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Time for City Council to cut its pay

The savings would be quite real


Tuesday, May 26, 2009 6:28 AM PDT

This week I received my copy of the city of Lodi draft budget for 2009-10, a 551-page beast.

While there is some double accounting because of transfers, such as from the electric utility to the general fund, the budget covers spending for $170,270,688 — down from $187,032,383 in the original budget for 2008-09.

Those are all really big numbers, from the pages to the dollars, and I can tell you that very few people have any idea what is in it except perhaps the city manager, deputy city manager and the budget staff.

The electric utility is the largest fund in the budget at about $73 million, and, as I have said before, it has the least amount of oversight. The general fund, which covers basic government, is proposed to be just short of $40 million, yet the city council will pick it apart all the way down to the contribution to the Downtown Lodi Business Partnership.

Yes, the city council wants to again subsidize the DLBP. Why? I don't have a clue. It cannot be to keep the thing running, because without the $28,900 subsidy from yours and my tax dollars, the DLBP could charge their members — of which I am one — more money.

The problem with this subsidy to the DLBP is that it now maks an otherwise balanced budget unbalanced by $28,900. In other words, unless the city manager or city council cuts something else, they will dip into our savings to subsidize the salary of Jaime Watts.

Well, since I don't like the subsidy and I don't want further cuts, I have an idea — cut the City Council pay to pay for it.

At a recent meeting of the budget and finance committee, I proposed a cut in the pay for City Council members. At that meeting, the city manager labeled it a symbolic gesture and he spoke of how hard they work. Another member of the committee dismissed the cut as small dollars relative to the total budget. On the latter I absolutely agree, but I do not see it as symbolic at all because it is real money — money that could employ a part-time person to clean our parks or to fund the travesty that is the DLBP.

According to the budget, our City Council members will each receive $10,322 for the year, about $860.17 per month. Up from $6,000 at their previous pay of $500 per month. Yes, an increase of 72 percent brought forward by Bob Johnson and approved by the council.

Now, if you think the council pay stops there, not a chance. The total budget for city council pay and benefits is $112,720. An increase of nearly 11 percent from the prior year.

Benefits, you ask? Oh, yes! Everything above their pay of $51,610 ($10,322 times five members), $61,110 is for benefits. The benefits are for: medical insurance; dental insurance; vision insurance; medicare insurance; a California Public Employees Retirement System contribution; unemployment insurance (can they collect if they don't get re-elected?); chiropractic insurance; and an insurance refund to JoAnne Mounce for, I guess, not taking some of the insurance.

Oh, let's not forget the $2,900 each for conference expenses with $500 added for Mr. Hansen, and the good times just keep getting better.

Wasn't it our mayor, Mr. Hansen himself, who suggested in this paper last week that the state of California should cut everything across the board like the Lodi City Council already has? Well, Larry, you didn't cut everything across board, now did you?

So, here's my proposal for the city council — cut the pay back to $500 per month each until such time that property taxes and sales taxes increase in Lodi and you get a percentage increase that equals the percentage increase in those two, according to the limits set by law. When things improve, you get more money — what a concept.

Now, assuming the city council benefits would not change, and they probably would go down a bit, this would be a savings to the general fund of $21,610.20. Since this is not quite enough for your subsidy to the DLBP, cut your conference budgets in half and you save another $7,500 for a grand total of $29,110.20 — more than enough for the subsidy to the DLBP.

By the way, the energy cost adjustment will be a negative $0.0053 on your coming bill. Yes, it is negative. If you use 1,000 kilowatts, your bill will go down by $5.30.

John Johnson, CFA, is a Lodi-based business appraiser. Contact him at john@johnejohnson.com or at 369-1451.

Reader Feedback

dyan wrote on Jun 2, 2009 1:46 PM:

" I say put them on commission, They only get paid a percentage of what the save the taxpayer. "

lodibandito wrote on May 29, 2009 5:10 PM:

" You make my point AmeriCAN. $800 is a pittance of what they really deserve. They are exactly in this to serve their community. "

ameriCAN wrote on May 29, 2009 2:39 PM:

" Council members should be in it for the volunteer service to our city not the pay. Besides we all know most are in it for the personal gain which is way more than $800.00 a month. gimme gimme gimme take take take uh ohh citys bankrupt! "

reality wrote on May 29, 2009 12:45 PM:

" right on bandito - and John forgot to mention that it was 18 years since the last time the council had their salary adjusted! "

lodibandito wrote on May 29, 2009 8:46 AM:

" First of all John forgot to mention that before the City Council pay raise, School Board members were making more money than City Council members. Think about that and you should realize that's preposterous. $800 a month is barely enough for what they deal with, especially with all the haranguing they get from people by just having the position. Not that I don't agree they aren't public figures and they do deserve to be scrutinized but I don't see a lot of people jumping at the chance to run for council for an extra $800 per month. I realize that people want to jump out of their skin sometimes at many of the council's decisions, but the fact that they take on the challenge to get elected and work for our city deserves them at least $800 per month plus benefits. John also forgot to mention that often times that $2900 in travel expenses isn't even used and it goes back to the city each year. And by the way Whoa Nellie, why don't you whoa nellie and slow down before accusing people of double dipping for benifits. LUSD doesn't give benefits to administrators which is what Hitchcock is. "

onestooge wrote on May 28, 2009 11:38 PM:

" great article john. wish you would have mentioned the pay raise they gave the city clerk because she deserved it. we need some people on the council who understand money. these people have no clue. i don't know which ones voted for her raise but they need to go. "

wtf wrote on May 28, 2009 12:53 PM:

" Very serious, Whoa Nellie! More and more cities and towns are looking into it. This is a link to what's called Berkshares.

http://www.berkshares.org/

And this link is to an article dated a little over a month ago on April 10, 2009:

Communities print their own currency to keep cash flowing

http://www.usatoday.com/money/economy/2009-04-05-scrip_N.htm "

Whoa Nellie! wrote on May 28, 2009 9:18 AM:

" WTF- are you serious? An estimated 15-20% of that scrip is in shoe boxes in dark closets here in Lodi.

Perhaps Lodi should split from the union too? Imagine what that will do to our taxes! "

wtf wrote on May 28, 2009 7:16 AM:

" About Bank of North Dakota

http://www.banknd.nd.gov/about.jsp "

wtf wrote on May 27, 2009 5:52 PM:

" Great article, John. Now, here's something for those a little further up the food chain i.e., Arnold.

I had suggested several months back that Arnold create a scrip money for California; turns out, he can create a BANK for California.

THE INNOVATIVE BANK OF NORTH DAKOTA

"North Dakota boasts the only state-owned bank in the nation. The Bank of North Dakota (BND) was established by the state legislature in 1919 specifically to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men. The bank’s stated mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota."

Read on...

http://www.globalresearch.ca/index.php?context=viewArticle&code=BRO20090527&articleId=13751

Regarding scrip money, that's something even the City of Lodi could do on a local basis. "

Whoa Nellie! wrote on May 27, 2009 5:05 AM:

" John, great column.

Now, taxpayers, get this: two of our five CC members already have their health insurance paid for by our tax dollars.

Susan work for LUSD and, of course, Larry has his benefit rich LPD retirement. Two of the biggest blowhards are doing the dreaded "double dip."

It is "hidden cost" items like these that elected officials vote for themselves that make me sick.

Do the math- Currently the benes are 150% of the cost of the salary. "Houston, we have a problem." "

lodidian wrote on May 26, 2009 9:57 PM:

" I think most of the council members are pretty good thinkers and can be trusted a little bit, but Mayor Larry is the fly in the ointment. He has no leadership skills at all and that is the problem.
I watch the council meetings and it makes my hair hurt when Larry drones on and on and "um and ah um ya know um and um ya know um ahhhh". Ya know.
His muddled thinking is reflected in his "Um ya know". "

journey wrote on May 26, 2009 3:30 PM:

" How about it city council members? What say you? "

ameriCAN wrote on May 26, 2009 3:14 PM:

" Grand idea, good for one good for all! "

kidsalami wrote on May 26, 2009 2:16 PM:

" WHY NOT? All of the local school board members (Galt and Lodi) have voted to do so "

lodidian wrote on May 26, 2009 8:53 AM:

" As usual, John Johnson makes very good points and supports his points with facts. Thanks for speaking out John!
It seems to me an "honest and competent mayor" would be worth a lot more than Larry is paid. That said, I think it would be good to pay Larry to stay home. We need an honest and competent leader who has no hidden agendas. "

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