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Focus on Finance The most important item facing the city is its finances. My focus for the next few months is looking at the fiscal health of the city and how the declining reserves have impacted the infrastructure. I have reviewed numerous official city documents and have done extensive benchmarking. What I have discovered is that for the last 5 years, according to the Mission Viejo’s Cities Financial Transaction Reports, the city has had a Deficiency of General Revenue Over Net Expenditures:
This yearly report is a one page summary required by law to be published in the local newspaper and is posted on the State Controller's website. The Investment Portfolio has seen significant declines in value. Per the Monthly Treasurer's Report for Fiscal Year ending June 30, 2008, the city had $45.6 million in investments and cash on hand. It began Fiscal Year 2010/11 with $42.4 million and closed out the year with $39.4 million in cash and investments. For Fiscal Year 2011/12 it further declined to $37 million. Total Discretionary Reserves have also been on the decline. Per the 2008 Annual Report, these reserves were $30.4 million on June 30, 2008. The latest Annual Report reflects an ending balance of $26.5 as of June 30, 2011. Fiscal Year 2012 ended with $26.3 million, as reported in the Quarterly Financial Report released October 1, 2012. Council policy calls for Total Discretionary Reserves to have a target level of 50% of revenues. To meet that target level, over $7 million has been tapped from the Asset Replacement Reserves, according to the city’s Quarterly Financial Reports. So as a 5 year overview, according to the yearly snapshot on how the city is financing the cost of city funded public services, there is a collective deficiency of $24 million in revenue; as shown in the Treasurer's Monthly Reports, our cash and investment portfolio has lost $8.6 million in value; Discretionary Reserves have fallen by $3.9 million And we have seen a $6.1 million increase in unfunded liabilities for retirement benefits, from $9 million in June 2008 to $15.1 million as of June 30, 2011, according to the city's former and current Directors of Administrative Services. Measures need to be taken in order get us back on track. It is my opinion that we cannot continue to sustain the current fiscal practices and expect to be able to deliver the same quality services that have made Mission Viejo a safe and successful community to raise our families. [An edited version of this article appeared in Saddleback Valley News on Dec. 28.] |
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Which Needs Warrant Funding? In discussing our reserves a decade ago, a former Mission Viejo city councilwoman stated, "The purpose of having money is to spend it." There is a difference in necessary and appropriate expenditures when local governments are not in the public sector providing a product or service for sale. With the recent discussion (and council majority approval) of building a million-dollar-plus dog park, several of the proponents argued that we had $8 million of developer fees for parks sitting in the bank so there is no reason why we can't simply move ahead and spend whatever it takes. What they ignore are several factors such as an unknown cost to rehab the decking at the Nadadore swim and dive complex that is long overdue. At an emergency meeting this past week our city council voted 4-1 to send $4.8 million of those in-lieu park funds to Sacramento based on an improper transfer of redevelopment funds. Although that money is to be backfilled with a LC (letter of credit) by one of our developers we will not see that money until they pull permits for construction. Over the past few months, while this debate was ongoing, I heard residents share stories of kids urinating in the bushes at our ball fields as they lack restrooms. In my ongoing year-end purging of documents I found a March 9, 2006, article in the Register's local Saddleback Valley News which headline read: "Push is on for park restrooms." The report begins: "Restrooms at a park may seem like a commonplace amenity. But at the 14 neighborhood parks in Mission Viejo, where sports teams practice Monday through Friday, that's not the case. So where do people go when they have to. Councilwoman Gail Reavis said she received e-mails from a resident showing people relieving themselves in bushes because of a lack of facilities at Melinda Park, off Santa Margarita Parkway." The closing line of that story reads: "It could cost up to $500,000 for restrooms alone, said Keith Rattay, director of public services." Fast forward to my Orange Juice blog post of March 30, 2007, where I reported our city approving $395,000 for the Melinda Park toilet. By the time all the bills were paid, including design and construction, that Capital Improvement project (#CIP 308) exceeded $400,000. So we still have up to a dozen city parks used by our sports teams, and thousands of local resident children and visiting teams lacking toilets. So I take us back to that 2005 question. "So where do people go when they have to go?" The quick solution is Porta Potty's. The bottom line. The fact that we may have checks in the city checkbook does not justify using them for special interests when future revenue streams are unpredictable and there are other recreation related needs. |
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PALs Update Dear PALs, Parents Advocate League has been helping parents advocate for children for six years. It started as a resource for parents with children that needed help with navigating through the public education system. As I became more involved, I soon realized the needs for all students in public education were at the bottom of the priority list for most of our elected officials and school administrators. While some parents were fairly satisfied with the education their children were receiving, most parents knew there was a problem. Parents did not know where to go or how to begin the process of improving education for their children. Parents Advocate League soon became a resource for local advocacy. We advocated for much-needed and long-overdue change with the help of concerned parents. We became involved in local school board and city council elections. We helped shift the focus to the needs of students instead of special interest groups. This past year, Parents Advocate League expanded into statewide advocacy of education issues. We partnered with StudentsFirst, a national education reform organization, as well as other state and local organizations. In particular, we successfully opposed state legislation that went against the best interests of students. This work led to a dramatic increase in PAL membership. As an organization, we all worked together to help effect a new direction in public education. As the New Year begins, our team will continue to ensure students are the No. 1 priority in public education. We are ready for the new legislative season that promises to bring new hope to ALL students in public education in California. We are hopeful our members will continue to be instrumental in effecting change in education policy both locally and statewide. Recently, Parents Advocate League became a non-profit corporation. We have created a policy agenda that will focus on the needs of ALL students. The main points include: Educate and Engage Parents; Advocate Choice in Public Education; Support Student Needs and Achievement in Education. We have updated our website, so you can view the details of these policies at www.parentsadvocateleague.org We need your help as parents and concerned citizens so we can work together for our children. Your charitable donation through PayPal will allow us to continue to help students while expanding PALs’ impact on public education. We rely on the support of all our donors and value every donation received. You can also help by forwarding this information and asking five people to become a free member. Please join and support Parents Advocate League however you feel comfortable. Donate Now with PayPal We hope you have a wonderful holiday season. All our best, |
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Non-government Events Following is a sampling of events and activities that are not funded by taxpayers or promoted by the Nanny State. Please support private enterprise and non-profit groups. Lemondrop New Year’s Eve Party, Mon., Dec. 31, 8:00 p.m. to 1:00 a.m., Irvine Marriott ballroom, dinner and entertainment, 18000 Von Karman Ave., Irvine, (949) 378-6600, http://www.lemondropclub.com/ “The Science of Gingerbread” exhibit, through Jan. 3. “Indiana Jones and the Adventure of Archaeology,” interactive exhibit, open now through April 21, Discovery Science Center, 2500 N. Main St., Santa Ana, (714) 542-2823, http://www.discoverycube.org Open Casting Call, Pageant of the Masters, Sat.-Sun., Jan. 5-6, and Thurs., Jan. 10, volunteers of all ages, 650 Laguna Canyon Road, Laguna Beach, (949) 494-3663, (http://www.foapom.com/contact/volunteer/ Neil Simon’s “Chapter Two,” Jan. 8 through Feb. 3, Laguna Playhouse, 606 Laguna Canyon Road, Laguna Beach, (949) 497-2787, ext. 1, http://www.lagunaplayhouse.com Concert at Soka, The Takacs Quartet featuring pianist Joyce Yang on Wed., Jan. 16, 8:00 p.m., Performing Arts Center, 1 University Drive, Aliso Viejo, (949) 480-4278, http://www.performingarts.soka.edu Car (CARe) Show and Poker Run, San Juan Capistrano, Sat., Feb. 2, 9:00 a.m. to 3:00 for general admission. Family-friendly event, view more than 400 vehicles, proceeds benefit SJC Rotary projects. San Juan Capistrano Community Center and Sports Park, 25920 Camino Del Avion, San Juan Capistrano, http://sjcrotary.org/carshow Tet Festival, Feb. 8-10, organized by the Union of Vietnamese Student Associations of Southern California, annual lunar new year event, live entertainment, food, fireworks, Garden Grove Park, 9301 Westminster Blvd., Garden Grove, (714) 890-1418, http://www.yelp.com/biz/tet-festival-garden-grove Holiday Ice Rink in Spectrum. Outdoor rink is open through Feb. 18. Skating lessons are available. Check the website for schedule. Giant Wheel Court, Irvine Spectrum Center, (949) 748-8280, http://www.skatespectrum.com |
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Political and Government Events Calendar Trees, Trains and Traditions exhibit at the Richard Nixon Presidential Library through Mon., Dec. 31, 18001 Yorba Linda Blvd., Yorba Linda, (714) 364-1120, http://www.nixonfoundation.org Richard Nixon Centennial Celebration begins on Sun., Jan. 6, 11:00 a.m. in the Gardens. The 3rd Marine Aircraft Wing Band will perform. Richard Nixon Library, 18001 Yorba Linda Blvd., Yorba Linda, (714) 364-1161, http://nixonfoundation.org/2013-concert-schedule/ Capistrano Unified School District Board of Trustees will meet on Mon., Jan. 7, 7:00 p.m., district office, 33122 Valle Road, San Juan Capistrano, agenda and supporting documentation are published on the website 72 hours prior to a meeting, (949) 234-9200, http://capousd.ca.schoolloop.com/ Orange County Board of Supervisors will meet on Tues., Jan. 8, 9:30 a.m., Board Hearing Room, First Floor, 333 W. Santa Ana Blvd., Santa Ana, (714) 834-3100. http://egov.ocgov.com/ocgov/Government/Board%20of%20Supervisors/Meeting%20Schedule Santa Margarita Water District meetings: Engineering Committee on Fri., Jan. 11, 7:30 a.m.; Finance Committee on Fri., Jan. 18, 7:30 a.m.; Board of Directors meeting on Wed., Jan. 23 at 7:00 p.m., 26111 Antonio Parkway, Rancho Santa Margarita, (949) 459-6420, http://www.smwd.com The Mission Viejo Chapter of ACT for America will hold a General Meeting on Mon., Jan. 14. Doors open at 6:45 p.m. The meeting starts promptly at 7:30 p.m. and ends at 9:30 p.m., Norman P. Murray Community Center, 24932 Veterans Way, Mission Viejo. Saddleback Valley Unified School District Board of Trustees Workshop on School Choice and Transfers (open to public) on Tues., Jan. 15, 6:30 p.m., and Regular Board Meeting (third Tuesday due to winter recess through Jan. 4), 25631 Peter Hartman Way, Mission Viejo, (949) 586-1234, http://www.svusd.k12.ca.us/ Saddleback Republican Assembly, Thurs., Jan. 17, 7:00 p.m. SRA meets on third Thursdays (except in December, July and August) at the Norman P. Murray Community Center, 24932 Veterans Way, Jacaranda Room-B, Mission Viejo. For information call (949) 360-1717. Meet Larry Elder, live KABC radio broadcast from the Nixon Library, Thurs., Jan. 31, 3:00 p.m. to 6:00 p.m., 18001 Yorba Linda Blvd., Yorba Linda, (714) 364-1120, http://nixonfoundation.org |
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The Buzz Buzz readers reacted to last week’s post about the defective section of Olympiad Road. Here’s an example: “Good thing the city is adding a lane at the intersection of Olympiad and Alicia. It will give drivers a place to stop after they have driven a couple blocks on Olympiad. They can check to see if they have a flat tire.” Another comment: “People are talking about Olympiad Road near Stoneridge, but look at all the cracks in the road going south to Oso. The streets in my neighborhood were resurfaced two years ago, and they are already cracking. The city goes with the low bidder to resurface every seven years, as if there is no cost to patch roads for four of the seven years.” *** Some residents say they are entitled to a dog park, with a price tag likely to reach $2 million. The land swap was a big net loss, plus extensive grading and stabilizing, plus strings attached to restore grasslands as part of the swap. The make-believe funds for such projects as a dog park are to come from $8 million park fees (which the city doesn’t have, after tennis resort expenses and paying $4.8 million to the state) and/or a “surplus” that exists only on paper. The city spent all the revenue it took in last year and went right on spending until it reached a $5.3 million deficit, http://www.missionviejoca.org/html/article242.html . The city’s financial holes are now so deep that no amount of happy talk can hide them. *** Mission Viejo residents can compare two council members, Frank Ury and Cathy Schlicht, whose guest columns appeared side-by-side in the Dec. 28 Saddleback Valley News. Schlicht indicates the city should tighten its belt, and she used city hall’s own numbers to document five years of deficit spending. Ury says the city should spend more money on lawyers and lobbyists to fight with Sacramento. It is ironic that Ury wrote about finances, particularly after he led the failed effort to hide $4.8 million in redevelopment money that belongs to the state. The city received the bill with a deadline of five days to pay. During a special council meeting on Dec. 21, Ury cast the sole vote against paying. He said he was protesting, and the city should have instead filed lawsuits against the state. *** As usual, city hall applied its spin regarding the $4.8 million. Readers should first know that the city entered an agreement with a developer, Watermarke, AFTER the cutoff date to enter redevelopment agreements. According to City Manager Dennis Wilberg (SVN Dec. 28 front page), the agreement came before the deadline. The article has so much false information it is not easy to distinguish Wilberg’s spin from what was written by an uninformed reporter. For example, (next to the last paragraph) “The agency paid Watermarke $4.8 million to build the affordable units.” The payment came from the Mission Viejo Housing Authority, not the Redevelopment Agency. MVHA was the entity formed by the council majority when attempting to hide more than $5 million in redevelopment funds from the state. Gov. Brown had already issued a demand that cities protect the assets -- redevelopment funds regardless of deceit by changing the name – no new contracts and no amendments to existing contracts. The city anticipated it would get busted for defying the order. Why else would it create a Letter of Credit whereby Watermarke would repay? Good luck getting repaid anytime soon. *** Save the date – ACT for America will hold a chapter meeting on Mon., Jan. 14. Doors open at 6:45 p.m., and the meeting starts promptly at 7:30 p.m. Jesse Petrilla of Rancho Santa Margarita will present “The Afghanistan Diaries,” revealing what’s really going on in the war with the Taliban. Jesse serves on the Rancho city council, and he recently returned from a tour of duty in Afghanistan as a member of the California Army National Guard. ACT for America meets at the Norm Murray Community Center, 24932 Veterans Way, Mission Viejo. |
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