Once bankrupt, Vallejo still can't af...

Once bankrupt, Vallejo still can't afford its pricey pensions

There are 6 comments on the KESQ-TV Palm Desert story from Mar 10, 2014, titled Once bankrupt, Vallejo still can't afford its pricey pensions. In it, KESQ-TV Palm Desert reports that:

The California city of Vallejo emerged from bankruptcy just over two years ago, but it is still struggling to pay its bills.

Join the discussion below, or Read more at KESQ-TV Palm Desert.

Annoymous

Vallejo, CA

#1 Mar 10, 2014
VPOA never agreed to reduce pensions for employees already in place. Time will tell whether this new so called majority has the stomach to address the hard decision of what to do about pensions long term. My bet is that lack the guts.
Anonymous

Vallejo, CA

#2 Mar 10, 2014
Once bankrupt, Vallejo still can't afford its pricey pensions
http://money.cnn.com/2014/03/10/pf/vallejo-pe...

The California city of Vallejo emerged from bankruptcy just over two years ago, but it is still struggling to pay its bills.

The main culprit: Ballooning pension costs, which will hit more than $14 million this year, a nearly 40% increase from two years ago.

Amid threats of legal action from the state's pension giant, CalPERS, Vallejo did little during its nearly three-year stint in bankruptcy to stem the growth in its pension bills.

As a result, Vallejo continues to dole out large sums of money for retirees. Except for new hires, Vallejo's police and firefighters can retire at age 50 with as much as 90% of their salary -- for life. Public safety workers who retired in the last five years have average annual pensions of more than $101,000.
And the pension costs are expected to continue to rise, with a projected increase of up to 42% over the next five years.

Moody's recently warned that Vallejo's pension obligations could force it to file for bankruptcy protection a second time. The credit rating agency said the city offers a cautionary tale for two other California cities teetering on the brink: San Bernardino and Stockton.

Vallejo City Manager Dan Keen counters that the city's financial position isn't as bleak as Moody's says. He said the city is in a much "better place" than when it filed for bankruptcy, in part due to a 1% sales tax hike that is funding new city services, like the installation of new surveillance cameras aimed at improving public safety.

In addition, employee concessions, such as a 5% pay cut for police, will allow the city to fill this year's projected $5.2 million budget shortfall, he said.

Still, Keen said pension costs are a major concern.

"If we don't resolve those costs, then we're going to see services continue to suffer," said Keen, who has led the city since 2012. "We're going to have to cut somewhere."

A lot of cuts have already been made.

Vallejo's roads are littered with potholes. Three of its nine fire stations remain closed. And its police force is down by almost 40%-- though Keen says there are plans to hire more officers this year.

Crime has surged, with more than two dozen homicides last year, compared to only seven in 2006.

Burglaries are also on the rise. Residents maintain neighborhood watch groups, but the crime is taking a toll.

"Some people in my neighborhood are voting with their feet and leaving Vallejo," resident Russell Zellers wrote in a 2013 letter to City Hall. "If things continue along the present course, I may not be far behind them."
Man Named Jed

Pacifica, CA

#3 Mar 16, 2014
Haaaawww-haaarrrrrrr! Looks like Mother Gomes' pal Chuck Reed saw the light! That's right, Chuck, unions ARE the most powerful political force in this state. Hear that BIBsters? Get used to that FACT, and get ready to be smashed again in 2016 elections. Who will step into the buzz saw? Who will "the community" put up against us?

http://www.mercurynews.com/news/ci_25348130
JED the FOOL

Vallejo, CA

#4 Mar 16, 2014
Man Named Jed wrote:
Haaaawww-haaarrrrrrr! Looks like Mother Gomes' pal Chuck Reed saw the light! That's right, Chuck, unions ARE the most powerful political force in this state. Hear that BIBsters? Get used to that FACT, and get ready to be smashed again in 2016 elections. Who will step into the buzz saw? Who will "the community" put up against us?
http://www.mercurynews.com/news/ci_25348130
Hey FOOL
Keep flapping your lips--Get the facts. You are a loser
Man Named Jed

Pacifica, CA

#5 Mar 16, 2014
Ohhhh!
Hey Fattie

San Leandro, CA

#6 Mar 16, 2014
Man Named Jed wrote:
Haaaawww-haaarrrrrrr! Looks like Mother Gomes' pal Chuck Reed saw the light! That's right, Chuck, unions ARE the most powerful political force in this state. Hear that BIBsters? Get used to that FACT, and get ready to be smashed again in 2016 elections. Who will step into the buzz saw? Who will "the community" put up against us?
http://www.mercurynews.com/news/ci_25348130
Sam kurshan the child molester has a new alias. How come you refuse to register as a sex offender sambo?

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