment contract acknowledged that he would be receiving his $210,000 per year CalPERS pension income while he continued working as the City’s police chief after his retirement. …
Continue reading

Posted in El Segundo, El Segundo News, Government Employee Compensation and Pensions | Tagged , , , , , , , , , , , , , , | Comments Off on Which El Segundo City Employee was Paid Nearly $600,000 in His Last Year?

Vents about Public Employee Unions – Letter to the El Segundo Herald by Kip Haggerty

Vents about Public Employee Unions

I would like to congratulate the citizens of El Segundo on their stinging electoral rebuke to the public employee unions. To vote Carl Jacobson back in with the most votes after the vicious attack perpetrated upon him and then for the Council to elect him mayor speaks volumes. The shellacking that Measure P took is indicative of the mood that many shared, that the lies the Fire Department pollsters told in their early push poll were irrelevant, only local control mattered.

I saw Marie Fellhauer’s first act was supporting Bill Fisher for Mayor and Mayor Pro Tem. This reminded me of Don Brann’s support for Eric Busch because it was “his turn” to be Mayor. She’ll be a one termer too. While I appreciate that Marie and Don have given up their time to serve, the mindset a public employee brings to the Council is inconsistent with fiscal responsibility and their natural tendency is to represent public employee unions instead of the citizens.

I hope that the public employee unions have learned their lesson. You can’t shake down your neighbors for excessive pay and benefits in a down economy. The money simply isn’t there. I also hope they will listen to Dave Atkinson on pension reform ideas because the same sad fate may befall them as many private sector union members. When their companies went bankrupt, they got only a fraction of their pension … Continue reading

Posted in El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor, Measure P - Firefighters Union Initiative, Police Union Corruption, Political Corruption, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , | Comments Off on Vents about Public Employee Unions – Letter to the El Segundo Herald by Kip Haggerty