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2019 State-of-the-City

What You Missed In The 2019 State-Of-The-City Speech

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“The great enemy of the truth is very often not the lie…but the myth, persistent, persuasive and unrealistic.”

—John F. Kennedy

2019 State-of-the-City Address

Mayor Matt LaVere filled his 2019 State-of-the-City address with images of a utopian Ventura. Unfortunately, it lacked specifics on addressing Ventura’s most pressing issues.

The mayor laid out his seven goals for 2019-2020. His vision included several goals that his predecessors didn’t achieve. Six of the seven were unmeasurable. What’s more, many goals are mere rhetoric and very little substance.

VENTURA’S HOMELESS CENTER

2019 State-of-the-City AddressTopping the mayor’s list of priorities was opening a permanent, full-service homeless shelter by December 31, 2019. The date gives this goal specificity. Opening the center doesn’t begin to solve the problem, though. Mayor LaVere and the City Council equate opening a homeless center with improving Ventura’s homeless situation. They are not the same thing.

Homelessness has risen the past three years to 555 persons from 300 in 2016. In that time, the city has increased spending on the homeless. The problem continues to grow despite spending more tax money to solve it.

The Council and city government are hoping the new homeless shelter will stem the tide. A closer look at the facts, though, shows their hope is not well-founded. There will be 55 beds, and it will cost Ventura $712,000 per year. Filling every bed will still leave 500 homeless persons on the street. The shelter will serve only10% of the homeless population.

2019 State-of-the-City AddressWhat’s more, the City Council conflates opening the center with helping the homeless. The goal shouldn’t be to have beds available. That’s an intermediary step. The goal should be to get the homeless off the street and return them to a healthy way of life.

The real solutions to homelessness—a very complex problem—was missing from Mayor LaVere’s vision. There are examples of successful programs in other cities. Looking at successful programs, like the one in Providence, Rhode Island, would be a step in the right direction.

UPDATE THE GENERAL PLAN

The second goal was to reinitiate the General Plan update. Ventura city government will conduct public outreach throughout 2019. Other than holding several long-overdue citizen input meetings, the outcome will be unmeasurable.

The city must try new, innovative ways to reach citizens. Otherwise, it will miss valuable input. Young people are most likely to be underrepresented. Our younger citizens are generally absent from public meetings. Yet they will live with the consequences of the General Plan.

The mayor and City Council are relying upon the voters to be content that the city was doing the outreach.

ECONOMIC DEVELOPMENT

2019 State-of-the-City Address

The third goal is to create a comprehensive economic development strategy. The strategy would include several key focus areas, including:

  1. Auto Center and Focus Area 1
  2. The Johnson Drive corridor. Mayor LaVere cited the North Bank Apartment project as an example.
  3. Front Street. The mayor wants to turn it into Ventura’s version of Santa Barbara’s Funk Zone.

Missing from the address is the vital fact that economic development begins with other people’s money. It takes investors willing to put up the capital to improve the business environment. How will the City of Ventura invite and welcome investors who want to start or move their business in Ventura?

Santa Barbara’s Funk Zone succeeds because the city made it easier to rebuild in the area. Developers lament that Ventura’s city government makes it difficult to do business. Stifling regulations, fees and planning delays force investors to look elsewhere. The new economic development plan should have one single goal to stimulate growth. Force the city to review, streamline or remove building codes and regulations wherever possible.

VENTURA BEAUTIFUL

2019 State-of-the-City AddressMayor LaVere’s fourth goal is to beautify the community. He wants to end what he termed “blight.”

Like the economic plan goal in the 2019 State-of-the-City address, this goal relies on “other people’s money.” Homeowners must invest in eliminating the so-called blight. There is no compelling reason for property owners to reinvest in some properties. The same stifling regulations and fees that deter investors hurt homeowners, too.

Following the Thomas Fire, the city reduced the building permits and fees for rebuilding. If the mayor is serious about improving blight, offer similar reductions to anyone enhancing their property. That would be measurable.

COASTAL AREA STRATEGIC PLAN

The fifth 2019 State-of-the-City goal is also unmeasurable and unspecific. Mayor LaVere says we must develop a Coastal Area Strategic Plan. He contends we need this because of climate change. He offered no further details.

The same faults of gaining input for the General Plan apply to the Coastal Area Strategic Plan. Find ways to reach all citizens.

BUILDING COMMUNITY

Mayor LaVere’s sixth goal is for the Ventura community to come together by building parks. Building community was a goal of both Mayor Erik Nasarenko and Mayor Neal Andrews. Three years and three administrations later, this goal remains.

2019 State-of-the-City AddressThe mayor hopes to achieve this goal by building community parks. The Westside Community Park set the model. Mayor LaVere’s first target is Mission Park.

Like the other goals, rebuilding Mission Park lacked specifics, budgets, timelines or measurable results. Moreover, this plan has one fault the others don’t have, public safety.

2019 State-of-the-City AddressMission Park is home to a growing number of Ventura’s homeless population. To prepare the area, the homeless must move elsewhere. The 55-bed homeless shelter isn’t the solution. Also, even if we scatter the homeless, there are safety issues. Someone would have to clean the discarded needles, drug paraphernalia and human waste from the park.

STOPPING THE BLEEDING

2019 State-of-the-City AddressThe need for key personnel is a huge problem. To fulfill any of our mayor’s goals requires adequate staff. The final 2019-2020 goal is to stabilize and strengthen our city government. The city has eight unfilled, critical managerial positions and dozens of vacant jobs. The city will achieve none of the other ambitious goals if there aren’t enough workers at City Hall.

We know this is City Manager Alex McIntyre’s responsibility. In February, he requested six months to fill those positions. Four months remain. He needs time to recruit qualified people and offer competitive compensation. We hope Mr. McIntyre will fill those roles soon, but if he doesn’t, how will the City Council help and support him?

EDITORS’ COMMENTS

This year’s 2019 State-of-the-City speech was platitudes, a utopian vision and fuzzy logic. Those may have worked when we were a quaint beach town, but they don’t work today.

These are challenging times for the city. An understaffed government is trying to do the people’s work, but it’s hard. Issues like homelessness, economic development and community building, are secondary to the daily duties.

Mayor LaVere presented his vision of what Ventura could be. Unfortunately, he may have made promises his administration can’t keep. Worse still, his optimism lacked specifics and failed to address Ventura’s most pressing issues: employee retirement costs, water costs and public safety. Nonetheless, if the commitments are vague enough, no one will be able to measure if we keep them or not.

FORCE THE CITY COUNCIL TO BE MORE REALISTIC WITH ITS 2019 STATE-OF-THE-CITY GOALS

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.

Councilmembers
Councilmembers
Councilmembers Councilmembers

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What You Missed In The 2018 State-Of-The-City Speech

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“We’re no longer a quaint little beach town.” —Ventura Mayor Neal Andrews

Mayor Neal Andrews’s State-of-the-City address was noteworthy more for what he didn’t say. The speech was a summary of last year’s events delivered by each of the major department managers with summary comments by Mr. Andrews.

What this year’s address lacked was a vision for Ventura’s future. Neither Mr. Andrews nor the city’s department heads mentioned job creation, new sources of revenue or business development. Instead, we heard how the city utilized Measure O’s $10.8M sales tax revenue.

The fact remains that Ventura faces significant challenges. The recovery from the devastating Thomas Fire has brought out the best in people but also exposed failures in systems and processes. We acknowledge the heroic efforts of citizens, police, fire and water personnel who fought to prevent further tragedy. But, we must temper those accomplishments with the systemic failures by the local government that contributed to this horror.

2018 Challenges Not Addressed In The State-of-the-City

Rebuilding After The Thomas Fire

Post-fire reconstruction is overwhelming the Building & Safety Department. Community Development Director Jeff Lambert put a brave face on it, but the stress was palpable.

City Manager

There is currently no City Manager. Assistant City Manager Dan Paranick stepped up to lead the city’s recovery efforts. From all indications, he is performing proficiently. Nonetheless, the search goes on for a permanent replacement.

Water Department’s New General Manager

New Ventura Water General Manager, Kevin Brown assumed leadership only weeks before the Thomas Fire. He now faces the double task of improving performance while he defends the city against lawsuits filed in the aftermath of the Thomas Fire.

Elections By District

The 2019 City Councilmembers will represent specific voting districts. Before 2018, voters elected Councilmembers “at large” to serve the entire city. This change will force Councilmember Mike Tracy and Mayor Neal Andrews to retire from City Council. New faces representing the Ventura Avenue and East Saticoy Districts will occupy their seats on the Council.

The Deafening Silence

In the closest thing to providing a vision of Ventura’s future, Mayor Andrews laid out his commitment to “focus on building prosperity.” He plans to support the business community, but he shared no specific policies or initiatives.

Another of Mayor Andrews’s commitments was to “radically increase the city’s technology.” He plans to do this through an improved broadband strategy. He revealed no further details or costs or how to pay for this plan.

Pragmatically Looking Ahead

What we know is Ventura faces specific, severe financial and budgetary challenges, even with the Measure O revenue. What we don’t know is from where the extra funding will come.

Other issues not commented on were:

  • Ventura will receive less property tax revenue from the 535 houses ravaged by the Thomas Fire.
  • Ventura can expect lower gasoline sales tax revenue because of trends towards less driving.
  • Unfunded pension costs will increase another 10%-20% next year.
  • The recent rains increased road damage on unrepaired streets. Telegraph, Victoria, Wells, and Thompson all show the effect of the storms.
  • Ventura Water needs an extra $500-$600 million over the next decade for water and wastewater infrastructure. Recent rate increases over the past four years will not cover this shortfall. Water rates will increase again.
  • Legal costs to defend the city against lawsuits filed in the aftermath of the Thomas Fire will come from the General Fund. The unbudgeted expense could result in higher fees.

Where Is The Vision?

There was one tiny glimmer of vision in Neal Andrews’s address. He said, “We [Ventura] are no longer a quaint little beach town. We’re among the top 10% of the largest cities in California.” Mayor Andrews recognizes a truth many of us have known for years. Ventura has urban issues, and we can’t solve urban problems with provincial solutions. We need fresh thinking.

However, Mayor Andrews and the city staff have not shared a future vision. Some may look to a new City Manager to provide a long-term plan. But experience indicates this is wishful thinking.

Rick Cole nearly ruined Ventura financially.

In 2004, the City Council hired Rick Cole. Mr. Cole had a grand urban development plan for Ventura. He spent millions planning to narrow Victoria and make Ventura a “walking community.” His unrealistic thinking nearly ruined Ventura financially. The economic impact will haunt Ventura for decades to come.

Mark Watkins inherited a mess from Rick Cole.

Following Mr. Cole, the City Council hired Mark Watkins. Mr. Watkins did not have the

grandiose vision of Mr. Cole. The City Council employed him as a caretaker. Unfortunately, he wasn’t able to overcome the problems left by his predecessor. He inherited budget deficits. He managed those deficits by not hiring more employees. The remaining city staff he inherited stumbled executing his vision. As an example, Mr. Watkins lack of supervision surfaced when his team fumbled Brooks Institute. That mistake cost Ventura taxpayers over $261,000.

The two new members of the City Council may have a vision, but they are unknown and have no experience.

Editors’ Comments

Ventura is struggling. We’re struggling following the Thomas Fire. We’re struggling financially. We see the struggle in the faces of our neighbors. We see it in the faces of people on the street. We read it social media.

If the city is to move forward, it’s up to us to provide that vision. The government does not create jobs or develop business, nor do we want them to. Government (the City) is the last entity you want to create jobs. The government does better to stay out of the way so businesses may thrive.

What Government can do is create an environment that is favorable for business. They can do so by:

  1. Issuing permits faster
  2. Charging competitive fees (compared to other cities in the county)
  3. Creating acceptable zoning that encourages desirable companies to relocate to Ventura
  4. Identifying desirable industries with high paying jobs
  5. Bringing qualifying business owners to Ventura on a personalized tour of the city

Contact your City Councilmember. We need the revenue to offset our growing needs. Demand a plan to attract more business to the area; preferably ones with better than entry-level jobs. Insist the city assist property owners to fill all vacant commercial property. With jobs, revenues will increase. With jobs, crime will decrease. With jobs, Ventura will prosper.

 

Demand a Plan From City Council To Attract More Businesses with Better Than Entry-Level Jobs to Ventura

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

Let them know what you’re thinking. Tell them what they’re doing right and what they could improve upon. Share your opinion. Not participating in government weakens our democracy because our city government isn’t working for all of us.

Neal Andrews, Mayor

Matt LaVere, Ventura City Council

Matt LaVere, Deputy Mayor

Cheryl Heitmann

Jim Monahan

Erik Nasarenko

Mike Tracy

Christy Weir

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How To Connect To Your 2018 Ventura City Councilmembers

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Louis L'Amour

To make democracy work, we must be a nation of participants, not simply observers.
—Louis L’Amour

Our federalist system gives us many opportunities to participate in our democracy. Some forms of participation are more common than others. And some citizens participate more than others, but almost everyone has a voice in government.

Meet Your 2018 City Councilmembers

We have a new Ventura City Council for 2018. We have one new Councilmember and six incumbents. Each of them has an email account with the city. Not everyone knows how to contact them, though.

Click On A Councilmembers Photo To Email

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.

Let then know what you’re thinking. Tell them what they’re doing right and what they could improve upon. No matter what you write, however, share your opinion. Not participating in government makes us worse because our city government isn’t working for all of us.

Neal Andrews, Mayor

Matt LaVere, Ventura City Council

Matt LaVere, Deputy Mayor

Cheryl Heitmann

Jim Monahan

Erik Nasarenko

Mike Tracy

Christy Weir

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

Ventura spends tax money

You Have Reasons To Be Concerned How Ventura Spends Your Tax Money

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“Few things are harder to put up with than the annoyance of a good example”—Mark Twain

Complaining about how Ventura spends our tax money is like complaining about the weather. Everyone talks about it, but nobody does anything about it.

When Ventura spends money on projects, you trust and hope city officials would spend it as though it was coming out of their own pockets. However, many believe that City officials view tax revenue as an endless faucet spewing out money.

So, we rely on our elected officials to oversee the expenditures and question them when necessary. The following example illustrates how dysfunctional the oversight has become.

There Is No One Paying Attention To The Details

The City of Ventura Finance Committee considered a “small-dollar” expenditure at a recent meeting. Councilmember Christy Weir chairs the committee. Councilmember Cheryl Heitmann is the committee’s vice-chair. Deputy Mayor Neal Andrews also serves. Their job is to provide oversight to the city’s Director of Finance, Gil Garcia, and his staff in the Finance Department. Here is where the dysfunction begins.

Ventura spends tax money carelessly

The Finance Department wanted to spend $29,600 per year on outsourcing the opening of payment envelopes and processing of water bills.   This dollar amount fell within Mr. Garcia’s spending authority and did not need the three City Councilmembers’ approval. He presented the item for discussion nonetheless.

Currently, Ventura Water sends water bills every two months and when payment is made city personnel open the envelopes and process the payments through the bank. The City now wants to send out water bills monthly. Since Ventura will change to monthly billing, the outsourcing costs would double to $59,200.

The city’s finance staff justified outsourcing this service to purportedly to improve cash flow and increase efficiency. The staff did not discuss or offer any evidence on just how they would be more efficient if their proposal were adopted.

Where’s The Oversight?

Only two City Councilmembers attended the committee meeting.  Councilwoman Heitmann was absent. Neither Councilwoman Weir nor Councilman Andrews asked how much Ventura would save in real dollars by paying an outside company to perform this task, or how the city would adjust or reduce staffing after the change.  The presenters assumed that handling thousands of checks and running them through the city’s bank account apparently would save money and reduce staff time.

City employees don't care how Ventura spends tax money

A citizen attending the meeting spoke up and asked how much money we would save and how many staff people would be reduced or redeployed. The initial reply was the cost savings would be “minuscule.” When pressed to define what she meant by minuscule, the staff member was unprepared to provide any numbers. When pressed about changes in staffing, the answer was “none.”

Worrisome Questions Arise

That should cause every tax payer in this city to express concerns about the issues surrounding this spending proposal and by extension any plans to spend tax money regardless of the amount:

  1. Why would any staff member ask for $29,600 per year and not support the request with time and cost savings? If this were a private business, the owner would insist on knowing. Shouldn’t we expect the same of our government?
  2. Why didn’t the City Council members ask the hard questions about time and cost savings? Their job is to oversee the city finances.
  3. If the city wasn’t planning to reduce staff, what would these staff people do instead of opening envelopes and processing payments? How would they be more productive in their new duties than they currently are
  4. If $29,200 is within Mr. Garcia’s spending authority, why wouldn’t he know the cost and productivity savings?
  5. While this item was within Mr. Garcia’s authorization and did not need to come to the Financed Committees’ attention, it was commendable that he brought the new procedure to the Committee’s attention. However, it also requires having all the available facts to support the decision. Therefore, why was neither Mr. Garcia nor his staff prepared to justify the reason for the change?

After all, with authority comes responsibility. It is not a blind trust. Maybe Ventura needs to review the policy for decisions made within a manager’s authority. All such decisions must be reviewed and supported by documentation.

You may be asking, “Why so focused on one instance such as this?” After all, it’s a small expense. It’s only $29,600 today. But soon, it’s going to double to $59,200. We must remind ourselves of Benjamin Franklin’s admonition — “Watch the pennies, and the dollars will take care of themselves.”

“Watch the pennies, and the dollars will take care of themselves”

In this case $29,600 doubles within the year. No City Councilmember noted or questioned the expense. Why?  Is it that our elected City Council members have become complacent?  They trust staff recommendations unquestionably?  They view this as so trivial it is not worth their time or effort? Or, are they no longer concerned about how they spend our tax dollars?

Editors’ Comment

Ventura spends like a faucetNo matter what the reason is, the City Council has to stop looking at taxpayers as an endless faucet from which money flows. It’s time they started spending our tax money as if it was coming out of their own pockets, not some faceless person.

When the costs in pennies turn to dollars then turn to thousands then turn to millions, and they run short again, who do YOU think they will look to for more money?

Concerned By This? Write A Councilmember.

Click on the photo of a Councilmember to send him or her a direct email.

Erik Nasarenko,
Mayor

Neal Andrews,
Deputy Mayor

Cheryl Heitmann

Matt LaVere, Ventura City Council

Matt LaVere

Jim Monahan

Mike Tracy

Christy Weir

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Politicians Expect You To Pay A Little Bit More

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The Ventura County Star reports on Ventura’s Pension situation and mentions VREG.

The Ventura County Star Mentions VREG

We’re proud the Ventura County Star mentioned us in an article on pensions. The Star article lists VREG as a watchdog group.

Click here to go to the article.

We believe pensions and unfunded liabilities are ticking time bombs for the city. The Star joins us in pointing this out to Ventura citizens.

In Ventura’s budget starting July 1, the city will pay CalPERS almost $11 million. That’s the amount Ventura owes in unfunded liability. CalPERS projects that to at least double five years later, to over $22 million. That doesn’t include normal, ongoing costs.

That increase almost equals the revenue the half-cent sales tax will generate. The City Council supported the tax to pay for needs other than pensions. Taxpayers believed it was for infrastructure, public safety, homeless services, water quality and other priorities.

Taxpayer and watchdog groups accuse city leaders of misleading the voters. They knew Ventura needed the revenue to offset growing retirement costs.

The Star writes, “Venturans for Responsible and Efficient Government has made similar claims.”

How Bad The Situation Is Depends On Who You Talk To

City Finance Director, Gilbert Garcia, disagrees. He says the city will separate new sales tax revenue from the General Fund. It will be overseen by a soon-to-be-created citizen oversight board.

The state will pay money from Measure O to Ventura beginning in April. The oversight committee is not formed yet. That means no citizens won’t know if the money is separate until months after the fact. The city has had since November 9, 2016 to organize the citizens’ oversight committee. Yet, four months later citizens don’t have any safeguards in place.

The article notes. “How dire the situation is—or isn’t—depends on who you talk to.”

The article notes. “How dire the situation is—or isn’t—depends on who you talk to.” How true.

The Ventura County Star reports on the burden city employee pensions are placing on City Hall.

If you ask a public employee they think the whole thing is way overblown and there is no problem. The public employee does not care that they impose a real burden on their neighbors. They have theirs. They worked for those benefits.  The taxpayers owe them.

The Council members give the public employees what they want. They give little regard to the economic consequences on the rest of the citizens. It’s the hard working men and women who they will always expect to  “pay a little bit more.”

IF THIS UPSETS YOU, WRITE YOUR COUNCILMEMBER

Click on the photo of a Councilmember to send him or her a direct email.

Erik Nasarenko,
Mayor

Neal Andrews,
Deputy Mayor

Cheryl Heitmann

Matt LaVere, Ventura City Council

Matt LaVere

Jim Monahan

Mike Tracy

Christy Weir

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

2017 Ventura City Councilmembers

How To Contact Your 2017 Ventura City Councilmembers

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Louis L'Amour

To make democracy work, we must be a nation of participants, not simply observers.
—Louis L’Amour

Our federalist system gives us many opportunities to participate in our democracy. Some forms of participation are more common than others. And some citizens participate more than others, but almost everyone has a voice in government.

Meet Your 2017 City Councilmembers

We have a new Ventura City Council for 2017. We have one new Councilmember and six incumbents. Each of them has an email account with the city. Not everyone knows how to contact them, though.

Click On A Councilmembers Photo To Email

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.

Let then know what you’re thinking. Tell them what they’re doing right and what they could improve upon. No matter what you write, however, share your opinion. Not participating in government makes us worse because our city government isn’t working for all of us.

Erik Nasarenko,
Mayor

Neal Andrews,
Deputy Mayor

Cheryl Heitmann

Matt LaVere, Ventura City Council

Matt LaVere

Jim Monahan

Mike Tracy

Christy Weir

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

No Sales Tax Increase, Live Within Your Means

Pet Projects Cloud Ventura City Council’s Push For A Sales Tax Increase

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Spending Problem

“We don’t have a revenue problem, we have a spending problem.” — Ronald Reagan

The Scenario

The Ventura City Council is determined to raise taxes again by putting a measure on the ballot in November to increase sales taxes by 0.5%-1%. Two previous attempts failed. As is customary, they are not completely forthcoming or transparent when they are trying to extract more money from the citizenry. On January 30, 2016, the City Council held a special meeting at the Ventura Police Department whose true purpose was to discuss raising the sales tax. The Council spent $118,000 to hire consultants to sell the voters on a tax increase. What they learned should have disappointed the Council.

These Councilmembers are pushing hard to put a sales tax increase on November’s ballot.

Confusing Messages From City Councilmen About The Sales Tax Increase

At the January 30th meeting, Deputy Mayor Andrews commented that we are currently in an economic downturn, which is exactly the right time when we as a City should be increasing capital spending.  His comment left many in the audience puzzled. If this is indeed an economic downturn, the last thing the average taxpayer wants to do is pay more taxes. More taxes reduce their ability to pay rent or their mortgage. It cuts into their food budget, their travel and vacation capability, their medical care and their own future retirement.

Mayor Nasarenko is campaigning on the premise that Ventura voters will support a locally kept and locally spent tax. He fails to understand, however, that $340 more out of a household budget is still $340, regardless of where and how it is spent. ($340 is City Council’s estimate of how much more each household will pay annually if the sales tax is increased 1%)

Both the Mayor and Deputy Mayor are ignoring nearby failures of sales tax increases, too. Neighboring Oxnard and Port Hueneme increased their sales taxes and they’re still having budget problems. Politicians in those cities failed to realize it is a spending problem, not a revenue problem. Now, Ventura’s politicians are blindly walking down the same path.

Let’s Not Forget Each Councilmember’s Pet Projects

Deputy Mayor Andrews was adamant at the January 30th meeting that Ventura needs more assistance and housing for the “homeless.” Who falls into this category was not defined which leaves it open to interpretation by city officials. It is a fair assumption, though, that one would be able to identify the beneficiaries of his largess by walking down the street. Nothing prevents spending these taxes on any special project such as this once the money goes into the General Fund.

Councilman Morehouse announced last year during a public session that a sales tax increase would just scratch the surface.  Both he and Councilwoman Weir consistently argue that an increase in the sales taxes is just a start, and that Ventura, like other cities, should also be seeking more taxes for:

  • Median maintenance tax
  • Lighting district tax
  • Fire district tax
  • Recreation district tax
  • Library tax

MORE TAXES – THE BIG PICTURE

[PENURY BY THE PENNY]

A sales tax increase is not an isolated event. To understand the full impact of the tax burden on Venturans, one must consider all the other tax increases facing voters.

The Ventura School District tax, approved in 2012, is up for renewal in 2016. Governor Brown’s “temporary” sales tax increase is also up for renewal. And, Ventura County Transportation Commission is considering a sales tax, countywide.

Then consider other recent tax increases:

Medicare tax went from 1.45% to 2.35%

Income Tax rate went from 35% to 39.6%

Payroll tax went from 37.4% to 52.2%

Capital gain tax went from 15% to 28%

Dividend tax went from 15% to 39.6%

Estate taxes went from 0% to 55%

Real Estate transaction tax of 3.5% was added

There’s An Alternative Plan The City Council Refuses To Consider

Our City government has $20 million more in real property taxes and sales taxes. Add to that the 34% water rate increase, imposed without your affirmative vote, to raise millions to fund and replace the water and wastewater infrastructure under our streets, it becomes clear that city government has enough money.

Our current City Council wants more tax money, calling for citizens to “invest” more of “your money.”  Ask yourself first how they have invested “your money” over the last 8 years, and the answer unequivocally — poorly.  How about showing us first how they manage the tax money they have before demanding more.

If you agree that Ventura should live within its existing budget, then write to your City Councilmembers to say so. Tell them not to tax Ventura citizens any more and to spend the money they have more wisely.

Click On A Councilmember’s Photo To Send Them An Email

Erik Nasarenko,
Mayor

Neal Andrews,
Deputy Mayor

Cheryl Heitmann

Jim Monahan

Carl Morehouse

Mike Tracy

Christy Weir

Editors:

R. Alviani,       K. Corse,     T. Cook,     R. Berry,
J. Tingstrom, R. McCord,  S. Doll,      C. Kistner,
W. Frank

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High Priced Consultants Selling Snake Oil

City Council Hires Consultants To “Sell” Voters On A Tax Hike

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Spending Problem

“We don’t have a revenue problem, we have a spending problem.” — Ronald Reagan

The Scenario

The Ventura City Council is determined to raise taxes again by putting a measure on the ballot in November to increase sales taxes by 0.5%-1%. Two previous attempts failed. As is customary, they are not completely forthcoming or transparent when they are trying to extract more money from the citizenry. On January 30, 2016, the City Council held a special meeting at the Ventura Police Department whose true purpose was to discuss raising the sales tax. The Council spent $118,000 to hire consultants to sell the voters on a tax increase. What they learned should have disappointed the Council.

This City Council is pushing hard for a sales tax incease.

Council hired consultants to direct them on how to sell the voters on a tax increase

 [Only 36% say Yes]

At the January 30th meeting, one paid consultant provided his interpretation of the results of a general poll on citizen’s views asked of 630 citizens. The opinions were favorable in such areas as police, fire, beaches, water, paving streets, serving veterans, and protecting the environment.

When it came to answering two questions specifically focused on the need for a sales tax increase, however, the results were remarkably different.

Question:  Does the City need additional funds for City Services?

Great need = 22%

Some need = 38%

Little/no need = 30%

Question:   If on an initial ballot you were asked to increase sales taxes by one-percent or one-half percent how would you vote?

One-percent                                                one-half percent

Definitely yes = 36%                         Definitely yes = 33%

Probably yes – 12%                           Probably yes = 22%

No/probable no = 39%                     No/probable no = 31%

Interpreting the results, fewer than one in four citizens sees a great need for additional funds and only 36% would vote definitely yes for a 1% sales tax increase.

If 630 citizens surveyed believe the City is doing a favorable job with the funds they have and only 22% believe there’s a great need for additional funds, one might conclude the citizens are content with the current situation.  But, the City Council—strongly encouraged by the consultants—continued to push the sales tax increase forward.

The inference is that voters are not smart and need to be led around

expensive consultants

Ventura spends $118,000 on consultants to “sell” voters on sales tax increase

The pollster then advised the Council that they needed to do more to “educate” the people on why they should vote for a sales tax increase to receive approval.  Without education it was a close call.  His words were – “on the one-percent measure you might have a shot.” One council member commented that the “citizens just don’t understand.”

Next, the paid political consultant outlined that of the 109,000 Ventura residents only 24,000 vote and, of that number, 61% are over the age of 50. It was his view that an intense program was needed to “educate” voters because “they need to know what the city council is going to use the money for.”

In fact, that’s the crux of the issue. If the additional sales tax revenue goes into the General Fund, nobody will know for sure how the City Council will use the money.

MONEY FOR EVERYONE AND EVERYTHING

[The Ventura Essential Services Tax Measure]

At the conclusion of the presentation, Mayor Nasarenko announced, “I have made a sales tax measure a core goal for my year as the Mayor.  I have been joined by the Deputy Mayor [Neal Andrews].”

The discussion then moved to a staff report that listed “all of the needs.”  The list of needs total $1.368 billion. That is billion with a “B.” Excluding costs for Water and Wastewater totaling $661,120,000, which the citizens will pay through a 34% increase in water bills the City Council approved in 2015, which leaves $707,734,532 in needs for the General Fund.

Here are some examples of what’s on the City of Ventura government’s shopping list. It is obvious the city council wants to overwhelm the voters with the sizable need for more taxes.

Community Enhancement $199,360,000
Technology $7,420,000
Streets $298,999,747
Public Art $557,462
Parks $112,192,823
Facilities $42,087,500
Fire $3,400,000
Police $4,853,000

This wish list illustrates the consultants’ concern about Ventura citizens, “they need to know what the city council is going to use the money for.”   But, here’s the rub.

As a General Fund Tax Measure, it is impossible to promise or earmark the new tax revenue to any specific project. To earmark funds requires a two-thirds majority vote (67%) on the ballot. To vote in a General Fund Tax Measure requires a simple majority (>50%).

Given the low interest in approving a sales tax increase cited in the survey (36%, at best), reaching a two-thirds majority will be a struggle. A simple majority seems more likely, if the sales tax increase is to pass at all.

Once in the General Fund, the City Council can spend the sales tax revenue as they choose.

No oversight committee, appointed by the city, has ever challenged spending after it has been spent

Mayor Nasarenko isn’t telling voters that no guarantee exists for the City to spend the additional tax revenue on any of the City needs once the tax receipts go into the General Fund. This Council may intend to use the funds for the projects outlined above, but Councilmembers change, city priorities change and needs change with time. In 2007-08 the signs of an economic downturn were clear yet the City government forged ahead, spending money on experts and projects as if they were immune from economic reality. Who’s to say the City won’t syphon off money intended for street repair to pay for another WAV building, for instance?

Consultants oversight committee

Consultants suggest a citizen’s oversight committee

So, the mayor is creating a smoke screen in his “let’s increase taxes” pitch by promising a Citizen’s Oversight Committee intended to give voters the false sense that “how funds are spent” will be closely monitored.

To monitor the funds that closely, however, a Citizen’s Oversight Committee would have to approve any project expenditure before the City makes it—effectively neutering the Council. It’s unlikely the City Council would approve that. And, even if they did, why would we need a City Council at all if this committee controlled the purse strings?

The truth is no post audit Citizen’s Oversight Committee will track city spending that closely, let alone have the power to reverse any spending after the fact. Once the Sales Tax Increase passes, the fact is nobody will look at it again and nobody will reverse any expenditure.

If you believe a sales tax increase will be spent unwisely, raise your voice. Write to the City Council to share your opinion. In addition, insist Council Members Heitmann, Morehouse and Weir—all up for re-election in the November 2016—thoroughly explain their position on the sales tax increase.  After all, they have a balanced budget, they increased water rates by 34% and they have revenues up $20 million to pre-2008 levels.

Click On The Councilmember’s Photo Below To Send An Email

Erik Nasarenko,
Mayor

Neal Andrews,
Deputy Mayor

Cheryl Heitmann

Jim Monahan

Carl Morehouse

Mike Tracy

Christy Weir

Editors:

R. Alviani,       K. Corse,     T. Cook,     R. Berry,
J. Tingstrom, R. McCord,  S. Doll,      C. Kistner,
W. Frank

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Budget workshop lacks financial transparency

Don’t Let A Charade Fool You Into Believing Ventura’s Financial Transparency

/in /by

Fool Me Once, financial transparencyFool me once, shame on you. Fool me twice, shame on me.

THE ILLUSION OF FINANCIAL TRANSPARENCY

Ventura is holding a Budget Workshop on Monday, March 17, 2014. It may be a meaningless exercise, however, unless the City applies integrity and common sense to the process. Otherwise, the process is rife with budget manipulations owing to a lack of financial transparency.

FORCE THE CITY COUNCIL INTO FINANCIAL TRANSPARENCY

If you have questions or concerns about what you read in this month’s newsletter, address them directly to one, or all, of the City Council members. Click on a photo to send an email:

Cheryl Heitmann, Mayor

Erik Nasarenko,
Deputy Mayor

Neal Andrews,

Jim Monahan

Carl Morehouse

Mike Tracy

Christy Weir

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Busting Ventura’s Budget Myths And Fantasies

/in /by
Winston Churchill

THE TRUTH IS IN- CONTROVERTIBLE, MALICE MAY ATTACK IT, IGNORANCE MAY DERIDE IT, BUT IN THE END THERE IT IS
—Winston Churchill

PENSIONS BUST BUDGETS
[Grappling with Money and Economic Reality]

The City Council race concluded with the reelection of Councilmen Andrews, Monahan and Tracy plus a new councilman, Eric Nasarenko.  Our new Councilman was elected as Deputy Mayor at the last Council meeting and will serve in that capacity next year.  We congratulate each member of the Council.

During the election campaign these candidates asked to be elected so that they could help to bring about changes in City policies to:

  • improve the development of business
  • create and maintain parks
  • seek to improve streets
  • finance libraries
  • find ways to provide housing for lower income citizens
  • improve the gateways to Ventura on the North and South of Highway 101
  • create a more favorable regulatory structure to encourage development of housing
  • improve services to our citizens.

One thing that stood out for all four of these Councilmen was their plea that if the voters returned them to office and elected Mr. Nasarenko then a newly constituted Council could and would be more cohesive, and bring about the promised changes.

Their promise of change is laudable, but nothing can or will be accomplished without the money and revenue to realize those changes. That objective requires sound financial planning—an accurate and realistic budget with realistic income and expense projections.

From Where Will The Money Come In This Year’s Budget?

On June 17, 2013 the old City Council was presented with a Proposed Budget for 2013-2014. They were shown a power point presentation, explained by our City Treasurer, which was based upon a printed 569 page budget book submitted by our City Manager, Mark D. Watkins, on April 23, 2013. This budget was approved on a vote of 6 to 1 after a 30 minute hearing.  Nobody from the public appeared to comment.

It’s hard to overcome a $1.6 million deficit, if this year’s budget has no new revenue items.

Council members asked few questions, but did make statements “for the benefit of the television public” concerning their views on this budget.  Nobody asked any questions about the projected income, or questioned the expenses in this complex document other than Councilman Andrews.  He voted “no” on the motion to approve a budget projecting a deficit of $1.6 million in our next fiscal year (July 1, 2013-June 30, 2014).  He explained his no vote – “We have cut too far and we need to look at public safety costs (police and fire pension benefits)”, meaning that the Council needed to look at ways to address the enormous pension costs before considering anything else such as new taxes.

Two Council members made statements that the general fund be unburdened by shifting some costs from the general fund to special tax assessment districts — taxes on real property.  Councilman Morehouse wants to shift a $500,000 public lighting cost to property owners, although conceded, when asked by Mayor Tracy, that this might also be funded by increasing sales taxes.  Councilwoman Weir commented at length about the special assessment costs imposed by other cities, such as Camarillo and Oxnard, for street repair, landscape maintenance, parks, public safety and libraries.  It was clear from these comments that their solution for our City deficit is to tax our way out of it.

Where’s The Transparency In The Budget?

This published budget is long, complex and difficult to read.  It consists of real number-clots, number slabs by department and sub-department(s) with pages of swimming line items in minute detail. It is difficult to read, interpret or understand as a financial planning document.   For example, members of VREG tried to determine how the projected income was calculated, and what the public pension costs (the largest item in the entire budget) would be for the next fiscal year.  The income information could not be found.  The pension data was sprinkled throughout all 589 pages and explained by esoteric line items and number for every department. The City Treasurer was asked about the complexity of this document.  He conceded that this was the equivalent of a “data dump”. A good management tool for a City Council it is not.

Focusing first on the income side.  The City Treasurer at the June hearing projected income of $86.7 million. This is $4.3 million more than was collected in 2012-13, an increase of 5.2%, twice the estimated U.S. Gross Domestic product estimate of 2.5%.

No explanation has been given on where this new source of revenue will come from.  That question was put to one candidate during a candidate forum in October.  A citizen asked, “What plan does the city have to grow their revenue by that amount of money?”

The answer was revealing (click on the quote to see video of his answer):

Ventura City Budget

There is a $1.6 million deficit in this year’s budget. As a higher percentage of Ventura’s General Fund is spent on police and fire pensions, less revenue is available for other services.

 

The projected deficit of $1.6 million and sagging income expectations are bad  The annual cost of  salaries and benefits  for public safety — police and fire —  is bad, and will grow to fifty-two (52%) of the total general budget  in the next fiscal year

Unfunded Pension Liability Is Staggering

Then there is the matter of how much will have to be paid to CALPERS to pay the unfunded pension obligations of City employees, police and fire personnel in addition to the annual operational costs.  In 2008 those unfunded obligations totaled $48 million.

In October, 2013, CALPERS reported that the market cost of those unfunded liabilities have increased by 360%, and  as of June 30, 2012, totaled $173,412,464.  CALPERS also added a note in that report that if the City wanted to terminate our contract with CALPERS it would cost us $600,421,434.

This is only going to get worse because CALPERS has announced it will consider adjusting (lowering) its expected rate of return in 2015 by 1/4%, and that the actuarial life of public safety personnel is not shorter than the average person, as previously assumed, but is the same.  That means these pensioners, starting at age 55, will get paid benefits over a longer period of time.

Cities nationwide are grappling with the growing retiree-benefit pension costs which are eating up more of city general funds.  That leaves less money to spend on parks, libraries, maintenance of trees and parkways, street lights and an asundry of public service projects.  Ventura is not alone. As a higher percentage of a City’s general fund is spent on police and fire pensions, less revenue is available for other services and projects.  Detroit, Stockton and San Bernardino are models of cities that refused to accept economic reality.

If the total unfunded obligation cost does not get the attention of our new City Council, then perhaps the most recent CALPERS Actuarial Valuations predicting our annual payment obligation will get their attention.  In 2013-14 the required annual contribution total will be $8,530,730.  In 2014-15 the required payment will increase to $9,489,593.  That is more than $1 million more to be paid out of the General Fund

  Editors’ Comments

Why there are no protests by the citizens of Ventura for changing the pension plan of public safety personnel?  What will it take to get Venturans excited and concerned about this problem?

When the question of pension reform was presented to our City Council members in the past the traditional answer was that this problem could only be addressed on a statewide level; Ventura will not be the “lead dog” and venture out into this new territory; and, as unfounded as it may be, that Ventura would no longer be competitive in hiring the best employees.

This unfunded obligation to public safety personnel is a budget buster.  Nobody wants to make a decision.  In the meantime, Ventura will reduce services, charge more fees (or taxes) from its citizens and ignore the obvious “train wreck” that is ahead because it either lacks the leadership or vision to act responsibly for the future of this City

All the campaign promises in the world are worthless unless and until this new Council establishes a realistic budget, and finds real solutions to our public pension obligations.  Trying to tax ourselves out of debt is not a solution. Requiring greater employee contributions to their own retirement (8 – 10%), and creating a defined contribution plan for new hires will solve the problem in time.

That is why you were elected!

Editors:

R. Alviani      K. Corse      T. Cook

J. Tingstrom  R. McCord   S. Doll

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