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Letter: Back Up Measure Y Projections with Hard Numbers

Piedmont resident Ryan Gilbert writes that voters deserve real fiscal projections before approving a renewal of the parcel tax.

Editor:

Measure Y proponents on the City Council have been quick to make gloomy prophecies about what will happen if Measure Y is defeated. But none of the Council’s self-described “numbers guys” have ever backed up these prophecies with real fiscal projections.

The City Council has never been given any projections by Staff or Mayor John Chiang that failure to pass measure Y will automatically lead to reductions in public safety services and specifically EMT services. In fact, Council has undertaken no planning in the event Measure Y does not pass. If the outcome will be so dire, shouldn’t a prudent, forward-looking elected body plan for such eventualities? It seems very reckless not to do so.

Councilman Garrett Keating in a recent online comment has suggested that “there is zero probability that public safety services would be cut.” The gloomy prophecies seem like electioneering and fear-mongering by the Measure Y’s proponents.

Piedmont’s unfunded $40M liability in pension and benefits for current employees present a greater risk of cuts to these services. Once again, the City Council has never been presented hard numbers, although Staff have implied that Piedmont faces some difficult choices over the next 8 to 10 years as these pension obligations come due.

Piedmont voters should demand real projections from City Hall before
backing a tax renewal. Until then, vote no on Measure Y.

Ryan Gilbert
Piedmont 

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Lee Bindeman October 18, 2012 at 03:54 pm
You argue the we should not renew the parcel tax because the city has a bigger long term problem with pension and benefit costs. I appreciate that a long term solution is needed, but I fail to understand how reducing tax revenue in the present is going to help solve the long term problem. Although public safety spending may be spared, significant cuts will be needed somewhere if measure Y fails. Are you assuming that creating a crisis will lead to a better long term solution?
Rick Schiller October 18, 2012 at 06:33 pm
The answer is that without the slush fund the parcel tax provides, the Council will have to tackle benefit costs, the way other cities have. They will have to do this by increasing employee contributions to the levels anticipated by Gov. Brown's recent pension overhaul. That will not only reduce current city costs substantially, but it will bring down the $40 million liability, whose projection does not assume the much more aggressive employee cost-sharing that the Governor's plan does.
The problem in Piedmont has been exacerbated because 8 years ago the Council voluntarily chose the most expensive benefit package available and then paid all the employee and employer share. One example is the recent retirement of Chief Ravazza; her final monthly salary was $14,791, her initial monthly pension is $18,918.
Lee Bindeman October 18, 2012 at 07:53 pm
In what way is the parcel tax revenue a "slush fund"? That implies something corrupt or secretive about it. Is it not part of the general fund?
I assume the current cost savings you mention is due to shifting benefit costs from the city to the employees. Assuming this can somehow be done legally, is the amount of potential savings even close to replacing the lost revenue if measure Y fails?
Mike Henn October 18, 2012 at 10:21 pm
The CC Times ran a series about overpaid local government retirees. A healthy 52 year old retired San Ramon Fire Chief is making over $200K in retirement. The whole public employee compensation system is broken. I appreciate the efforts of the fine fiscal watchdogs in Piedmont, but we are not the worst offenders. Passage of Proposition 32 in November should be the first step to break the stranglehold of public employee unions in Scaramento. California has the highest paid public employees of any state in the nation. We also have the most financially distressed local governments in the nation as a result.
Rick Schiller October 19, 2012 at 06:11 am
The slush fund aspect is that the Parcel Tax goes into the general fund and can be used for any purpose. City Hall considers some items well beyond a common definition of essential services as essential.
Besides the out of control compensation system, enumerated so well by Mike Henn, all of the current parcel tax was spent on such "essentials" as $2.45M to the Undergrounding Debacle, $616,00 to the Hills/Sea-View Underground District litigation defense (the Judge characterized the City's anti-Slapp motion as unworthy of any competent attorney) and the failed Blair Park Sports Fields project which has cost close to $500,000 despite being told repeatedly "no taxpayer cost." The final bill is still unknown. The potential Blair Park project went forward with none of the risk assessment lessons learned from the Undergrounding Debacle in place. I suggest you review the following material and that at www.noonmeasurey.com. The 2011 MTRC chairman and Council Keating agree, there will be no loss in essential services. http://piedmont.patch.com/articles/letter-measure-y-piedmont-fire-department http://www.piedmontcivic.org/2012/10/16/opinion-why-i-am-voting-against-measure-y/ http://www.noonmeasurey.com/check-the-facts/public-safety-neednt-suffer-if-tax-not-okd
Kathleen Quenneville October 31, 2012 at 02:10 am
Proposition 32 seems to me a tactic to give corporate political donors an advantage over union donors - and that seems fundamentally unfair. I will be voting no on 32.

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