Tag Archives: El Segundo 2014 Measure A Tax Hikes

No on Measure A – Letter to the El Segundo Herald by Mike 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. 90% 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% of their single highest year salary for each year worked, up to 90%. 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 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 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 election. The Measure A tax windfall will weaken the City Council’s bargaining position and preclude these savings.

Vote “No” on Measure A.

– Mike Robbins 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, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, News, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , | Comments Off on No on Measure A – Letter to the El Segundo Herald by Mike Robbins

Something Fishy About Measure A – Letter to the El Segundo Herald by Marianne Fong

Something Fishy About 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. 90% 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 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 non-binding route – he refused to put language in the ballot measure for money to schools and infrastructure!

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

– Marianne Fong 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, Fraud Waste and Abuse, 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, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , | Comments Off on Something Fishy About Measure A – Letter to the El Segundo Herald 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

Measure “A” – Letter to the El Segundo Herald by Jane Waag Friedkin, Former Councilwoman

Measure “A”

I urge residents to read Measure A in its entirety. You will find there is not a sunset clause on the tax increase, but simply reduces the 2.5% to 2% in 2017, creating a “forever” tax.

I firmly believe, based on current and past irresponsible deficit spending by our city council, and the persistent mentality of all elected officials, is to raise taxes every time they overspend.

Raising taxes discourages new businesses from coming to El Segundo. Don’t’ believe the threats made by the “Vote Yes on A”. They do not have residents best interests in mind. They only say what they want you to believe. Let these “well to do Yes on A” contributors write a check to the city in any amount they want and as often as the want. They can write off whatever they give on their federal tax.

Another important point to consider – it now takes only 50% of voters to pass the tax increase, not the 2/3 as in the past. Please get out and vote No on Measure A.

The City Attorney said, “The resolution on how to spend the money is non-binding.” This Council chose the non-binding route.

Please vote and vote No on Measure A.

– Jane Waag Friedkin, Former Councilwoman Continue reading

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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

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No on Measure A – Letter to the El Segundo Herald by Helen Armstrong

No on Measure A

Mayor Fisher and his sidekicks, David Atkinson and Marie Fellhauer, want us to believe they may voluntarily reduce our taxes in the future if we approve Measure A and give them four permanent new taxes on residents, permanently increase five existing business taxes, and create a new permanent parking tax.

How can we trust them? They back-stabbed their colleague Mayor Carl Jacobson in a coup they staged at the 5/21/13 City Council meeting. They voted to remove Jacobson from the office of Mayor in the middle of his two-year term, without any legitimate justification!

This break with tradition and decency is unprecedented since at least 1940, and probably in El Segundo history. Jacobson won re-election in 2012 with by far the most votes, despite the sleazy and dishonest campaign against him by fired city manager Doug Willmore, KCET television and the Los Angeles Times.

The Fisher Majority staged their coup so Fisher could run for re-election as Mayor rather than Council Member. This also gives Fisher more clout in negotiating new long-term City employee union contracts and raises later this year after the April election.

I urge everyone to vote “No” on the permanent Measure A Tax Hikes, and for Mike Dugan and Suzanne Fuentes. … Continue reading

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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

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Measure ‘A’ – Letter to the El Segundo Herald by Richard J. Switz

Measure ‘A’

While reviewing my sample ballot, Measure ‘A’ reminded me of an old carpenter helpers’ comment, to wit: “I’ve cut this board off twice, and it is still too short!”

Measure ‘A’ proponents say our tax structure for businesses is lower than neighboring cities… isn’t that the way it should be if we intend to attract new business? I’m befuddled to hear Council candidates tout a need for new business on the one hand, while at the same time strongly support measures for increasing taxes on the other.

Measure ‘A’ has the strong flavor of a Council wanting additional revenue, although supportive comments are weak to justify the need. Councils’ resolution mentions a fraction of the added revenue might be set aside for City projects, although this is a far cry from a Council commitment explaining how funds would be used; resolutions have no enforceable mechanism. Readers are urged to continue reading their ballot carefully to learn of several additional flaws in the proposition.

Speaking of surrounding cities I was surprised to learn, based on a simple Google search the stark difference between our current budget and that of Manhattan Beach. A rough comparison shows our budget is approximately twice that of Manhattan Beach, even though they likely have twice our population.

I hope this letter motivates you to demand that our elected officials do a better job … 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, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Politics, Tax Policy and Issues | Tagged , , , , , , , , | Comments Off on Measure ‘A’ – Letter to the El Segundo Herald by Richard J. Switz

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

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El Segundo Measure A Co-Chair Joe Harding was Against the Tax Hikes Before He was For Them

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

March 6, 2014

Joe Harding is one of two co-chairs identified on the “Yes on A for El Segundo’s Future” campaign committee website. Harding is also treasurer of the campaign committee as indicated on the first FPPC 460 campaign finance disclosure filed by the committee with the El Segundo City Clerk.

Harding was against the tax hikes before he was for them. He spoke out strongly against the tax hikes at the August 3, 2010 El Segundo City Council meeting when he was the General Manager of the Hacienda Hotel in El Segundo (HaciendaHotel.com). Now he is campaigning on the opposite side, for the tax hikes which hit hotels especially hard, as an ex-employee of the Hacienda. Here is an excerpt of what Harding said as a Hacienda Hotel employee:

“You must say ‘No’ to the hotel killer tax. … A TOT, and a UUT would hit us twice. That’d be like kicking us when we’re down, and then running us over for good measure. … The City must make unpopular and difficult adjustments to their payroll and expenses. Asking businesses to pick up the bill for the City and its residents in this economy is simply not a fair approach. The Hacienda has been and will remain a stellar business in this community. Help make sure this continues. Leave the TOT where it is. It’s working for us. It’s working for the City. … Thank you.” – Joe Harding, General Manager of the Hacienda Hotel in El Segundo, speaking at the August 3, 2010 El Segundo City Council meeting, before he became an ex-employee of the Hacienda, flip-flopped, and became a co-chair of the Yes on Measure A committee to raise both the TOT and UUT taxes on the Hacienda and all other hotels and businesses in El Segundo, and to impose them on residents.

Here is a video I made for the April 10, 2012 El Segundo City Council Election that includes Joe Harding’s full speech, starting at about time 3:28 to 5:46, followed by a transcript of his full speech. … Continue reading

Posted in 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, Government Employee Compensation and Pensions, Politics, Tax Policy and Issues, Videos | Tagged , , , , , | Comments Off on El Segundo Measure A Co-Chair Joe Harding was Against the Tax Hikes Before He was For Them