Introductory background notes from Financing City Services, Chairman Bruce Banco in his presentation to the public invited Pacifica Democrats meeting, 2/18/12. These notes relate to City Council Meeting, 2/27/12, consideration items 6, 7, 8.
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2. Pacifica has the lowest per capita revenue of San Mateo County cities.
3. The City General Fund pays ordinary city bills, the revenue requirement to support is currently about $27 million.
4. The City General Fund is the fund Pacifica Financial Services Task Force is concerned with.
5. There are other city specific funds, 15 total.
6. The City General Fund and Budget Reserve fund cannot deteriorate to $0, the money has to come from somewhere.
7 Making-up the General Fund short-fall has been supported from the Budget Reserves Fund, but the cushion is almost exhausted.
8. Declining General Fund revenue and Budget Reserves time-line: Fiscal years June, 2008, 2009, 2010 "free fall drop"; 2011, 2012 "gradual drop"; 2013, 2014, 2015, 2016 near "$0" or "$0". Budget reserve chart.
The city has a permanent, long-term deteriorating structural financial deficit. The Financing City Services Task Force was established 7/08, 4 years ago, to assist in 5 year revenue planning. And ultimately find a way to replace the prior Fire Assessment.
Although not discussed at the meeting, what exists as a Budget Reserve is likely monies returned from the Association of Bay Area Governments (ABAG) in defense of the North Pacifica LLC lawsuit. About $5.5 million was returned to the city, which probably occurred in 2010 changing budget cash reserves to a gradual decline for 2 years (2011 and 2012). Thus, the city only lost about $1.5 million fighting the North Pacifica LLC residential development, a conflict the city caused and aggravated. The lawsuit continued over a 7 year period. City losses include the approximated $1.5 million lawsuit short-fall, plus ongoing residential and community business sales taxes losses (the result of no development).
Posted by Kathy Meeh
41 comments:
Our fiscal issues are simply payroll issues. To me it's equal to embezzlement by senior staff department heads fire and police to continue to earn what has been published knowing the revenue isn't there.
And to top it off the best idea being proposed and supported by the same group of employees is to tax the poorest among us to pay for the wealthiest. When these folks are making two, three and in some cases four times the city average it's clear to me the solution is wage reductions not a sales tax increase.
Todd
If the city had enough revenue to pay bills payroll and pensions wouldn't be an issue!
Its the head in the sand attitude by our council majority Pete Jim and Sue who did nothing to bring business and or revenue producing projects into town.
They catered to the hippies and nobies and we are knocking on bankruptcy's door.
The fin city services committee gamed the process. The entire process was rigged to reach one conclusion--more taxes.
Here's what committee chair Banco has accomplished: they voted twice in the past 3 weeks to ask Council to support taxes without the completed sheriff bid. Yes you heard correctly, without the full financial details of savings of from $1 to $2 MILLION, this committee supports taxes.
Moreover, when other towns were showing huge savings eight months ago from contracting with the sheriff (millbrae, san carlos and HMB), this committee did not raise their finger to explore the true sheriff savings.
Now at the very last minute, an inquiry to the sheriff is underway but the full details will be available months from now, long after the Monday night council vote.
So, this committee votes in the blind and they want council to vote blindly as well for taxes without all the facts available. No wonder this city is broke with fake budget planning like this. I am not voting for any taxes and will not vote for anyone on council or on the shell game committee who supports taxes either. How about a honest community debate with all the facts in front of us?
Doesn't matter how you think we are where we are Anon, most of this stuff was put in place prior to 2002.
Staff need to be and act like grown ups not Feudal Lords. Wage reduction is the only way forward. When I hear senior staff, department heads, fire and police justifying their pay they talk of paying for private schools, mortgages, car payments, all the things we deal with, like somehow they are in a protected class that is above economic constriction.
Senior staff, department heads, fire and police are not above such things but have over the last five years ignored it and drained our reserves in the process to cover their salaries. To me this is embezzlement as they have done this with full knowledge of the financial down turn. Our financial crisis is not a revenue crisis but rather a payroll crisis.
I have no wish to harm a single 100K plus employee we have BUT they must get off their make believe mountain of denial and understand taxing people who earn 2 to 4 times less than them to maintain their standard of living is an idea that is contemptible. They can solve this issue tomorrow but they as a group feel owed, above it all and want us to just pay up.
"Doesn't matter how you think we are where we are Anon, most of this stuff was put in place prior to 2002."
Golly-gosh, Todd, you buddy Pete DeJarnatt was telling us how great the city's finances were in 2008, and that we had a surplus of over $7 million.
You supported the disasterous council consisting of no-growth members Vreeland, DeJarnatt, Digre and Lancelle. You demonize any developer that wants to build something in town. You demonize city employees as being greedy. You work consistently to undercut anything that would improve the business climate in this town.
You seem desperate to deflect blame from yourself and your NIMBY cohorts, who have fought every tax revenue producing development proposed in this town.
Cuts in expenses, as you advocate, is not enough. We also need longer term increases in commercial tax revenues that are generated by business growth. Your vision of the city as being a place where business and development are unnecessary has proven itself to be unrealistic and unsustainable.
Accept some personal responsibility for the dilemma the city is in, Todd. You expect everyone else to make sacrifices, while you personally give no indication of being willing to accept even the smallest personal sacrifice.
"Your vision of the city as being a place where business and development are unnecessary"
Not only unnecessary, but outright evil.
I agre with Todd and Steve.
We need growth and development. And we really need to bring down wages and benefits.
Most Pacificans are not making anywhere near the amount these unions are squeezing out of us.
It doesn't matter what other cities are paying employees. We can't afford it and we're not raising anymore taxes.
Steve, I can't control the ramblings of your mind and I certainly do not accept your version of the city's reality regardless of who you want to blame.
The quarry votes were never proposals, just votes for housing, Harmony and the Prospects were permitted, Cypress Walk and Connamerra were built. What developments were not either permitted or built in the last 10 years that you incorrectly lay blame at my feet for or council members you inaccurately describe as anti growth?
Your reality is a sad false accusation that is beginning to anger me because like other outlandish baseless accusations from you and your lot are just that baseless accusations.
Boy, luck I'm not living in 1930's Germany with you on the prowl.
Some of us might find that comparison offensive, Todd.
Todd (309) from your comments, if anyone knows how to sling mud its you.
After 10 years of anti-growth reality, I think we all understand the anti-development issues and strategy in this city. Opportunities lost, including the small change: permit challenges, lawsuits and ultimate chopped developments.
However, you get credit for working to avoid the biodiesel disaster; and for supporting productive "open space", Sharp Park golf course.
And would we have someone to blame if Todd and his evil ilk had failed to stop all this development and we still found ourselves broke and at each other's throats? Oh hell, let's go with blaming Todd. Much easier.
Todd, any projects that were approved were in spite of your NIMBY opposition. You're trying to use your failures to make yourself look good.
It took Connemara at least 10 years and a hugely scaled back proposal to get approved.
Harmony@One and the Prospects also were delayed by the city for ages while the usual NIMBY contingent forced the developers to alter their projects so much that they probably won't be built. The window of opportunity closed, and the concessions were such that it would be unprofitable to go forward. Those of us who have been around town for awhile know that this is the usual tactic to stop development. It allows NIMBYs to say the developments were approved, while they still get the desired outcome of nothing being built.
I actually don't know too much about Cypress Walk, other than it's so far on the outskirts of the city that people think it's South SF, and nobody cares what gets built there.
In 10 years, only one new commercial structure was built in this city of almost 40,000. That's surreal, and shows how so few businesses even bother with Pacifica because of the hostile business climate.
If you're getting angry, it's only because you're getting called-out on your BS.
As for your tasteless remark regarding 1930's Germany, rather than being one of those on the prowl, since I'm Jewish I'd have been one of those being tracked down. Whenever someone brings up something regarding Nazi Germany, I figure it's because they don't have anything intelligent to say.
There is also a stash of cash, IDK how much but perhaps a couple or three million, bequeathed to this city many years ago by a resident and restricted for use by PB&R. In the good old high-ROI days the earned interest paid for some PB&R projects, allowing the city to divert its money to other expenses.
Now, the earnings are just about zilch. The man who left this money to the city loved Pacifica and probably never imagined the city he loved would be in such dire straits. The funds can be accessed only by a unanimous vote of the city council. How severe a fiscal emergency must we be in before all resources are disclosed to the public and considered as part of the big picture?
Pacifica has a reputation of being a tough place to build and being controlled by a well-organized, anti-development faction. Well-earned reputation. To the point of being eye-rolling ridiculous. Is it the reason the town is broke? Who knows? More retail would sure help. How about a new Hallmark store? The folks in Linda Mar are retiring after decades. All the best to them!
Todd, I agree with you about wages and benefits being way too high. But do you realize people you look up to like Peter Loeb are in favor of taxing us more rather than cutting the union contracts that are strangeling us? I know you're out of work like many Pacificans. Don't you think there are ways to allow development and jobs while protecting the environment?
You're messin' with the idols of a whole bunch of young(er) Pacificans.
Words. Words. Words.
bottom line .........
The NIMBY's destroyed Pacifica.
It's time to call their bluff.
They make new development difficult?
We make new taxes impossible.
Not a problem, there won't be any of either.
Bottom line? They've won every battle so far.
Good bye Jimmy, farewell youth
I? must be on my way I've had enough of you
Was a young man, proud and true
Just a simple boy with nothing left to lose
Years that I've wasted
These I owe you's
They're just fucking words
This is life or death
It's time to clear the air
You better save your breath
Say have you heard
Say have you heard
The Poison in my heart
And voices in my head?
[ From: http://www.metrolyrics.com/word-forward-lyrics-foo-fighters.html ]
Years that I've wasted
These I owe you's
I meant every word for word for word forward
Word for word for word forward
Word for word for word forward
Word for word for word forward
But it's only words
I meant every word
They're just fucking words
Word for word? for word forward
Word for word? for word forward
Word for word? for word forward
Word for word? for word forward
Word for word? for word forward
"If the city had enough revenue to pay bills payroll and pensions wouldn't be an issue!"
That's true, but there aren't any cities where that's the case, ESPECIALLY Pacifica. When your outgo far exceeds your income, and you refuse to change course, why would a deficit be a surprise?
Because housing has crashed and credit for building projects has dried up, the whole Ponzi scheme has been revealed for what it is.
Steve, you need to accept you live in a democracy that allows people to voice their opposition to things or accept that you would be happier in some sort of 1930's European fascist state.
Boo hoo our laws upset you personally but since you have no personal or financial stake in any of these things hat you are upset about what's it to you beyond yapping?
(Please continue yapping. For every one of your yaps a developer looses a unit of housing).
Hutch please do not assume things about me or people I know or don't know.
Mike as usual go take a flying leap at another rolling donut! Take a flying leap at the Moon! :)
"..housing has crashed and credit for building projects has dried up.."
Lionel, I think your comments is very well stated as usual. Then, combine the general state of cities with the specific Pacifica issues considered in the article. Of 20 San Mateo County cities "Pacifica has the lowest per capita revenue of San Mateo County cities," (item 2). And, outside the bond flipping this city has done, the Budget Reserves cushion "is almost exhausted," (item 7). Therein is the long-term city structural problem: 1) bottom-feeder city, 2) recycling debt without new infrastructure.
I think Steve S. is much more open to differing opinions than another ultra liberal forum manager that will go un -named. But that's why everyone is here and not there.
But that's the way with extremists be they far left or right.
“Our employees and the citizens of Stockton who receive city services have borne the entire brunt of our restructuring efforts so far and now it’s time for others to do the same,” Deis said in a report to the council. “We can’t ‘grow our way’ out of the problem and no amount of forward looking financial planning will properly fix it.”
This is the city manager of Stockton speaking, and in yesterday's Merc, he called the city finances a "Ponzi scheme!"
Can you imagine Steve Rhodes finally admitting this about Pacifica's finances?
“We can’t ‘grow our way’ out of the problem and no amount of forward looking financial planning will properly fix it.”
Lionel (1112), the difference is the city of Stockton (almost 300,000 people) has invested a whole lot of money in city funded infrastructure (including redevelopment), Pacifica has not.
Our Pacifica fix is in growing our city economy. Private developments, such as building beach boulevard, the quarry (especially), and upgrading infill areas and buildings will boost needed city revenue, and provide services and jobs. 60% unproductive permanent open space is way too much, a challenge for the economy of any city. And in this city we don't want to pay more taxes than the city can assess in additional fees. As you know, the city has been finding ways to increase and create new fees for years. Tired of that? Money has to come to the city from somewhere.
I agree with Kathy. Again this morning at 8:15 am I had a fourteen minute drive from Dave and Lou's to the Shell Station on Fassler. Without this Highway being enlarged or the Vallemar School being relocated to the Oddstad School site (before it is sold) development will have traffic problems in the Quarry. This is what this same group wants-either enough problems to keep a project out or putting so many obsticles in a development's face that there is no reason to go on. You don't have to blame the Council Todd. Their Planning Commission does the job of stopping everything and even telling projects what color their buildings are and what flowers to plant. h yes, Leon would make a great addition to the Council. NOT
"Steve, you need to accept you live in a democracy that allows people to voice their opposition to things or accept that you would be happier in some sort of 1930's European fascist state."
When did I say you don't have a right to express your opinion?
I was bitching about what you were saying. You get to bitch about what I'm saying.
So what's the problem Steve?
I don't like being called anti development or anti business because those accusation are false. I've asked you to substantiate those claims and besides just whining to whine you can't.
Please stop referring to me as someone who is anti business and anti development. Your actions are libelous in that they are harmful and by your tone demeaning.
Stockton spent millions on infrastructure, business, development, and all the other right stuff. Pacifica didn't. And both are facing the same disaster. Only the rate of descent will be different. Ponzi scheme? If it wasn't, it'll do til a real one comes along.
Isn't Todd in business?
You are anti-business and anti-development, Todd.
So Bray accuses Steve of libel but in an earlier post on this same stream, accuses city employees of embezzlement. Ah, what am I missing?
Todd, you've been against anything that could possibly lead this city out of the financial morass that we are in. You can't deny that. It's historic in it's proportions.
Give it a rest.
Might or might not be historic in proportion but it's definitely history. Can't we all just get along and face the very real current problems?
it's the housing, stupid. If the squatters sold instead of squatting, the housing would have recovered sooner than later. But because government intervened and thought they could help people stay in homes they never could afford in the first place it caused further economic turmoil. No one wants to lose their home, but if you can no longer afford it it is time to move on. God Help Us All.
Jobs.
"Lionel (1112), the difference is the city of Stockton (almost 300,000 people) has invested a whole lot of money in city funded infrastructure (including redevelopment), Pacifica has not."
Pacifica invested millions in Rockaway Beach, and it's likely that the taxpayer will never see the repaying of the loans from the general fund to the now-defunct RDA.
"Our Pacifica fix is in growing our city economy. Private developments, such as building beach boulevard, the quarry (especially), and upgrading infill areas and buildings will boost needed city revenue, and provide services and jobs."
But how do you do that with a collapsed economy? All these projects were approved, and can't be built because of a lack of financing. The quarry never was a project, no project was ever planned there.
It's sort of a religious-type of belief, that "development will occur and all will be well."
If that were true, then there would be nothing but prosperity in So.S.F., and D.C., et al, and Pacifica would be seen as a loser solely on that basis.
But that's not the way things are. All cities in the county have budget problems, and they all are struggling in some ways. Until you see the bigger picture, you see nothing.
That's right Lionel, but it isn't very satisfying or reassuring because for the most part this situation was and is beyond our control and no one likes to hear that.
No matter how much revenue Pacifica had, like any other city we'd have spent beyond our means and we'd be feeling a lot of economic pain.
Yet Pacifica is in much worse shape than other cities because we had so little business revenues to cushion the blow. So while other cities are talking about laying off police, Pacifica is talking about closing down it's police department.
Other cities are ill, but Pacifica is in critical condition. That's thanks to those who have spent years chasing away business and development.
Lionel 2/27/12, 9:16pm in response to your comments:
1. Pacfica "invested millions in Rockaway Beach",($8 million in the 1980's according to Mayor DeJarnatt's comment tonight at city council). So, that would be something like 24 years of lost "investment".
2. "Can't be built because of lack of financing." Are you talking about Pacifica today, whereas projects are being built over the hill. Or are you talking about Pacifica past, such as the outcome of Mori Point? Drag development regulation and contest long enough, funding will run-out, the developer will give up or die, or both.
3. The quarry was never a "project"? Your word-mince not mine. (reference 2/27, 11:51 am).
4. "All cities have budget problems". Most CA cities may have budget problems (the result of the recession and redevelopment agency closure), but to that equation add: Pacifica has "the lowest per capita revenue" of 20 San Mateo County cities over multiple years.
5. "Until you see the bigger picture, you see nothing." Are you sure, sounds like the message from a fortunate cookie I just ate.
Fortunate cookies? Kind of save the best for last, Kathy?
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