New taxes or no, the money’s running short
In his letter, Matthew Owen says, as have so many other individuals involved in government, “Vote Yes on Measure H.” Eureka definitely does needs the funding from Measure H, projected to generate $9.6 million/ year. Funding to EPD and other services needs to be restored. Measure H passes. Then what?
A March 8, 2019 Times-Standard article describes how Eureka’s unfunded pension liability payments will increase from $5.4 million in 2019 to $8.4 million in 2029, and will cost the city $83 million. My correspondence with then-City Manger Greg Sparks revealed that these pension debt payment started in 2015 and are currently scheduled to continue until 2038 with a total cost of $118 million to $134 million, depending on rate of investment return. These increasing yearly pension debt payments will slowly diminish gains made by Measure H. City officials talk of increasing these debt payments, which will further diminish gains made by Measure H. Increases in current health and retirement costs are also contributing to Eureka’s financial burden, almost doubling from $1,969,501 in 2009 for Eureka’s 527 employees to $3,765,735 in 2019 for Eureka’s 509 employees (publicpay. ca.gov). Current costs are expected to continue to rise for years. A new disclaimer now appears on the website publicpay. ca.gov: “this city does NOT include payments toward the unfunded liability of the employer sponsored retirement plan.” File pension debt payments under “silence is one way to bury the truth?”
An Oct. 7, 2020 Lost Coast Outpost article on Measure H reveals that the highest-scoring statement from a questionnaire about Eureka was: “Eureka’s economy was already hit hard before the current public health and economic crisis. In these uncertain economic times, it’s more important than ever to invest in and support our local economy.” Eureka is doing exactly the opposite of what citizens want. These increasing yearly pension debt payments sent to the state capital in Sacramento are funding taken out of the community and represent tax dollars spent that are not invested in the community and that citizens see no current service for.
Measure Z is a cautionary tale. Articles in the Dec. 10 and Dec. 19, 2019, Mad River Union talk of how the increasing allocation of Measure Z funds to personnel costs could devour Measure Z funding, leaving little, if any, funding left for other services and could cause some general fund impact.
An Oct. 8, 2020, Times-Standard article about the Fortuna City Council election has one candidate talking of how the retirement system eats a sizable chunk of the city’s budget.
A June 9, 2017 Times-Standard article describes how the Humboldt County Civil Grand Jury report states Humboldt County services and infrastructure face a significant threat from $232 million of unfunded county pension liability.
Given that so many governmental agencies are significantly burdened by pension obligations, both debt payments and current costs, which are decreasing their ability to provide services, when does government go beyond simply asking for tax increases, which is a short-term fix, and bring forth and implement serious pension reform? When will governments realize they cannot tax their way out of their debilitated financial situation?
These increasing yearly pension debt payments sent to the state capital in Sacramento are funding taken out of the community and represent tax dollars spent that are not invested in the community and that citizens see no current service for.