Other People’s Imaginary Money

While imitating the style of Washington’s big spenders, Mission Viejo’s city officials apparently forgot that the city can’t print money. The city is facing serious financial dilemmas, and council majority members (MacLean, Ury and Kelley) are in denial.

For a financial analysis that can’t be found elsewhere, residents can read Brad Morton’s article at http://missionviejodispatch.com/?p=10103#comments . Morton states, “The City Council appears ready to approve a bubble budget Monday [July 20]. The two-year plan appears to be built on omissions, deferrals, reserves and assumptions which create a volatile situation.”

Unlike city hall spinners, Morton presents information that makes sense because it’s true.

Not many citizens try to comprehend the city staff’s version of finance, and those who try can become confused by the doubletalk and other nonsense that money can be spent more than once. As another issue, how can the city tout its reserves and balanced budget without factoring in its debt of at least $18 million? Despite some officials’ implications that the city is awash in cash, community watchdogs have estimated it has less than $500,000 of real free-use money.

As one example of illusion, City Manager Dennis Wilberg says money that is obligated, encumbered or already spent can be called “discretionary.” City hall’s financial wizards say the city has a balanced budget, falsely leading residents to believe expenditures equal revenue. In March, Councilman Lance MacLean wrote in his recall rebuttal that the city not only has a balanced budget, it has $28 million in reserves.

While visitors to the lavish community center notice that it is “gorgeous” and resort-like, the facility’s expansion created a hole in the city treasury when the cost reached $15 million, three times over budget. In sharp contrast to the showcase facility, roads, neighborhood parks and city-maintained slopes are deteriorating. Library patrons are learning of a 75-percent reduction in library materials, and even small amounts of money generated by library-provided services are now being diverted to fill the gap at city hall.

Morton writes that the omission of obvious expenditures from the budget gives the appearance of balance. Sacramento will likely borrow property tax revenues, local gas tax revenues and redevelopment funds from the city, amounting to an additional $2.5 million to $3 million shortfall. The city has already dipped into reserves, and it sold off two $1-million bonds last October to make ends meet.

The council majority members’ denial continues as they brag about the city’s financial health. At some point, the dwindling reserves and revenues will collide with the spin. Perhaps that time will coincide with the recall election of Councilman Lance MacLean. If the city’s claims of financial health are true, then it can easily afford the costs of a recall election. If the balanced budget is just an illusion, then residents will be able to remove one of the city’s big spenders from office by recalling MacLean.

Something to Blog About

The city launched an email distribution approximately one year ago to pump its press releases into the community on a daily basis. The city describes the email distribution as a “blog,” but it’s merely a series of announcements.

The Orange County Register lists local blogs, including Brad Morton’s MissionViejoDispatch.com and this blog. OCR also lists the city’s system of blasts as a blog. OCR’s list can be found at http://www.ocregister.com/articles/blogs-mission-viejo-2374763-lake-forest

A longtime community watchdog distributed an email comment about the list:

Folks: 

 How do they consider the city hall e-mail blast a blog?

There is no way you can comment or reply for general consumption of other readers. The city hall news blast is just that, a news blast, but not a blog.

Most of the time when you peel back the covers, you find deception in what they write.  You can start by just reviewing their “NEWS” blasts concerning Crown Valley Porkway.

Joe Holtzman
Mission Viejo

Recall Update

Proponents are continuing to get signatures to ensure a margin of safety in the effort to recall Councilman Lance MacLean. The recall group announced that the gross number of 9,300 signatures has been exceeded. Volunteers are checking each signature against the database of voters to make sure they net enough valid ones. When asked how much longer the signature drive will continue, a recall proponent said it will end when they are confident they can qualify the recall for the ballot. Proponents are getting extra signatures to compensate for duplicates and others that will be deemed unqualified by the Registrar of Voters.

After City Manager Dennis Wilberg was videoed while he interfered with the recall effort on July 8, the city staff’s posturing abruptly ended. Recall committee members issued a press release accusing Wilberg of illegal acts of intimidation. They believe he violated state laws by attempting to harass signature gatherers. They also allege he illegally used public resources to become involved in the recall when he was texting or recording on his city-owned BlackBerry phone. After one of the recall workers videoed Wilberg on July 8, she said the video shows Wilberg holding his BlackBerry and conferring with another man who had been stalking two women throughout the day as they gathered signatures.

Recall proponents on July 9 requested public records with regard to the use of Wilberg’s BlackBerry. They listed “any and all records” within a three-hour period on July 8, including all incoming and outgoing phone calls, voice messages, text messages, instant messages, data processing, data input and all other activity recorded or initiated by the user, as well as all incoming data.

In response to the proponents’ request, city hall sent the following response: "A voluminous amount of separate and distinct records need to be searched and examined and multiple City departments may need to be consulted with in order to comply with the demands of your request."

A recall proponent commented: “They have got to be kidding. That's one overused BlackBerry.”

A signature gatherer sent a report during the past week: “We’re still gathering signatures in front of the library. One of Lance’s supporters showed up twice last week. She’s an exceptionally tall, older woman with Asian or Filipino ancestry. As she approached us, she said, ‘Pack your bags, you’re outta here.’ She then went into the library and told the librarian we had accosted her. On her way back out, she yelled at us, ‘You f***ing b**ches!’ She got out to the parking lot and made an obscene gesture as she left. Keep in mind we’re at the library, where moms are bringing children to get books. This woman has made repeat performances, and she threw a fit at a drugstore until the store manager came out to the street. She identifies herself as a friend of Lance, and they have a lot in common.”

On one of the hottest afternoons last week, recall volunteers were getting signatures at the library and four storefronts. A recall volunteer commented, “People are impressed that we’re out in full force. Those who have signed the petition are saying they’d sign it again if it would help get the recall on the ballot. Since only one signature counts, we discourage signing it again, but it’s good to know about everyone’s resolve in getting this guy out of office.

Parents Advocate League Update
by Julie Collier

Dear PALs,

Mon., July 13, was another general board meeting at CUSD. Items 1, 3-18 and 20-21 were approved with a 7-0 vote.

Item 19: Additional Salary for Deputy Supt. Naomi Suenaka
Ms. Suenaka was hired for part-time work. Dr. Mahler explained that this was not a salary raise, but an increase in work hours. She explained that the district is at a minimal staffing level.

Trustee Brick was adamant that the district not pay more money for this item. He was not in support of spending more money and stated the district needs to deal with what it has. His statement empowered Trustees Bryson, Lopez-Maddox, and Winsten to vote no for this item. It was a 4-3 vote.

Special thanks to Trustee Brick for taking a stand against the spending habits of the past. Many employees and teachers can sympathize with working above and beyond our specified/contracted work hours without additional funding compensation.

You can read more in the following OC Register article, including the salary contract: Capistrano trustees: No added hours for administrator

Item 22: Board Bylaw: Changing Board Meetings from Monday to Tuesday
It was explained that a change from Monday night to Tuesday night board meetings is due to a district colleague who will be attending doctorate classes on Monday night. It was further explained that some communities in CUSD hold their city council meetings on Mondays. It would also be helpful to have an extra day to work on the agenda.

Trustee Lopez-Maddox stated Tuesday night board meetings are hard for him to attend due to work obligations. He stated that he is trying to set his work schedule so he can attend Tuesday night board meetings.

This item was tabled until Trustee Lopez-Maddox can settle his work obligations.

Item 24: Reinstatement of Personnel:
This item was approved 7-0. It reinstated 18 Block Music teachers at a cost of $1M. Also included for reinstatement are two G.A.T.E. Teachers on Special Assignment at the cost of $90,000.

Item 25: Classified Layoffs
Two Classified workers were reinstated with a 7-0 vote.

Item 26: Update on progress of DSA

Item 27A: New Board Policy: Voting for Trustee by Area
Currently, voters in the CUSD communities are allowed to vote for all Trustees (“at large”). The board and some community members want to change to voting by the area in which you live. Community members want to have a special election for this on the June 2010 ballot that could cost the district $500,000 - $800,000. This item was tabled until there could be further research/information on the pros, cons and costs involved. Stay tuned for more information on this topic.

Item 28: Citizen Request
The community of Pacifica San Juan was set to have 400 homes. Currently, it has 61 homes with only 54 being occupied and 10 students who attend CUSD. The developer is now bankrupt and has left the community with unfinished sidewalks and dirt lots. This community was supposed to have a $45M bond to support CUSD. However, a bond cannot be sold until more than 90 percent of the community is sold. The residents are paying a special assessment tax and Mello-Roos. The residents are asking the board to reduce the rate they have to pay. They have hired an attorney to help them. Trustee Christensen wants this to be an action item on a future agenda. Trustee Winsten suggested ways they can research and find more answers to help their cause. A resident stated he was told by the district that the money is being used to improve La Pata Street. At the meeting, a district official stated that was untrue and that the money is currently being saved for future improvements to San Juan Hills High. (Isn’t that what the Deferred Maintenance categorical funding is for?)

The next board meeting is a special board meeting on July 28 at 7:00 p.m.

All the best,
Julie Collier
Parents Advocate League

If you would like to be included in future PALs emails, please contact julie@parentsadvocateleague.org

You can read more in the following:

Beyond the Blackboard 
CSU likely to raise student fees by 20%
Second increase in two months meant to help close state budget gap.
Teacher pay cut issue stirs emotions
Comments 13| Recommend 0
Readers come down on both sides of argument.
Obama's $12 billion welcomed by O.C. community colleges
Comments 7| Recommend 3
Local schools say program helps bring attention to community college role in economic recovery.

The Buzz

A July 13 online OC Register article described hospital layoffs, including jobs cut at Mission Hospital. Read the article at http://economy.freedomblogging.com/2009/07/13/three-oc-hospitals-lay-off-159/ The cuts follow Mission Hospital’s ambitious expansion, as well its June 30 purchase of a Laguna Beach facility, South Coast Medical Center. What happened to the hospital’s offer to fund the gruesome display of graphics on the Crown Valley pillars? Residents can wonder whether the hospital ran short on cash for the pillar project or decided it didn’t need the bad publicity

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Information about Councilman Lance MacLean’s stormy job history at UCI has emerged slowly. His sudden departure from the university (after being charged with assault and battery on a co-worker) is being referred to as “early retirement.” A UCI administrator revealed several months ago that MacLean had either sued the university or threatened a lawsuit when a black man was promoted ahead of him. A resident who signed the recall petition last week told recall volunteers that she knew MacLean when they both worked at UCI. She said she was relieved to hear MacLean left the university after the assault and battery charges. She added, “MacLean should have been fired several times, but almost no one gets fired from a university.”

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Posted July 13 by Jonathan Volzke on CapistranoDispatch.com: “Capistrano Unified trustees didn't act on a resolution concerning whether to support parents' effort to change elections to a by-area process. Trustees, many of whom supported the idea when they were running for office, said they were concerned about the cost of making such a move before a regular election - which would boost the cost from a few thousand to up to $500,000. Concern was also expressed that some families would live in one trustee area but send their children in another, meaning they may not be adequately represented.
There was talk the whole process should wait until after the results of the 2010 Census - meaning 2011 at the earliest and perhaps the 2012 election. Parents who passed a petition to get the issue before a county committee want the issue decided by 2010, when three of the seven trustee seats are up for election. The county committee, which would decide whether CUSD residents should vote on the change, is expected to take up the issue in September.”

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According to the city manager’s June 2009 newsletter, the Mission Viejo library has 127,289 registered library card holders, and 71,750 of them are Mission Viejo residents. The balance has changed, and when did it happen? The library reported less than a year ago that more than 50 percent of its card holders live outside the city. Mission Viejo’s library is a regional library, just as Mission Viejo’s community center is a regional center funded by city taxpayers.