tag:blogger.com,1999:blog-89313369216648642842024-02-20T06:29:18.725-08:00Within Our Means BerkeleyWe Live Within Our Means : Our City Council Should TooWithin Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.comBlogger24125tag:blogger.com,1999:blog-8931336921664864284.post-55730692317864727602023-05-07T08:17:00.000-07:002023-05-07T08:17:06.847-07:00City Council Adopts Resolution of Intention to form the Public Bank East Bay<p><span style="font-size: medium;"><span style="background-color: white; color: #ff9900; font-family: Arial; font-weight: 700; white-space: pre-wrap;">Berkeley Homeowners Face Double Jeopardy for $40 Million Starting Cost & </span><span style="background-color: white; color: #ff9900; font-family: Arial; font-weight: 700; white-space: pre-wrap;">Resolution Authorizes Closed Door Planning Process</span></span></p><span id="docs-internal-guid-2879ac84-7fff-8ff8-e766-fd4333c5c5f9"><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">On April 11, 2023, at the urging of Mayor Arreguin and Councilmember Robinson, City Council approved a </span><a href="https://berkeleyca.gov/sites/default/files/documents/2023-04-11%20Item%2034%20Approval%20of%20the%20Public%20Bank%20East.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">resolution of intent</span></a><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> to form a public bank and authorized the City Manager to coordinate with the organization </span><a href="https://publicbankeastbay.org/" style="text-decoration: none;"><span style="color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Public Bank East Bay</span></a><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> to draft a business plan.</span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The bank’s proponents </span><a href="https://drive.google.com/file/d/1aniLxi6q2EnuDpDjO4Ti0EbN2O9dFaV7/view?usp=share_link" style="text-decoration: none;"><span style="color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">state</span></a><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> that a major aim of the public bank is to </span><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">provide loan support to underserved sectors of the local economy including </span><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">“capital for small businesses.” Supporting community business development is laudable, but providing these loans is an inherently high-risk endeavor for almostt one-third of small businesses fail in the first two years and about 70% fail over ten years [see </span><a href="https://www.bls.gov/bdm/us_age_naics_00_table7.txt" style="text-decoration: none;"><span style="color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">BLS data</span></a><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">].</span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The bank’s proponents are asking residents in Berkeley, Oakland and Richmond to provide $40 million to capitalize the bank. </span><span style="background-color: white; color: #333333; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The </span><a href="https://www.federalreserve.gov/supervisionreg/topics/capital.htm" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">primary function</span></a><span style="background-color: white; color: #333333; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">of capital is to act as a cushion to absorb unanticipated losses and declines in asset values that could otherwise cause a bank to fail. The fact that Berkeley is being asked to put up collateral to back loans appears to be lost on some councilmembers. Kate Harrison </span><a href="https://youtu.be/mW9owh8f-2o" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">stated</span></a><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">, “We are not spending $40 million; we are depositing $40 million into a different financial institution.” The implication of her comment is that this deposit can be withdrawn at any time and used for another purpose, but this is not the case. The $40 million is needed to back loans and other financial transactions.</span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="background-color: white; color: #333333; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Bank proponents </span><a href="https://youtu.be/5ZnPLNZL62c" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">report</span></a><span style="background-color: white; color: #333333; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">that Richmond has already committed “their share” – $750,000. Thus, the remaining $39.25 million would come from the cities of Berkeley and Oakland, and Alameda County. Based on this formula, Berkeley homeowners would be paying twice, in the form of city and county taxes, to support Richmond which is in Contra Costa County.</span></span></p><blockquote style="text-align: center;"><span style="background-color: white; font-family: arial; font-size: 14.666667px; white-space: pre-wrap;"><i><span style="color: #ffa400;">"Berkeley homeowners would be paying twice, in the form of city and county taxes, to support Richmond which is in Contra Costa County."</span></i></span></blockquote><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">This apparent double jeopardy for Berkeley residents was not lost on Councilmember Bartlett who </span><a href="https://youtu.be/pLcFWrDYahE" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">expressed</span></a><span style="background-color: white; color: #333333; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">concerns over Richmond’s precarious financial situation: the State Auditor recently</span><span style="background-color: white; color: #333333; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://www.auditor.ca.gov/reports/2021-806/index.html" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">reported</span></a><span style="background-color: white; color: #333333; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">growing deficits place the city's stability at risk. Bartlett is so concerned that he </span><a href="https://youtu.be/pLcFWrDYahE" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">suggest</span></a><span style="background-color: white; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">ed that Berkeley “would be better served with its own bank.”</span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Richmond is not alone in facing financial challenges. For example, on the same day Council voted its intention to create a bank, the Budget Manager </span><a href="https://drive.google.com/file/d/1ZQmIETtGM3F3opakxfzX2Fe6_XQo5BZI/view?usp=share_link" style="text-decoration: none;"><span style="color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">reported</span></a><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> the city’s pension obligations are anticipated to increase by more than $32 million over the next ten years and the infrastructure deficit is anticipated to swell to approximately $2.52 billion from FY 2024 to FY 2028.</span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Certain city obligations, like pension payments, are non-negotiable and must be paid. Such obligations could conflict with the bank’s business plan. For example, Berkeley could be legally obligated to withdraw its capitalization to cover obligatory pension payments, potentially triggering a scenario similar to the recent “run” on banks that contributed to the downfall of Silicon Valley and First Republic.</span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">WOM Berkeley believes there are numerous scenarios that could lead to instability or default. Under the current arrangement, the individuals seeking public funds to operate the bank are drafting a business plan in collaboration with the City Manager. Absent process transparency and public visibility, we have no way of knowing what evidence was considered to support the plan or the level of due diligence performed. WOM Berkeley has </span><a href="https://docs.google.com/document/d/16I3CA910E5j26IVG3kMlDE4eQ_xJ4f-v4vQDNK7QXKQ/edit?usp=sharing" style="text-decoration: none;"><span style="color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">requested</span></a><span style="font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> that the City Manager </span><span face="Roboto, sans-serif" style="background-color: white; color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">maintain a real-time publically accessible electronic docket tracking the development of the business plan. Docket contents would be available via the City’s website and include but not be limited to:</span></span></p><span style="font-family: arial;"><br /></span><ul style="margin-bottom: 0px; margin-top: 0px; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Meeting agendas and participants</span></p></li><li aria-level="1" dir="ltr" style="color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Meeting minutes</span></p></li><li aria-level="1" dir="ltr" style="color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Any City of Berkeley “financial details” provided to Friends of the Public Bank East Bay</span></p></li><li aria-level="1" dir="ltr" style="color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Background information or analysis considered by the working group</span></p></li><li aria-level="1" dir="ltr" style="color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Any Business Plan drafts circulated to elected officials</span></p></li><li aria-level="1" dir="ltr" style="color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Any additional materials that would support public evaluation of the business plan</span></p></li></ul><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span face="Roboto, sans-serif" style="background-color: white; color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">WOM Berkeley has a proven </span><a href="https://womberkeley.blogspot.com/2022/08/wom-berkeley-identifies-flawed.html" style="text-decoration: none;"><span face="Roboto, sans-serif" style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">track record</span></a><span face="Roboto, sans-serif" style="background-color: white; color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> of providing timely city financial analyses. Such analyses are only possible through the disclosure of information in the spirit of the </span><a href="https://firstamendmentcoalition.org/facs-brown-act-primer/" style="text-decoration: none;"><span face="Roboto, sans-serif" style="background-color: white; color: #1155cc; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Brown Act</span></a><span face="Roboto, sans-serif" style="background-color: white; color: #222222; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">. A financial plan of this magnitude should not be drafted behind closed doors.</span></span></p></span>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com4tag:blogger.com,1999:blog-8931336921664864284.post-1884651547066485902023-03-11T13:53:00.005-08:002023-03-11T13:58:45.586-08:00On Banking and Bankruptcy<p><span style="font-family: Arial; font-size: 11pt; white-space: pre-wrap;"><span style="color: #ffa400;"><b>WOM Berkeley Article Catalyzes Record Public Engagement and Conflicting Statements from the Public Bank East Bay and City Council</b></span></span></p><span id="docs-internal-guid-c5f998ad-7fff-9025-05fa-400bd677b9d2"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Record Public Engagement</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">It has been a fascinating seven days since our <a href="https://womberkeley.blogspot.com/2023/03/risky-business-berkeley-mayor-and.html" target="_blank">analysis</a> of the proposed $40 million taxpayer funded Public Bank East Bay. As of this writing, there have been nearly a thousand page views making it the most popular WOM Berkeley post ever. Rodger Hallsten deserves credit for this engagement as he drove an incredibly informative </span><a href="https://nextdoor.com/p/JzxrggHtRdXS?utm_source=share&extras=MjYzNTQ4" style="text-decoration: none;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Nextdoor post</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> with over 250 comments. WOM Berkeley thanks all who contributed as we believe this robust discussion will serve to better inform this important public policy proposal.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">On Banking and Bankruptcy</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">On Friday, the FDIC </span><a href="https://www.fdic.gov/news/press-releases/2023/pr23016.html" style="text-decoration: none;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">announced</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> the failure of Silicon Valley Bank. The California Commissioner of Financial Protections </span><a href="https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/03/DFPI-Orders-Silicon-Valley-Bank-03102023.pdf?emrc=bedc09" style="text-decoration: none;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">reported</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> a sudden “run on the bank” caused the failure despite being in “sound financial condition” only the day before. This failure underscores the inherent risks faced by the banking sector in general, and in particular, comparatively smaller institutions. SVB was the 14th largest bank in the US as </span><a href="https://www.statista.com/statistics/799197/largest-banks-by-assets-usa/" style="text-decoration: none;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">measured</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> by total assets.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Conflicting Statements by Public Bank East Bay on City of Berkeley’s $25,000 Allocation for a Viability Study</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">WOM Berkeley originally reported that $25,000 in funds had been received by the Friends of the Public East Bay. This was based on a statement in a Berkeley City Council </span><a href="https://drive.google.com/file/d/1ezlYJfn2byUTnyUs-u-mUgo5aKXnUwqN/view?usp=share_link" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Resolution</span><span style="background-color: white; color: black; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">:</span></a></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="color: #ffa400;">The City of Berkeley began formally assessing the feasibility of establishing a public bank with a $25,000 allocation made in 2017 to support the development of a feasibility study for the Public Bank of the East Bay</span></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">However, the chair of the</span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> Friends of the Public Bank East Bay disputed this and responded in the Comments of the </span><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">article with “corrections of fact” stating:</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="color: #ffa400;">Berkeley (and the other cities) did not put any money into the viability study, which was totally funded by the Friends of the Public Bank East Bay.</span></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Consequently, WOM Berkeley retracted the original statement based on the “correction” provided by the Public Bank of the East Bay. However, we also contacted Councilmember Robinson’s Office for clarification regarding the language above. Robinson’s Office </span><a href="https://docs.google.com/document/d/1vwJUBcfjBnxN5PjMYcOAOPumlMqBu44j2kC5DDLhP-A/edit?usp=sharing" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">responded</span></a><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> by stating:</span></p><br /><p dir="ltr" style="background-color: white; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="color: #ffa400;">Thank you for reaching out. This [$25,000] funding was allocated to Friends of the Public Bank East Bay.</span></span></p><p dir="ltr" style="background-color: white; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><br /></p><p dir="ltr" style="background-color: white; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">WOM Berkeley has made repeated attempts to contact the chair of the Public Bank East Bay to reconcile these conflicting statements, but they have not responded. It is somewhat unsettling that an organization that wants to be entrusted to manage $40 million in startup costs cannot account for $25 thousand dollars.</span></p></span><br class="Apple-interchange-newline" />Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com4tag:blogger.com,1999:blog-8931336921664864284.post-73353717904936909142023-03-03T15:50:00.007-08:002023-03-11T08:04:45.779-08:00 Risky Business: Berkeley Mayor and Councilmember Robinson Propose a Public Bank with Startup Costs of $40 Million in Taxpayer Funds<p><span style="font-family: Arial; font-size: 11pt; white-space: pre-wrap;"><b><span style="color: #ffa400;">Other Progressive Governments Have Rejected Public Banks Citing Excessive Costs and Financial Risks</span></b></span></p><span id="docs-internal-guid-91726ce3-7fff-011d-9b0a-09c3cf87a7d5"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"></p><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvBNAcuW2is7cnesqle72yAZU3xplVFLY8BVbpZCedLPnF3EcP-wKOx5tex2dfm1uDnH6EUucw8e2aFrPvoOCMWeFAySj4AyYN2wCbWmBSe7ihoXwXawgKCw7MyWaL-lbcjlH_tA_6c3k17V_GhDDNyHCjJvQP7J8zq1R8isKGkLNj3cukgtMo_kZn8g/s1074/Screen%20Shot%202023-03-03%20at%202.51.32%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="684" data-original-width="1074" height="75" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvBNAcuW2is7cnesqle72yAZU3xplVFLY8BVbpZCedLPnF3EcP-wKOx5tex2dfm1uDnH6EUucw8e2aFrPvoOCMWeFAySj4AyYN2wCbWmBSe7ihoXwXawgKCw7MyWaL-lbcjlH_tA_6c3k17V_GhDDNyHCjJvQP7J8zq1R8isKGkLNj3cukgtMo_kZn8g/w117-h75/Screen%20Shot%202023-03-03%20at%202.51.32%20PM.png" width="117" /></a></div><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">As Berkeley’s infrastructure continues to crumble and financial </span><a href="https://berkeleyca.gov/sites/default/files/documents/Berkeley%27s%20Financial%20Condition%20%28FY%202012%20-%20FY%202021%29-%20Pension%20Liabilities%20and%20Infrastructure%20Need%20Attention.pdf" style="text-decoration: none;" target="_blank"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">liabilities</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> escalate, one would hope the Mayor and Council would focus on closing this gap. Perhaps they would consider scaling back the </span><a href="https://womberkeley.blogspot.com/2022/07/" style="text-decoration: none;" target="_blank"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">record growth</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> in spending, so resources could be redeployed to address our maintenance deficit. But apparently the fundamental functions of municipal government are too mundane for this Mayor and Council as their latest push is to adopt a<a href="https://drive.google.com/file/d/1ezlYJfn2byUTnyUs-u-mUgo5aKXnUwqN/view?usp=share_link"> </a></span><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"><a href="https://drive.google.com/file/d/1ezlYJfn2byUTnyUs-u-mUgo5aKXnUwqN/view?usp=share_link">resolution</a></span><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> to draft a plan to risk millions of public dollars to create a “</span><a href="https://www.thebalancemoney.com/what-is-a-public-bank-5235618" style="text-decoration: none;" target="_blank"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">public bank</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">.” The startup cost of this endeavor is </span><a href="https://www.eastbaytimes.com/2023/02/26/will-a-public-bank-prove-recession-proof-for-east-bay-cities/" style="text-decoration: none;" target="_blank"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">projected</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> to be $40 million.</span><p></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Mayor Arreguin and Councilmember Robinson are leading this effort, and they have recommended adoption of a resolution of intention to form the Public Bank East Bay with approval of up to $50K to develop a business plan. Arreguin and Robinson also present a “</span><a href="https://publicbankeastbay.org/viability-study" style="text-decoration: none;" target="_blank"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">viability study</span></a><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">” authored by advocates for the Public Bank. The viability study suggests funds should address the climate and housing crisis while it assigns blame for “structural [financing] problems” on Wall Street banks.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; color: #ff9900; font-family: Arial; font-size: 11pt; font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Small banks have been driven out of the market by Wall Street banks, or have been bought out or merged into larger banks. This has left banking deserts around the state, including in the East Bay. In 1994, the state had 500 community banks, but by 2017 it had only 124. While this corporate concentration may have brought convenience for some customers, it has caused pain to many others.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="background-color: white; color: #ff9900; font-family: Arial; font-size: 9pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Public Bank East Bay Viability Study</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Issue appropriation aside, the reduction in the number of community banks appears to have little to do with Wall Street. Rather, the</span><span style="background-color: white; color: #212529; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/2017-vol11-4/fdic-v11n4-3q2017-article2.pdf" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">FDIC</span></a><span style="background-color: white; color: #212529; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">attributes these reductions to voluntary mergers </span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">between</span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> community banks to improve the financial position of the acquired bank because it is typically underperforming.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">In the wake of the 2008 financial crisis, banks have been required to strengthen their asset positions. Therefore, this consolidation among community banks is generally good for customers and society because it increases assets and reduces risks of failure (requiring public bailouts) while preserving services. It is important to note that fewer banks does not necessarily mean less services. In fact, similar service levels are now supported by larger, more stable community banking organizations.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="background-color: white; color: #ff9900; font-family: Arial; font-size: 11pt; font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Community banks also make up the vast majority of merger participants on both sides of the deal. Most community banks that are acquired merge with other community banks, which results in a community banking sector composed of somewhat larger institutions that continue to provide essential financial services within a limited geographic market.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><a href="https://www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/2017-vol11-4/fdic-v11n4-3q2017-article2.pdf" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 9pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">FDIC Quarterly</span></a><span style="background-color: white; color: #ff9900; font-family: Arial; font-size: 9pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> 2017 • Volume 11 • Number 4</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The FDIC also</span><span style="background-color: white; color: #1a1a1a; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://www.fdic.gov/resources/community-banking/report/2020/2020-cbi-study-full.pdf" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">concluded</span></a><span style="background-color: white; color: #1a1a1a; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">that community banks were profitable and could successfully compete against their typically larger noncommunity bank competitors. Further, the viability study implies that a public bank is a way to remove our city’s government deposits from large Wall Street banks. But 53 percent of state and local deposits are already held by</span><span style="background-color: white; color: #212529; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://www.icba.org/newsroom/blogs/main-street-matters/2021/05/13/the-problem-with-public-banking" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">community banks</span></a><span style="background-color: white; color: #212529; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">, </span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">meaning a public bank could displace locally based community banks. In other words, Arreguin and Robinson’s “solution” appears to exacerbate the problem the viability study claims needs solving.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Beside this dubious rationale, the City would also be assuming enormous financial costs and risks. For example, the only</span><span style="background-color: white; color: #333333; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://bnd.nd.gov/history-of-bnd/" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">existing</span></a><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> public bank in the US is not FDIC insured. Berkeley would have to provide financial guarantees in the event of defaults on a bank’s loans. The feasibility study also cites Germany as an example, but fails to mention that the</span><span style="background-color: white; color: #333333; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://www.americanbanker.com/opinion/promises-of-public-banks-dont-match-reality" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">bulk of losses</span></a><span style="background-color: white; color: #333333; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">related to the 2008 subprime mortgage crisis were from loans provided by public banks. Massachusetts </span><a href="https://drive.google.com/file/d/1_WpjNHz_ItsVyhY4dc89H2hzwWnPvXkJ/view?usp=share_link" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">rejected</span></a><span style="background-color: white; color: #333333; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">a public bank proposal citing the high costs, risks, and unclear benefits including a significant initial investment of capital.</span><span style="background-color: white; color: #333333; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://www.civicfed.org/civic-federation/blog/public-bank-city-chicago" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Chicago</span></a><span style="background-color: white; color: #333333; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">, </span><span style="background-color: white; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">echoed similar concerns. The viability study presented by Arreguin and Robinson does not mention these risks, historical losses, or the Massacchusetts study. Therefore, a city-funded study apparently omitted evidence of downside risk associated with the policy proposal it was charged with analyzing.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="background-color: white; color: #ff9900; font-family: Arial; font-size: 11pt; font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The Commission recommends that the Legislature not pursue establishing a bank owned by the Commonwealth or by a public authority constituted by the Commonwealth. The primary reasons for the Commission’s recommendation are that a state-owned bank would require significant initial capital investment … the public funds of the Commonwealth would be exposed to unacceptably high risk if deposited in a state-owned bank.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><a href="https://drive.google.com/file/d/1_WpjNHz_ItsVyhY4dc89H2hzwWnPvXkJ/view" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 9pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Report </span></a><span style="background-color: white; color: #ff9900; font-family: Arial; font-size: 9pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">of the Commission to Study the Feasibility of Establishing a Bank Owned by the Commonwealth</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">To date, multiple jurisdictions have rejected creating public banks because of unacceptably high risk and cost. The Arreguin and Robinson proposal calls for forming the Public Bank East Bay </span><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">alongside</span><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> Oakland & Richmond to be governed by city council members. This language suggests a joint powers authority model with capital investment from three or more jurisdictions. Such complexity appears unprecedented. What jurisdiction’s taxpayers would underwrite a default on a Berkeley-based business with operations in Richmond and Oakland?</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The Arreguin and Robinson plan also calls for the bank’s board of directors to be composed of city council members setting the stage for potentially significant conflict of interest scenarios. City council members could be authorizing “in their district or city” projects and programs financed with bank funds.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="color: #ff9900; font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The Public Bank East Bay's proposed governance plan requires that each member city designate one councilmember to sit on the Public Bank East Bay's Board of Directors</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="color: #ff9900; font-family: Arial; font-size: 9pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Berkeley City Council <a href="https://berkeleyca.gov/sites/default/files/legislative-body-meeting-agendas/2023-02-23%20Agenda%20Packet%20-%20Budget.pdf" target="_blank">Resolution</a> of Intent</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">In summary, a preponderance of evidence suggests that the Arreguin and Robinson banking proposal is an expensive and risky endeavor that would serve to undermine our existing community banking infrastructure. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">There is no need to spend another $50K to assess the financial benefits and risks of forming the Public Bank East Bay. We have done the research for you here, just follow the links and save our tax dollars. Please don't squander limited public resources to champion expansive programs that lack evidence of need or effectiveness. Our City has pressing needs that demand immediate attention. Will you come to your senses? We are not banking on it!</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="color: #666666;"><span style="font-family: Arial; font-size: 11pt; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Revision: the original post indicated the City of Berkeley had spend $25K on the Feasibility Study. The City Council resolution states: "</span><span style="font-family: ArialMT; font-size: 12pt;">WHEREAS, the City of Berkeley began formally assessing the feasibility of establishing a public bank with a $25,000 allocation made in 2017 to support the development of a feasibility study for the Public Bank of the East Bay.</span><span style="font-family: ArialMT;">”</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: ArialMT; font-size: 12pt;"><span style="color: #666666;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="color: #666666;"><span style="font-family: ArialMT; font-size: small;">According to a commenter (see below) </span><span style="font-family: ArialMT;">“</span><span style="font-family: ArialMT; font-size: small;">Berkeley did not put any money into the viability </span><span style="font-family: ArialMT;">study.” The post has been revised based on this comment.</span></span></p></span><br class="Apple-interchange-newline" />Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com14tag:blogger.com,1999:blog-8931336921664864284.post-84311673752434039642023-02-14T20:27:00.008-08:002023-03-03T15:52:49.918-08:00Opportunity Lost<p><span style="font-family: Arial; font-size: 16pt; font-weight: 700; white-space: pre-wrap;"><span style="color: #ffa400;">City Council Overlooks Troubling Financial Indicators in Favor of Relativism and Wishful Thinking</span></span></p><blockquote></blockquote><span style="font-family: arial;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">On January 17, City Council was provided a </span><a href="https://berkeleyca.gov/sites/default/files/documents/2023-01-17%20%20Item%2019%20Pres%20City%20Manager.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">status report</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> update by the City Auditor entitled </span><span style="font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">“</span><span style="font-style: italic; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Berkeley’s Financial Condition (FY 2012 – FY 2021): Pension Liabilities and Infrastructure Need Attention Audit”. </span><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> The objective of the presentation was to report on the implementation status of the Auditor’s recommendations emanating from a May 2022 </span><a href="https://berkeleyca.gov/sites/default/files/documents/Berkeley%27s%20Financial%20Condition%20%28FY%202012%20-%20FY%202021%29-%20Pension%20Liabilities%20and%20Infrastructure%20Need%20Attention.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Audit Report</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> with the same title.</span></span><blockquote style="text-align: left;"></blockquote><span style="font-family: arial;"><span style="white-space: pre-wrap;">The May 2022 audit report is one of the most concise and revealing analyses of the city’s long-term financial condition. With regard to pension liabilities, the May 2022 audit report documented that the combined growth in pensions and other Post-Employment Benefits (OPEBs) such as health benefits represent one of the most serious “challenges” to Berkeley’s financial well being. The report examines the period between 2012 and 2021 to document long-term financial trends, and the leading indicators are troubling. </span><br /></span><blockquote><blockquote><span id="docs-internal-guid-6ef31e0e-7fff-f7b2-3ed6-3aa0f1ae139b" style="font-family: arial;"><span style="color: red;"><br /></span><ul style="margin-bottom: 0px; margin-top: 0px; padding-inline-start: 48px;"><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.2; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">During this period, city revenues were up by 25%, but combined pension and OPEB liabilities increased by 36%. </span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.2; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Particularly alarming was the report of OPEB liability growing by 91% between FY 2012 and FY 2021, from $60.4 million to $115.1 million, adjusted for inflation.</span></p></li><li aria-level="1" dir="ltr" style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; list-style-type: disc; vertical-align: baseline; white-space: pre;"><p dir="ltr" role="presentation" style="line-height: 1.2; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Combined unfunded pension ($657.9M) and OPEB liabilities ($115.1M) were $773 million in FY 2021.</span></p></li></ul></span></blockquote></blockquote><span style="font-family: arial;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Equally concerning are recent indicators (since the original audit report in May 2022) suggesting that the gap between revenues and liabilities is expanding further. For example, between 2012-2021, CalPERS </span><a href="https://www.calpers.ca.gov/docs/forms-publications/facts-investment-pension-funding.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">investment returns</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> were around 7.7%. Therefore, Berkeley’s liability gap grew despite a decade of robust returns on investments. For the 2021-22 fiscal year, CalPERS </span><a href="https://www.calpers.ca.gov/page/newsroom/calpers-news/2022/calpers-preliminary-investment-return-2021-22" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">reported</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> a -6.1% decline in investments, with negative or diminished returns continuing into the current fiscal year. In other words, we were losing ground even when investment returns were very strong, and now we appear to be losing ground at an accelerated rate.</span></span><blockquote style="text-align: left;"></blockquote><span style="font-family: arial;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Pension liabilities are a significant driver of financial health; because, unlike infrastructure needs, they cannot be “deferred.” As the </span><a href="https://berkeleyca.gov/sites/default/files/2022-04/2022-04-26%20Special%20Item%2002%20Accept%20the%20Risk%20Analysis%20for%20Long-Term%20Debt.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">risk analysis</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> performed by the Government Finance Officers Association pursuant to ballot Measure L (2022) describes, if (1) the gap between revenues and expenditures continues to widen and (2) the cumulative pension liability is substantial ($773.1M) and growing, then the city’s overall credit rating is at risk.</span></span><blockquote style="text-align: left;"></blockquote><span style="white-space: pre-wrap;"><span style="font-family: arial;">We highlight this dynamic between economic trends and Berkeley’s financial health because it was not clear from the discussion that the City Council appreciated the scope and magnitude of the problem. The mayor did refer to “long-term significant challenges” and he recognized that the city’s “unfunded liabilities will increase.” Councilmember Kesarwani, to her credit, did attempt to unpack the root causes by asking the City Auditor to explain the basis for the State Auditor classifying Berkeley’s pension funding ratio as “high risk”. </span></span><blockquote style="text-align: left;"></blockquote><span style="font-family: arial;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">However, these sobering and measured remarks were in contrast to Councilmember Harrison who stated, [</span><a href="https://archive-video.granicus.com/berkeley/berkeley_8c3b5ea5-9816-11ed-96ab-0050569183fa.mp4" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">time stamp 1:16</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">] “we are in much better shape than many many other cities”... “I am very happy about where we are heading, I am not feeling as dire as where we are at right now.” With regard to fiscal relativism, Berkeley is </span><a href="https://www.auditor.ca.gov/local_high_risk/dashboard-csa" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">ranked</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> by the State Auditor in the lowest quartile (25%) of California cities (81st out of 360). On balance, 78% of California cities are considered to be in a better financial condition, so we do not believe fiscal relativism is anything to write home about.</span></span><blockquote style="text-align: left;"></blockquote><span style="font-family: arial;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">After some confusing remarks about when employees will retire [</span><a href="https://archive-video.granicus.com/berkeley/berkeley_8c3b5ea5-9816-11ed-96ab-0050569183fa.mp4" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">time stamp 1:26:42</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">], Harrison referred to the $657.9M in pension liability as “so called debt” … that is an “accounting number.” Yes, it is an accounting of the difference between future costs and funds available to cover such costs which can’t be wished away.</span><br /></span><blockquote style="text-align: left;"></blockquote><span style="font-family: arial;"><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">One of the critical issues, with regard to the timing of employee retirement, is age. The City pays a </span><a href="https://berkeleyca.gov/sites/default/files/2022-02/EmployeeBenefitsGuide.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">retiree medical subsidy</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> that can be used for health insurance premiums of the retiree (single-party) or retiree and spouse/domestic partner (2-party). As noted previously, this OPEB benefit grew 91% in the last decade. It appears the “</span><a href="https://www.jessearreguin.com/newsletters-2/2023/2/6/city-jobs-storms-response-and-more-berkeley-news" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">great resignation</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">” among city employees, with many taking early retirement, will result in an even greater OPEB liability.</span><br /></span><blockquote style="text-align: left;"></blockquote><span style="font-family: arial;"><span style="white-space: pre-wrap;">The distinction between pension and other benefits was not even included in the status report or discussion. Another striking observation was that only two council members and the mayor spoke during the discussion which makes us wonder whether our city’s leaders have a complete perspective on the issue.</span></span><div><span style="font-family: arial;"><span style="white-space: pre-wrap;"><br /></span><span><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Later this year, CalPERS will release its revised </span><a href="https://www.calpers.ca.gov/page/employers/actuarial-resources/public-agency-actuarial-valuation-reports" style="text-decoration: none;"><span style="color: #1155cc; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Actuarial Valuation Report</span></a><span style="font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">. WOM Berkeley anticipates that the consequences of the troubling financial indicators highlighted in our analysis will be revealed in the CalPERS report. In the meantime, we caution against relativism and wishful thinking.</span></span></span></div>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-42949749273496413592022-11-18T14:51:00.009-08:002022-11-18T21:17:21.147-08:00Warning Signs on the Horizon<p><span style="color: #ffa400; font-size: medium;"> <span style="font-family: Arial; white-space: pre-wrap;">A Financial Wakeup Call for City Council</span></span></p><span id="docs-internal-guid-6549d6c3-7fff-4425-19f2-a5c97e8e97de"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">This week we witnessed a series of financial alarm bells being triggered that should cause the City Council to take notice. The first was the release of the California Public Employees Public Retirement (CalPERS) System’s </span><a href="https://www.calpers.ca.gov/docs/board-agendas/202211/financeadmin/item-6a-01_a.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">2022 Annual Review of Funding Levels and Risks</span></a><span style="color: #00659e; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">. </span><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">This report (which WOM Berkeley brought to the attention of City Council, the City Auditor and City Manager) is intended to assist participating employers, like the City of Berkeley, in assessing the soundness and sustainability of the Public Employees’ Retirement System for ongoing pension plans. </span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">As WOM Berkeley has documented </span><span style="color: #1155cc; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"><a href="https://womberkeley.blogspot.com/2022/08/ominous-financial-report-points-to.html" style="text-decoration: none;" target="_blank">previously</a></span><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> the Financial Officers Association and the State Auditor consider Berkeley’s pension liabilities to be the greatest threat to the city’s credit [bond] rating. </span><span style="background-color: white; color: #343434; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The State Auditor </span><a href="https://www.auditor.ca.gov/local_high_risk/dashboard-csa" style="text-decoration: none;" target="_blank"><span style="color: #41b375; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><u>ranked</u></span></a><span style="background-color: white; color: #343434; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> Berkeley among the worst in the state for pension cost risk (giving the city a score of 0).</span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">Pertinent findings in the CalPERS report include:</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="font-family: "Times New Roman"; font-size: 11pt; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">With the lower-than-expected investment returns for fiscal year (FY) 2021-22, the funded status of the system has decreased from 81.2% as of June 30, 2021 to an estimated 72% as of June 30, 2022. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="font-family: "Times New Roman"; font-size: 11pt; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The recent decrease in funded status has increased the risk that plans will fall to low funding levels. In addition, employer contribution levels are expected to increase in response to the investment loss for fiscal year 2021-22.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="color: #1e1c1c; font-family: "Times New Roman"; font-size: 11pt; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">We have determined that required contributions may increase 5%-12% of payroll over the next several years depending on how long the high inflation period lasts and how quickly it returns to Federal Reserve targets. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">City Council recently signed off on a</span><a href="https://www.berkeleyside.org/2021/08/02/berkeley-approves-union-contracts-pay-agreements-affecting-over-900-city-workers" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"> labor agreement</span></a><span style="background-color: white; color: #343434; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> t</span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">hat requires the city to increase contributions towards pensions, so it is likely Berkeley will be on the higher end of the 5%-12% range. These required contributions are on top of over $660 million in</span><span style="background-color: white; color: #343434; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://drive.google.com/file/d/1bNtam5oVYV-Ym_SlNj0e6XZbDo_41-HP/view?usp=share_link" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">existing </span></a><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">liabilities. The potential consequences are service cuts or, more likely, voters will face a bond measure with the sole purpose of “shoring up” the city’s finances.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">A second</span><span style="background-color: white; color: #343434; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://lao.ca.gov/reports/2022/4646/CA-Fiscal-Outlook-111622.pdf" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">repor</span></a><span style="background-color: white; color: #343434; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">t </span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">from the state’s Legislative Analyst’s Office projects a $41 billion state deficit across 2022-2024. The state budget challenges emanate from our progressive tax system where there is significant </span><a href="https://www.ebudget.ca.gov/2022-23/pdf/BudgetSummary/RevenueEstimates.pdf" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">reliance</span></a><span style="background-color: white; color: #343434; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">of the General Fund on capital gains and on taxes paid by a small portion of the population. Disastrous market returns in 2022 have flipped the state’s surplus to deficit with little relief in sight for 2023. As a consequence, city windfalls received as a result of a state surplus have disappeared. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">City Council appears slow to recognize the gravity of the situation. Currently, they are advocating for extending retirement benefits to part time workers. When council members expressed a desire to better understand the fiscal implications of expanded benefits, other members responded by</span><span style="background-color: white; color: #343434; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://www.youtube.com/watch?v=TaOG1EsEDWc" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">suggesting</span></a><span style="background-color: white; color: #343434; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> t</span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">hey </span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">make binding long-term financial decisions </span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">“without understanding the [budget] implications.” </span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">One rationale for</span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> extending benefits without complete informations is that </span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">“we have fluff in the budget.” </span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Such a cavalier attitude toward the city’s financial situation may no longer be tenable in light of these most recent reports.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOnHxRuGHmmkHXrwoJdb1qv5teMY8cZ7nLWDIn7Zie7yAVOhgh8nv7N2fv7UUQBgVdOixhjWlgzl8FtZq-11Np6FHt33xmAuNpAFYSPo1Gmyr_KsQY1kKZ8hY2CBsgOpTQWoTHOsWUDm35mwGMcQiEFILO8zilWOzzKCvT5U_WPc68uCnzEL6yPI5OIA/s1920/Screen%20Shot%202022-11-18%20at%206.57.34%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1221" data-original-width="1920" height="204" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOnHxRuGHmmkHXrwoJdb1qv5teMY8cZ7nLWDIn7Zie7yAVOhgh8nv7N2fv7UUQBgVdOixhjWlgzl8FtZq-11Np6FHt33xmAuNpAFYSPo1Gmyr_KsQY1kKZ8hY2CBsgOpTQWoTHOsWUDm35mwGMcQiEFILO8zilWOzzKCvT5U_WPc68uCnzEL6yPI5OIA/s320/Screen%20Shot%202022-11-18%20at%206.57.34%20AM.png" width="320" /></a></div><span id="docs-internal-guid-703cd3b6-7fff-8df1-b7fb-0d7cb257d9c1"><div style="text-align: center;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 11pt; white-space: pre-wrap;">A rapid decline in state revenues from capital gains is putting increased pressure on the state, and by extension, local budgets</span></div></span><span style="background-color: white; font-family: Arial; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span><p></p></span><br class="Apple-interchange-newline" />Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-36886301177436620842022-11-05T09:28:00.007-07:002022-11-05T13:47:50.001-07:00Measure L Campaign Announces Newest Use of Bond Funds<p><span style="color: #ffa400; font-family: arial; font-size: medium;"><b>Rebuilding After A Wildfire Razes Berkeley</b></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">We have <a href="https://womberkeley.blogspot.com/2022/09/overdrawn-city-council-has-promised.html" target="_blank">previously noted</a> that the p<span style="background-color: white; color: #343434;">roponents of Berkeley’s $650 million mega bond (Measure L) </span><span style="background-color: white;">have already promised<span class="apple-converted-space"> up to $1 billion in projects. Now, in a letter to the East Bay Times, </span></span>the chief architects of Measure L suggest a new use of bond proceeds: rebuilding “if a wildfire razes Berkeley next year.”<o:p></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">This statement represents a candid acknowledgement that bond funds could and should be used for anything. They double down by claiming the vagary of the measure is in the “public interest” and being more specific would be “tying the [city] council’s hands.”<o:p></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"> </span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">Claims that vagary is in the public interest and basic budgeting amounts to hand tying is disrespectful to the residents you are asking to foot the bill. The statement also foreshadows a future dilemma. Because there is no plan and they have over promised (even before wildfire rebuilding was added to the list), certain projects will simply not get done. To get you to approve <span style="background-color: white;">approximately $10,000 in additional spending per resident, Measure L proponents seem to believe that a bait-and-switch campaign is actually an “exercise [in] discretion.” </span><o:p></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">The complete text is below:</span><span face="Calibri, sans-serif"><o:p></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><h4 style="margin-left: 0cm; margin-right: 0cm; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times; font-size: medium;">City plans would Guide Berkeley Bond Measure<o:p></o:p></span></span></h4><div><span style="letter-spacing: -0.1pt;"><span style="font-family: times;"><br /></span></span></div><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times;">The East Bay Times opposed Berkeley’s Measure L — a bond put on the ballot by a unanimous City Council — claiming the absence of specific dollar amounts and projects undermines accountability. We disagree.<span style="font-size: small;"><o:p></o:p></span></span></span></p><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times;">Measure L expenditures would be guided by existing city plans developed with years of community input. The bond measure doesn’t name specific projects or amounts because that would not serve the public interest or taxpayers. Here’s why:<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times;">If the federal government invests billions in affordable housing or infrastructure — which recently happened — specifying dollar amounts could force taxpayers to use Measure L dollars rather than those funds.<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times;">If a wildfire razes Berkeley next year, Measure L resources couldn’t be used to rebuild because the damage wasn’t contemplated by voters this year.<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times;">If we assign dollar amounts and construction prices soar like they did during the pandemic, would projects be left unfinished?<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times;">Tying the council’s hands would not ensure the best use or the best deal. We elect representatives to exercise discretion in such matters every day.<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><span style="letter-spacing: -0.1pt;"><span style="font-family: times;">Berkeley carries one-third of Oakland’s debt per $100,000 of assessed home value. The average Berkeley homeowner would pay just 72 cents per day to build affordable housing, advance wildfire safety and renew our infrastructure. Vote yes on Measure L.</span></span></p><p class="MsoNormal" style="margin: 0cm 0cm 12pt; vertical-align: baseline;"><b style="font-family: times; text-align: right;"><span style="border: 1pt none windowtext; letter-spacing: -0.1pt; padding: 0cm;">Jesse Arreguín </span></b><i style="font-family: times; text-align: right;"><span style="border: 1pt none windowtext; letter-spacing: -0.1pt; padding: 0cm;">Berkeley mayor </span></i><b style="font-family: times; text-align: right;"><span style="border: 1pt none windowtext; letter-spacing: -0.1pt; padding: 0cm;">Gordon Wozniak </span></b><i style="font-family: times; text-align: right;"><span style="border: 1pt none windowtext; letter-spacing: -0.1pt; padding: 0cm;">Former Berkeley City Council member</span></i></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-18596573798078029712022-10-30T17:18:00.008-07:002022-10-31T13:31:58.991-07:00Rushed and Stunningly Ill-conceived<p><span style="color: #ffa400; font-family: arial; font-size: medium;">East Bay Times Editorial Board Recommends Voters Reject Measure L</span></p><p><span style="font-family: arial;">The Editorial Board of the East Bay Times recommends Berkeley voters reject Measure L this November characterizing it as a “rushed and stunningly ill-conceived” measure. They note that the $650 million in borrowing is “nearing the size of Oakland’s similar measure” despite Oakland having 3.4 times as many people.</span></p><p><span style="font-family: arial;">As WOM Berkeley has <a href="https://womberkeley.blogspot.com/2022/09/city-councils-blank-check.html" target="_blank">reported</a>, the measure’s language suggests anything goes with bond funds and represent a blank check. They specifically call out the clause stating, there is “not a commitment or guarantee that any specific amounts will be spent on particular projects or categories of projects.” The Times notes that the “little gem” of legal text is conveniently left out of the ballot language and out of the city’s “impartial analysis.”</span></p><p><span style="font-family: arial;"><span>WOM Berkeley <a href="https://womberkeley.blogspot.com/2022/09/hurried-opaque-and-non-responsive.html" target="_blank">repeatedly requested</a> that the City Attorney and City Council clarify the impact of this legal text on spending plans, but both were non responsive. Rather than address our questions and concerns City Council attempted to pass “guidelines” for spending. The Times described this action as a "</span>desperate attempt.” Noting that "nothing the council members do now could bind their or a future council’s spending of Measure L money. The guidelines are a meaningless promise."</span></p><p><span style="font-family: arial;">A copy of the editorial may be found <a href="https://drive.google.com/file/d/1i-lLvP46anDtZ1ImYgQQvwbhBd6yMtVc/view?usp=share_link" target="_blank">here</a>.</span></p><p><span style="font-family: arial;"><br /></span></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFyARxXMMnfPOOzn0FkhcLq7GseJ6IMxkVbHiTfLcmqz_U98wG0u_8PmUVL75afIA85Zrgp0-8MF2_Vw7e3f2DRDKjc03trQyZlE3nFo15s2Sk4BzZZY0wGCFXwTIbiBFycmhOwDpBbCIJD8faFoHM2Tbb5t78LcGqhMlcbzZYWjQbjQMKmU-YvIsWPw/s2384/Screen%20Shot%202022-10-30%20at%205.03.39%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="296" data-original-width="2384" height="50" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFyARxXMMnfPOOzn0FkhcLq7GseJ6IMxkVbHiTfLcmqz_U98wG0u_8PmUVL75afIA85Zrgp0-8MF2_Vw7e3f2DRDKjc03trQyZlE3nFo15s2Sk4BzZZY0wGCFXwTIbiBFycmhOwDpBbCIJD8faFoHM2Tbb5t78LcGqhMlcbzZYWjQbjQMKmU-YvIsWPw/w400-h50/Screen%20Shot%202022-10-30%20at%205.03.39%20PM.png" width="400" /></a></div><br /><span style="font-family: arial;"><br /></span><p></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-78907722264974253612022-10-14T23:16:00.013-07:002022-10-15T09:12:44.001-07:00 Green Party Says No, No, No! To Measure L<p><span face="Arial, sans-serif"><span style="color: #ffa400; font-family: arial; font-size: medium;"><b>“It is because of Berkeley’s incompetent management that this measure is on the ballot. Vote NO, a billion times no!”</b></span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"> </span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">In a stinging critique of ballot Measure L, the Green Party has made a “no, no, no” recommendation in its <a href="https://acgreens.wordpress.com/2022/10/10/green-voter-card-nov-2022/" target="_blank">Voter Guide</a>.</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"> </span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><span face="Arial, sans-serif">The Green Party, like many others across the political spectrum, recognizes that we need “targeted” and financially sound solutions to address Berkeley’s <a href="https://www.womberkeley.org/fix-it-first" target="_blank">infrastructure crisis</a>. </span><span face="Arial, sans-serif"> As WOM Berkeley has <a href="https://womberkeley.blogspot.com/2022/08/making-our-grandchildren-pay-for.html" target="_blank">suggested</a>,</span><span face="Arial, sans-serif"> the Green Party agrees that taking a 48 year loan to repair potholes does “not make logical sense.”</span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">The party goes further and writes, “It is a city’s duty to repair streets and infrastructure, which [in Berkeley’s case] have been neglected for years.” City Council has engaged in infrastructure benign neglect [or “incompetent management”] and now wants residents to provide a $650 million bail out. The problem is (1) there is no guarantee any infrastructure will be repaired and (2) they have offered no reforms to the system that created this problem in the first place. For example, City Council has not committed sufficient General Fund expenditures to maintaining our city.</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"> </span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">WOM Berkeley and the Green Party share a common vision for targeted, sound and sustainable planning and Measure L provides neither. Even worse, it kicks the can down the road to our grandchildren to pay for problems of the past.</span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; margin: 0cm;"><span face="Arial, sans-serif"><br /></span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; margin: 0cm;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://drive.google.com/file/d/19fyt1rvpp-x4VqlFFRUDXmh8qll0lgOG/view?usp=sharing" imageanchor="1" style="margin-left: 1em; margin-right: 1em;" target="_blank"><img border="0" data-original-height="498" data-original-width="800" height="199" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRzEkw02on8hHiHUipxI3cz-bOV_otPvU7tuMZ8LaUoqC8tEfcebe1B0-O7TXbH7UIP2U3mQVaWzApUK6-_OzPIGdvUiU6LNm-MgEugw-AUiGPomY5rAjJVJq_02TaS7pX4ODhfJwqUdzwhvdHduzQ8WQS0msxOZus2TrVRa39T3e68PyKyg-iyoRz7Q/s320/Green_Voter_Guide_2022_Small.png" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><span style="color: #ffa400; font-family: arial;"><a href="https://drive.google.com/file/d/19fyt1rvpp-x4VqlFFRUDXmh8qll0lgOG/view?usp=sharing" target="_blank">Read the “No, No, No” Recommendation</a></span></div><p class="MsoNormal" style="font-family: Calibri, sans-serif; margin: 0cm;"><o:p> </o:p></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-43375866224665970612022-10-04T20:41:00.004-07:002022-10-04T20:59:23.298-07:00Why Neighbors are Voting No on Measure L<p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: #20124d; font-family: Arial; font-size: 15pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">We Need A Plan for a Sustainable Berkeley Not $650 Million in Borrowing: Why Neighbors are Voting No on Measure L</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: #20124d; font-family: Arial; font-size: 15pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Residents are feeling the squeeze from record inflation, and declines in retirement and education nest eggs. Now City Council wants residents to approve $650 million in borrowing – ballot Measure L. Here are some of the concerns being voiced by a </span><a href="https://womberkeley.blogspot.com/2022/09/diverse-collation-opposes-berkeley.html" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">diverse coalition</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> of Berkeley residents, and why I am voting NO on Measure L.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><a href="https://womberkeley.blogspot.com/2022/08/making-our-grandchildren-pay-for.html" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Borrowing From Our Grandkids</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">: After interest payments, Measure L will cost over $1.1 billion to finance or $8,938 per city resident and take 48 years to pay off. City Council is concerned that homeowners (who must pay off the debt) would get sticker shock if they used a traditional 30-year property tax repayment plan. So to make the repayment plan more “acceptable” they decided to extend the borrowing period from 30 years to 48 years, thereby passing the cost on to future generations.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><a href="https://www.womberkeley.org/we-have-dedicated-housing-subsidies" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">We Are Already Overdrawn</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">: Berkeley residents recently voted to pass Measures O, P, M, T1, and FF. In sum, these measures have generated over $200 million in funds for affordable housing and road repair. Combined with other </span><a href="https://www.womberkeley.org/we-have-dedicated-housing-subsidies" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">fees</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, these measures continue to produce tens of millions of dollars every year for affordable housing, homelessness, public safety, and disaster preparedness. Rather than work with this generous funding, City Council has manufactured an </span><a href="https://www.womberkeley.org/fix-it-first" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">infrastructure crisis</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> from years of bad budgeting and now wants to borrow hundreds of millions more to make up for it.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><a href="https://womberkeley.blogspot.com/2022/09/city-councils-blank-check.html" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">No Specific Plan or Guarantees</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">: There is no plan for how Measure L funds would be spent, but Council has already promised more </span><a href="https://womberkeley.blogspot.com/2022/09/overdrawn-city-council-has-promised.html" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">spending</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> than the measure can support. Present or future Councils can use the money however they wish, regardless of how it is presented to voters. City Council gave itself complete discretion by declaring in the ballot measure: “</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: italic; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">These dollar amounts are estimates and </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: italic; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">are not a commitment or guarantee</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: italic; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> that any specific amounts will be spent on particular projects or categories of projects.”</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: italic; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Residents recognize it is vital to invest in Berkeley’s ailing infrastructure. However, we already </span><a href="https://www.womberkeley.org/we-spend-the-most" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">spend</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> more than double some neighboring cities and yet our </span><a href="https://www.womberkeley.org/fix-it-first" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">outcomes</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> are worse. Borrowing from our grandkids, to finance an overly ambitious laundry list of projects with no plan or guarantees, will not fix our infrastructure problem. A commitment of this scale, first requires thoughtful and deliberative planning and a long term budget strategy for maintaining our investments. Measure L provides none of this.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Please donate to this effort at:</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 12pt; font-style: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 400; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"><a href="https://berkeleyansforbetterplanning.org/" style="text-decoration: none;">https://berkeleyansforbetterplanning.org</a></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir09agtfDeH_H7b29IS6LnO6lNzzofetsCqMGxfRJsFBYgwTLk3WFuoVdmXgrKoZjXLXbT5nfKM7fG_Q3yVqEhHyIxlPhE0engmPsMkY7tjqlT-C1gNeR6BV7BV7uNZMHet0xW2qxygraCOCI0ZNWLFt-LDqiRfPv-xkzEH02-NzXJx9KQ69wzX45QEQ/s1622/Screen%20Shot%202022-10-04%20at%208.43.34%20PM.png" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="622" data-original-width="1622" height="123" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir09agtfDeH_H7b29IS6LnO6lNzzofetsCqMGxfRJsFBYgwTLk3WFuoVdmXgrKoZjXLXbT5nfKM7fG_Q3yVqEhHyIxlPhE0engmPsMkY7tjqlT-C1gNeR6BV7BV7uNZMHet0xW2qxygraCOCI0ZNWLFt-LDqiRfPv-xkzEH02-NzXJx9KQ69wzX45QEQ/s320/Screen%20Shot%202022-10-04%20at%208.43.34%20PM.png" width="320" /></a></div><br /><p><br class="Apple-interchange-newline" /></p><br class="Apple-interchange-newline" />Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-8652635546694820162022-09-27T18:00:00.004-07:002022-09-27T18:13:13.189-07:00Yes On L Campaign Resorts to Illegal Tactics<p><span style="color: #ffa400; font-size: medium;"><span style="font-family: Arial; white-space: pre-wrap;">Nailing Placards to Power Poles Creates “Life-Threatening” Risk to Workers and Fire Hazards</span></span></p><span id="docs-internal-guid-bdbfd649-7fff-afb7-2407-b1e4cbd59883"><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">The Yes on L Campaign, which champions Berkeley’s $650 million mega bond to “enhance safety,” has resorted to unlawful campaign tactics resulting in risks to workers and the public. In recent days, campaign placards have been nailed across the access rungs of power poles rendering them hazardous and inaccessible to utility workers.</span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">Nailing signs to utility poles is a violation of the Berkeley Municipal Code. Safety advocates have launched public education campaigns designed to protect workers from the life-threatening risk posed by signs in general and nails in particular.</span></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="background-color: #fffffe; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="color: #274e13; font-family: arial; font-size: x-small;">The clamped safety boots used by line workers to climb poles are vulnerable to becoming snagged on staples and nails embedded in posts. Foreign objects can also tear utility workers’ protective clothing, which is the first line of protection from an electric shock in the event of an accident. They can also injure workers despite the safety gear they wear to avoid contact with rough surfaces.</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><a href="https://safeelectricity.org/posting-items-utility-poles-creates-safety-risks/" style="text-decoration: none;"><span style="background-color: #fffffe; color: #1155cc; font-family: Arial; font-size: xx-small; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">https://safeelectricity.org/posting-items-utility-poles-creates-safety-risks/</span></a></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Blocking access to electrical lines also compounds fire risk as campaign placards block timely access to hazardous wires or transformers that may need replacement or repair. Besides the dangers posed by nailed placards, illegally placed campaign signs can <a href="https://www.berkeleyside.org/2018/10/19/berkeley-warns-campaigns-to-remove-median-signs-or-divert-taxpayer-money" target="_blank">cost taxpayers</a> tens of thousands of dollars. </span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">WOM Berkeley finds it ironic that the same elected officials who want residents to entrust them with a $650 million line of credit are in leadership positions for a campaign that puts workers and residents at risk, wastes thousands of taxpayer dollars and violates city law. If you observe illegal campaign placards you are encouraged to report the location to the City Clerk </span><span style="background-color: white; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><a href="mailto:clerk@cityofberkeley.info">clerk@cityofberkeley.info</a>.</span></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="border: none; display: inline-block; height: 309px; overflow: hidden; width: 205px;"><img height="309" src="https://lh4.googleusercontent.com/MZ5NbIdt2nexrKQEm-VbXddZ46sVvnRarxnzDprtdP6VJ6RFA1ESbWGBzdpUd_UJ2MdSp6zUms9SAtfPqc3pPaLdJ3n42SDn-sYhSi-jUty3lTO5hJ1F1kpBCcD1ejf3zDfDLJDc3c6maAyODwLtULF3kZiJIq-Yfih0RJQ9tN_aNGbdaHl-FYQrXw" style="margin-left: 0px; margin-top: 0px;" width="205" /></span></span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="border: none; display: inline-block; height: 309px; overflow: hidden; width: 205px;"><img height="309" src="https://lh6.googleusercontent.com/FkH4RwhoSQCB1BQuRFVHDNAUaLjTOUibS4mol4N1O00a_fRxanp-pgexZiRMmcRXAxxP5QpnWLo67u1OBfBZs0vZOA00vdFOvu0EgRL2dLQG9aviTIQvmyKoGADhI_hDFPiAMpGhqoS_B19O8gR0WAHEIt4Yof6aGezEbvqi9DikEY8qFASgp11QHA" style="margin-left: 0px; margin-top: 0px;" width="205" /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Examples of Campaign Placards Nailed to Utility Poles</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 12pt; margin-top: 12pt;"><span style="font-family: arial; font-size: x-small;"><span style="color: #222222; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">No sign, poster, placard, card, sticker, banner, or other device calculated to attract attention of the public shall be posted, printed, stamped, stuck or otherwise affixed to or placed upon any public sidewalk, crosswalk, median strip, curb, lamppost, hydrant, tree, utility pole, any fixture of the traffic control, fire alarm or police alarm system of the City, except:… placards, cards, stickers, or flyers that do not cause a hazard to pedestrian or vehicle traffic, and that are affixed to </span><span style="color: #222222; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">City-owned utility poles</span><span style="color: #222222; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> and lampposts in a manner consistent with standards promulgated by the Department of Public Works.</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"><a href="https://berkeley.municipal.codes/BMC/20.16.010">https://berkeley.municipal.codes/BMC/20.16.010</a></span></p></span><br class="Apple-interchange-newline" />Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-80077305727671841932022-09-24T11:53:00.009-07:002022-10-07T11:44:03.911-07:00 Overdrawn: City Council Has Promised Over $850 M in New Spending<p><b><span style="color: #ffa400; font-family: arial; font-size: medium;">Infrastructure Repairs May be Neglected for Special Projects</span></b></p><p><span style="color: red; font-family: arial;">This post has been revised as the Measure L Campaign Now Claims 1,700 units of housing will be built</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">Proponents of Berkeley’s $650 million mega bond (Measure L) have promised approximately $881 million in new spending. This spending includes 1,700 units of subsidized housing, a new recreational pier, City Hall and Civic Center rebuilding, underground utilities, infrastructure repairs and in-district amenities such as pools. WOM Berkeley <a href="https://docs.google.com/presentation/d/1iAz6GR-69fX9HE3YEd9VTyh__DS7bogcePzhvqFKhtU/edit?usp=sharing" target="_blank">estimates</a> cost to be $881lion in today’s dollars and could run as high as $1 billion<a>.</a></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><a href="https://docs.google.com/presentation/d/1iAz6GR-69fX9HE3YEd9VTyh__DS7bogcePzhvqFKhtU/edit?usp=sharing" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;" target="_blank"><img border="0" data-original-height="182" data-original-width="142" height="39" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOtU_7HY8VYDBoZXsj0jNGsRsyv74rrI_HF42Ypf3UZyrDaPw2GO9gdeP4fE40jfrvmgsPZ160qprYMw9TB6QT02esXC9xmnZJoWnxaN8mLRH1EQmzlMEkArBmjNxOeCr2-ZgZwMIkpzi6U_9r-xEBpGNu2H12Ug7dnwlMP1wM82xuf-fPrTrX1CGjmQ/w32-h39/Screen%20Shot%202022-09-24%20at%2010.55.42%20AM.png" width="32" /></a></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEhcgJ59b6kUPYBiSsm7uKpAPrEK_UGnLDqXGW2KoKPoD84gzCFTRF2NPSKjV7Dwgfy9PwH-oErw2DVF63b_JxbkuFjzjZ_T32yQz9A4-NDN0en00XoVqYbJ2g67C79BK8p0Z0uewVZgF9iyRxoH0hMUsuXnxy_csQYMieMGFHKZCVV4zsEGmfDoDItw/s1024/Screen%20Shot%202022-10-07%20at%2011.32.05%20AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="597" data-original-width="1024" height="187" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEhcgJ59b6kUPYBiSsm7uKpAPrEK_UGnLDqXGW2KoKPoD84gzCFTRF2NPSKjV7Dwgfy9PwH-oErw2DVF63b_JxbkuFjzjZ_T32yQz9A4-NDN0en00XoVqYbJ2g67C79BK8p0Z0uewVZgF9iyRxoH0hMUsuXnxy_csQYMieMGFHKZCVV4zsEGmfDoDItw/s320/Screen%20Shot%202022-10-07%20at%2011.32.05%20AM.png" width="320" /></a></div><p class="MsoNormal" style="margin: 0cm;"><br /></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">The Yes on L campaign’s growing subsidized housing numbers may be a reflection of the fact that special interests that will benefit have donated $65,000 to the campaign. The increase focus on building suggests that funds will not be available for the infrastructure repairs we desperately need.</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">Opponents of Measure L cite a lack of planning as a major concern with the bond measure. These concerns appear to be validated by this evolving list of promises that exceed available funds.<o:p></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><o:p><span style="font-family: arial;"> </span></o:p></p><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px;"><p class="MsoNormal" style="margin: 0cm; text-align: left;"><i><span style="color: #ffa400; font-family: arial;">We don’t know what projects or issues the money will be spent on because crucial advanced planning has not happened </span></i></p></blockquote><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px;"><p class="MsoNormal" style="margin: 0cm; text-align: left;"><span style="font-size: 8pt;"><span style="font-family: arial;"><a href="https://berkeleyansforbetterplanning.org/why-no/" target="_blank">Berkeleyans for Better Planning</a></span></span></p></blockquote><p class="MsoNormal" style="margin: 0cm;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">Perhaps most troubling for Within Our Means Berkeley is that we believe the most urgent need is to repair city infrastructure which by most <a href="https://www.womberkeley.org/fix-it-first" target="_blank">reports</a> is in critical condition. As streets, sidewalks, sewers and storm water systems fail costs multiply. The fact that City Council is championing new projects suggests that funds claimed to be for infrastructure repairs will be diverted. In fact, Measure L has specific <a href="https://womberkeley.blogspot.com/2022/09/city-councils-blank-check.html" target="_blank">language</a> that gives City Council the power to spend funds on any project they choose. During the <a href="https://berkeley.granicus.com/player/clip/4868?view_id=5&redirect=true&h=83dd63995f5769bb3cf977d6f0151df0" target="_blank">discussion</a> [time stamp 1:29:00] to place the borrowing measure on the ballot City Council suggest up to 1,700 units could be built, and this should be the priority program.</span></p><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px;"><p class="MsoNormal" style="margin: 0cm;"><o:p></o:p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoT3uRw3OBkZPfpUnO1vCOSUDI2Zzr1Q_xPVNp7FTI8CSdqDGefB4T-QVd4paZ3T4y6ditfgJGvqUn2fBBI_qLD3ryXQCEpvQEo87BLykAlyg9irbIgSY4w34U7KuJGcl7QaPRpHL4DK-_6-BDNeDulH_8Wqo-KtCtCNgRbGHK3U6LWfInCYvH2s6M0Q/s800/wish%20list.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="272" data-original-width="800" height="109" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoT3uRw3OBkZPfpUnO1vCOSUDI2Zzr1Q_xPVNp7FTI8CSdqDGefB4T-QVd4paZ3T4y6ditfgJGvqUn2fBBI_qLD3ryXQCEpvQEo87BLykAlyg9irbIgSY4w34U7KuJGcl7QaPRpHL4DK-_6-BDNeDulH_8Wqo-KtCtCNgRbGHK3U6LWfInCYvH2s6M0Q/w320-h109/wish%20list.png" title="City Council has been actively promoting its spending plan on social media" width="320" /></a></div></blockquote><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px;"><div class="separator" style="clear: both; text-align: center;"><span style="color: #274e13; font-family: arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoT3uRw3OBkZPfpUnO1vCOSUDI2Zzr1Q_xPVNp7FTI8CSdqDGefB4T-QVd4paZ3T4y6ditfgJGvqUn2fBBI_qLD3ryXQCEpvQEo87BLykAlyg9irbIgSY4w34U7KuJGcl7QaPRpHL4DK-_6-BDNeDulH_8Wqo-KtCtCNgRbGHK3U6LWfInCYvH2s6M0Q/s800/wish%20list.png" style="margin-left: 1em; margin-right: 1em;"></a><span style="font-size: 8pt; text-align: left;">City Council has been actively promoting its spending plan on social media</span></span></div><p class="MsoNormal" style="margin: 0cm;"><span style="font-size: 8pt;"><span style="font-family: arial;"><o:p></o:p></span></span></p><p></p></blockquote><p class="MsoNormal" style="margin: 0cm;"><o:p><br /></o:p></p><p class="MsoNormal" style="margin: 0cm;"><o:p><span style="color: #2b00fe; font-family: arial; font-size: x-small;">[1] <a href="https://berkeleyca.gov/sites/default/files/documents/2022-06-21%20Special%20Item%2001%20Discussion%20and%20Direction%20Regarding%20Vision%202050%20%286pm%29.pdf" target="_blank">Vision 2050 Plan Update</a></span></o:p></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-24434631684762124612022-09-17T11:03:00.010-07:002022-09-18T08:33:06.339-07:00Hurried, Opaque and Non-Responsive<p><span style="color: #ffa400; font-family: arial; font-size: medium;">City Leadership Ignores Request to Clarify Specifics of Ballot Measure L</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">Berkeley's <a href="https://berkeley.municipal.codes/BMC/2.06.010" target="_blank">Open Government</a> policy states that residents are entitled to understand the actions of city government.</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px;"><p class="MsoNormal" style="margin: 0cm; text-align: left;"><span style="font-family: arial;"><i><span style="background-color: white;"><span style="color: #3d85c6;">Democracy … requires that the public have an opportunity to understand the government’s activities … the purpose of this ordinance is … to ensure that the public has an adequate opportunity to be informed of the City’s activities and to communicate its concerns to its elected and appointed officials.</span></span></i></span></p></blockquote><p><span style="font-family: arial;">Open government requires openness from city officials. In the case of Berkeley’s $650 million mega bond (Ballot Measure L) such responsiveness is lacking. In a </span><a href="https://womberkeley.blogspot.com/2022/09/city-councils-blank-check.html" style="font-family: arial;" target="_blank">previous post</a>,<span style="font-family: arial;"> we identified language in Measure L that </span><span style="background-color: white; font-family: arial;">appears to give City Council a blank check in terms of bond money spending. We have repeatedly asked the</span><span style="background-color: white; font-family: arial;"> <a href="https://berkeleyca.gov/your-government/about-us/departments/city-attorney" target="_blank"><span style="color: #6aa84f;">City Attorney</span></a><span style="color: #343434;"> </span>to clarify if the measure </span><span style="font-family: arial;">provides City Council with total discretion regarding the disbursement of funds.</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">Over two weeks have passed, and city officials have not responded. Our request was exceedingly narrow and focused, by design, to enable a timely response. Further, the section in question was extensively <a href="https://berkeleyca.gov/sites/default/files/documents/2022-08-03%20Item%202%20Supp2%20Mayor.pdf" target="_blank">marked up</a>, suggesting city officials are well aware of its implications. However, contrary to Berkeley’s Open Government policy, they have chosen not to respond.<o:p></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><a href="https://womberkeley.blogspot.com/2022/09/diverse-collation-opposes-berkeley.html" target="_blank">Opponents</a> assert Measure L suffers from a lack of planning and specifics. The vagaries of the ballot language supports these claims. Perhaps more disconcerting is that city officials, bound by an Open Government policy, appear unwilling to provide the public with an opportunity to understand their activities.</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"> </span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiX5cq24gXCdb4woxcwWsKXiWGG_9qW6kMIkkKz6PfnPi7jRAlYWdGhDgj0iQwEZ3BTtt0HdfLa7Ce35Q410uhii0jJbg9tX8TZNN50GXgLUnMPCyoRXVey2TQmASssSomQ3sVIqyIX8oYxoNyku090LDbTRoC_sUVmClO9d6MKShtlEKEA0AvGwhgybQ/s2178/Screen%20Shot%202022-09-17%20at%2011.56.48%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="318" data-original-width="2178" height="47" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiX5cq24gXCdb4woxcwWsKXiWGG_9qW6kMIkkKz6PfnPi7jRAlYWdGhDgj0iQwEZ3BTtt0HdfLa7Ce35Q410uhii0jJbg9tX8TZNN50GXgLUnMPCyoRXVey2TQmASssSomQ3sVIqyIX8oYxoNyku090LDbTRoC_sUVmClO9d6MKShtlEKEA0AvGwhgybQ/s320/Screen%20Shot%202022-09-17%20at%2011.56.48%20AM.png" width="320" /></a></div><blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px;"><p class="MsoNormal" style="margin: 0cm; text-align: center;"><span style="color: #274e13; font-family: arial; font-size: x-small;">City Officials appeared to have labored in marking up language stating that there is no “guarantee" Measure L funds will be used for any particular purpose</span></p></blockquote><p><span style="background-color: white;"><o:p><span style="font-family: arial;">We have subsequently requested that the authors of the resolution authorizing the bond measure (t</span></o:p></span><span style="font-family: ArialMT, serif; font-size: 11pt;">he Mayor and Councilmembers Hahn, Kesarwani and Wengraf</span><span style="font-family: ArialMT, serif;"><span style="font-size: 11pt;">) </span><span style="font-size: 14.666666984558105px;">clarify</span><span style="font-size: 11pt;"> the language above. Perhaps, our elected officials will be more responsive?</span></span></p><p><span style="font-family: ArialMT, serif;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: ArialMT, serif;"><a href="https://berkeleyansforbetterplanning.org" style="margin-left: 1em; margin-right: 1em;" target="_blank"><img border="0" data-original-height="737" data-original-width="1024" height="230" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsevKXL70-11rO2yQbfCgr7TWu68R_vDfNt7Ad1txr-9FqYpRmZUqfEEEWgh3NJvVS_iI03K4g0eeZZOr-rvoUPX7Wc3qXQu86r9iUa_7Vvomo9IpGsMzY9ucD9RK3MXEIdE7t1RGxMlubu9K_CO11MjuxTCT6qIUuhOK57K3fTPO_A1Ce_7jeOiDB5Q/s320/Screen%20Shot%202022-09-17%20at%2011.04.20%20AM.png" width="320" /></a></span></div><span style="font-family: ArialMT, serif;"><br /><div style="text-align: center;"><span style="font-size: 14.666666984558105px;"><span style="color: #274e13;">Measure L opponents cite a lack of specifics</span></span></div></span><p></p><p class="MsoNormal" style="margin: 0cm;"><span face="Calibri, sans-serif"><o:p></o:p></span></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-87337946084504087972022-09-08T21:47:00.003-07:002022-09-08T22:03:19.774-07:00Diverse Coalition Opposes Berkeley Measure L<p><span style="color: #ffa400; font-family: arial; font-size: medium;"> Berkeleyans for Better Planning Launches Formal “Vote No” Campaign</span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg59yQS3yWZc4P9MnWiui_fyrRqXaTIfVxT593kCJD8YBRbQVOZRuO8TF-Lf9GORW_U97LegsEcs0LVLUBZEpABgDj5tOJQScYlioVJwlDDLRLFXkQTUdrEaVJDx8AW2cQ2BEAZ_gF2JnYLbylWiy46Oqnq_q5BSbuXxSXzW4sYl6OqY53OVBLrJ5Dkrw/s1082/Screen%20Shot%202022-09-08%20at%209.11.18%20PM.png" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="156" data-original-width="1082" height="46" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg59yQS3yWZc4P9MnWiui_fyrRqXaTIfVxT593kCJD8YBRbQVOZRuO8TF-Lf9GORW_U97LegsEcs0LVLUBZEpABgDj5tOJQScYlioVJwlDDLRLFXkQTUdrEaVJDx8AW2cQ2BEAZ_gF2JnYLbylWiy46Oqnq_q5BSbuXxSXzW4sYl6OqY53OVBLrJ5Dkrw/s320/Screen%20Shot%202022-09-08%20at%209.11.18%20PM.png" width="320" /></a></div><br /><p><br /></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">A diverse community coalition has formed to oppose Berkeley Measure L -- the $650 million bond measure. The group, Berkeleyans for Better Planning, includes <a href="https://berkeleyansforbetterplanning.org/endorsers/">community based organizations and representatives</a> from across the political spectrum. The group states: </span></p><p><i><span style="background-color: white; caret-color: rgb(87, 91, 122); font-size: 16px;"><span style="color: #0b5394; font-family: arial;">We support funding for affordable housing, roads, and other infrastructure needs. But this vague measure contains no guarantees that bond revenues will be spent on the laundry list of various issues it claims to address.</span></span></i></p><p><span style="background-color: white; caret-color: rgb(87, 91, 122); font-size: 16px;"><i><span style="color: #0b5394; font-family: arial;">Addressing Berkeley’s numerous challenges requires more than money. It requires planning, prioritization, and accountability, </span></i></span></p><p><span style="font-family: arial;">Ongoing <a href="https://womberkeley.blogspot.com/2022/09/city-councils-blank-check.html">research</a> by WOM Berkeley suggests the group’s concerns are legitimate. Measure L makes no specific commitments and appears to give City Council discretion over how funds will be spent.</span></p><p><span style="font-family: arial;">Berkeleyans for Better planning also questions the measures long-term borrowing which will require an estimated $1.1 billion to pay back. One resident is quoted as saying:</span></p><p><i><span style="color: #0b5394; font-family: arial;"><span style="background-color: white; caret-color: rgb(87, 91, 122); font-size: 16px;">I don’t want the young people of Berkeley paying for the </span><span style="caret-color: rgb(87, 91, 122); font-size: 16px;">next 48 years</span><span style="background-color: white; caret-color: rgb(87, 91, 122); font-size: 16px;"> for what the city should already have been doing – nor should you. No on L!</span></span></i></p><p><span style="font-family: arial;">Berkeleyans for Better Planning may be found at: <a href="https://berkeleyansforbetterplanning.org">https://berkeleyansforbetterplanning.org</a></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-e3Yw1TDoD874nob6tgbvI4mrMxnBVXp2Zw7HKFJxSXSenX4vUjPiQkUjzZ2EuzXy_IWgq9KURO1sMJbHPRQXnq3YHAJurZQbC0-P3lAvgmUlUtBIV9rZqWxDgQGVcFxWX9VfxG-mVtuBIkUDlNWJWS0wcBdhprkPh01J4Fjn7QxFMtKF4j7NlyA1lA/s800/Screen%20Shot%202022-09-08%20at%209.40.31%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="584" data-original-width="800" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-e3Yw1TDoD874nob6tgbvI4mrMxnBVXp2Zw7HKFJxSXSenX4vUjPiQkUjzZ2EuzXy_IWgq9KURO1sMJbHPRQXnq3YHAJurZQbC0-P3lAvgmUlUtBIV9rZqWxDgQGVcFxWX9VfxG-mVtuBIkUDlNWJWS0wcBdhprkPh01J4Fjn7QxFMtKF4j7NlyA1lA/s320/Screen%20Shot%202022-09-08%20at%209.40.31%20PM.png" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial; font-size: x-small;">Home Page Image for Berkeleyand for Better Planning</span></div><br /><p><br /></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-67420803127866274902022-09-02T11:12:00.011-07:002022-09-17T11:21:55.251-07:00City Council’s “Blank Check"<p><span style="font-family: arial;"><b><span style="color: #ffa400; font-size: large;">26 Words That Suggest Anything Goes With Measure L Mega Bond Funds</span></b></span></p><p><span style="font-family: arial;"><span style="background-color: white; caret-color: rgb(52, 52, 52);">Measure L, if passed, will give City Council the authority to borrow $650 million.</span></span><span style="background-color: white; caret-color: rgb(52, 52, 52); font-family: arial;">Supporters claim that the funds will be used for subsidized housing ($200M), street and sidewalk improvements ($300M) and other unspecified infrastructure ($150M). </span><span style="font-family: Helvetica;">But there is no guarantee that any of that will actually take place.</span><span style="font-family: Helvetica;"> </span><span style="font-family: arial;"> Buried within the 2700+ word </span><a href="https://drive.google.com/file/d/1hxlv_7Yi4dkjSJRpsY9L59zZZ2jc24WS/view?usp=sharing" style="font-family: arial;">measure</a><span style="font-family: arial;"> is a 26 word sentence that suggests anything goes. </span></p><p><i><span style="font-family: arial;"><b>These dollar amounts are estimates and <u>are not a commitment or guarantee</u> that any specific amounts will be spent on particular projects or categories of projects.</b></span></i></p><p><span style="font-family: arial;">This statement suggests to us that City Council has ultimate discretion on the disbursement of funds. Further, the measure sates:</span></p><p><i><span style="font-family: arial;"><b>City Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements. </b></span></i></p><p><span style="font-family: arial;">This statement suggests to us the City Council recognizes the $300 million suggested for improvements is insufficient to address the more than <a href="https://www.womberkeley.org/fix-it-first">$1.2 billion in liabilities</a>.</span></p><p><span style="font-family: arial;">It appears City Council has given itself a blank check with a no guarantees clause. We have asked the Berkeley City Attorney whether this interpretation is correct. We look forward to her response and sharing it with you.</span></p><blockquote type="cite"><div style="margin: 0px;"><span style="font-family: arial; font-size: x-small;"><span face="-webkit-system-font, "Helvetica Neue", Helvetica, sans-serif"><b>Subject: </b></span><span face="-webkit-system-font, "Helvetica Neue", Helvetica, sans-serif"><b>Ballot Measure L Language</b><br /></span></span></div><div style="margin: 0px;"><span style="font-family: arial; font-size: x-small;"><span face="-webkit-system-font, "Helvetica Neue", Helvetica, sans-serif"><b>Date: </b></span><span face="-webkit-system-font, "Helvetica Neue", Helvetica, sans-serif">August 31, 2022 at 8:36:51 AM PDT<br /></span></span></div><div style="margin: 0px;"><span style="font-family: arial; font-size: x-small;"><span face="-webkit-system-font, "Helvetica Neue", Helvetica, sans-serif"><b>To: </b></span><span face="-webkit-system-font, "Helvetica Neue", Helvetica, sans-serif"><a href="mailto:attorney@cityofberkeley.info">attorney@cityofberkeley.info</a><br /></span></span></div><span style="font-family: arial; font-size: x-small;"><br /></span><div><div style="-webkit-nbsp-mode: space; line-break: after-white-space; word-wrap: break-word;"><p><span style="font-family: arial; font-size: x-small;"><i>Dear City </i><i>Attorney:</i></span></p><p><span style="font-family: arial; font-size: x-small;">The authorization for submission of a November 8, 2022 ballot measure (Measure L) includes the statement:<o:p></o:p></span></p><p><i><span style="font-family: arial; font-size: x-small;">All dollar amounts included are estimates at the time of adoption of this Resolution <b><u>and are not a commitment or guarantee that any specific amounts will be spent on particular projects or categories of projects.</u></b><o:p></o:p></span></i></p><p class="MsoNormal"><span style="font-family: arial; font-size: x-small;">The language above indicates that City Council has ultimate discretion on the disbursement of funds, and subsequent language describing the “approximate” or “estimated” totals or funding amounts is non-binding with regard to future expenditures should this measure pass. </span></p><p class="MsoNormal"><span><span style="font-family: arial; font-size: x-small;">Is the interpretation above consistent with your understanding of the cited statement?</span></span></p></div></div></blockquote><p><br /></p><p><span style="background-color: white; caret-color: rgb(52, 52, 52); font-family: arial;">An update to this post may be found </span><a href="https://womberkeley.blogspot.com/2022/09/hurried-opaque-and-non-responsive.html" style="background-color: white; caret-color: rgb(52, 52, 52); font-family: arial;" target="_blank">here</a><span style="background-color: white; caret-color: rgb(52, 52, 52); font-family: arial;">.</span> </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjg1O7Z4UPzye-g1vspOkl9lymGAr10VCvCiuoKoZeQ9daHRJvWpyTTmtdFX8a8Bcq1ogDPhbDoN4BU8-NUAExd-ZHF7Ite3aZrjgiGJMx4mJhPdlQiQpHIqbBIDrTOdGwTGu__Z8bjNLCJ9cL9E7hBIL48l-ayzennjxwVgtZ-Xuc-xD6m1RhUzTOv/s854/No%20Refunds.png" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: arial;"><img border="0" data-original-height="854" data-original-width="710" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjg1O7Z4UPzye-g1vspOkl9lymGAr10VCvCiuoKoZeQ9daHRJvWpyTTmtdFX8a8Bcq1ogDPhbDoN4BU8-NUAExd-ZHF7Ite3aZrjgiGJMx4mJhPdlQiQpHIqbBIDrTOdGwTGu__Z8bjNLCJ9cL9E7hBIL48l-ayzennjxwVgtZ-Xuc-xD6m1RhUzTOv/s320/No%20Refunds.png" width="266" /></span></a></div><p></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><b>Full Language from Measure L:</b></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"> </span></p><p class="Default" style="margin: 0cm;"><i><span style="font-family: arial;"><b>Section 4. Estimated Cost of Improvements. </b><o:p></o:p></span></i></p><p class="Default" style="margin: 0cm;"><span style="font-family: arial;"><i>The estimated cost of the Affordable Housing Improvements to be funded by the Bonds is $200 million. The estimated cost for the Infrastructure Improvements is $450 million, of which $300 million may be allocated to Infrastructure Improvements related to street, sidewalk and traffic safety and $150 million may be allocated to other Infrastructure Improvements, including those related to public safety and climate resiliency. </i><b><i>These dollar amounts are estimates and are not a commitment or guarantee that any specific amounts will be spent on particular projects or categories of projects.</i><o:p></o:p></b></span></p><p class="Default" style="margin: 0cm;"><b><span style="font-family: arial;"> </span></b></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><br /></span></p><p class="Default" style="margin: 0cm;"><span style="font-family: arial; font-size: 11pt;"> </span></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-74176510851159428442022-08-25T19:58:00.010-07:002022-08-26T08:36:44.766-07:00Are We Doing More With Less OR Less With More?<p><span style="color: #ffa400; font-family: arial; font-size: medium;">How Does Berkeley Compare to Neighboring Cities?</span></p><p><span style="font-family: arial;">There has been lively discussion on Nextdoor about Berkeley’s $1.1 billion bond -- Measure L. One claim that captured our attention was the statement that “Berkeley’s tax rates are just above average for Alameda County” and they are “lower than Emeryville.” This statement threw us because our <a href="https://www.womberkeley.org/fix-it-first" target="_blank">research shows</a> that Berkeley spends more per-capita than other cities in Alameda County and our performance indicators, such as street quality, are lagging.</span></p><p><span style="font-family: arial;">Recognizing that “spending” and “tax rates” are not the same thing; we decided it would be valuable to examine these Nextdoor claims. We consulted the Alameda County Tax Analysis <a href="https://www.acgov.org/auditor/tax/taxratesearch.htm" target="_blank">website</a> to obtain the tax rate for every city in the county. Detailed results are below. We found that Berkeley ranks 3rd among 14 cities in terms of “tax rate” and in addition Berkeley has among the highest charges for “special assessments.” As we have also <a href="https://drive.google.com/file/d/17BUDt8eijwARNYJe-VymrrkNyq1sDb4h/view" target="_blank">noted</a> previously Berkeley’s spending per capita, among cities with a comparable population, is the 3rd highest in California. Further, Emeryville’s rate is the lowest in Alameda County, and they have some of the nicest streets in the East Bay.</span></p><p><span style="font-family: arial;">Fundamentally, our <a href="https://womberkeley.blogspot.com/2022/08/planning-prioritization-and.html" target="_blank">concerns</a> with Measure L revolve around its vagueness and whether the funds would be spent effectively. Further, we believe tomorrows grandchildren should not <a href="https://womberkeley.blogspot.com/2022/08/making-our-grandchildren-pay-for.html" target="_blank">pay</a> for yesterdays potholes by repaying excessive borrowing.</span></p><p><span style="font-family: arial;">In short, we have investigated claims on Nextdoor and still believe the evidence tell us that we are doing less with more.</span></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyXeeogfKZX20wZBOqM3-1YwcQ3Cr42jTFw-i-hhHRuxZInCmh6pZ4KguEjyhiMJ1uNNseULjOW9Q3c7eVjc9kzK8piQ4vuQG7GNN_9zLiGxBEFUSUFiZ2LKyBp_WWLFe0QNhkg55uNweyau9ChXSQykN-a01zNXbGk0up22pSh78Z7T0Es2e5MgqzLQ/s1280/Screen%20Shot%202022-08-25%20at%207.55.20%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1228" data-original-width="1280" height="384" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyXeeogfKZX20wZBOqM3-1YwcQ3Cr42jTFw-i-hhHRuxZInCmh6pZ4KguEjyhiMJ1uNNseULjOW9Q3c7eVjc9kzK8piQ4vuQG7GNN_9zLiGxBEFUSUFiZ2LKyBp_WWLFe0QNhkg55uNweyau9ChXSQykN-a01zNXbGk0up22pSh78Z7T0Es2e5MgqzLQ/w400-h384/Screen%20Shot%202022-08-25%20at%207.55.20%20PM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbMp6KTiFl1Gw4qNPHEqdC4l9A4n8pJlhKpyR-tksFKpg9l5PAOSMFcI02TJzFf59Tsia3bkd4TMDJNOZsnWaSucmbDnJ7CE7okve61HFA1Imqqc7qU00TY7tt4oCZPmgqhTxj87CJZC584teoqwFSx6bngtJVoPkSIfZQruREkD9bXFKV7I7QSyXXgw/s1024/Screen%20Shot%202022-08-25%20at%207.55.39%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1024" data-original-width="668" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbMp6KTiFl1Gw4qNPHEqdC4l9A4n8pJlhKpyR-tksFKpg9l5PAOSMFcI02TJzFf59Tsia3bkd4TMDJNOZsnWaSucmbDnJ7CE7okve61HFA1Imqqc7qU00TY7tt4oCZPmgqhTxj87CJZC584teoqwFSx6bngtJVoPkSIfZQruREkD9bXFKV7I7QSyXXgw/s320/Screen%20Shot%202022-08-25%20at%207.55.39%20PM.png" width="209" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><span style="font-family: arial;"><br /></span><p></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-26506981301797049012022-08-21T16:31:00.004-07:002022-08-22T08:22:40.335-07:00Planning, Prioritization, and Accountability<p style="text-align: left;"><span style="color: #ffa400; font-family: arial;">The Ballot Argument Against Berkeley’s Mega Bond (Measure L) Questions Whether Funds Would be Spent Effectively</span></p><p><br /></p><div style="text-align: left;"><span face="Calibri, sans-serif"><span style="font-family: arial; font-size: 14.666666984558105px; white-space: pre-wrap;">A group of residents, Berkeleyans for Better Planning, have submitted the argument against Measure L that will appear in the November 2022 voter guide. The signatories represent a broad cross section of residents known for their thoughtful civic engagement. The complete list is below.</span></span></div><div style="text-align: left;"><span face="Calibri, sans-serif"><span style="font-family: arial; font-size: 14.666666984558105px; white-space: pre-wrap;"><br /></span></span><span face="Calibri, sans-serif"><span style="font-family: arial; font-size: 14.666666984558105px; white-space: pre-wrap;">Berkeleyans for Better Planning intends to establish a formal campaign later this month. The submission of ballot arguments is an important early step.</span></span></div><p style="text-align: left;"><span face="Calibri, sans-serif"><span style="font-size: 14.666666984558105px; white-space: pre-wrap;"><br /></span></span></p><p><span face="Calibri, sans-serif"></span></p><div class="separator" style="clear: both; text-align: center;"><span face="Calibri, sans-serif"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOynkSEOKYqnwmm_caUiPz9byJSkXMPYICg-zLut2OgRcASVKwbMJXod38jv8ayXNpGmnC3Lp6-xzjEBldCeKnVD_RoMW_NljV7wJe-7D02MeHQWmwcUDYUud2kQa_2Hl-teYQaCGrpZ3TBCFmLthn5zRpsf9hTXjD94yanU5Vh6aKLjJ2DV-2NuLiqg/s1024/Screen%20Shot%202022-08-21%20at%204.01.56%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1024" data-original-width="771" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOynkSEOKYqnwmm_caUiPz9byJSkXMPYICg-zLut2OgRcASVKwbMJXod38jv8ayXNpGmnC3Lp6-xzjEBldCeKnVD_RoMW_NljV7wJe-7D02MeHQWmwcUDYUud2kQa_2Hl-teYQaCGrpZ3TBCFmLthn5zRpsf9hTXjD94yanU5Vh6aKLjJ2DV-2NuLiqg/w301-h400/Screen%20Shot%202022-08-21%20at%204.01.56%20PM.png" width="301" /></a></span></div><span face="Calibri, sans-serif"><br /><span style="font-size: 14.666666984558105px; white-space: pre-wrap;"><br /></span></span><p></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-27894327401675889272022-08-07T21:11:00.020-07:002022-09-24T12:05:08.003-07:00 WOM Berkeley: Real Residents with Real Concerns<p><span style="color: #ffa400; font-family: arial; font-size: medium;">We Are Your Neighbors Not Special Interests</span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;">In recent exchanges on Nextdoor, some have expressed concern that WOM Berkeley is a front for “<span style="background-color: white;"><span style="letter-spacing: -0.25pt;">real estate interests”. We embrace this skepticism because politics is full of efforts to deceive voters. We hope the testimonials </span><span style="letter-spacing: -0.333333px;">below can serve to reinforce</span><span style="letter-spacing: -0.25pt;"> that WOM Berkeley is a grassroots effort by Berkeley residents concerned about the direction of our city.<o:p></o:p></span></span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="background-color: white; letter-spacing: -0.25pt;"><o:p><span style="font-family: arial;"> </span></o:p></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFwjRyh8idlnSw444_8gP4i8F1uHjRAY_ry3T7BVDgrU9kcELaTYcuPxwlMpEYCmoxZkoFDB26ybTAn4iTOcWYUPCPEsd95qLF5y-k_KrDWV04Z2SAc_eINMUIFNqlbSL5Yw72IcFMNYbhaiGo851kH1ZonnqmB7YIKCx4OzGA3wP15ndEzBl-dQN9Ew/s4028/Screen%20Shot%202022-08-07%20at%209.15.01%20PM.png" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: arial;"><img border="0" data-original-height="1702" data-original-width="4028" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFwjRyh8idlnSw444_8gP4i8F1uHjRAY_ry3T7BVDgrU9kcELaTYcuPxwlMpEYCmoxZkoFDB26ybTAn4iTOcWYUPCPEsd95qLF5y-k_KrDWV04Z2SAc_eINMUIFNqlbSL5Yw72IcFMNYbhaiGo851kH1ZonnqmB7YIKCx4OzGA3wP15ndEzBl-dQN9Ew/w555-h234/Screen%20Shot%202022-08-07%20at%209.15.01%20PM.png" width="555" /></span></a></div><span style="font-family: arial;"><br /></span><div class="separator" style="clear: both; text-align: center;"><span style="background-color: white; font-family: arial; letter-spacing: -0.25pt; text-align: left;">Residents supporting us with include:</span></div><p class="MsoNormal" style="margin: 0cm;"></p><ul style="text-align: left;"><li><span style="background-color: white; color: #bf9000; font-family: arial; font-size: x-small; letter-spacing: -0.25pt;">Steve Kromer: West Berkeley</span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;">Eric Friedman: “22+ year Central Berkeley resident. I own one home and no other property/ADU. My interest is in seeing Berkeley governed wisely and well.”</span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;">Jessica Behrman: “I'm grateful for the important action you take for our community.“</span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;">Barbara Gilbert: Vincente Avenue</span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;">Todd Andrew: North Berkeley</span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;"><span>Isabelle Gaston: "</span><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, "Helvetica Neue", Helvetica, Roboto, "Segoe UI", Arial, sans-serif" style="background-color: white; letter-spacing: -0.32px; white-space: pre-wrap;">I contributed to this website as well. I don't have any real estate interests or special interests either. My only interest is having facts available to residents who will be voting on this issue in November. Thank you.</span><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, Helvetica Neue, Helvetica, Roboto, Segoe UI, Arial, sans-serif"><span style="letter-spacing: -0.32px; white-space: pre-wrap;">”</span></span></span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;"><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, "Helvetica Neue", Helvetica, Roboto, "Segoe UI", Arial, sans-serif" style="background-color: white; letter-spacing: -0.32px; white-space: pre-wrap;">Fran Haselsteiner: </span><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, "Helvetica Neue", Helvetica, Roboto, "Segoe UI", Arial, sans-serif" style="background-color: white; letter-spacing: -0.32px; white-space: pre-wrap;">"I know that the site is not produced by "real estate interests" but grassroots residents who are exhausted by Berkeley's incompetent government. They are my friends, and I am a retired 38-year resident.</span><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, Helvetica Neue, Helvetica, Roboto, Segoe UI, Arial, sans-serif"><span style="letter-spacing: -0.32px; white-space: pre-wrap;">”</span></span></span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;"><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, "Helvetica Neue", Helvetica, Roboto, "Segoe UI", Arial, sans-serif" style="background-color: white; letter-spacing: -0.32px; white-space: pre-wrap;">Ian Kelley: </span><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, "Helvetica Neue", Helvetica, Roboto, "Segoe UI", Arial, sans-serif" style="background-color: white; letter-spacing: -0.32px; white-space: pre-wrap;">For what it’s worth I was near the ground floor of the creation of this website (I am not a “contributor” but am part of a long-running conversation with the folks who are). I have lived in Berkeley for 17 years, raised three children through our public schools, and have voted for EVERY bond which has ever come across my ballot.</span></span></li><li><span style="font-family: arial;"><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, "Helvetica Neue", Helvetica, Roboto, "Segoe UI", Arial, sans-serif" style="background-color: white; color: #bf9000; font-size: x-small; letter-spacing: -0.32px; white-space: pre-wrap;">Gordon Messer:</span></span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;"><span><span face="system-ui, -apple-system, BlinkMacSystemFont, HelveticaNeue, "Helvetica Neue", Helvetica, Roboto, "Segoe UI", Arial, sans-serif" style="background-color: white; letter-spacing: -0.32px; white-space: pre-wrap;">Alison Huetter and Jed Waldman: South Berkeley. </span></span>Long-term Berkeley residents Three kids went through the public schools. We have voted for every bond measure, assuming our tax dollars were being reasonably well spent. From talking to neighbors that have been paying better attention and looking at facts and numbers, we are waking up and have joined this grassroots organization to help educate ourselves and others. I wish WOMB existed earlier but better late than never.</span></li><li><span style="color: #bf9000; font-family: arial; font-size: x-small;">Jessica Behrman: 46-year Berkeley resident, 39-year homeowner in Central Berkeley. Over that period, I have seen and experienced deterioration of the city we love. Expanding this trend, our city officials continue to bring us unsustainable proposals and decisions, like the $650MM bond measure, which was based on incorrect calculations and untested assumptions. I hope enough people look through the WOM site to begin to understand the road we're on. We are lucky that one of our fellow citizens was moved and talented enough to create it on his own time and dime - it's not a front for any special interest group. As for me, I am not a real estate professional or investor, and I<span class="Apple-converted-space"> </span><i style="caret-color: rgb(0, 0, 0); font-family: tahoma, sans-serif; text-size-adjust: auto;">do</i><span face="tahoma, sans-serif" style="caret-color: rgb(0, 0, 0); text-size-adjust: auto;"><span class="Apple-converted-space"> </span>have a special interest: Truth and transparency from our city officials; Decisions based on verified data.</span></span></li><li><span style="font-family: arial; font-size: x-small;"><span face="tahoma, sans-serif" style="caret-color: rgb(0, 0, 0); color: #bf9000; text-size-adjust: auto;"><span face="Arial, Helvetica, sans-serif" style="background-color: white; caret-color: rgb(34, 34, 34);">John Hitchen: I am a 50 year Berkeley resident, and a 37 year property owner, and I simply believe that the city should focus on maintaining infrastructure and public safety, not grand social programs better left to the County, State, or Federal government. </span><span face="Arial, Helvetica, sans-serif" style="background-color: white; caret-color: rgb(34, 34, 34);">I was a member of the Public Works Commission for 5 years, until it was combined with the Transportation Commission, and routinely questioned the direction of the city in maintaining our streets, buildings, and other infrastructure. </span><span face="Arial, Helvetica, sans-serif" style="background-color: white; caret-color: rgb(34, 34, 34);">Thank You for starting this group, and I will be happy to be listed as a supporter of your cause.</span><br style="caret-color: rgb(34, 34, 34); font-family: Arial, Helvetica, sans-serif;" /><span face="Arial, Helvetica, sans-serif" style="background-color: white; caret-color: rgb(34, 34, 34);">Sincerely,</span><br /></span></span></li><li><span style="font-family: arial; font-size: x-small;"><span face="tahoma, sans-serif" style="caret-color: rgb(0, 0, 0); text-size-adjust: auto;"><span face="Arial, Helvetica, sans-serif" style="background-color: white; caret-color: rgb(34, 34, 34);"><span style="caret-color: rgb(0, 0, 0); color: #bf9000; font-family: Helvetica; font-size: 12px;">Damian Park, Central Berkeley. I own one home and have no property interests besides that. I support government that lives within its means rather than continually promising too much to everyone and then asking taxpayers for more and more help (i.e. bonds).</span></span></span></span></li><li><span style="background-color: white; font-family: "Google Sans", Roboto, RobotoDraft, Helvetica, Arial, sans-serif; white-space: nowrap;"><span style="color: #bf9000; font-size: x-small;">Mary BehmSteinberg</span></span></li></ul><div><span style="font-family: arial;"><span style="letter-spacing: -0.32px; white-space: pre-wrap;">Add your endorsement, contact us at: </span></span><span style="color: blue; font-family: Arial; font-size: 11pt; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"><a href="mailto:WOMBerk22@gmail.com">WOMBerk22@gmail.com</a></span></div><p></p><p class="MsoNormal" style="margin: 0cm;"><span style="background-color: white; letter-spacing: -0.25pt;"><span style="font-family: arial;">WOM Berkeley is a 100% volunteer effort. This effort takes place after a long day’s work and putting our kids to bed. We can agree do disagree, but PLEASE understand our perspective comes from a sincere belief in what is in the long-term interest for our community.</span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="background-color: white; letter-spacing: -0.25pt;"><span style="font-family: arial;"><br /></span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"><b><span style="background-color: white; letter-spacing: -0.25pt;">We hope you will hold those who champion Berkeley’s Mega Bond to the same standard.</span></b><span style="background-color: white; letter-spacing: -0.25pt;"> Soon, you will be receiving glossy mailers that cost tens of thousands of dollars for each distribution. Historically, these mailers have been paid for by organizations that are the recipients of the bond funds. Please ask those that will be asking you to vote “yes” about THEIR “real estate interests” because they are substantial and real.<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="background-color: white; letter-spacing: -0.25pt;"><o:p><span style="font-family: arial;"> </span></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="background-color: white; letter-spacing: -0.25pt;"><span style="font-family: arial;">Sincerely,<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="background-color: white; letter-spacing: -0.25pt;"><o:p><span style="font-family: arial;"> </span></o:p></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="background-color: white; letter-spacing: -0.25pt;"><span style="font-family: arial;">Within Our Means Berkeley<o:p></o:p></span></span></p><p class="MsoNormal" style="margin: 0cm;"><span style="font-family: arial;"> </span></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-45118169871005562592022-08-05T20:27:00.018-07:002022-08-22T08:22:57.977-07:00Making Our Grandchildren Pay for Yesterday's Potholes?<p><span style="color: #ffa400; font-family: arial; font-size: medium;">City Council Wants Future Generations to Pay For Their Failures </span></p><p><span style="font-family: arial;">The environmental activist Wendell Berry wrote: <span style="border: 0px; box-sizing: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><i style="caret-color: rgba(34, 49, 63, 0.7);">the world is not given by his fathers but borrowed from his children. </i><span style="caret-color: rgba(34, 49, 63, 0.7);">The Berkeley City Council’s $650 million mega bond is the embodiment of taking from our children. When City Council discussed the mega bond, they debated how to make the cost “acceptable” to voters. Their solution was to use a credit card and spread the repayment period over 45 years. Unfortunately, as we all know, credit card companies charge interest, so the cost of repayment will be upwards of $1.2 billion.</span></span></span></p><p><span style="font-family: arial;"><span style="border: 0px; box-sizing: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="caret-color: rgba(34, 49, 63, 0.7);">Long repayment periods make sense in some situations. For example, we took this </span><a href="https://www.berkeleyside.org/2017/03/14/fight-underground-bart-berkeley-one-many-tales-told-new-book" style="caret-color: rgba(34, 49, 63, 0.7);" target="_blank">approach</a><span style="caret-color: rgba(34, 49, 63, 0.7);"> to cover the cost of under-grounding Berkeley’s BART tracks. Under-grounding benefits our children by providing future aesthetic and environmental returns and preserving space. </span></span><span style="caret-color: rgba(34, 49, 63, 0.7);">However, in the case of Berkeley’s mega bond, City Council is asking future generations to pay for yesterday’s problems. Specifically, City Council has <a href="https://www.womberkeley.org/our-performance-lags" target="_blank">failed</a> to maintain our parks, </span></span><span style="caret-color: rgba(34, 49, 63, 0.7); font-family: arial;">sidewalks, bike lanes, Marina and other infrastructure.</span></p><p><span style="font-family: arial;"><span style="border: 0px; box-sizing: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="caret-color: rgba(34, 49, 63, 0.7);">To be clear, our infrastructure is in desperate need of repair, and Within Our Means Berkeley actively supported a new tax for this specific purpose. We spoke at City Council in favor of a <a href="https://berkeleyca.gov/sites/default/files/2022-04/2022-01-20%20WS%20Item%2001%20Discuss%20Vision%202050.pdf" target="_blank">parcel tax</a> dedicated towards repairing our streets and sidewalks. We supported a parcel tax because it is a “pay as you go” policy. Rather than using a credit card, you collect a dedicated “repair tax” each year and then spend it to fix what is broken. The costs are paid up front rather than pushing them down the road and saddling future generations with burdensome interest payments.</span></span></span></p><p><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);">Why would City Council forgo this common sense approach in favor of imposing burdensome interest payments on future generations? We suspect the answer may lie in the fact they are not committed to fixing infrastructure at all. They have competing visions for how the $650 million will be spent. City Council’s priorities include a $122 million </span><a href="https://www.berkeleyside.org/2021/12/23/berkeley-pier-marina-city-council-preferred-design" style="caret-color: rgba(34, 49, 63, 0.7);" target="_blank">recreational pier</a><span style="caret-color: rgba(34, 49, 63, 0.7);">, approximately $100 million to </span><a href="https://www.berkeleyside.org/2020/03/03/can-berkeleys-civic-center-become-the-heart-of-the-city-gehl-studio-thinks-so" style="caret-color: rgba(34, 49, 63, 0.7);" target="_blank">renovate</a><span style="caret-color: rgba(34, 49, 63, 0.7);"> the Civic Center, and $200 million for subsidized housing. By opening a $650 million line of credit, City Council will have a blank check to spend as it chooses. It is unclear whether any of our existing infrastructure will be repaired. What is clear is that our grandchildren will be left to foot the bill. </span></span></p><p><span style="font-family: arial;"><span style="border: 0px; box-sizing: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhV0NY_Ft06Cqff8lajU42rLC2ulvLkFrBvfmH--kj0vPr879dpmtbIwGk7kw3SmtZAI3AVxCbJRqLPv_QSRHWvoYVhU22dTFhfnokyP73Y1F6ZX3HiXe0JkuX9VHMsRJSK3gS1EeIY2ngRHNmQQx5iKBOGFjCYdM93TC013869jwWoSpR1XqcuL75CNw/s640/order__FO31780971E87_22_aprile_2022_luigi_segre_full_color-2.png" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="640" height="263" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhV0NY_Ft06Cqff8lajU42rLC2ulvLkFrBvfmH--kj0vPr879dpmtbIwGk7kw3SmtZAI3AVxCbJRqLPv_QSRHWvoYVhU22dTFhfnokyP73Y1F6ZX3HiXe0JkuX9VHMsRJSK3gS1EeIY2ngRHNmQQx5iKBOGFjCYdM93TC013869jwWoSpR1XqcuL75CNw/w263-h263/order__FO31780971E87_22_aprile_2022_luigi_segre_full_color-2.png" width="263" /></a></span></div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span><p></p><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><span style="font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7);"><br /></span></span></div><div><br /></div><div><br /></div><div><span style="caret-color: rgba(34, 49, 63, 0.7); color: #ffa400; font-family: arial; font-size: large;">$1.2 Billion in Debt is a Lot to Be Tied To - </span></div><div><span style="color: #ffa400; font-family: arial;"><span style="caret-color: rgba(34, 49, 63, 0.7); font-size: medium;">The Embodiment of Taking From Our Children</span></span></div>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-87522648692840349582022-08-02T21:18:00.002-07:002022-08-22T08:23:07.558-07:00WOM Berkeley Identifies Flawed Financial Analysis<p><span style="border: none; display: inline-block; height: 115px; overflow: hidden; width: 230px;"><img height="115" src="https://lh3.googleusercontent.com/44_Ku_iIFKTvjQunGQGtDzmP4sArgDwK8uumjp8szZeEYlosZ1tz3PR8Q4KBnsPlY5BmhVv41oUBiqKuUOYkrwbcPxzY3jc5Pi01hcHzhnnFCFGOlpX-7H6g-wFM4YiGRSzeZVwZjzC5wXYCo3kkjVQ" style="margin-left: 0px; margin-top: 0px;" width="230" /></span></p><p><span style="color: #274e13; font-family: helvetica; font-size: 13.999999999999998pt; font-weight: 700; white-space: pre-wrap;">We Live Within Our Means : </span><span style="color: #274e13; font-family: helvetica; font-size: 13.999999999999998pt; font-weight: 700; white-space: pre-wrap;">Our City Council Should Too</span></p><span id="docs-internal-guid-db06d6fd-7fff-6abf-2a58-c9f2b7116df2"><span style="font-family: helvetica;"><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><a href="http://www.womberkeley.org/" style="text-decoration: none;"><span style="color: #1155cc; font-size: 13.999999999999998pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">www.WOMBerkeley.org</span></a></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"></p><hr /><p></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">August 2, 2022</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">For Immediate Release</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Berkeley CA: </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: center;"><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">WOM Berkeley Identifies Flawed Financial Analysis for Berkeley’s Mega Bond Measure; City Revises Cost Estimates Upwards by 22%</span></p><br /><p dir="ltr" style="line-height: 1.7999999999999998; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Hours before the Berkeley City Council was poised to approve a $650 million bond measure, WOM Berkeley identified a flawed financial analysis that underestimated the borrowing costs to residents by 50%. The flawed analysis was included in the 330 page agenda </span><a href="https://berkeleyca.gov/sites/default/files/city-council-meetings/2022-08-03%20Special%20Agenda%20Packet%20-%20Council%20-%20WEB.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">package</span></a><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">. With less than 24 hours to review the package, the WOM Berkeley research team was struck by the city’s claim that the mega bond would cost the average homeowner $250 per year. Geoff Lomax, a WOM Berkeley volunteer, sent the City Council and Finance Department an </span><a href="https://drive.google.com/file/d/1IZdOy5QK_TE8P7lhozI_owcETO29yaco/view?usp=sharing" style="text-decoration: none;"><span style="color: #1155cc; font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">analysis</span></a><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> that suggests the actual cost would be $495 per year. After receiving the inquiry, the city quickly </span><a href="https://berkeleyca.gov/sites/default/files/documents/2022-08-03%20Item%202%20Rev2%20Finance.pdf" style="text-decoration: none;"><span style="color: #1155cc; font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">revised</span></a><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> its cost estimate upward by 22%. The Mayor's Office also contacted Lomax and indicated that the Finance Department had been asked to respond to the WOM analysis. The Mayor’s Office then attributed the flawed estimate to “the Municipal Advisor.” Lomax noted, “City Council should suspend any action on this measure until its impact on residents can be accurately determined.”</span></p><br /><p dir="ltr" style="line-height: 1.7999999999999998; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-size: 12pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">For more information contact: </span><a><span style="color: #1155cc; font-size: 11pt; font-style: italic; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; text-decoration-skip-ink: none; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">WOMBerk22@gmail.com</span></a></p></span></span><br class="Apple-interchange-newline" />Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-26515384393163682262022-08-02T12:48:00.002-07:002022-08-22T08:23:15.666-07:00Ominous Financial Report Points to Funding Shortfalls<p><b style="font-family: Calibri, sans-serif;"><span style="color: #ffa400; font-size: large;">City Council Chooses to Ignore Warnings in Favor of $650 Million in New Spending</span></b></p><p style="margin-left: 0cm; margin-right: 0cm;"><span style="font-family: arial;">2022 has been a challenging year financially. The combination of decades high inflation combined with a 20% decline in the value of investments has resulted in widespread pain. The latest cause for alarm is the city’s retirement fund that <a href="https://www.calpers.ca.gov/page/newsroom/calpers-news/2022/calpers-preliminary-investment-return-2021-22" target="_blank">reported</a> a -6.1% return for the 21-22 fiscal year. The city was banking on a +6.8% return meaning the net gap is 12.9%. Some suggest “the market will rebound,” but even if it bounces back, this <a href="https://www.city-journal.org/public-pensions-lost-decade" target="_blank">piece</a> describes the difficulties in making up for investment losses.<o:p></o:p></span></p><p style="margin-left: 0cm; margin-right: 0cm;"><span style="font-family: arial;">Rather than heed these warnings and adopt a precautionary fiscal stance, City Council is <a href="https://berkeleyca.gov/sites/default/files/city-council-meetings/2022-08-03%20Special%20Agenda%20Packet%20-%20Council%20-%20WEB.pdf" target="_blank">proposing</a> residents take on $1.2 billion in new debt amounting to nearly $10,000 in additional spending per resident.<o:p></o:p></span></p><p style="margin-left: 0cm; margin-right: 0cm;"><span style="font-family: arial;"><b><span style="color: #ffa400;">Why Inflation and Pension Liabilities Matter</span></b><o:p></o:p></span></p><p style="margin-left: 0cm; margin-right: 0cm;"><span style="font-family: arial;">City Council could not have chosen a worse moment to embark on the largest borrowing spree in the city’s history. Two factors, inflation and pension labilities, create enormous risk for city’s residents who will be asked to foot the bill. Inflation is already driving up the cost of borrowing today as the city issues new bonds for subsidized housing, school construction and infrastructure repairs. Perhaps more consequential are the findings of the California State Auditor and Government Financial Officers Association. The State Auditor <a href="https://www.auditor.ca.gov/local_high_risk/dashboard-csa" target="_blank">ranked</a> Berkeley among the worst in the state for pension cost risk (giving the city a score of 0).</span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDxlAEFSlCykF3dG-G4KTYmUUIsnfJbfNikvQUX_PQ8NFHmqZLL3XWY_S0fCIMwiXCp0RcCPXKSn1lEMhFCIESp28WW7hEEbUoo1yAeq3T7WaxuNHZfmSsP9HeF3VOsZtgni9uV3XIvL8DUMmPNneaK-9LV0rfae8uaVq0_ZJpS2djqkRpAbp3Ds2Ogg/s800/Future%20Pension%20Costs%20Small.png" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: arial;"><img border="0" data-original-height="665" data-original-width="800" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDxlAEFSlCykF3dG-G4KTYmUUIsnfJbfNikvQUX_PQ8NFHmqZLL3XWY_S0fCIMwiXCp0RcCPXKSn1lEMhFCIESp28WW7hEEbUoo1yAeq3T7WaxuNHZfmSsP9HeF3VOsZtgni9uV3XIvL8DUMmPNneaK-9LV0rfae8uaVq0_ZJpS2djqkRpAbp3Ds2Ogg/s320/Future%20Pension%20Costs%20Small.png" width="320" /></span></a></div><p style="margin-left: 0cm; margin-right: 0cm; text-align: center;"><span style="color: #ffa400; font-family: arial; font-size: small;">The State Auditor Warns of the Risk of Future Costs</span></p><p style="margin-left: 0cm; margin-right: 0cm;"><span style="font-family: arial;">The <a href="https://drive.google.com/file/d/1OVBzTVckVdGQdrfJ6tY7pdZq0rx77rf-/view?usp=sharing" target="_blank">Financial Officers Association</a> explains how this pension risk can impact the cost of the proposed $1.2 billion in new debt.<o:p></o:p></span></p><p style="margin-left: 0cm; margin-right: 0cm;"><i><span style="font-family: arial;">Debt and pension burdens are measures of the financial leverage of a community. The more leveraged a tax base is, the more difficult it is to service existing debt and to afford additional debt, and the greater the likelihood there will be difficulties funding debt service. …<u>accrued net pension obligations could divert revenues out of future budgets and lead to funding shortfalls</u>. The City’s score here is equivalent to a “Ba” bond rating (the second worst rating).<o:p></o:p></span></i></p><p style="margin-left: 0cm; margin-right: 0cm;"><span style="font-family: arial; font-size: x-small;"><i><span>Source: </span></i><a href="https://drive.google.com/file/d/1OVBzTVckVdGQdrfJ6tY7pdZq0rx77rf-/view?usp=sharing" target="_blank">A Risk-Based Analysis and Stress Test of Long-Term Debt Affordability for the City of Berkeley</a></span></p><p style="margin-left: 0cm; margin-right: 0cm;"><span style="font-family: arial;">In other words, Berkeley’s growing pension gap could impact the city's “credit” (bond) rating, driving up borrowing costs for current and future bond measures. Rather than take precautionary steps (like more modest borrowing and earmarking new revenues to shore up the city’s pension fund) City Council wants you to approve up to $650 million in new spending.</span><span style="font-family: Times New Roman, serif;"><o:p></o:p></span></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-86528940629345959862022-07-05T17:42:00.013-07:002022-08-22T08:23:23.456-07:002023-24 City Budget: Spending Accelerating at a Record Pace<p><span style="color: #ffa400; font-family: arial; font-size: medium;"><b>Record Budget Includes New Perks for City Council Members </b></span></p><p><span style="font-family: arial;">Since 2016, the city budget has been growing at an unprecedented rate. Spending was flat from 2010 to 2016, and then increased by 25% between 2016 and 2020. With a projected budget of <a href="https://berkeleyca.gov/sites/default/files/2022-03/cob-proposed-budget-fy2022.pdf" target="_blank">$593 million in 2022</a>, the growth in the rate of spending continues to increase. This growth in spending is well above the state average of 19% over the same period. This draft WOM Berkeley <a href="https://docs.google.com/document/d/e/2PACX-1vRGLPH81pIua1Mcj-Dm0LZ3JvysD74dPKXbUsdtqDPzuE3J34X4GrSDfQ208lZPsKjiCwjpaUk6BogT/pub">white paper</a> allows you to compare our numbers to neighboring cities.</span></p><p><br /></p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV6E6BqsgqulgAqiAcuSN2BERNlejjYtbJO7zv6Uy5i4O15BWqUFy4ozQtossaPKLpWTsUJmsIeX0PX_TowXWcqGnhYwo5cCzXTxj8w-TZhI3_cB_G7bhoD2o8PazFC1Uhqrq27BfM3Di_5pEq2e-Vc8C8hgq-LhSVJhIE9K4v0N4hZwz7PwsXfSmtxg/s1024/Expend_small_3%20.png" style="margin-left: auto; margin-right: auto;"><span style="color: #ffa400; font-family: arial;"><img border="0" data-original-height="495" data-original-width="1024" height="155" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV6E6BqsgqulgAqiAcuSN2BERNlejjYtbJO7zv6Uy5i4O15BWqUFy4ozQtossaPKLpWTsUJmsIeX0PX_TowXWcqGnhYwo5cCzXTxj8w-TZhI3_cB_G7bhoD2o8PazFC1Uhqrq27BfM3Di_5pEq2e-Vc8C8hgq-LhSVJhIE9K4v0N4hZwz7PwsXfSmtxg/s320/Expend_small_3%20.png" width="320" /></span></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="color: #ffa400; font-family: arial;">Spending increased 25% between 2016 and 2020 (last year figures are available) according to the State Controllers Office. During the same period the state average was 19%.</span></td></tr></tbody></table><p><span style="font-family: arial;"><a href="https://www.womberkeley.org/we-pay-the-most" target="_blank">We already pay the most</a>, and city residents are feeling the effects of the worst economic downturn in over a decade. Soaring inflation combined with steep declines in retirement and college savings accounts are causing residents to cut back. Yet City Council is on a record setting spending pace. Its 2023 budget includes new perks like </span><span style="font-family: arial;"><a href="https://berkeleyca.gov/sites/default/files/city-council-meetings/2022-06-28%20Agenda%20Packet%20-%20Council%20-%20WEB.pdf" target="_blank">$1.2 million</a> (item 10) to grow their personal staff. There is another <a href="https://www.dailycal.org/2022/06/29/berkeley-city-council-passes-budget-for-2023-2024/" target="_blank">$25,000</a> for new bicycles. These new perks come on heels of a <a href="https://ballotpedia.org/Berkeley,_California,_Measure_JJ,_City_Council_Salaries_Charter_Amendment_(November_2020)" target="_blank">75% pay raise</a> for the mayor and council. </span></p><p><span style="font-family: arial;">Were it not for the economic squeeze being felt by residents, some of these measures may seem reasonable, but remember, Berkeley City Council wants you to approve an </span><a href="https://www.womberkeley.org/home" style="font-family: arial;" target="_blank">additional $600 million</a><span style="font-family: arial;"> in new spending (above and beyond the record 2023 figure) this November to be financed by residents.</span></p><p><span style="font-family: arial;">With their prodigious growth in spending, City Council seems to be living in another world, or at least one that defies economic reality and the lived experience of residents.</span></p><p></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-83531800566393298682022-06-23T07:06:00.010-07:002022-08-22T08:23:50.262-07:00Berkeley’s 2016 Infrastructure Bond: A Cautionary Tail<p class="MsoNormal" style="line-height: 15.693333625793457px;"><span style="font-family: arial;"><b><span style="color: #ffa400;">Has Berkeley Bitten Off More than It Can Manage?</span></b><o:p></o:p></span></p><p><span style="background-color: white; color: #222222;"><span style="font-family: arial;">In November 2016, Berkley voters approved bond <a href="https://ballotpedia.org/Berkeley,_California,_Bond_Issue,_Measure_T1_(November_2016)" target="_blank">Measure T1</a><span style="font-size: small;">. The funding from the $100 million general obligation bond was to be used for improvements to the City’s “sidewalks, storm drains, streets, parks, community centers, and other key infrastructure and facilities.”</span></span></span></p><span style="font-family: arial;"><style class="WebKit-mso-list-quirks-style">
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</style></span><p class="MsoNormal" style="line-height: 15.693333625793457px;"><span style="background-color: white; color: #222222; line-height: 17.1200008392334px;"><span style="font-family: arial;">Since Measure T1’s approval improvements in infrastructure have been scarce at best. According to a May 2022 city <a href="https://www.womberkeley.org/womberkeley-resource-library" target="">audit</a>, the unfunded needs of sidewalks, storm drains, streets, and other key infrastructure have <u>more than doubled</u> since the measure’s approval.<o:p></o:p></span></span></p><p class="MsoNormal" style="line-height: 15.693333625793457px;"><span style="background-color: white; color: #222222; line-height: 17.1200008392334px;"><span style="font-family: arial;">Despite the clear need for repairs, $20 million has still not been issued. This 6-year delay has no doubt contributed to the further decline in Berkeley’s infrastructure, especially streets. The City plans to issue this remaining authorized amount ($20 million) between FY 2024 and FY 2026.</span></span></p><div style="text-align: left;"><span style="font-family: arial;"><span style="background-color: white; color: #222222; line-height: 17.1200008392334px;"><span>The Measure T1 story is troubling for several reasons:</span></span><span style="background-color: white; color: #222222; line-height: 17.1200008392334px; text-indent: -18pt;"><br /></span></span></div><div style="text-align: left;"><ul style="text-align: left;"><li><span style="font-family: arial;"><span style="background-color: white; color: #222222; text-indent: -18pt;"><u>The Problem Always Grows</u>: Despite the largest onetime investment in the city’s history our infrastructure gets </span><a href="https://www.berkeleyside.org/2018/12/11/funding-gap-reported-as-21m-in-berkeley-t1-projects-proceed" style="background-color: white; text-indent: -18pt;" target="_blank">worse</a><span style="background-color: white; color: #222222; text-indent: -18pt;"> not better.</span></span></li><li><span style="font-family: arial;"><span style="background-color: white; color: #222222; text-indent: -18pt;"><u>Our Maintenance System is Overwhelmed</u>: In 2018, no streets were paved at all causing </span><a href="https://www.berkeleyside.org/2018/12/06/berkeley-wont-pave-any-streets-in-2018-pavement-continues-to-deteriorate" style="background-color: white; text-indent: -18pt;" target="_blank">further declines</a><span style="background-color: white; color: #222222; text-indent: -18pt;"> in infrastructure.</span></span></li><li><span style="text-indent: -18pt;"><span style="font-family: arial;"><u>Politics Can Eclipse Process</u>: After the community charged with prioritizing T1 projects, identified the most critical needs, the city manager decided at the 11th hour direct fund toward the remodeling of Mental Health Department buildings in place of streets, sidewalks and parks.</span></span></li></ul></div><p class="MsoNormal" style="line-height: 15.693333625793457px;"><span style="font-family: arial;"><span style="background-color: white; color: #222222; line-height: 17.1200008392334px;">This experience raises a fundamental question of whether we have bitten off more than we can manage? If we spent $100 million only to see the problem get significantly worse, then perhaps it is time to consider whether less is more. Currently, city council is doing the opposite as they want to commit residents to new projects including </span><span style="color: #212121; line-height: 17.1200008392334px;"><span style="font-size: small;">a </span><a href="https://www.berkeleyside.org/2021/12/23/berkeley-pier-marina-city-council-preferred-design" target="_blank">1,400-foot recreational pier</a> with initial cost estimates of $122 million.</span></span></p><p class="MsoNormal" style="line-height: 15.693333625793457px;"><span style="background-color: white; color: #222222; font-size: 12pt; line-height: 17.1200008392334px;"><o:p><span style="font-family: arial;"></span></o:p></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVlcRTAX4qnJQjUhEr1KkiQK-5yXRZMPRDIzVxu5BwpXWqVj7V2NNbswKQpNxX8NDDBMgpllyhmiTQM44PCaHt1oQR0hn68uCOg-lGmCNREGA8FldByje2xbD0aT3hT6c-x_8LRrggw8nzsBsw9D6vSrGJ0NSN0ufTXLqD-JfoMxfBiQQ7Yk5tt34wQA/s320/Screen%20Shot%202022-06-14%20at%203.32.12%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="320" data-original-width="319" height="236" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVlcRTAX4qnJQjUhEr1KkiQK-5yXRZMPRDIzVxu5BwpXWqVj7V2NNbswKQpNxX8NDDBMgpllyhmiTQM44PCaHt1oQR0hn68uCOg-lGmCNREGA8FldByje2xbD0aT3hT6c-x_8LRrggw8nzsBsw9D6vSrGJ0NSN0ufTXLqD-JfoMxfBiQQ7Yk5tt34wQA/w235-h236/Screen%20Shot%202022-06-14%20at%203.32.12%20PM.png" width="235" /></a></span></div><span style="font-family: arial;"><br /></span><p></p><p class="MsoNormal" style="line-height: 15.693333625793457px;"><span style="background-color: white; color: #222222; font-size: 12pt; line-height: 17.1200008392334px;"><span style="font-family: arial;">Are we trying to “boil the infrastructure ocean;” could less be more? Numerous municipalities have developed infrastructure with <a href="https://www.womberkeley.org/womberkeley-resource-library">creative partnerships</a> and financing. One approach is for cities to offer long-term leases on sites needing rehabilitation. Sites can be developed for a publicly beneficial purpose with outside investment while the actual property remains in public domain.</span><span face="Arial, sans-serif"><o:p></o:p></span></span></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-75074268315262728942022-06-22T10:53:00.019-07:002022-06-26T10:59:21.251-07:00Is $67,886 “de minimus” to Your Family?<p> </p><p><span style="color: #ffa400; font-family: arial; font-size: medium;"><b>Council Member Declares that $67k per Family is Insignificant</b></span></p><p><span style="font-family: arial;">Websters Dictionary defines “de minimus” <i>as being </i><span style="background-color: white; caret-color: rgb(48, 51, 54); color: #303336; letter-spacing: 0.20000000298023224px;"><i>so minor as to merit disregard</i>. </span>On June 21, during a <a href="https://berkeleyca.gov/city-council-special-meeting-eagenda-june-21-2022-6-pm" target="_blank">special session</a> council member Kate Harrison declared the additional $500+ increase in city tax assessment required to support new borrowing was a “de minimus” or insignificant amount for a family to pay. She suggested the proposed bond repayments were like the “de minimus" interest paid on a home mortgage (see video below).</span></p><p><span style="font-family: arial;">Harrison was referring to $500 per year for approximately 30 years that city council is <a href="https://womberkeley.blogspot.com/2022/06/city-council-wants-to-take-on-600.html">proposing to charge residents</a> for just one of two proposed bond measures. Imagine, for example, that you invested the same $500 for 30 years in a retirement account. After 30 years of payments, your investment would be $67,886. This figure assumes the same <a href="https://www.pionline.com/pension-funds/calpers-returns-133-2021-above-its-benchmark" target="_blank">return</a> rate as the city’s pension fund. Also, keep in mind that $500 in annual tax is the average amount meaning about half the city’s residents will pay even more.</span></p><p><span style="font-family: arial;">City council’s “de minimus” claim exceeds the amount of money most families are <a href="https://educationdata.org/college-savings-statistics">trying to save for college</a>. Can you afford this diversion from your children’s future education? The tradeoffs City Council is creating represents another challenge for Berkeley families coping with the high cost of living.</span></p><p></p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEii8UwvhaiiaPm6S96jA9TM-_2lqGykgWw_NiZPtDKrNBNcpF-916aYvxSC4BJgQnlUbpKrb67JIn05wryr-Ly_tpiY2DJxLS8TxZakkPOrpj3fI23pOl_MblrAN04bWJQiukojoycPYLYCxWDmhaKOuugBiRtTuxUVL7u_cvmAPKAm08MQEwVqW5HfZg/s1280/Screen%20Shot%202022-06-21%20at%209.55.58%20PM.png" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="506" data-original-width="1280" height="159" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEii8UwvhaiiaPm6S96jA9TM-_2lqGykgWw_NiZPtDKrNBNcpF-916aYvxSC4BJgQnlUbpKrb67JIn05wryr-Ly_tpiY2DJxLS8TxZakkPOrpj3fI23pOl_MblrAN04bWJQiukojoycPYLYCxWDmhaKOuugBiRtTuxUVL7u_cvmAPKAm08MQEwVqW5HfZg/w400-h159/Screen%20Shot%202022-06-21%20at%209.55.58%20PM.png" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="color: #783f04; font-family: arial;">The average per household opportunity cost of just one of the city council’s proposed new bond measures is a “de minimus” $67,886 </span></td></tr></tbody></table><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/jEcp-HT6Suc" width="320" youtube-src-id="jEcp-HT6Suc"></iframe></div><div class="separator" style="clear: both; text-align: center;"><br /></div><span style="font-family: arial;"><div style="text-align: center;">Don’t take our word for it, see the complete video <a href="http://berkeley.granicus.com/MediaPlayer.php?publish_id=6905219d-f255-11ec-9ad4-0050569183fa" target="_blank">here</a></div></span>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0tag:blogger.com,1999:blog-8931336921664864284.post-9634232553040067782022-06-11T18:51:00.015-07:002022-08-22T08:24:42.153-07:00City Council Wants Residents OK $650 Million in New Spending<p><span style="color: #ffa400; font-family: arial; font-size: medium;"><b>Mortgage Holders Will Be Asked to Foot the Bill</b></span></p><p><span style="font-family: arial;">Berkeley City Council wants residents to authorize at least $650 million in new spending. $300 million would be used for affordable housing and other, yet to be identified, infrastructure. Up to $500 million could be raised by a parcel tax. This new $300 million bond comes on the heels of the $135 million Bond Measure O in 2018 that added $270 million in debt. Property tax rates have increased by approximately 20% since 2016 and debt payments for Measure O have not yet started to kick in. </span></p><p><span style="font-family: arial;">Mortgage holders are already challenged by the increasingly high cost living and would face continuous increase in property taxes to finance the city's new spending. In the case of subsidized housing, </span><span style="font-family: arial;">City Council is asking for hundreds of millions more despite </span><a href="https://www.womberkeley.org/we-have-dedicated-funding-for-housing" style="font-family: arial;" target="_blank">existing programs</a><span style="font-family: arial;"> that guarantee tens of million each year. WOMBerkeley believes this is a “bond too far” because it stretches our finances for projects that already have funding.</span></p><p><span style="font-family: arial;">City Council has not specified what the infrastructure programs would be but discussions have ranged from renovating city buildings in the downtown to building a recreational pier in the marina.</span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihqxtjc1MDxna2ojpNV4BbwZXJM1RJDc4xuLWmDk9ICtN32jfUglcTgFLFOl14bC984Xptrder-3ptBjcQo-kV4H_FpKbYTPq0YJS77xVW4u_SCwTLDKjHZByit3jHFROeFmys9AlBxvddlR8uK_3SQ7DaWOmBqPGsmE3qC2_2sJACxH8dLOniJCLaDg/s320/Screen%20Shot%202022-06-27%20at%207.29.49%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="202" data-original-width="320" height="202" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihqxtjc1MDxna2ojpNV4BbwZXJM1RJDc4xuLWmDk9ICtN32jfUglcTgFLFOl14bC984Xptrder-3ptBjcQo-kV4H_FpKbYTPq0YJS77xVW4u_SCwTLDKjHZByit3jHFROeFmys9AlBxvddlR8uK_3SQ7DaWOmBqPGsmE3qC2_2sJACxH8dLOniJCLaDg/s1600/Screen%20Shot%202022-06-27%20at%207.29.49%20AM.png" width="320" /></a></div><div style="text-align: center;"><span style="background-color: white; caret-color: rgb(57, 58, 59); text-align: start;"><span style="color: #783f04; font-family: arial;"> A1,480 feet long and 22 foot wide recreational pier is among the projects championed by city council. Initial cost estimate $122 million. </span></span></div><p><br /></p>Within Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.com0