Latest gambit with pension liability

Steve Wolfe is right — the city is seeking a new revenue measure. At the Finance Committee meeting September 23, a consultant was asked to pitch Pension Obligation Bonds to the full Chico City council. Staff reported the bond could be implemented as early as January 2021 because POBs don’t require voter approval.

POBs are a way of borrowing money to pay bills, while hoping to re-invest the borrowed money, producing a profit used not only to service the bond but to pay off the pension liability. If this outright gamble doesn’t work out, the taxpayers are on the hook not only for the unfunded pension liability, but the additional bond debt. POBs put Stockton and San Bernardino into bankruptcy.

This bond will not appear on your property taxes, it appears in the form of sagging infrastructure and service cuts — these bonds are guaranteed, bond holders take priority over our streets, our parks, our sewers and even public safety needs.

Instead of taking on new debt, we must reduce the longterm cost of public pensions for future employees. hat’s not happening. With emergency powers, the city manager hired three new positions this year at $100,000+ salaries. New hires are paid more than predecessors. There’s no accountability for these decisions. While our town struggles with financial insolvency and sagging infrastructure, the staffers responsible skip off to another town, at a higher salary, with their pensions intact.

— Juanita Sumner, Chico