Will Redevelopment Borrow Another $29,000,000 Tonight?

Acting as the Redevelopment Agency, the City Council will be voting on a $29,000,000 bond tonight. City staff estimate the total cost to taxpayers for the bond at about $45,500,000 over the next 16 years. $45.5-million! The RDA is the only agency that can issue bonds without voter approval. It is completely unethical for our elected council members to break out the taxpayers’ credit card while our library’s hours are reduced, workers are furloughed, and employees salaries are cut. Shame on the Redevelopment Agency staff and shame on any council member who votes for this bond!

Why should we be upset about the RDA spending $29,000,000? Because, as the OC Register reported in July, the Fullerton Redevelopment Agency spent $22,700,000 to evict 600 low-income residents, bulldoze their homes to make room for a few low-income condos. This is on top of another half-baked idea to move a McDonald’s 150 feet at a cost of $6,000,000 to taxpayers. $6-million to move a burger stand 150 feet! Fortunately, the RDA gave into public pressure and the project was shot down.

Some council candidates like to point at Downtown Fullerton as a shining example of the great work Redevelopment does. Indeed it is. Had we not “revitalized” our downtown, we would have fewer calls for police and fire to respond to drunk and disorderly conduct.

Please take a minute to think about the untold damage done by our own City Hall under the direction of our City Council, often acting as the Redevelopment Agency.

Pringle’s Perplexing Pitch for Public Prosperity

An HSR project? Capital idea! Let's get down to brass tax...



If anyone had any doubt about the validity of a high-speed rail project in California, all they need to do is read a succinct editorial by Steve Forbes in the online edition of Forbes magazine.

Typically we think of high-speed rail projects as a local affair, but Forbes demonstrates that it’s really a not-so-original template for the grabbing of public money, and can happen just about anywhere. The ratio of dollars spent compared to the percentage of the public who would actually end up using such services is dramatically out of proportion.

Is this Anaheim Stadium?

Forbes points out that high-speed rail projects are a relatively risk-free ticket for politicians to further their careers, fleecing the taxpayers big-time in the process. The fact that the proposed line from Anaheim to San Francisco would cost an estimated $43 billion should be enough to make any sane person think twice, and perhaps even lose a little sleep, but apparently Mr. Pringle is immune to such basic human contemplation.

What? Me worry? Are you kidding?

This sort of shenanigans on such a grand scale would never occur in the free market, it’s only under the guise of government serving the public good that such perverse misuse of public funds could take place legally. Just what planet is he from, anyway?

HSR? Hah! What we should really be considering is a transporter!

Is Pringle’s Runaway Gravy Train Coming To A Halt?

After months of wondering how Anaheim’s Mayor-for-Hire, Curt Pringle, could get away with pushing through his high speed choo-choo on the folks of Buena Park, Fullerton, Anaheim, Orange County and all of California, I discovered a legal opinion from Legislative Counsel addressed to the Secretary of the State Senate that unequivocally opines that Pringle holds incompatible offices as Chairman of the California High Speed rail Authority, while simultaneously representing the City of Anaheim and the Orange County Transit Authority. He is breaking the law.

"A" is for...

Pringle has already directed the better part of $200,000,000 of Orange County transportation funds to Anaheim’s idiotic “ARTIC” facility, and that doesn’t even include more that will be necessary to accommodate his high speed boondoggle. Is it a coincidence that the first leg of the CHSR will be built in the least necessary or useful stretch of this concept – LA to Anaheim? Is it just as coincidental as Pringle’s lobbying firm being there to “consult” after hizzoner is out of office?

Mr. Curt? He up in the Big House.

Of course, Pringle is the heart and soul of Orange County repuglicanism: he runs the plantation and we all are just his cheap labor.

Yesterday I sent a letter by overnight delivery to our Attorney General requesting a quo warranto opinion from the AG, to wit: if the AG believes that the finding of the State Legislative Counsel is correct then the AG must take action to have the Pringle, and his LA Metropolitan Transit Authority counterflack Richard Katz, removed from their prior public offices to protect us regular folk from the sharks. Eric Carpenter of the register has written about my letter the AG, here.

It matters to Pringle. With a month left in office the influence he can still peddle at our expense is significant.

Stop the Madness Now! The G-Rated Version

Last week we presented this hilarious dialog between a distraught taxpayer and a union firefighter, which became an instant hit across the country.  While the clip had no problem making it onto the workstations of public agencies far and wide, we also had many requests for a G-Rated version.

Despite our concern that self-censorship may inhibit the fine directorial talents of our anonymous Oliver Stone, he was happy to oblige:

Of course, most will probably prefer the original profanity-laced version here: Stop the Madness Now!

What If Your Boss Gave You a 1200% Retirement Match?

That’s what members of Fullerton’s police and fire unions get from us.

Almost all of the candidates are talking about pension reform now, but they don’t quite have their figures right. According to the city’s HR Director, public safety employees currently pay 2.557% of thier salaries towards their multi-million dollar retirements, while taxpayers pick up the rest. This year, we’re paying an additional 29.752% of their salaries towards their retirements, and it’s set to shoot much higher.

In private-sector terms, that’s equivalent to an employer 401(k) match of 1200%. That’s twenty-four times the average out here in the real world.

Chaffee’s Magical Tax

Plenty of bad ideas were tossed about at the candidate at the forum on Monday night, but this one from council hopeful Doug Chaffee takes the cake:

So according to Chaffee, doubling the hotel tax in the middle of a recession will bring more hotels and visitors into the area. There doesn’t seem to be a lot of logic behind his idea, but perhaps that’s why he calls it “magical.”

Chaffee pushes the idea further by suggesting that Fullerton should “generate” (aka subsidize) a new hotel to compete with Disneyland, the most famous theme park in the entire world.

Gee, another one?

Of course we’re later reassured by Chaffee that the tax would only be tacked on to “other people” who make the mistake of taking brief refuge in our city. That’s the old divide-and-conquer tax scheme that’s plagued California businesses for a long time:  levy heavy taxes against each industry, one at a time. Who’s next?

Hey Doug, a tax is a tax, and there has never been a worse time to raise taxes. And quit trying to convince us that we should be more like Anaheim.

Update: Click here to suffer through the entire event.

Greenhut: Pension Reform Must Happen at a Local Level

Author Steven Greenhut delivers a dismal report for those looking for pension reform to come out of the state legislature: It ain’t gonna happen. Cities and schools must save themselves.

http://www.youtube.com/watch?v=ujCwsG4P9ZI

But we are still the masters of our fate. If we move quickly, there are things that can be done to prevent this financial disaster from passing on to our children, although they will require unconventional courage, wisdom and action.  So who’s going to step up to the plate and rescue Fullerton?

Aaron Gregg Wriggles Out From Under His Taxes with a Quick Bankruptcy

When you put your name on the ballot, you’re asking voters to trust you with hundred million dollar budgets and the power of a government office. Therefore, it is a duty of the public to make sure that each candidate is qualified to handle this burden of responsibility. Anybody with a financial history that cannot stand up to basic scrutiny should not put themselves out in front of the voters.

On that note, Aaron Gregg should not be running for Fullerton City Council.

Okay, creditors to the back of the line!

You see, attorney Aaron Charles Gregg filed for a $107,000 bankruptcy about 10 years ago, discharging over $75,000 in federal and state back taxes and $30,000 in other debts to individuals and businesses, all while claiming $8,000 a month in income from his business.

View the bankruptcy filing

It’s all laid bare in these papers that were filed in federal bankruptcy court, which show that Aaron Gregg neglected to pay his taxes for most of the years from 1992 through 1998. When the debt piled up, he hired an attorney and let it all go.

Among the more curious items in the filings, Aaron Gregg listed assets of $25 dollars cash, $200 in clothes, $75 wrist watch and some office supplies. Times must have been tough for this professional attorney of 21 years. Fortunes were about to change, however, when he realized that he would be able to dump his debt but keep his leased $5,000 Savin copier. I bet that will come in handy some day.

I'll need that when I run for city council.

The documents also show that halfway through the bankruptcy process, Aaron Gregg discovered that he might also owe money to a family in San Pablo City, Philippines. What could that be for? Well they’re never going to vote in Fullerton. Might as well get rid of that debt too.

It was a bad investment.

In the end, it looks like Aaron was able to dump over $100,000 owed to nine different creditors, two of which were government agencies. When the tax man doesn’t get his revenue, guess who gets to make up for it? That’s right, you and me. And somehow I have a feeling that Aaron Charles Gregg made it out of this financial mess and has been doing just fine ever since. But that’s no reason for him to think he’s a valid candidate to run our city.

On second thought, Aaron’s keen ability to get himself out of unwieldy financial commitments may come in handy when it’s time for Fullerton to escape our massive redevelopment and pension debts. But it’s probably safer to just call him in as a consultant.

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Volunteer Firefighters Account for 1/3 of OC Fire Authority’s First Responders – Fullerton ZERO

The front page of the September 9, 2010 Orange County Register brings to light how a good idea is implemented poorly.

The article discusses a report from an un-named source that shares data on response times from reserve firefighting and medical units in Orange County. According to the article, there are 495 reserve positions with only 291 positions filled. Of the 291 positions, 41 will be laid off or fired.

Let’s put it in perspective. The Orange County Fire Authority employs 841 full-time firefighters/fire management personnel. They have budgeted 495 reserves for FY2009-10. That means that nearly 1/3 of total first responder capabilities rest in the hands of reserves. Fullerton has no reserve firefighters to help shore up minimum staffing requirements and minimize overtime. For a department which was founded as a volunteer fire department I find it ironic that they now have zero reserves on hand to help.

The OC Register article goes into the asset versus liability of having reserve fire units. Essentially, the report finds that several reserve units failed to respond to calls. That in and of itself is problematic but the real question that is missed is where has management been? You would think that management would notice pretty quickly that the reserves are not responding and then take corrective action. Apparently no one noticed.

Amazingly, the solution is quite simple. By integrating reserves with professionals in the same manner as law enforcement agencies, the reserve can be better managed and will have the opportunity to receive peer mentoring.

Why has management allowed reserves to have their own volunteer units and not an integrated approach? My guess is that the OCFA union would not allow it through their MOU or no one cared enough to explore the use and utility of having reserves. For that matter, why do we still have firefighters being paid to sleep in regional firehouses? No other public agency outside of fire service, would allow employees to sleep on the job.

I realize the thought of working an 8- or 12-hour shift might terrorize some firefighters but it would certainly make better sense than having dozens of high-paid public servants sleeping on the job. Other communities have already implemented 8-hour shifts. It would also address the argument that firefighters deserve their high pay and pension because they are away from their family more than other public employees. With that argument one would think our soldiers are millionaires considering the time they spend away from their families.

Firefighting has its own culture based largely on tradition. When those traditions negatively affect taxpayers, it is time to think if we want to continue down this costly “traditional” road or cut a brave new path that leads to improved services and lower costs.

What’s Another $30 Million? Charge It.

What happens when you run up a credit card but only make the minimum payment? It never works out very well. But that’s how Fullerton is handling $30,000,000 in retiree health care commitments.

http://www.youtube.com/watch?v=ntIaUiv9seU

Jack Dean passed along this unfortunate piece from the OC Register which exposes over $1 billion in unfunded retiree health commitments for Orange County and its cities. Fullerton’s spending problem is summarized here:

City Fullerton
Population 138,610
Unfunded costs $29,986,735
Unfunded cost per capita $216
Maximum benefit (per year) $9,744
Paid in 2009 $1,927,528
Does the agency pay only the minimum cost? Yes
Is a lifetime benefit offered? Fire employees
Source: Retiree health costs and other retiree data from local cities and the county; population statistics from the California Department of Finance

Retiree health benefits are negotiated between our city council and the public employee unions during contract renewals. Supervisor John Moorlach says they are an easy squeeze for unions because boosting benefits for employees requires no up-front cost to the city.

Much like exorbitant pensions, these benefits are a long-term commitment where the future costs are impossible to calculate at the time the entitlements are given. Ultimately, taxpayers are responsible if costs “unexpectedly” spiral out of control. And of course, they always do.