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If You Build, the Bills Will Come

Published: Monday, October 1, 2007 5:11 PM PDT



Looks like while I was gone the city of Chula Vista got some unpleasant news. As you know I've been following that city for a while, ever since its officials bragged about being able to steal police officers from the city of San Diego because of their ability to pay higher salaries.

Those officials are now largely gone. And the ones below them who used to sing about the city's bursting coffers now have a different tune.

Chula Vista's Drug of Choice
The ratings firm, Standard & Poor's issued a report Sept. 17 downgrading Chula Vista's credit rating. Standard & Poor's is the same firm that in 2004 suspended the city of San Diego's credit rating and has not revisited that decision. Our news partners at NBC 7/39 did a little piece on the Chula Vista's situation. NBC 7/39 focused on Scott Barnett, who has been decrying the situation for a year now.

You should read the report, it gives a nice rundown on the city's situation.

It's quite simple, really. Chula Vista has borrowed millions to build all kinds of new things. Officials expect to be able to pay back those loans with fees they charge developers. But those fees are one-time payments. If the development boom subsides (which it is), then the fees dry up.

However, within the past two years, the city has seen a considerable slowdown in the housing market as a result of general economic conditions and, in particular, the subprime mortgage industry. Specifically, residential permits fell to 600 units in fiscal 2007, or roughly one-fifth the level experienced in fiscals 2001, 2003, and 2004.

Yuck. So how is the city going to pay its bills?

Specifically, the city has met with its labor unions and is currently negotiating with the unions to reduce the city's salary and payroll expenses, which account for roughly 80% of expenditures. At a minimum, the city has enacted a hiring freeze for fiscal 2008. Management also plans to offer an early retirement program to senior employees.

Combined, these initiatives are expected to generate at least $3 million in savings in the current fiscal year.


San Diego police officers turned to places like Chula Vista after years of salary freezes as if the suburbs really were just doing something better. They weren't. They were just making bigger bets. Things like hiring freezes are just the beginning.

San Diego hasn't done much to balance its books, but at least its troubles have kept it out of the casino.

Chula Vista has a tough time ahead.

-- SCOTT LEWIS




13 Comments so far on this story...

Not going to argue with the facts, CV needs to suck it up. But, isn't that a picture of Oean View, on the south side of the Otay Valley, in San Diego? Too busy watching the Pads stink it up in Colorado to go check. But you should.

Posted by rrrrr | reply to this comment
October 1, 2007 6:33 pm

Chula Vista (and about 99% of all gov municipalities in CA) are going to be bankrupt within 2-5 years. You simply CANNOT have HS grads avaging $175K per year, like the FD does, and expect to stay afloat. In the private sector you would go BK once HS grads started making 75K, and although it will take longer and cost more, the gov will eventually go BK also. There is no excuse for FF to be making more money than lawyers and judges, yes, that's right, FF are making more money than CA judges are, even though a judge must go through 4 years of college, 3 years of legal education and then another 10 years of being an attorney before they can become a judge-17 years total experience, and a HS educated FF makes more than them. We are living in Fantasyland today with these gov compensation scams.

Posted by Billy Bob Henry | reply to this comment
October 1, 2007 7:55 pm

BBH, please provide documentation that fire department members are "avaging $175K per year" (sic).First, you claimed that firefighters make more than attorneys.That was shown to be false by the CA Bar Survey you provided yourself.Now you're claiming that firefighters make more than judges.From the Daily Transcript, January 10, 2007, "As of Jan. 1, California's Superior Court judges earn $171,648 annually while the state's appellate judges make $196,428 a year and the Supreme Court justices earn $209,521."Benefits and retirement for those judges is more than for firefighters.Not even the Fire Chief makes that in salary, though a few folks earn more due to extreme OT requirements.

Posted by JF | reply to this comment
October 2, 2007 11:49 am

It's nice to see BBH is sticking it to those under educated, non college graduating class of people. BBH believes if you don't go to college, then you must be stupid and not able to earn more than him in any profession. He has a huge distaste for high school graduates. I personally know many college graduates that are dumber than a box of rocks with no common sense. I know many high school graduates that are very smart and have common sense. Can anyone tell me why going to college and getting a degree makes you a better person and able to "earn" more money? BBH? Please help me to understand.

Posted by BBH fan | reply to this comment
October 2, 2007 2:19 pm

Forgive me for Asking but JF Wrote - California's Superior Court judges earn $171,648 annually while the state's appellate judges make $196,428 a year and the Supreme Court justices earn $209,521."Benefits and retirement for those judges is more than for firefighters.Not even the Fire Chief makes that in salary, though a few folks earn more due to extreme OT requirements. that sure sounds like FF's make a crap load of money for just a HS Diploma and why the Overtime anyway at probbably 3times pay? whynot Relief FF's who just float around removing the necessity for any OT - any pay above the current pay rate should not be allowed. a fair pay is in order but not more than a HS Grad could make in the private Sector.. Who pays their wages? The Private Sector thats who... SD Wake Up...

Posted by Donald Reno | reply to this comment
October 2, 2007 3:05 pm

Hi Jim, I got the $175K figure from Orange County's review of compensation for their FF's. CA judges make $150K per year. They do NOT retire at age 50 and they do NOT get 90-100% of their final years pay (which is many times their average years pay).

Posted by Billy Bob Henry | reply to this comment
October 2, 2007 3:29 pm

Everything will be all right if CV can just give a few million in subsidy to Gaylord to employ thousands of people at $8 an hour jobs! PARADISE! … for the incompetent Mayor Cox! link

Posted by Dean | reply to this comment
October 2, 2007 4:04 pm

What private sector job is similar to a firefighter or police officer? Again, what does having an education or not have to do with how much money a person can or cannot make? When you bash HS Grads, is it because you wasted your time earning (or getting) a degree and you chose the wrong profession and "the private sector" does not pay you for what you feel you are worth? What a crock. A degree means nothing to me.

Posted by BBH fan | reply to this comment
October 2, 2007 4:25 pm

What private job is similar to police and fire???? All trade jobs in the construction industry are, which is exactly what police and fire jobs are-trade jobs. A degree to me means that you were able to complete 4 years of very intensive academic training, that you could stick with something, that you have perseverance, that is what a degree means TO ME. Not everyone has the drive, ability or brainpower to get one. Why have a requirement for a degree?? It shows you have a level of competence. Same reason you have a requirement for a HS diploma for FF/PD. JF-CA judges used to make $150K per year, they have had 2 raises in the last few years that did boost their pay to $165K, not $171k. That pay scale comes AFTER the 17 years of school and experience-a 21 y/o FF can make that year 1 with OT.

Posted by Billy Bob Henry | reply to this comment
October 2, 2007 11:37 pm

BBH, the ability to complete things is certainly a measure of accomplishment. The fact that you were only able to complete one third of the training required to be a police officer speaks volumes, thank you for your point.

Posted by Hey Now | reply to this comment
October 3, 2007 9:39 am

BBH, I'm just quoting the Daily Transcript on judge pay.Once again you're comparing apples and oranges.You're using Orange County firefighter compensation to extraplolate SDFD pay.As we've discussed many times, SDFD makes a lot less than Orange County.That's why our firefighters are leaving for there.No one of firefighter rank is making anywhere near that, as you allude to in your 21 year old firefighter claim.I believe that the average for those of firefighter rank is around $71K/year... including OT.The highest paid city worker in 2006 was 205K.No FD employee made over $200K.Lastly, you're still in denial that the requirement for SD firefighters is greater than just a HS diploma.

Posted by JF | reply to this comment
October 3, 2007 10:20 am

But JF, you are not including the pension compensation package in your yearly FF pay analysis. While OC may pay more than SDFD, I think you are still mising the big picture-experience to pay ratio. A judge MUST have 7 years of college and then an additional 10 years of EXPERIENCE to get the pay they do. Whether FF make more, the same, or less (if less, not much less) the fact is from DAY 1, FF are making in the same ballpark as a JUDGE, who needs 17 years of PRIOR experience BEFORE making that kind of money. Face it, SDFD/PD make FANTASTIC money for the level of education and training they need, and I for one think we should freeze SDFD/PD pay for 5 years, and take away the Cadillac pensions....

Posted by Billy Bob Henry | reply to this comment
October 3, 2007 3:20 pm

BBH, a starting firefighter makes 35K/year plus OT.A starting judge makes 171K/year.That's nowhere in the ballpark.The pension compensation package was not included in the judge's salary either.Nor was the benefit package, no doubt better for the judge.Now here's the point of that article.They want to raise judge pay because they can't get attorneys to work for a mere 171K/year.

Posted by JF | reply to this comment
October 4, 2007 8:37 pm


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Scott Lewis on Politics

The Scott Lewis on Politics blog, abbreviated cleverly as SLOP, is a collection of observations, insights and the occasional scoop on public affairs in San Diego. Please feel free to e-mail Scott at scott.lewis@voiceofsandiego.org.

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This Just In

Chargers Done in Oceanside:

 A report says office space couldn't alone finance a Chargers stadium in the North County city. » Oct. 3 -- 7:48 pm



Magnets Attract Cash :

  Federal grant pours $10 million into six schools.

Oct. 3 -- 1:30 pm


Another Broadway Hearing:

 The City Council will hear another review of the Navy Broadway Complex's environmental study.

Oct. 3 -- 12:11 pm


MOST POPULAR STORIES:

SURVIVAL IN SAN DIEGO

How Do Condo Marketers Think? :

  A look back at the marketing for East Village's Metrome project, from the New York Times.

Oct. 2 -- 6:01 pm



LETTERS TO THE EDITOR

Philosophers Attack!:

 

Oct. 2 -- 6:23 pm



CAFÉ SAN DIEGO

Some Responses :

  As someone who lives and breathes the downtown and Little Italy districts on a daily basis, I can see trends that start before the analyst’s pick them up three months later.

Oct. 3 -- 12:22 pm



COMMENTARY: SLOP

Feeding Frenzy :

  Mount Soledad gets attention for something other than the cross.

Oct. 3 -- 4:20 pm



COMMENTARY: RICH TOSCANO

Inflation: Worse Than They're Telling You :

  The Union-Tribune details the problems with the government's inflation data.

Oct. 1 -- 9:56 am


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