Voice of OC (https://voiceofoc.org/tag/calpers/)
Many Orange County cities are struggling to maintain budgets that keep, or minimally cut services and employees, while trying to keep up with growing law enforcement and fire pension spending.
Seven OC cities are asking voters for tax increases in November, including increases to sales, business license and hotel bed taxes. Cities say they’re desperate for more revenue as growing pension debt and other factors drive up expenses.
Chancellor Raul Rodriguez’s salary “is not in compliance with retirement law,” according to CalPERS spokeswoman Amy Morgan.
The budget pressures are prompting warnings from the city manager that services may have to be cut back, despite growth in tax revenues. The funding gap is projected to grow to $40 million in five years.
The new contract raises the base salary for officers and sergeants by 5.6 percent to 10.6 percent, depending on seniority and work schedule. Supporters say it’s needed to keep compensation competitive, while opponents say Santa Ana can’t afford the increase.
If the deficits continue and the city has to draw from rainy day funds, it could be pushed to the brink of bankruptcy a few years from now. City officials say they’re working hard to find ways to save costs and grow revenues.
The state pension system determined in March that Westminster City Attorney Richard Jones was never entitled to a pension through the city because he is an independent contractor.
Following a lengthy review, the California Public Retirement System (CalPERS) has determined that Westminster City Attorney Richard D. Jones was never entitled to a state pension through his work with the city.
Last year, Jones & Mayer, of which Richard Jones is the sole owner, collected at least $2 million in billings for city attorney services in several cities. On top of that, Jones received a $210,000 salary from Westminster last year and might be in line for a fat pension.
City staff wants to end the program, but council members — after hearing backlash from residents — are split on the issue.