Bond vs. Health Benefit.

An open letter to the BOUSD Board and our community from Brea resident and business owner Dwight Manley.

Bond

I am writing this to clarify my position regarding the BOUSD board member’s compensation. The following 12 points summarize my considered opinion:

1.   I view the privilege of being elected and serving on the board as a “volunteer” position.

2.  Our schools have been hit hard by rising pension costs, which has resulted in severe reductions in funding for basic class needs, sports programs, school events and teacher’s salaries.

3.  I deeply sympathize with the teachers that are having to dig into their own pockets for supplies, and parents that are repeatedly hit up with requests for funding.

I especially find the school district’s use of children to be the messengers for these pleas to be unacceptable. Making a child return to class with a signed form saying “No” and having to be involved in a parent’s inability or unwillingness to “give” is not healthy for a child.

4.  As a self-made person who has done well in my life, I feel a responsibility to give back. Consequently, I receive numerous requests weekly from BOUSD students, teachers and parents.

5.  I have extra joy in providing funds for those less fortunate. One example is funding the senior night which runs over $100 per student. I feel every student should be able to attend regardless of their parent’s financial situation. Every student should be able to attend.

6.  Every time I sign a check, I think of the thousands of dollars per month the BOUSD board is taking for their “volunteer” position. Over the last 20 years, this is over $1,000,000 and some years was over $120,000.

These dollars would have a real impact on hundreds of lives immediately. Imagine a free breakfast program with supervision at the Jr High for parents that go to work early and could drop their children off at 7am?

7.  I’ve challenged members of the Board to drop this “benefit” for several years now, and they’ve repeatedly refused.

8.  Again and again I have told the Board that I would support a bond measure if;

a.  They drop their health insurance and only receive their stipend.

b.  A bond be tightly regulated with a sub 4% interest rate; no refinancing to pull out more money as was done in the past; the projects be “front loaded” meaning we get as much as can be built in 36 months.

I don’t like the money sitting around for 20 years unused like Olinda School did; a specific list of projects that improve the school’s ability to teach kids and not have a “Cal K-12” taking 15% off the top to feed to do their work.

The overseer of any funds needs to be a publicly bid process with a sub 10% fee. I don’t want to see bond money spent on fencing etc.; the district already has plenty in reserves to do that if its truly that vital.

9.  Various terms have been thrown around to describe my stance; “political blackmail”, “extortion”, “threats.” Those are all being used to deflect and attack me, rather than staying focused on the only issue at hand.

Kids and teachers are woefully short of funds, and the board, some living in million + dollar homes, are taking those funds for themselves. I equate this to people working at a food bank for the needy, taking the food home for themselves.

10.  Having health insurance for “volunteers” creates a huge conflict of interest. If the board members can’t afford their own insurance – they become dependent on the benefit.

Those that can afford it, besides being greedy in my opinion, would have to change doctors if they lost it, and as we all know, that’s not desirable. Why would we have such a personal, emotional and important thing be injected into a position that requires 100% selfless actions?

11.  Our own City council does not have such a “perk”.

12.  Some say “The bond initiative and health insurance issues shouldn’t be linked.” As stated above, having this “perk” is too personal and too important to not play a role in decisions.

If we have $150,000,000 to spend from a bond, no matter how tight the controls are, we can’t have a repeat of the horrific sale to Hines of the old school farm for pennies on the dollar, by a board that thought nothing of taking over $120,000 personally per year, while supposedly so low on funds, they had to do that deal.

Imagine the district having the $71,000,000 that Hines received from Avalon Bay just for a piece of paper saying they can build 653 apartments on our old school farm. We would not be in this position if they hadn’t done that.

Final Thoughts.

So, there you have the gist of my thinking and why I’m taking this public stance. We can’t waste another dollar on a board member’s health insurance until each and every teacher doesn’t have to send one of those letters home asking for money. Until every coach doesn’t have to send out letters or have players canvas the town for money to buy basic items.

Brea is where my heart is. I’m from here, I went to school here and my mom is buried here. I will be buried here. I will always try to help our community and when needed, step up to defend it.

Thank you.

Voice of OC Exposes Cal Domestic!

A lengthy investigation by City Treasurer Rick Rios has uncovered inconsistencies regarding the purchase of Cal Domestic water shares and could well be the smoking gun to numerous other questionable business practices.

As Dwight Manley so aptly said at a recent meeting of Brea’s City Council, “Every time a Brea residents drinks from a faucet or flushes a toilet, they’re getting ripped off.”

Bill Gallardo, City Manager, say all is well and nothing to worry about. Lynda Noriega, Cal Domestic CEO, refuses to answer an question.

The probability that this will lead to a much deeper investigation and likely litigation runs high.

See full article here:  https://bit.ly/2H0QKbp

Weigh in with your full opinion here if the Nextdoor guidelines seem to hamper you or you have that nagging fear of getting excommunicated if you say what you really feel.

RDA 2.0 – A Really Bad Idea!

On Friday morning, August 2nd, the Development Committee met with only one real item on their agenda. “Enhanced Infrastructure Financing Districts (EFIDs) with presentation by Staff and Larry Kosmont, Kosmont Companies. The presentation from Kosmont, centered around “How do you capture vitality and quality of life in a digital economy?” However a good dose of “state mandates fear” formed the foundation upon which the presentation was built.

Let’s get to the heart of the matter.

There appears to be a growing interest in rejuvenating an old idea, redevelopment. This new… call it RDA 2.0… is a rebirth of tax increment financing for local/regional projects.

Managed by Brea’s Public Financing Authority, new redevelopment districts would be created, property taxes frozen and new “redevelopment” bonds issued to finance some sort of infrastructure projects.

No public vote is required to create these new “enhanced infrastructure financing” districts!

The mantra “no new taxes” is repeated over and over as if that will lull us into a false sense of trust and comfort.

Look, when the property values are reassessed and the taxes unfrozen, the properties will be paying at a much higher rate and the difference will be used to retire the bond debt.

What about this suggests no new taxes?

So, where are these new EIFDs?

The report listed: Central Park Village, Brea Place (Hines), Aera Energy Brea 265, 2830 East Orbiter (adjacent property owned by firm of Planning Commissioner James McGrade), Embassy Retail Court, Brea Mall, Brea Plaza, Former Improv, Gaslight Square, Regal Theatres, Mercury Lane Residential, Downtown hotel, Brea Community Center, Brea Library, and Suzuki Motor of America.

To me, 90% of these properties are either doing quite well as is or they’re in various stages of development… not even yet completed. And the United States Bankruptcy Court confirmed American Suzuki’s plan of liquidation (Chapter 11) on February 28, 2013.

The first city/county EIFD tax increment partnership is the Placentia Old Town district. Over 300 acres with taxes frozen at $365 million and anticipated to be unfrozen at $460 million. For what?

Kosmont lists the following: $22M net fiscal impact to City; $15M to County; 1,600+ housing units; 3,900+ construction jobs; $800M+ construction period economic output; 1,150+ permanent jobs; $164M+ in annual ongoing economic output.

Prove it.

Here is what Kosmont proposes to do in Brea: Kosmont to evaluate: Project and land use review; EIFD boundary alternatives; infrastructure improvements required; Tax increment funding capacity / complementary sources; Orange County cooperation; Implementation strategy and roadmap.

Kosmont proposed timing: Feasibility evaluation – 2 to 3 months; District formation activities – 6 to 12 months.

Stop the madness!

Not a whisper about seeking public review or approval.

In December 2011, the California Supreme Court upheld the complete elimination of redevelopment agencies and TIF along with it. The legal wrangling that followed is complicated and not worth going into detail here.

Suffice it to say Redevelopment was terminated for good reasons. Why, just 8 years later, has it suddenly become a good idea again?

Nothing in life is free.

They try and seduce us with parks and community projects. But where’s the money come from? From schools and our pockets!

From the mid-seventies through 2011 Brea built a boatload of RDA projects. Some were on private land and made reasonable use of the tax increment. Many, like the Civic Center, Community Center, Senior Center, Sports Park and Rails-to-Trails were on public land for which no tax increment existed!

District borders were repeatedly expanded, bonds were repeatedly refinanced and cash was created at every opportunity. Hell, they even tricked us into passing the Paramedic’s Tax, almost half of which never paid for a single thing related to emergency medical services.

No one in city hall can give you an accurate price for one single project. The web of financing hijinks was so complicated they’ve lost all comprehension of what they pulled off for over 40 years. Millions upon millions.

You know what really hurts? We still owe $193,871,104 million dollars which we’ll be paying off all the way through June 2036.

Revenue is down, expenses are ever on the increase, we’re hovering on the edge of unbalanced budgets for several years to come.

Now is not the time to start some fiscal boondoggle, proven to be a failure years ago. Especially if it does little more than provide job security to a handful of city planners having a tough time justifying their jobs anymore.

Tax increment financing (TIF) is no way to defray the cost of urban revitalization… assuming that’s what we want to do in the first place.