Again The Residents Are Getting Hosed By New Taxes, Not For Services, But For Public Employee Salaries and Pensions!

Our City Council adopted the budget for the next 2 years this last Tuesday June 25th.  Wanted to share with my neighbors the 5-year projections. Rough seas ahead folks. Yes, we are staring at a $17 million deficit next year, just years after passing a $50+ million additional sales tax (Measure Z), despite a booming economy.  Yes, the deficit is almost exactly the amount our City Council gave away to our public employees as part of the Partnership Compensation Model incentive that was used to bribe our unions into supporting Measure Z.  Enjoy the next year, because if we don’t reduce our personnel costs dramatically during the next 12 months (which our electeds have shown no stomach for anytime recently), City services are going to take a massive hit if we don’t drain our reserves severely. Thoughts? I think Councilman Mike Gardner needs to at least tell us what the plan is.

According to the PE, the city will spend more general fund money in the 2019-20 year than it brings in, this will be the second year of the two-year budget the Riverside City Council passed in June 2018, and the $1.2 million surplus for the year that ends this week balances out the $1.2 million deficit for the coming year.

The catastrophe according to the following document is what we see happening in 2021, 2022 and 2023, huge deficits coming!  This is all due to Public Employee Pensions folks!  What will happen next?  These deficits according to the PE, will start eating away at the City’s Reserves, as seen in the document.  Under normal conditions city officials try to keep the reserve at or above the 20% mark, but that percentage will start to decrease in the coming years.  Reserves will start decreasing below the 20% mark begining in year 4, FY 2021/22! (click to enlarge).

According to the PE, City of Riverside’s Chief Financial Officer Edward Enriquez stated the following.  “As 2022-23 goes on, projections have the city becoming “insolvent,” with almost $7.5 million more in bills than there is money to pay for it.”  This is where the taxpayers really got screwed, by the implementation of the Partnership Compensation Model (PCM).  What resident taxpayers don’t about Measure Z, is that the $50 million plus that is brought in through the increase in sales tax, is that 40% of that $50 million will be going into the wallets of public employees.  I will explain this more in the next posting.  Yep, you were hosed and tased by these employee fire and police unions.  But what is really egregious is that the Council passed and increase in our water and electricity bills, just to increase the transfer to the General Fund!  Which of course pays for overpaid public employees and their pensions.  (click to enlarge).

According to the PE,“We have some significant challenges ahead of us,” Enriquez said. “And if we don’t take additional corrective (measures) — which we have been doing this last year (with) a lot of new initiatives — we do have a lot of challenges ahead of us.”  Get ready, their are going to be more “initiatives,” that means more “measures” in order to fulfill those pensions.  Remember Measure A and Measure Z, and how public employee fire and police unions lied to the taxpayer?  And they will lie through their teeth again.  In this one example see how much money these unions placed behind Measure Z the last time.  Of course, at no benefit to the tax payer. (click to enlarge).

According to the PE, “Other councilmen, though they supported the budget, called out past spending they said was wasteful.”  Well its to late now, but don’t say we didn’t tell you so.  We told you the pension problem would hit the fan as far back as 2014.  Let’s look back at this email I received from Councilman Mike Gardner back in 2011, regarding to the Renaissance spending and corresponding future deficits. (click to enlarge).

   

This isn’t rocket science, the simple truth is that public employees are being paid to much.  Roll back pensions and salaries, we otherwise are rolling toward BK.  Don’t forget TMC told you so years ago!  Stay tuned for our next posting in couple of days: The Truth About Measure Z: The Public Salary and Pension Tax and also stay tuned for: Another Episode of the Price is Wright: The Story of Former RPU General Manager Dave Wright and City Auditor Vincent Price.  You thought you got hosed on this story, TMC will tell you how got screwed in the next!

Just wanted to thank Jason Hunter for allowing TMC to use and share his information he posted on Next Door for this posting: Riverside City Budget – On the Brink of Catastrophe

TMC, RATED RIVERSIDE REGIONAL COUNTIES MOST, “SCANDALOUS,” “NEGATIVE,” “WARPED,” “RAUNCHY,” “LOW CLASS,” “VISIONS OF GRANDEUR,” “FULL OF B.S.,” “REPREHENSIBLE,” “IGNORANT,” “MISGUIDED,” “BULLYISH,” “INDECENT,” “REPUGNANT,””IMMORAL,” “FILTHY,” “VILE,” “SICK,” “PERVERTED,” “DEFAMATORY,” “STUPID,” “PATHETIC,” “DESPICABLE,” “DISAPPOINTING,” “BELOW THE BELT,” “A NEW LOW,” “SHOCKING,” “OFFENSIVE,” “OBNOXIOUS,” “INAPPROPRIATE,” “HURTFUL,” “MEAN SPIRITED,” “DISTASTEFUL,” “EMBARRASSING,” HORIFFIC,” “SLANDEROUS” “FIT TO BE VIEWED FROM THE REAR” AND MEZZSPELLED, “MISSPELLED” AND “OPINIONATED” BLOG SITE! YES WE ADMIT WE OUR ALL OF THAT AND MORE, WHICH IN CURRENT TERMS IS KNOWN AS “UNPOLITICALLY CORRECT.” TEMPORARILY BLOCKED BY THE CITY OF RIVERSIDE AT PUBLIC ACCESS SITES WITHIN THE CITY, THEN UNBLOCKED. I GUESS YOU CANNOT DO THAT ACCORDING TO THE ACLU. RATED ONE STAR OUT OF FIVE IN TERMS OF COMMUNITY APPROVAL RATINGS.. … AGAIN, THANK YOU COMMUNITY OF RIVERSIDE AND THE CITY OF RIVERSIDE EMPLOYEE’S FOR YOUR SUPPORT! CONTACT US: thirtymilescorruption@hotmail.com

Comments
  1. Felice Lococo says:

    God I’m glad I live in Jurupa Valley. Maybe it’s an inconvenience to have to shop at stores outside of Riverside to save 1.5% in sales taxes, but it certainly ads up. That’s why I bought my car in Bloomington, and not Riverside. Here’s some suggestions starting with the police. Rumor had it you own 4 police helicopters. I understand Corona contracts out for one. So that leaves you with 3? Why do you even need more than 2, when your geographical area is minuscule to the County of Riverside SD which also has 4 helos.

    Hmmm what about the lawsuits for Police Misconduct? Solution make every officer carry his own liability insurance. This way the taxpayer doesn’t have to foot the bill. Also what you should do, is make all new positions “at will.” This way it would eliminate the BS Unions. The people of Riverside shouldn’t have to continue to fund Pensions. Te employees should have to put in more from their paychecks, like the County and the University system does.

  2. Marc J. Feldstein says:

    Booming economy? Where? Retail? Manufacturing? Aviation?
    Unless you’re middle management or above, you’re not seeing a booming economy. With the mergers and cost cutting, even middle management isn’t immune from the new normal.

    Of course, declining durable good orders, over-reported hiring by the administration, tariff/trade issues, and ineptitude at the federal level usually don’t lead to a booming economy.
    (Hoover, Hawley-Smoot, Reagan, Bush Jr.).
    https://www.marketwatch.com/story/us-created-500000-fewer-jobs-since-2018-than-previously-reported-new-figures-show-2019-08-21

    Oh and stocks haven’t been trading in reality. Wait for reality to catch up with wall street.
    https://www.crainsnewyork.com/finance/wall-street-rush-safety-biggest-lehman-bros-collapse

    Oh and consumer borrowing is at an all-time high.
    https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/

    More like bubbles, speculation, and ostrich’s.

    I also note that until recently, this area has been the bastion of fiscal conservatives. I guess they’re so-called fiscal conservatives. We may have done better with more moderate or, dare I say it, progressive leaders in charge.

    Nice library. While necessary, libraries don’t have to be award winning. Who proposed a trolley, Mr. Mayor? From recession street to shelter avenue. Is that a local or express?

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