Recently in Your money Category

Residents in Bradbury, Duarte, El Monte, Irwindale, Monrovia, Rosemead, San Gabriel, San Marino, Temple City and some Los Angeles unincorporated areas are being hit with a 56 percent water rate hike. Read more.

As some cities struggle to get their tagging under control, West Covina has been combating it with volunteer Glenn Kennedy, the police department and the hired clean-up company. Read more.

San Gabriel Valley's only pot dispensary closes up shop after a judge granted a temporary restraining order. Read more.

Montebello OKs metal recycling plant in an industrial area. Read more.

Newly appointed Labor Secretary Hilda Solis will come back home at 2 p.m. on Saturday and give a talk at La Puente High School titled, "Pathways to Success: Achieving Goals through Education." Solis was the first in her family to go to college and attend Cal Poly Pomona. Read more.

 Baldwin Park Mayor Manny Lozano cleared by District Attorney's office, which investigated a 2007 trip taken by Lozano to China.  Read more.

Medical costs for retirees is increasing, the LA Times reports.

Meantime, 24 local San Gabriel Valley cities are facing a $11 million tab this year to pay for their retiree medical benefits, and that bill is expected to climb as the number of retirees increases, life extectancy rates grow and health-premiums rise. Half of those cities face a total bill of $204 million for future medical benefit costs. Here is the story.

Here's a spreadsheet I developed by requesting retiree medical costs, annual pension costs, unfunded pension liabilities and unfunded medical liabilities from 24 public agencies in the San Gabriel Valley and Whittier areas:    

  Retiree costs city by city.sxc  

Depending on space issues, we will print my story this weekend that details how much 24 area cities spent on retiree medical costs, and of those cities, how many have started planning for the future retiree medical costs -- which will only increase due to rising health care premiums, increasing life expectancy rates and a growing retiree base.

Santa Fe Springs shows us a slide, Santa Fe Springs.ppt,  of what will happen if it starts paying for these long term costs, estimated at nearly $55 million, today versus what will happen if it continues on a pay-as-you go approach. That is, pay for the expenses as they come year-by-year. Problem with the pay as you go approach is that eventually these costs could overwhelm some city budgets.

These costs will vary from city to city for several reasons: number of retirees, number of employees, services offered by the city, such as having its own police or fire departments, and types of benefit plans offered.

The spread sheet is still a work in process...I'm now collecting the number of current employees to get a better understanding of why some cities have the pension costs they do. The pension story will come later.

(City administrators: If you see any figures that are incorrect, please shoot me an email so we can correct them. Thanks!)

So, the West Covina Chamber of Commerce had a five-hour closed door board meeting yesterday. I stopped by at noon on Thursday to see if I could go inside in meeting or at least get an agenda, and had no luck with either.

The board members did not tell Exectuive Director Gary Lawson and Marketing Director Monica Cabrera what happened in the meeting. Instead, Lawson and Cabrera received a letter via fed-ex this morning. The letter informed them of their reinstatement, and also that they would both be suspended without pay pending further legal advice. (Read here if you are lost.)

Still no word as to the reason for their firing, reinstatement or suspension, though Lawson is convinced it has everything to do with a restraining order he, Cabrera and part-time employee William Medina filed against board member Luis Chacon.

Since Lawson and Cabrera are the only two full-time employees of the six-person staff, it kind of makes you wonder who is going to be picking up the slack. Also, part-time employee Medina said he is considering quitting over the whole ordeal.

Board members refuse to return calls. While the board is a private agency, it does receive some public funding. This year, it got $75,000 from the city of West Covina, Lawson said.

This is just me talking, but once a private agency receives public money -- your money -- it seems that those agencies should strive for some sort of transparency and accountability to the public -- even if that means returning a phone call or distributing an agenda. I'm not the only one that sees it that way, either. 

All of us are feeling the strains of the weak economy, and the National League of Cities reports that nationwide, so are cities. Of the 156 cities that responded to the league's survey, 83 percent said they had spending cuts this year, and 80 percent said they anticipate spending cuts next year.

Here's what they cut to save money:

• Hiring freeze and/or layoffs     69%
  Delay, cancellation of capital infrastructure projects    42%
  Across the board service cuts     22%
  Cancelling libraries, parks, events, etc.    20 %
  Reworking employee health care plans    14%
  Public safety    6 %
  Reworking employee/retiree pension plans    4%
  Human/social services    3 %
  Other    17%

And how are they raising revenues?

• Raising property taxes   14%
• Raising sales tax   6%
• Raising income tax     0%
• Raise or institute new fees    49%

Locally, SGV cities have taken some of these approaches, both in cuts and raising money. El Monte and West Covina, for example, instituted across the board cuts, and Irwindale City Manager Robert Griego is recommended to his council they consider the same.

West Covina's deficit is expected to jump another $1.8 million to $3.9 million as a result of the declining economy and sales tax revenues. As a way to make up for some of the loss, the city is considering selling Prop A transportation funds at 75 cents to the dollar to West Hollywood. The sale will result in an increase in revenues of nearly $750,000.

Other ways the city could be acconting for additional revenues is by looking at personnel:

Staff will begin having informal discussions with all bargaining groups to examine possible employee concessions as an additional way to reduce the budget deficit. Current staff is already experiencing the impacts and stress of personnel reductions due to the additional workload and responsibilities resulting from the restructuring of City Hall. However, with personnel costs accounting for 83 percent of the General Fund Budget, it seems prudent to meet with the bargaining groups in an effort to preserve jobs, avoid layoffs, and minimize the impacts that further service reductions will have on the community.

Meantime, reserve levels continue to drop. In 1990, the available fund balance in the reserve pot was $40 million. In 2009-10, it is projected to dip to nearly $9 million.

Star-News reporter Dan Abendschein points out a new blog about public pensions, Calpensions.com. The blog is a project of Ed Mendel, a reporter who covered Sacramento for nearly 30 years.

Here's a snipet about the blog:

About us

The main focus of Calpensions.com is the pair of big pension funds based in Sacramento, the California Public Employees Retirement System and the California State Teachers Retirement System, which have two of the world's largest investment portfolios.

There also are more than 80 smaller public employee pensions funds in California. Among them are 22 pension funds operated by counties, 32 by cities and 25 by special districts.

Most of the pension funds face the same basic issues. Are pension benefits negotiated by employer unions too generous? Will growing pension costs cut deeply into funding for other government programs?

With their investment clout, the big pension funds can push for better corporate performance, energy-efficient buildings and other policies. The operations of these wealthy and powerful funds are worth a closer look.

A few things of interest on Tuesday's Covina Council meeting:

1. Public hearing about the proposed increased water rates. Initial projections were that it could increase as much as 35 percent, but city officials recently said that is unrealistic.

2. I don't see it on the agenda, but since it was cancelled last time around, the council should be discussing how to fill the vacancy created by the Nov. 30 resignation of former Councilwoman Meline Juarez.

3. The council could be joining the 21st technology if the council approves the purchasing of camera and web streaming equipment on Tuesday. It's unclear from the documents I have just have much this costs.

The presidency wasn't the only think at stake in Tuesday's historical election.

Here's a breakdown of some of the local candidates and measures that failed or passed:

*Measure CC, which would have changed Rosemead from a general law city to a charter city failed. Voters rejected it by a 63 percent to 37 percent margin.

*Former Assemblyman Ed Chavez took over Leon Garcia's seat in the Upper San Gabriel Valley Municipal Water District. Chavez is the husband of former La Puente Councilwoman Renee Chavez, who was outsed in 2007.

*Assemblyman Ed Hernandez, D-West Covina, will serve a second term in the 57th District. He walked away with 67 percent of the votes versus Baldwin Park resident Victor Saldana's 33 percent.

*Pico Rivera got its wish with the passage of Measure P, the one-percent sales-tax increase that officials say won't likely to take effect before April. Measure P is expected to bring in $6 million annually.

*A half cent sales-tax increase was approved by 71 percent of voters in El Monte. Measure GG will fund public safety and infrastructure as well as rebuild the city's emergency reserves.

Not enough for ya? For more on the elections, visit our special elections page here...

Central Basin and West Basin were happily married for 16 years. And then came the bitter divorce in 2006, followed by two lawsuits and likely the squandernig of thousands of rate payers dollars.

Of course, neither agency had that number at their fingertips when I asked them how much it cost them to litigate over the past two years. At West Bast, General Manager Rich Nagel assured that the costs were "minimal," whatever that means. And at Central Basin, the costs are significant enough that they are asking West Basin to pay for attorney's fees.

Here is the most recent in their break-up:

Water districts remain at odds
By Jennifer McLain, Staff Writer
Article Launched: 10/29/2008 11:44:55 PM PDT

COMMERCE - A court order last week still won't bring an end to a bitter divorce between two water districts that serve nearly half of Los Angeles County.

The West Basin and Central Basin municipal water districts have waged war against one another after the two split joint operations more than two years ago, this time disagreeing over how much each should pay for employee retirement expenses.

Judge Robert Heff on Oct.20 ruled that West Basin Municipal breached a settlement agreement with its former business partner, Central Basin Municipal Water District.

Central Basin officials said West Basin owes their district $1.09 million in employee retirement expenses.

But West Basin said that number is about $350,000 too high.

"We believe the information provided by Central Basin to the court was inaccurate," said West Basin General Manager Richard Nagel. "We've been discussing with the board how to correct that step."

After the judge ruled, Central Basin said it wants legal fees from West Basin.

Nagel said the West Basin's board will have to decide whether to appeal.

West Basin and Central Basin from 1990 to 2006 carried out joint operations from a building in Commerce.

Just before the partnership ended in 2006, West Basin filed a lawsuit against Central Basin because the two parties could not agree what they owed one another, such as employee liabilities.

West Basin provides water to the

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western portion of Los Angeles County, from as far north as Beverly Hills to as far south as Rancho Palos Verdes, and as far west from Hermosa Beach to as far east as Carson.
Central Basin serves areas from Lakewood to Montebello, Willowbrook to La Habra Heights, including Pico Rivera, Monterey Park and Whittier.

Central Basin General Manager Art Aguilar said he hoped the recent court judgement would put an end to the ongoing legal battles with West Basin.

If fights continue, Aguilar places the blame on West Basin.

"To continue this is a waste of rate payers money," Aguilar said.

jennifer.mclain@sgvn.com

(626) 962-8811, Ext. 2477

www.insidesocal.com/sgvgov

Have questions about the proposed parking ordinance that West Covina might impose? Well, the city prepared this on posted it on its Web site.

The parking ordinance discussion will resume on Tuesday, where the City Council will consider adopting the fee schedule as well as put its final stamp of approval on the language of the ordinance, which was first passed earlier this month.

City officials emphasized that this ordinance is designed to improve safety and remove blight, and that it is not a revenue producer. Officials also said that they have been receiving dozens of calls from residents over the past month regarding the ordinance. Some calls have been complaints, others have supported the ordinance, and others wondering where they should pay. (Also, there's been a flier circulating out there in opposition to the flier. Has anyone seen it or can you email the flier to me at jennifer.mclain@sgvn.com?)

According to the city, the proposal includes the following:

1. For residents and guests that need to park on the street for one night, single night permits would be available from automatic permit machines that would be located at secured locations, such as fire stations.

2. Annual overnight parking permits will be available to single-family and multi-family type complexes. However, residents must demonstrate there is insufficient on-site parking and that all vehicles are registered to the property.

3. Annual permits will not be issued for recreational vehicles. Recreational vehicle owners can purchase single night permits to load and unload.

Just to re-emphasize, the public hearing on Tuesday will be about how much to charge for the permits and the parking violations. The meeting, on Election Day, begins at 7 p.m.

I've been on the Mongols beat the past few days so I got behind with blogging. There are a couple of stories I wanted to talk about.

1. Palin's expenses: No, not the $150,000 shopping spree, but the doctored expense reports.

Gov. Sarah Palin charged the state for her children to travel with her, including to events where they were not invited, and later amended expense reports to specify that they were on official business.

The charges included costs for hotel and commercial flights for three daughters to join Palin to watch their father in a snowmobile race, and a trip to New York, where the governor attended a five-hour conference and stayed with 17-year-old Bristol for five days and four nights in a luxury hotel.

In all, Palin has charged the state $21,012 for her three daughters' 64 one-way and 12 round-trip commercial flights since she took office in December 2006. In some other cases, she has charged the state for hotel rooms for the girls.

These types of stories have been my bread and butter in the San Gabriel Valley. I wonder what makes this story any different than, say, former water board member Dolores Holguin who racked up a series of personal expenses and charged them to the district. Holguin pleaded guilty last week to a felony misuse of public funds.

2. Only in El Monte. I was always under the impression that traffic lights were a major cash flow, but Rebecca Kimitch reports that's not the case in El Monte.

EL MONTE - Cameras will no longer capture images of vehicles that race through red lights at two intersections, the City Council decided Tuesday night.

The council voted 5-0 not to renew a contract with Redflex Traffic Systems to operate the cameras at the intersections of Peck Road and Ramona Boulevard and Santa Anita Avenue and Lower Azusa Road.

The cameras do not generate enough revenue to be worth the man hours spent on their operation, city manager James Mussenden told the council.

"But it's not about revenue, it's about saving lives," he added.

Open forum: Are parking permits in West Covina a good idea?

The city is still looking into the price of parking permits, as well as the cost of the citations. At the city council meeting two weeks ago, there was an even number of people who spoke in favor and against having the parking permits. The council unanimously passed it.

New ordinance will require residents to get overnight parking permit
By Jennifer McLain, Staff Writer
Article Launched: 10/17/2008 11:41:15 PM PDT

WEST COVINA - Starting next year, drivers who leave their cars parked on city streets could get a ticket.

The West Covina City Council has unanimously approved a parking plan that requires drivers to get an overnight permit if they want to park on city streets between 2 and 6 a.m.

"We think it will be beneficial to public safety, and will improve the quality of life and aesthetics," said Shannon Yauchzee, public works director.

The restrictions will apply to all West Covina streets. The ordinance is expected to be finalized at the Nov. 4 council meeting, where the council will also host a public hearing to discuss the proposed parking permit costs and fees.

West Covina is still preparing a cost analysis and has not decided on permit fees or parking violation costs.

In La Verne, a yearly parking permit is $50, and a temporary permit runs $3 a night. Tickets in other cities range from $40 to $100.

Dolores Holguin, former director on the Valley County Water District in Baldwin Park, pleaded guilty today to one count of misusing public funds.

Investigators said that Holguin improperly charged personal expenses to the district, including meals, attorney's fees and telephone bills. She was ordered to pay back the district $6,200.

Deputy District Attorney Edward Miller said that he hopes the case serves as an example to public officials.

"It is a message that public officials are supposed to exercise the utmost care when spending the public's money, and if it is not an actual and necessary expense for their function, it is probably illegal," Miller said.

While we're by far the worst, looks like California isn't the only state slammed with budget deficits...

For all those government employees and teachers: How do you fell about your retirement money being used to purchase the state's debt?

Well, that's one suggestion by a California lawmaker, according to the Sacramento Bee.

With California's wallet emptying out faster than the cash is trickling in, state officials scrambling to pay the bills have set their sights on new lending sources: California's two biggest public pension funds.

Sen. Dean Florez, D-Shafter, has proposed that the California Public Employees' Retirement System purchase the state's looming debt. The money would keep California operating - including paying state employee payroll and funding schools - into next year.

Florez outlined the plan in a letter to state Treasurer Bill Lockyer on Friday. Lockyer spokesman Tom Dresslar on Monday said his boss will also float the idea to the California State Teachers' Retirement System. Lockyer sits on the boards of both funds.

"I just thought, 'Nobody is talking about CalPERS as a possible investor,' " Florez said Monday. "They might be able to get us a better deal than the banks, and we might be able to give them a better return on their investment than the stock market, especially right now."

But the idea doesn't sit well with everyone.

"If the state can't borrow money from the credit markets, why would CalPERS be interested?" said Keith Brainard, research director for the National Association of State Retirement Administrators.

While driving this morning from Monrovia to the Garvey School District in Rosemead via Rosemead Boulevard, I noticed dozens of signs for both Charles Trevino and Clarence Wong, who are both running for the seat on the Upper San Gabriel Valley Municipal Water District.

They are running against incumbent Frank Forbes as well as Arthur James Munoz.

What signs are you starting to see pop up?

Have you mustered up the strength yet to take a look at your 401k? If you have, here's a pick-me-up:

Iowa man faces charges after hugging officer
The Associated Press
Article Launched: 09/29/2008 12:41:22 PM PDT

IOWA CITY, Iowa--A hug has landed an Iowa City man in hot water. An Iowa City man who thought a police officer just "needed a hug" faces several charges including assault on a peace officer and public intoxication.

Police said a 21-year-old man was arrested on Saturday. According to police records, the man ran up to the officer and stuck out his arms.

The officer told him to "get away," but the man didn't take the hint and embraced the officer.

When the officer told the man to put his hands behind his head, he refused. He was then handcuffed.

 

A small city is about to open its doors to the world wide web.

Today, the South El Monte City Council will vote on approving a contract with a company that will live stream council meetings onto the city's Web site.

However, it will only be the audio.

The price tag will be $18,920, and an $815 monthly maintenance. The agreement will be with Granicus, Inc., a company used by other cities such as El Monte and now Rosemead.

As more and more cities move toward getting their meetings online, West Covina in July decided to cut off its broadcasts online and the television as a measure to save money during a deficit.

There's quite a long list of candidates running for seats of our local water boards for the November election. Who are these people and why are they running? I'll have more on that later, but feel free to chime in if you've got any background on these candidates.

Central Basin Municipal Water District

1. Hawkins, Phillip D.
2. Martuscello, David
3. Montalvo, Rudy
4. Pesci, William
5. Silva, Yvette L.
6. Vasquez, Ed

San Gabriel Valley Municipal Water District

1. Inocentes, Mason Buchanan
2. Reichenberger, Joseph
3. Vasquez, Leticia
4. Wong, John

Three Valleys Municipal Water District
1. Lantz, Fred

Upper San Gabriel Valley Municipal Water District

1. Brown, Royall K.
2. Chavez, Ed
3. Forbes, Frank
4. Garcia, Leon
5. Lizet, Angulo
6. Mendoza, John
7. McIntyre, Andrew M.
8. Munoz, Arthus James
9. Robinson, William "Bill" R.
10. Trevino, Charles
11. Wong, Clarence