RT on the Rocks … Fight over fare hikes splits transit board

By Craig Powell


To get a sense of how broke Regional Transit is, consider this analogy. Let’s say you’re part of a Sacramento family. You have a fairly well-off, middle-class lifestyle, but in the last couple of years you’ve really splurged, buying yourself a big, new Mercedes and a big, pricey cabin up at Lake Tahoe, all financed to the hilt. Meanwhile, the small business you run, RT Clothing, has never regained the boatload of customers you lost when you decided to jack up your prices by 20 percent in the middle of the last recession (oops), leaving you with a flat income for years. Fortunately, your wife, a retiree who collects both a military pension from the federal government and a healthy state government pension, has been collecting cost-of-living increases for years. She brings home close to 80 percent of the family income these days, bless her. Together, you have a family income of close to $150,000 per year.

The charming new home you bought 30 years ago in Light Rail Estates is showing serious signs of age and, let’s be honest, neglect. Your roof is shot, the paint’s badly peeling, you may need a new furnace and your backyard pool has algae stains and a rather unpleasant odor. Lately, some of the sketchier kids in your neighborhood have been jumping over the fence when you’re not home, swimming in your pool, hanging around for hours on end and leaving their trash everywhere. It’s gotten so bad that many of your longtime friends no longer accept invitations to your summer pool parties. You’ve spotted some of them going into Bob and Nancy Uber’s backyard down the street. The Ubers put in a nice, new pool last year and they let their friends drop in to swim whenever they want.

Things are going so-so until one day you decide to open up your bank and credit card statements for the first time in six months. You’re stunned (stunned!) to see all of the savings you thought you were socking away each month have somehow evaporated. Not only that, you owe a whopping $18,000 on your Visa bill. (How did that happen?) In a panic, you check the balance in your checking account and your heart sinks further. You have just $3,000 in cash and, at the rate your family burns money, it will be long gone in three months’ time.

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City of Sacramento Receives “F” Grade on National Survey of Transparency of Major U.S. Cities


For Immediate Release
Contact: Craig Powell, President, Eye on Sacramento (EOS)
phone: (916) 718-3030; e-mail: craig@eyeonsacramento.org
website: www.eyeonsacramento.org
Date: January 30, 2013; 10:50 a.m. 

City of Sacramento Receives “F” Grade

National Survey of Transparency of Major U.S. Cities

A report published this week by U.S. Public Interest Research Group (PIRG) graded 30 major U.S. cities on how well “checkbook-level” information is presented on-line to citizens. The study – the first of its kind assessing local government transparency – found that Sacramento finished 29th out of 30 cities surveyed, earning an “F” grade in financial transparency.

In an interview with Governing magazine, PIRG senior analyst, Phineas Baxandall, said, “Transparency is really important for good fiscal management and checking against corruption so citizens can feel confident in how their governments spend tax dollars.”

PIRG evaluated each city’s transparency efforts by measuring a series of 12 criteria. Part of the assessment looked at the breadth of information provided, such as vendor payments, detailed tax expenditures and budgets. The report also scored the extent to which the information was readily available, emphasizing centralized websites, searching capability and downloadable data.

On June 12, 2012, Eye on Sacramento asked the Sacramento City Council to adopt ten Transparency Reforms which would greatly increase city residents’ access to their city government and help restore trust in the integrity of city government leaders, including one on “checkbook-level” transparency:

EOS Reform #2: Post the city’s check book and other payments on-line in Excel format so that the public can see for themselves how every city dollar (general fund and enterprise funds) is being spent. City activists and enterprising local media will pour over these records and seek out explanations for payments that strike them as potentially inappropriate. When city check writers know that every check they write and payment they authorize will be scrutinized by the public, they will be on their best behavior.

To date, not one of the EOS transparency proposals have been adopted by the city council. EOS President Craig Powell said today, “Our hope is that the “F” grade given to Sacramento by PIRG this week will awaken the city council from its slumber and motivate it to take the immediate actions necessary to open up its books to the city taxpayers who pay its bills. Sacramentans deserve much, much better from its city leaders.”



City of Sacramento Spending

Sac city auditor was not monitoring some credit card expenses – News 10

City Credit Card Reports Reveal Big Expenditures During Staff Layoffs – CBS 13

City of Sacramento PRA Purchase Credit Card – Spread Sheet of Charged Items (download)


May 2012

Major Transparency Reforms

After examining transparency policies in other California communities and assessing Sacramento’s needs, Eye on Sacramento has compiled a list of ten proposals to make city government significantly more transparent to its citizens. Two of the ten proposals, however, stand out in terms of their importance to the city and the need for prompt City Council adoption:

1. Sunshine Rule on Major City Contracts. We propose that the City Council amend its Council Rules to require the full disclosure of all proposed major contracts at least 14 days before the Council takes action on such contracts. Major contracts would include all contracts with a value of over $5 million, including all labor pacts.

In addition, the Sunshine Rule would require that city staff publicly, concurrently release a complete analysis of the financial impact of every proposed major contract on city finances, as well as a disclosure of all material staff assumptions underlying its projections.

2. Ballot Initiative Creating an Independent Redistricting Proposal. We propose that the City Council refer to the November 2012 ballot an initiative to create an independent redistricting commission to draw future council district lines. Working in collaboration with other community groups, Eye on Sacramento is preparing a proposed charter amendment initiative that would create a redistricting commission whose members would be chosen by judges on the Sacramento Superior Court, a model based on the successful experience of the City of San Diego over the past 12 years. Extensive public hearings and outreach by the redistricting commission would also be mandated.

Major Budgetary Reforms

Given the complexity of the city budget and resource limitations, Eye on Sacramento has elected to focus its policy efforts on three initiatives for the balance of 2012:

3. Council Rule Prohibiting Multi-Year Labor Agreements (or “Fiscal Out”). In recent years, the City Council has been unable to manage its labor costs due to the existence of multi-year labor agreements. When faced with a budget deficit, the city can only threaten bargaining unions with lay-offs to obtain needed labor cost concessions. This practice has led to the decimation of city services in department after department. By limiting labor pacts to no more than one year, the City Council will preserve the necessary fiscal flexibility to reduce labor costs through negotiation and, if need be, mediation and would no long be compelled to savage city service levels in reaction to union intransigence. Alternatively, all labor pacts should include a “Fiscal Out” granting the city the right to terminate all labor pacts if the Council declares, in its sole and absolute discretion, a fiscal emergency.

4. Launch Task Force to Save City Pools. In next year’s budget, virtually all city pools will face closure absent major budgetary reforms. Eye on Sacramento is launching a six-month project to examine the operations and costs of city pools. It will be appointing a task force comprised of community leaders, pool industry representatives and experts, private swim club executives and parks and recreation department managers to comprehensively study ways to reduce the costs of operating city pools, to explore alternative ways of managing and maintaining city pools and to identify additional resources to support city pool operations.

5. Community Study to Restore City Parks. City parks have borne the brunt of city budget cutbacks and staff layoffs. Many city parks are dependent on volunteers for basic maintenance. The current “triage” approach to city parks is not sustainable and long-term solutions must be identified. Eye on Sacramento, in conjunction with park volunteer groups, community leaders and city staff, will launch a “community study” of alternative solutions, assessing tax options, outsourcing options and the launch of park conservancies.

General Fund Budget Analysis; “Open” Labor Pacts

In addition to pursuing the above policy initiatives, Eye on Sacramento, in discharging its “watchdog” mission, will be offering critiques of various aspects of the city manager’s proposed 2012/2013 general fund budget during budget hearings The central theme of our critiques will be to identify and advocate for long-term, multi-year budget reforms that will help arrest the city’s structural deficit and provide opportunities for the restoration of badly frayed core city services.

The city has two labor pacts expiring this year, including its pact with the city’s largest union, Local 39. The city should use these expiring pacts as opportunities to permanently realign its labor costs to conform to budgetary realities. We applaud the Library Authority for its recent action in submitting a “last, best” contract offer to Local 39 to realign labor costs in the face of union opposition. Cost-saving opportunities in labor pact re-negotiations include:

(a) controlling future pension costs by creating a lower tier of pension benefits for new hires;

(b) eliminating pension spiking by shifting “pensionable pay” from the final year of employment to the final three years of employment; and

(c) requiring employees to contribute to reserves to cover the currently unfunded cost of retiree health care costs (now over $380 million).

EOS 2012 Policy Agenda pdf