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Tag Archives: El Segundo Firefighters Association
El Segundo City Employee Unions Contributed $17,500 to Measure A to Raise Our Taxes and Their Pay
by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org
March 31, 2014
The El Segundo City employee unions contributed $17,500 to the Measure A Tax Hike campaign, thus far, with more than a week left to make additional contributions, according to the second set of campaign finance disclosure statements for the April 8, 2014 El Segundo General Municipal Election. Clearly, the City Employee unions are trying to buy the city election to raise taxes on residents and businesses so they can get big pay raises and pension increases.
Public record city employee compensation data show that the city employee unions get millions of extra tax dollars per year by spending thousands of dollars on city elections every two years. Firefighters and police are paid about $160,000 to more than $360,000 per year in total compensation. All but one or a few firefighters DO NOT live in El Segundo. Most police officers and other City employees DO NOT live in the city.
The campaign finance disclosure statements were due by close of business on Thursday, March 27, but were not made available by the City Clerk’s office until close of business on Monday, March 31. City Hall is closed on Fridays. There is a week left before the election for the City unions to contribute even more money to raise our taxes. The final financial disclosures would normally be due on Friday, April 4. However, since City Hall is closed on Fridays, they will be due by noon on Monday, April 7 – the day before the election. This allows the unions to give more large campaign contributions without enough time for the voters to learn about them.
Wealthy real estate developers and investors who depend on City Council approval for their projects donated thousands of additional campaign dollars to raise our taxes.
Here are the major contributions:
| MAJOR DONOR | ID # | DATE | AMOUNT |
| El Segundo Firefighters PAC | 1231824 | 02/11/2014 | $5,000.00 |
| El Segundo Police Officers’ Association PAC | 960463 | 02/24/2014 | $5,000.00 |
| El Segundo City Employees Association PAC | 1363708 | 02/28/2014 | $5,000.00 |
| California Teamsters Public Affairs Council (for El Segundo Supervisory and Professional Employees’ Bargaining Unit, Teamsters Local 911) | 1363708 | 02/28/2014 | $2,500.00 |
| TOTAL CITY UNIONS | $17,500.00 | ||
| Continental Development Corp. | NONE | 02/07/2014 | $5,000.00 |
| Mar Ventures, Inc. | NONE | 03/6/2014 | $2,000.00 |
| TOTAL WEALTHY DEVELOPERS | $7,000.00 | ||
| S&S Hardware Co., Inc. | NONE | 02/07/2014 | $2,000.00 |
| S&S Hardware Co., Inc. | NONE | 02/28/2014 | $660.00 |
| TOTAL MAJOR DONATIONS | $27,160.00 |
Continental Development Corp. is owned by a billionaire (or at least a multiple hundred-millionaire) who lives in this $11.1 million 7 bedroom, 12 bathroom 15,242 square foot mansion in Palos Verdes Estates. The $6.6 million per year in new taxes on residents and businesses, and the $150,000 to more than $380,000 the City pays individual firefighters and police in total annual compensation, may seem smaller to him than to the average El Segundo resident and small business owner taxpayer.
PROOF:
Click HERE to download the 2/27/2014 Yes on Measure A Tax Hikes FPPC Form 460 (532 KB PDF file).
Click HERE to download the 3/27/2014 Yes on Measure A Tax Hikes FPPC Form 460 (799 KB PDF file).
Click HERE to download the 3/27/2014 Yes on Measure A Tax Hikes FPPC Form 497 (393 KB PDF file).
Click HERE to download the 3/31/2014 El Segundo Police Officers’ Association PAC FPPC Form 460 (372 KB PDF file).
Continue reading
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
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
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
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
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
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
City of El Segundo Can Save $3.3 Million Per Year in Employee Pension Costs
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:
- The amounts of employee salaries, which are increased by pay raises and “special compensation” add-ons;
- The percentage of the total CalPERS pension contributions employees are required to pay; and
- 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
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
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:
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