Archive for July 18th, 2012

InlandPolitics: San Bernardino votes to proceed with bankruptcy

Wednesday, July 18, 2012 – 10:30 p.m.

The San Bernardino, California City Council voted 5-2 to declare a fiscal emergency and file for chapter 9 bankruptcy protection on Wednesday night.

The move comes in an effort to right the city’s upside down finances and embark on a fresh start.

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Wednesday, July 18, 2012 – 10:00 a.m.

The final hours leading up to a bankruptcy vote by San Bernardino, California is suspenseful, sad and pathetic at the same time.

Wednesday night the seven member city council will consider the approval of a fiscal emergency declaration and the filing of a chapter 9 bankruptcy petition.

The latest developments are in the spirit of typical San Bernardino political ineptitude.

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The San Bernardino city officials listen in as the public takes turns speaking on the cities bankruptcy issues during a council meeting on Monday, July 16, 2012 in San Bernardino.(STAN LIM/STAFF PHOTOGRAPHER)

 

BY IMRAN GHORI
STAFF WRITER
ighori@pe.com

Published: 17 July 2012 05:59 PM

The San Bernardino City Council will meet again Wednesday to consider a declaration of fiscal emergency and an authorization to proceed with filing for bankruptcy.

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Ryan Hagen, Staff Writer
Posted: 07/17/2012 07:30:39 PM PDT

SAN BERNARDINO – City government has already seen at least 14 people retire or resign in the week since it authorized bankruptcy proceedings, according to a spokeswoman for the City Manager’s Office.

The pace – far more than on a typical week – reflects employees’ legitimate concern over coming changes and likely layoffs, said Acting Assistant City Manager Gwendolyn Waters.

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Ryan Hagen, Staff Writer
Posted: 07/17/2012 08:52:11 PM PDT

SAN BERNARDINO – As the public battle rages over how the city developed a $45 million deficit, much of the attention has focused on union contracts – and the blame for those contracts has included some explicit claims.

“There are some members of this council who are bought by the unions,”

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The Sun: OpEd: Why I opposed bankruptcy

Councilman Chas Kelley

Point of View

Councilman Chas Kelley
Posted: 07/17/2012 08:59:29 AM PDT

On July 10, four members of the City Council voted to put San Bernardino on the formal path toward bankruptcy. As one of the two no votes on the bankruptcy motion, I believe the council’s action was premature and unnecessarily damaging to our city’s economic future.

Bankruptcy is a stigma that will haunt San Bernardino for many years. It will discourage new businesses from locating here and encourage existing businesses to leave. Bankruptcy will also taint our city’s ability to attract public or private grant monies for infrastructure and other civic improvements.

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San Bernardino County Administrative Officer Greg Devereaux is the chairman of a joint powers authority looking at proposals to aid homeowners with underwater mortgages.(Stan Lim/The Press-Enterprise)

 

BY IMRAN GHORI
STAFF WRITER
ighori@pe.com

Published: 17 July 2012 06:15 PM

A banking industry group continued to press its opposition to a proposal to use eminent domain to seize underwater mortgages, claiming the tactic would not withstand legal scrutiny and could end up costing San Bernardino County.

The Securities Industry and Financial Markets Association, a Wall Street trade group, released a legal memo from its law firm on Tuesday, July 17, that attacked the proposal as impermissible under the federal and state constitutions and the county charter.

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BY IMRAN GHORI
ighori@pe.com
Published: 17 July 2012 06:25 PM

A San Bernardino County Superior Court judge has dismissed charges against a retired sheriff’s lieutenant accused last year of falsifying training records.

The district attorney’s office sought the dismissal against William Maddox, 58, at a Friday, July 13, hearing under a provision of the state penal code that doing so would further the interest of justice, according to court records. Maddox was charged with theft and perjury.

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The Sun: CSU OKs leader raises

Board also considers cuts
Kelly Puente, Staff Writer
Posted: 07/17/2012 11:05:33 PM PDT

The Cal State University Board of Trustees on Tuesday approved pay increases for three new campus presidents, including Cal State San Bernardino President Tomas D. Morales, in a day-long meeting in which they also considered massive budget cuts.

As student and faculty protesters gathered outside, trustees met at the Chancellor’s Office in Long Beach to consider plans to offset the 23-campus system’s severe budget crisis and a potential $250 million loss in funding. Options include a possible tuition increase, cutbacks in enrollment and system-wide salary and benefit reductions.

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Fred Wilson

L.A. NOW
Southern California — this just in

July 17, 2012 | 4:10 pm

Huntington Beach City Manager Fred Wilson stood by his tenure at the city of San Bernardino following allegations that, for more than a decade, administrators there presented falsified records to hide budget problems.

“I think the allegations are really baseless, and I’m confident that my record will stand,” he said.

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LATimes: Pension funds seriously underfunded, studies find

Gov. Jerry Brown outlines proposals to roll back public employee pension benefits during a news conference at the Capitol in October. (Rich Pedroncelli, Associated Press / July 17, 2012)

 

By Marc Lifsher, Los Angeles Times
July 17, 2012, 7:00 p.m.

SACRAMENTO — Corporate and public pension funds across the country are seriously underfunded, threatening the retirement security of workers and straining the financial health of state and local governments, according to a pair of independent studies.

In 2011, company pensions and related benefits were underfunded by an estimated $578 billion, meaning they only had 70.5% of the money needed to meet retirement obligations, according to a report by S&P Dow Jones Indices.

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PolitiCal
On politics in the Golden State
July 17, 2012 | 1:07 pm

Proposition 32 just got a big Democratic voice.

Former state Sen. Gloria Romero, a Los Angeles Democrat, announced her support this week for the November ballot measure that would ban the practice of political contribution by payroll deduction, the primary method labor unions use to raise political cash.

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By Ed Mendel | 07/17/12 6:00 AM PST

A sharp spike in pension costs is not the reason an alarmed San Bernardino city council voted last week to authorize filing for bankruptcy, fearing the city may not have enough money to make a full payment to employees next month.

The city’s pension payments climbed steadily from a little over $5 million in 2000 to about $23 million in 2008. But the payments have remained at roughly $23 million since then, and increases forecast in the next few years are gradual.

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