CalPERS NEXT Victim: City of Oroville

Today we visit Oroville—the next victim of CalPERS.  It is unable to pay the required increase in CalPERS mandatory invoices.

“The pension plan time bomb will make its way to the City Council for discussion Tuesday.

Chico’s annual California Public Employees Retirement System contribution is projected to increase by $3.2 million in just five years.

One of those options could be local government agency management of pensions and offering defined contribution plans like a 401(k).”

At some point CalPERS collapses—but not before cities and counties go bankrupt—even the theft of $6 billion by Guv Brown will not slow down the process.

calpers

Pensions, development fees come to council

By Ashiah Scharaga, Oroville MR, 6/18/17

The pension plan time bomb will make its way to the City Council for discussion Tuesday.

Chico’s annual California Public Employees Retirement System contribution is projected to increase by $3.2 million in just five years.

Vice Mayor Reanette Fillmer said she’s interested in looking at other options for new employees, and examining what other cities are doing to tackle the issue.

One of those options could be local government agency management of pensions and offering defined contribution plans like a 401(k).

She’s interested in finding more cost-effective routes.

“It’s about reducing cost and long-term liability and getting the city into better financial state,” she said.

City Administrative Services Director Scott Dowell said if the city doesn’t plan for the projected contribution increases, “it could obviously have huge consequences for us in the future.”

In the worst case scenario, the City Council could face tough decisions like whether to borrow money, reduce staffing levels or cut services in order to keep the budget balanced.

Also at the meeting, the City Council will comment on the development impact fee program update.

Developers could end up paying an additional $4,000 to $8,000 per home and apartment unit in Chico.

Fees include streets, parks/greenways impacts, bikeways, storm drainage, police and fire and sewer line categories.

 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.