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Scrutinizing Travel Expenses From Conferences

Do You Know The Truth About Ventura’s Spending On Conferences?

Conference spending

Three groups spend other people’s money:  children, thieves and politicians.  All three need supervision.”

—Dick Armey

Examing Conferences Expense

The cost and benefit of every spending decision by Ventura’s City Council is magnified as the city faces budgetary losses for the next five years. The city is projecting to have a $10-$25 million shortfall during that time, so the City Council should be more careful how it spends tax dollars. Are we getting our money’s worth from our Councilmembers’ travel to conferences and seminars?

The City Councilmembers don’t think anyone is watching their spending or cares what they do. They believe voters gave them the mandate to be concerned with the details of how and where the city spends money. And, they’re right—to a degree. While citizens fret over the large expenditures on pensions, water, public safety, and staffing, it’s easy to overlook the spending habits of our elected officials.

Conference Boondoggles

The city publishes the expenditures by each sitting Councilmember quarterly. Here’s a summary of the expenses for the past three full fiscal years of the active members of Council:

Councilmember Spending On Conferences

It’s immediately clear that the spending by the active Councilmembers is rising year-over-year. It jumped 32% to $15,964 from $12,039 from Fiscal Year 2016-2017 to Fiscal Year 2017-2018. It increased 76% to $28,098 from $15,964 from Fiscal Year 2017-2018 to Fiscal Year 2018-2019.

Highlighted in yellow is the amount spent each year to attend the National League of Cities (NLC) Conferences. The NLC holds regional conferences and a national conference in Washington, DC.

Where’s The Value From The Conferences?

Ventura taxpayers get little information about the benefits the city derives from these conferences. There are no written reports of what the attendees accomplished. Sometimes, there is a verbal report made to the Economic Development Committee of what happened, as we see in the Agenda for the April 2nd meeting.

No Value for Attending Conferences

There are no meeting minutes posted for the public of the Economic Development Committee meetings. Nor are the sessions videotaped. There is no permanent record of what happened. There are no archives to refer to in the future. What’s more, the entire City Council doesn’t hear about the findings.

If all the value we receive is a report on the “relevant legislative issues from the NLC,” do we need to send representatives to Washington, D.C.? Couldn’t we get the same information by email or in written form? If we did, there would be a permanent record of the discussions for others to review.

The Value Is In The Connections

The attending City Councilmembers may claim the value of attending these meetings is in the contacts Ventura nurtures with other politicians throughout the country. That’s a specious argument. The relationships are personal between our serving Councilmembers and the people they meet. Those relationships break whenever our Councilmember or his/her contact leaves the office. What’s more, the value in a relationship with a politician in another city has a small direct impact on Ventura.

Auditing ConferencesThe justification may be to learn the “best practices” from other cities attending the conferences. What best practices did we learn on homelessness from representatives from Sacramento, Los Angeles, San Francisco, or Seattle? Homelessness in those cities is worse than it is in Ventura, and it’s not improving. Or did we learn something about water from Sacramento? Except, the California River Tunnel isn’t working out so well. Or did the reps from Washington, D.C., or Sacramento teach us about budgeting? The fact is, our reps need to convey any best practices we learned at those conferences need to city staff. The staff are the ones to put in place new ideas in City Hall. And without written guidelines, implementing the changes is nearly impossible.

The truth is any networking with others at these conferences is nothing more than socializing. Should we pay the expenses for two Councilmembers to hobnob with politicians? No.

Next Conference

Attending Conferences

Mayor Matt LaVere, Deputy Mayor Sofia Rubalcava, and Councilmember Brown are attending the National League of Cities Regional Meeting in Long Beach, CA, on October 16-18, 2019. What value will Ventura get from sending three Councilmembers to this meeting?

Editor’s Comments

In the best of times, these conferences may benefit Ventura, but these are not the best of times. The city faces a multimillion-dollar shortfall over the next five years. Frivolous spending of any kind must not happen, regardless of the dollar amount spent. Spending taxpayer money on these seminars and conferences may appear to be harmless at first. Still, scrutinize each trip to decide whether it’s a necessity. And if it is determined to be necessary, the value must outweigh the expense.

Tell City Council, “Spend Better On Conferences!”

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

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Irresponsible With Your Money On The Clean Power Alliance

When in doubt, don’t.

—Benjamin Franklin

Clean Power Alliance Good Intentions, Bad Decision

Thank the Councilmembers Cheryl Heitmann, Christy Weir, Lorrie Brown and Sofia Rubalcava for higher electrical costs, higher water, and wastewater rates. Also thank them for less police protection, fire safety and street paving, all so the City Council can save face and make all residents’ environmental champions.

Every citizen will now pay far more for electricity than if they stayed with Southern California Edison. The City Council had the option to keep your rates the same, but they didn’t. Too bad, because citizens will pay the increase and they will not get a vote.

When Choice Is No Choice At All

The City Council voted to enroll the entire city in the Clean Power Alliance program by a 4-2 vote on February 26th, 2018. During that meeting, our acting City Manager repeatedly advised the Council members they should wait because of financial uncertainties and undetermined costs.

They rejected the City Manager’s advice. Only Mayor Andrews and Councilman Tracy agreed with the City Manager’s recommendation and voted no. The other four members of the Council (Ms. Heitmann, Ms. Weir, Matt LaVere and Erik Nasarenko) committed the entire community to pay the additional costs for 100% for renewable solar energy.

Clean Power Alliance Quotes

In October 2018, the same four Council members (Ms. Heitmann, Ms. Weir, Mr. LaVere and Mr. Nasarenko) approved a contract with the Clean Power Alliance (CPA), enrolling every citizen and all city accounts in Ventura into the Clean Power CPA, in place of Southern California Edison. However, you were always free to reverse what the City Council decided if you took steps to opt-out. Otherwise, the change took effect in February 2019.

Remember, at the time the City Council voted to approve the Clean Power Alliance they didn’t know what it was going to cost. They committed the entire city to higher energy costs without knowing what those costs were going to be.

Who is the Clean Power Alliance?

Clean Power Alliance LogoThe Clean Power Alliance is a 2-year-old electricity provider in Southern California. They claim to bring clean, renewable energy at competitive rates. They compete with Southern California Edison (SCE), which has been around for 111 years and has been continually working on renewable energy for over ten years.

The City Council bought into the Clean Power Alliance’s message. You were “automatically enrolled in 100% Green Power which provides 100% renewable energy,” allowing all “residents to be environmental champions, leading the way to a greener future.”

You’re In Unless You Opt-Out

You were in the Clean Power Alliance unless you opted out. To opt-out, you needed to go to cleanpoweralliance.org, or call 888-585-3788. Whichever method you chose required your last utility bill and your SCE account number. Without those, you got nowhere. If you opted-out by telephone, you spent considerable time listening to recordings, ad nauseam, extolling green power’s virtues.

Six Months Later, The City Manager Learns The CPA Power Costs Are Greater Than Expected

In June 2019, the circumstances changed with the Clean Power Alliance. The cost of “green energy” went up—a lot. City Manager, Alex McIntyre, requested that the Council opt-out of the CPA program and return to SCE for the “high user accounts” of the city (like the street lights). Residents would remain enrolled in the 100% increased renewable rate with the CPA.

Clean Power Alliance Weighs Down Homeowners' Bugdets

The Clean Power Alliance Weighs Down Homeowner’s Bugdets

He recommended returning to SCE for at least a year until more was known.  He demonstrated that the costs to large energy use accounts within the city, such as street lighting, water, and wastewater, are 20.8% greater than represented a year earlier.  The total increase in costs for these high user accounts could be an additional $571,476.

After a lengthy discussion, filled with rampant confusion, misunderstanding, and punctuated with illogical statements, four members of the Council (Mses. Heitmann, Weir, Brown and Rubalcava) rejected the City Manager’s recommendation.  These four voted that all of the smaller city accounts would remain in the CPA program at 100% green power.  As for the six large City accounts, they voted to opt-out the street lighting account, and reduce the other large accounts to the 36% wind rate.

The result is that City government will be paying $228,086 more for electrical power through the CPA program than they would have paid through SCE.  Of that number, water and wastewater account will be paying $157,148. What’s more, they didn’t know the actual costs when they voted.

As for what residents will pay, the City Council confirmed that they would stay in the program at the 100% rate.

That gives all residents “the opportunity to be environmental champions, leading the way to a greener future.”

What Impact Will The Clean Power Alliance Decision Have?

The costs of participating in the Clean Power Alliance are becoming more visible, and it’s hurting the city. Southern California Edison increased its rates to the CPA, who is now passing those costs on to Ventura. The timing of the rate increase pressured the City Council into making a rushed, imprudent fiscal decision.

In the 11th hour, our solar power provider was now going to substitute wind power for solar and presented a $228,086 rate increase to power city departments. All of this came on the same evening that the City Council gave final approval to the 2019-2020 budget. Now this $228,086 increase, at a minimum, will shortchange police, fire and street paving, all so the city can have wind power.

Police, Fire and Street Paving Gets Shorted

Clean Power Alliance Leaves Less for PoliceCouncilman Jim Friedman got it right when he voted no.  When he expressed that, “The budget is $3.5 million in the red now, and this just makes it worse.” By voting to pay more to the CPA—money the city does not have—city services will suffer. Your streets won’t get paved.  The city doesn’t hire a police officer. Your water and wastewater rates increase. The police and fire departments don’t respond in time to save a life. If any of these things happen, you only need to look to four members of our City council for their budget decisions. (Mses. Heitmann, Weir, Brown and Rubalcava)

The city staff recommended opting out for one year until Ventura got a clearer understanding of what their fiduciary responsibilities would be. The City Manager recommended the City Council opt-out for one year. Councilmembers Heitmann, Weir, Brown and Rubalcava disregarded the staff’s recommendation to protect past votes to join the Clean Power Alliance. They voted to “save face” over the public’s interest.

Making Your Decisions for You

Council Pushes Clean Power AllianceThe City Council chose your electricity provider for you. In so doing, they shifted the burden of “Green Power” to every homeowner in the city. So, if you did not opt-out, you’ll pay higher electricity bills. We should resent the City Council forcing this upon the community. The CPA program should be a decision for each citizen to make. In this case, the government effectively enrolled everyone automatically without any consent from the citizens who will be paying the bill.

Four members of the City Council  (Heitmann, Weir, Brown and Rubalcava) were caught up in the “Save the Planet” message and hysteria. They believed that recyclable energy is the better choice, regardless of the cost. The Council should have taken a more cautious approach with an unproven, start-up company offering power whose benefits and costs are unknown. Instead, they let ideology cloud their decision instead of being fiscally prudent with taxpayer money.

Editor’s Comments

Should Ventura be concerned about a City Council that doesn’t plan, and spends money they don’t have? So far, they act with an attitude that ‘we’ll find the money somewhere.’ Obviously not from their pockets.

The highway to Hell is paved with good intentions. The City Council would do well to remember that. The city’s finances can withstand fiscal irresponsibility because of the Council’s financial ignorance only for so long. A day of reckoning is coming. Ventura faces six years of negative budgets. Perhaps that day is sooner than the City Council realizes.

As citizens, we must ask, “How long will we live with the Council’s bad financial decisions? For how long will we accept Councilmembers with political agendas that disregard city staff recommendations to make a ‘statement’?” Should Ventura be concerned about a City Council that doesn’t plan and spends money it doesn’t have?

Carefully examine your expenses and your beliefs to determine if the Clean Power Alliance is for you. If not, opt-out.

Moreover, when you go to the polls next November, do not reelect Councilmembers who exhibit no fiduciary responsibility with your money.

It’s time we examine our City Council’s performance and ask why they do the things they do. If we don’t diligently watch our money now, there may not be any money to watch in the future.

2022 Addendum

The Clean Power Alliance published its annual price comparison to Southern California Edison. The CPA costs more for electricity at every level of clean energy than SCE for a typical Ventura resident. If you’re concerned about saving money, opt out of the CPA using the contact information above.

Demand More Fiscal Responsibility On The Clean Power Alliance

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

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How The Right Steps In The 2019 Budget Make Your Tomorrow Better

“Giving money and power to government is like giving whiskey and car keys to teenage boys.”

—P.J. O’Rourke

Ventura faces severe revenue shortfalls in six of the next seven years, the size of those during The Great Recession. Ventura is on pace to lose over $9.07 million over the next six years. You should be concerned about the financial conditions in the City of Ventura, and you should also know this budgetary crisis is avoidable if the City Council acts this year.

Ventura’s General Fund Financial Outlook For The Next 10 Years

Ventura city staff calculate the city’s revenue and expenses for the next ten years [see graphic]. Costs will exceed income for six consecutive years beginning in the fiscal year 2020-2021—that’s next year.

Budget projection shortfall

Pensions are the main reason for the rise in expenditures. Annual pension costs will climb to $31.48 million from $19.71 million by the fiscal year 2025-2026. That’s an $11.63 million increase. The city projects property and sales taxes to increase by only $10.6 million over the same period. Not a rosy outlook.

Budget negatively impacted by pensions

Next year (the fiscal year 2020-2021), Ventura faces a $2.52 million deficit because of the $2.17 million in rising pension costs.

Pensions cause budget deficits

The city staff estimations are optimistic. They do not factor in a recession, which some believe is imminent. If a recession comes, people will lose jobs. Also, if a recession hits, property and sales tax revenues will suffer and projected losses may be even worse. What’s more, the city plans to add no money to reserves in the fiscal year 2019-2020. Current reserve levels for the City of Ventura will keep the city government running for only 45 days.

Wasn’t Measure O supposed To Save The Budget?

Measure O passed three years ago and will continue for the next 22 years. It brings in $10.8 million in additional sales tax revenue each year. Still, it isn’t enough to cover the projected shortfalls. Why is that?

There are several reasons why Measure O can’t save the city’s budget. First, there is no consensus among the City Councilmembers about how to use Measure O money. Alex McIntyre, Ventura’s new City Manager, asked all seven Councilmembers individually how they would spend it. All seven Councilmembers gave differing opinions on how to use the Measure O taxes. Without clear direction, it’s difficult for the City Manager to focus the city staff on what’s most important for our city. Confusion over Measure O is one example of how the City Council is dysfunctional on the budget’s priorities.

vultures eyeing the budgetA second problem is how special interest groups lined up to get their share of Measure O. At the May 20th City Council meeting, Councilmembers Lorrie Brown, Jim Friedman and Mayor Matt LaVere tried to move funds from Measure O to the General Fund for Fire Station No. 4. The Star report said the Fire Department union members felt insecure (sic) about Station No. 4 funding coming out of a temporary tax fund. (The tax lasts for 25 years)

In 2016, The City Council sold Measure O to voters with the promise that Fire Station No. 4 would remain open with its funds. Voters agreed to the idea of a temporary 25-year tax. VFD is now trying to persuade the City Council that when Measure O expires, there may not be funding for Fire Station No. 4. They fearmonger that response times to calls will increase, and lives could be lost. A 4-3 vote defeated the motion.

While this City Council takes precious time debating moving funds from one column to another, the growing unfunded pension obligations put pressure on the entire city budget, even with Measure O.

The Canaries In The Coal Mine

The canary in the coal mine foretells budget problemsEconomic disasters are all around us. There is no reason to think that Ventura is immune to them. The City of Oxnard is preparing to lay off hundreds of employees. They also plan to close a fire station and reduce the number of fire personnel available to respond to emergencies. The Oxnard City Manager says, “We are down to bare bones.” What’s happening in Oxnard is a preview of what could happen in Ventura unless the City Council acts quickly.

Ventura County Medical Center is losing over $40 million per year. That adds more unemployment to our community. With the City of Ventura own forecast of financial shortfalls, the City Council would do well not to ignore the economic disaster warning like ‘a canary in a coal mine.’

How Do We Fix The Budget?

Ventura's budget has always been suspectThe budgetary crisis is entirely avoidable if the City Council acts now. The solutions are simple, but they are not easy. It requires significant political will and resolve.

Improve The Budgeting Process

Currently, the City Council approves the city’s annual budget one year at a time. It doesn’t consider subsequent years’ financial demands. Given that the 10- year forecast shows losses for the next six years’ budgets, to ignore the next six years will be pushing the problem “down the road.”

Now is the time to change this systemic shortsightedness. City Councilmembers have the opportunity to discuss budgeting on at least a 3-year basis, not one year at a time.

Not Filling All Open Positions In City Hall

To balance the budget over the next six years, the city staff has two potential solutions. They can increase revenue through taxes and fees or reduce expenses. Since it’s not easy or popular to raise taxes and fees, the alternative is to cut costs.

Ventura City Hall, city budget

The single largest expense category is city employees. Cutting staff is the obvious choice to reduce expenses. To avoid the unpopular cutting of current employees, the City Council can take a less unpleasant path and cut positions in the budget that the city never filled.

There are currently sixty unfilled positions at City Hall. If each vacant position costs the city $100,000 per person (salary, overtime, retirement and benefits), the cost to budget for these open positions adds to the projected deficit (losses).

If the city reduces the unfilled positions to thirty instead of sixty, the savings to Ventura would be $3 million per year. A $3 million reduction in expenses will balance the budgets for the next six years.

This decision puts the City Council on the horns of a dilemma. Should they hire all sixty positions now and later fire employees during the budget shortfalls? Alternatively, should they hire only thirty people knowing they can add personnel if the city’s economic situation improves? Eliminating unfilled staff positions is less disruptive to city government than laying people off.

Economic Development

An alternative toward improving the budget is to attract new or expanding businesses to Ventura. Several Councilmembers understand this and agree. More business and local jobs are the best solution for filling the budgetary shortfalls. More jobs generate more sales tax, encourage community spending and increase property values. Higher property values increase property taxes and reduce blight.

economic development adds to the budgetImagine the stimulus to the community of filling the old Star Free-Press building or the Toys-R-Us location would have.

The city has already taken the first step in this direction. City Manager, Alex McIntyre, has moved the Economic Development division under the City Manager from under Community Development. Elevating the reporting of this department to the City Manager signals the increased importance economic development has for the city.

Empower The Economic Development Manager

Another simple step the city could take would be to empower the Economic Development Manager (EDM). The EDM must have readily available an inventory of all commercial locations, complete with square footage, zoning, parking, pricing, and a list of commercial real estate agents and contact information.

The City Council must be ready to provide incentives to new or expanding businesses. The incentives must include fee reductions and process simplification to entice the companies. One such motivator must be a single contact within the city who will guide the relocation process through the bureaucracy.

Finally, the EDM must identify and target new commercial business to locate in Ventura.

Each of these positive steps toward economic development has one drawback. They are long-term solutions. None of them will happen quickly enough to fix a budget by next year.

Streamline the City Hall Experience

The city has started reorganizing boards and commissions that oversee Planning, Design Review, Historic Preservation, and other committees filled by residents appointed by the City Council. While this is a good start, it must go further.

Reducing boards and commissions saves staff time in preparing and attending meetings. The staff attends about 20 meetings a month. Fewer meetings will allow more time for the employees to better supervise operations in planning, design review, code enforcement, etc.

The city must look at other ways to reduce staff time in other duties—especially if the city hires only thirty of the sixty unfilled positions. All staff operations should be scrutinized to end obsolete or redundant activities.

Revamp Ventura Fire Department

Now is a good time to modernize the fire department. Ventura Fire operates in much the same way it did 100 years ago except the needs are far different:

  • Building codes are stricter making fires less frequent
  • More buildings have sprinkler systems
  • Over 75% of calls are for paramedics

Each fire station has paramedics on duty to serve those calls. In addition to Ventura Fire, each medical emergency requires an ambulance from a private company in case a victim needs transporting to the hospital. Rolling a fire truck plus an ambulance seems like duplicated efforts.

VFD adds pressure to city budgetAny change to the Fire Department would likely be unpopular with the public. That makes it a subject considered by Councilmembers, to be too controversial to discuss.  The fire department union will become protective of their fellow firefighters and will want to preserve the status quo.

As they have in the past, the unions will apply pressure to the Council. Since four of the seven elected Councilmembers received campaign contributions from Ventura Fire in their last election, the politicians will likely concede as they have in the past. Ventura Fire Department needs reorganizing. Now is the ideal time to do it.

Editor’s Comments

The community will not support another tax rate increase. Pension costs already absorbed the entire $10.8 million raised by Measure. Still, citizens ask why the city doesn’t repair their streets and sidewalks. We can’t hope for an economic miracle to increase revenue, so the city must take steps to curb expenses. Ventura must:

  • Lower expenses by not filling all open positions at City Hall. Add those costs back into the budget
  • Design and target new commercial businesses to locate in Ventura
  • Offer incentives and fee reductions to bring more jobs to Ventura
  • Streamline the City Hall process and operations to reduce staff time. It will accelerate the processing time for building and licenses
  • Streamline medical response procedures within Ventura Fire. Find ways to reduce fire department costs for those calls. Dispatching a private ambulance and fire trucks with paramedics every time is expensive
  • Hold in-depth discussions at the City Council to expand budgeting to a 3-year basis, not one year at a time

INSIST THE CITY COUNCIL MODERNIZES THE BUDGET PROCESS

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

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