Skip to comments.Stockton, Calif. May Be The Next City Driven To Bankruptcy By Bad Management And Unions
Posted on 06/04/2012 6:44:33 AM PDT by SeekAndFind
Add Stockton, California (population 292,000) to the list of cities bankrupted because of bad management and over-generous public union wages and benefits.
Please consider New Stockton City Hall building seized by Wells Fargo; city preps bankruptcy contingency plan:
"The Stockton City Council announced Wednesday that they will look at bankruptcy contingency plans after Wells Fargo seized the new city hall building.
The city paid $35 million to buy the 8-story building, but was not able to move in because of its money problems, and recently stopped making debt payments all together. This is the fourth building that was repossessed by Wells Fargo; the bank seized three city parking garages for the same reason.
At the June 5 Stockton City Council meeting, members will look at a contingency plan if mediation between the city and creditors failed, city spokesperson Connie Cochran said. For the past two months, the city, under AB 506, has been in a mediation process with creditors to come up with a payment plan in order to avoid bankruptcy."
(Excerpt) Read more at businessinsider.com ...
The firefighters’ union put together a list of 10 wasteful things the city has done wrong
Stockton, like every U.S. city is facing definite financial troubles. No one questions that. However, reckless decisions made by this Mayor and City Council (as well as previous city leaders) have cost you, the taxpayer, tens of millions.
In case youve ever wondered where your tax dollars have gone, weve put together a list of government boondoggles, crippling litigation losses and eyebrow raising political deals. Understand that this a partial list. Were confident theres more.
1. City Council spent $48 Million to purchase a new City Hall building for itself. Thats just the purchase price and the cost to pay Wall Street to BORROW the money necessary for the new governmental palace. The total cost of the building after all the interest is calculated? We dont know and the City Council never asked.
City Hall Report & Bond Documents
2. $33 Million settlement with Howard Jarivs Taxpayers Association due to the City illegally using Water Utility fees to fund the construction of the Stockton Events Center.
City Repayment Schedule
Stockton Record Article
3. $22 million sunk into money losing Downtown Marina and has racked up $700,000 in annual operating cost losses. During the height of a City budget crisis, the Stockton City Council sunk $22 million into building a new downtown marina and then due to underestimating the costs, needed to add another $2.3 million to the bill. City bureaucrats estimated that the marina would lose $100,000 a year. The actual figure has balloned to $700,000 in losses a year.
Rising tide of red ink | Recordnet.com
Dry Dock Expenditure
4. Paid $1.25 million over the independent appraisal value for a piece of property owned by a former councilmember. The site was supposed to be used for a new fire station, which even the Stockton Fire Department stated it didnt want. The Stockton Records Editorial Board urged the Council to reject the deal, stating, the city shouldnt be dopey. It should pay no more than the appraised value. Unfortunately, Dopey won at that Council meeting. The Council this year scrapped plans for the fire station, meaning that $2.75 million taxpayer funds have been wasted. You can view the property here.
Stockton ponders $2.75M land deal highlighted
Council slashes program funding | Recordnet.com
5. $4 million legal settlement because the City failed to maintain our sewer system, causing too many sewage spills and violating the Federal Clean Water Act.
Cal Tax Article
Stockton to Pay $4 Million in Sewer Spill Settlement
California Sportfishing Protection Alliance Settlement
6. $7 million loss at entertainment venues (Stockton Arena, Stockton Ballpark, Bob Hope Theater, etc.) subsidized by the City General Fundwhich pays for firefighters and police officers
Stockton Venue continue a troubling trading for taxpayers | Recordnet.com
7. $25,000 to clean up elephant dung at the Stockton Arena.Wed write more, but why?
Cal Tax Article8. $205,000 settlement for Citys failure to meet Americans with Disabilities Act requirements within the city. Note that in addition to the settlement, money needed to be spent to bring facilities into compliance. We do not have that total
ADA Settlement Agreement
9. $200,000 settlement with the Building Industry Association of the Delta due to City improperly using development fees to pay for General Fund services.
BIA Settlements article
10. $400,000 settlement with the San Joaquin Hotel & Motel Property Owners Association for devaluing property prior to the City attempting to purchase them.
The union does not tell you that Stockton has a $417 million liability for its “pay-as-you go retiree health care system”
And that’s just healthcare. What about pensions and untenable salaries?
So who is more to blame here?
There used to be a time when bad news from the Golden State made me a little sad inside, since I grew up there. Now I just laugh at their expense. They can’t go to hell fast enough.
No Problem....I heard Gov. Moonbeam has the solution....
and as the job creators bolt for the border, he will sit and blame anyone else, but himself...
I guess the firefighters’ outrageous salaries and bloated unsustainable pensions they bribed city officials into giving them with campaign donations are on a different list.
ADA Settlement Agreement
Some enterprising reporter should dig into how much money this Act costs taxpayers and how much red tape it entangles small business owners with. I saw some figures from another state, and was staggered by how many complaints are filed, and the amounts of the settlements.
Have a cousin that lives in Stockton and has always been a Democrat and Obama supporter. Works in the private sector and has complained about the high cost of living in Cali.
Maybe this will help him add 2 + 2 together to come up with liberal failure.
Doubt it though.
Politicians who have been enabling the embezzlement of taxpayer funds. That's the high and the low of it. Once the unions figured out that you could start printing a list of wages for any particular public employee job, and rank it by state, it was open season to go up up up. Someone would always be in last place. 'California spends less than Alabama for firefighters', I remember one campaign noting, before the next one that said 'California is 48th in the nation for health benefits.'
Of course, most of that was fabricated numbers.
It will take a top to bottom reorganizing of every level of government to try to eliminate the embezzlement schemes, and some pretty brave people to go through the lists of existing embezzlement and say no more. To look at, for an example, this city's 'Downtown Marina' and close it and put it up for sale.
By the time the California air board, the county air board and the neighborhood lobby got done with us, we built the thing in Reno.
All these Republican controlled cities going bankrupt. Clearly it is Bush’s fault.
No wait, all the cities going bankrupt are longtime Democrat strongholds. Clearly it is somehow still Bush’s fault.
No fan of the public employee parasites but Stockton blew millions of dollars on BS “revitalization” projects. The list might add Stockton paid Neil Diamond $500,000 to play at the Stockton Arena.
Payback is a b*****~
So are chickens that come home to roost!
Still would have to pay fair market value for it :)
All at once I might add
Reports from a variety of media reveal California state employees are spiking their pensions to stratospheric levels, leaving nothing for their brother employees. Sorry, can't blame Wall Street for this one. In a laudable instance of the mainstream media doing its job, the Los Angeles Times, the Sacramento Bee, Bloomberg News and City Journal have all exposed "pension spiking" by California public employees.
Basically, the govt greedsters manipulate rigid unionized pay and promotion systems to raise their pensions well above what they earned during their working years.
The Los Angeles Times pieced together tough-to-get data from Kern and Ventura counties and found a fiscal horror story: In Kern, 77% of public employees with pensions greater than $100,000 actually get more than they did during their working lives. In Ventura, the figure is 84%. Kern has a $761 million pension shortfall, in part due to the practice.
Both the practice and the lack of transparency are signs of a rotten system. Bigger counties like San Diego and Los Angeles also permit pension spiking.
AND GET THIS: LA govt insiders asked the Times to fork over $63,000 for "research" or they won't reveal a thing about govt budgets (tax dollars). Seems it doesn't bother the govt bureaucrats to pay out the spiked cash, but knowing how much of the tax dollars are going out is (not allowed)....... (Excerpt) Read more at news.investors.com ...
FReeper grampadave posted: CBS Evening News reported 3/7/12---San Jose, CA has three spanking new libraries and a mega- police station that are vacant and unused b/c of lack of funds----govt worker pensions are eating up the city budget. Govt workers get 90% of their salaries as pensions when they retire at the age of 50 or so---probably into a 2nd low-show six- figure govt job.
Vallejo, the city that went bankrupt closed a new fire station and for awhile had the community of Benicia on call for fires and police action. Then, things seemed to turn around, the fire station was reopened, cops and firemen were hired, and we started hearing about the Vallejo miracle.Most of us know that the age of miracles died about 2000 years ago.
So how did Vallejo liberals running the same Ponzi games with union thug voters turn Vallejo around? Apparently, the new regime got promises from the thugs in DC and got federal grants to pay their bills. Eventually the evil bond holders/creditors will be knocking at the doors asking for money that will not be there when those grants run out.Vallejo was in vote-crazed Obama's pants in the last election, and they will be even more so in the upcoming election.......there was no Vallejo Miracle just more of the same criminal con game.
Paraphrasing Saint Augustine Without a system of justice what is govt but a marauding band of thieves.
Californians also have a busy bee state Treasurer---Bill Lockyer---saddling business and individual taxpayers with billions in taxes via those bonding deals he loves to put together.
Treasurer Bill has been married since April 2003 to Nadia Maria Davis (an Hispanic Native American). Treasurer Bill was married twice before, and has an adult daughter who is an attorney for NASA---the daughter is four years older than Treasurer Bill's wife, Nadia.
Lockyer and Nadia have a son, named Diego, born a couple months after the two were married. Nadia was elected to the Alameda County Bd of Supervisors Nov 2010 using $1.5 million from her husband. They never told voters she was a druggie, and in February 2012 she checked into rehab for chemical dependency.
At the time Nadia was in a highly publicized extramarital affair with a known felon she had met in a previous rehab. In a motel room with her paramour, Nadia called cops claiming the guy had assaulted her (was that before or after sex?).
Treasurer Bill's bizarro explanation for his wife's being in a motel room---bedded down with another man...."he and his wife argued so she went to the motel to comfort her suicidal ex-boyfriend" who has a long history of involvement with the criminal justice system.
"Tolerant and compassionate" Treasurer Bill said, "Nadia's only fault is occasionally having one too many drinks" (as he dialed his divorce lawyer /snix).
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