Ten years ago, no one, including Stockton’s leadership, anticipated the economic crash we experienced in the Central Valley, California, the nation and the world. But ambitious dreams requiring ongoing financial support made Stockton vulnerable when the economy faltered.
Its leaders saw a future of steadily increasing tax revenue and growth, and set their goals and employee compensation to match in hopes of shaking Stockton out of its old reputation as another valley cowtown and into an All-American city.
Stockton built a waterfront marina, baseball park, events center; purchased a new and bigger city hall; invested in its workforce.
But when the real estate market tumbled, it all suddenly became unsustainable. And now, the city has filed for protection from its creditors.
The case of Stockton might be a study in hindsight, but it is still a poignant warning to anyone in government — and to the candidates looking to enter it this November.
While Tracy is not now on a path to bankruptcy, the lessons of Stockton apply.
Leaders must be judicious in negotiations with employees, balancing the city’s need to trim millions off its general fund while maintaining a happy and competitive workforce. The contracts recently reached with six groups of employees, including the Tracy Firefighters Association, seem to strike that balance.
More negotiations loom in the future, however, and without union cooperation and management’s diligence, Tracy might someday stare down the same gun barrel facing Stockton.
Elected leaders also must be vigilant to not write a check the city can’t cash in the form of unsustainable capital improvements.
Almost everyone agrees there’s a need for competitive and recreational pools in Tracy. But such a facility must not put an outsized burden on the general fund.
The city already supports the Grand Theatre Center for the Arts. While we believe that modest expense is worth adding a first-class theater, gallery and art studio space to downtown, such a balance must also be struck with any swim center.
A lavish water park that would rely on the city’s general fund dime should not be on the agenda at a time the city is trying to cut every ounce of spare flesh it can.
When votes come up for such facilities, we ask the Tracy City Council to remember the example of Stockton. Because the city on the edge of the Delta isn’t the first in the country to declare bankruptcy — and we bet it won’t be the last.
As my buddy Ornley would say, y'all Ned ta learn tu reed.
I said only one COP collects 100 grand a year, and it's "I got mine Maciel". no cops that have retired prior to him or after collect 100 grand a year.
Again, little Timmy, READ, COMPREHEND, RESEARCH, THEN STILL GIVE THE WRONG INFO. We're you crop dusted as a child?
So now let's move to the math lesson. Name the yearly retiree increases you say there have been. take Maciel, and now show the yearly increases, there were a whole bunch of retirees this past year, so I'm sure you will be able to show hundreds of $100 grand retirees from Tracy.
No mention from you about that lifetime medical you said they all get, where did you find that FACT? Does the short bus have seatbelts?
Trying to increase local taxes by putting "temporary" sales taxes or increasing property tax assessments or, worse, issuing bonds and paying off current expenses with future revenues will only delay the inevitable need to retrench.
Basing pay & benefit negotiations on a temporary housing bubble was nice while it lasted. But, no, it is not responsible to create city budget and long-term employee contract commitments on the come, with the expectation that there will always be enough future economic growth to absorb current over spending.
There are no city employees in Tracy that have lifetime medical. And guess who is the ONLY cop in the entire history of Tracy to get $100 grand a year in retirement.
The honorable councilman mike Maciel.
The lesson here is, do your research before making dumb misleading comments.
In his view (I got mine and to heck with the rest of you) he could care less about the city employees who provide services to the citizens of Tracy.
Even when he was a Cop he never did anything for the betterment of Tracy or its citizens.
Vote anybody but Maciel this November.
The CalPers retirement system has been run for decades assuming a 7 to 8% return. No chance of that now, with Treasury bills yielding between 1 and 2%. So day by day the shortfall increases, a shortfall currently estimated at between $50 billion and $300 billion (http://blogs.sacbee.com/the_state_worker/2011/12/new-stanford-study-pegs-pension-shortfall-at.html). EMPLOYERS, in our case, the city of Tracy, have to make up the shortfall, dumping more and more money into CalPers.
This kind of detail, appears to be missing in the Tracy city budget, is unfortunate in its omission because it hides significant liabilities and the true cost of police and fire employees, as well as the highly paid city administration personnel.
Do my research? Perhaps I should ask you to do the same. The number of $100K Tracy public safety retirees is increasing yearly.
You say there are none? Really?
Then who are all these people? If you take time to search the Internet to see public records, you'll confirm that they're recently hired Tracy Public Safety personnel.
Terry Hein, Fire Dept, $108,187
Jeffrey Mason, Fire Dept, $113,067
Mark Mehring, Fire Dept, $112,493
James Oliviera, Fire Dept, $100,481
1. Tracy triangle technology park.
never happened.
2. Great Public School system!
4000 kids at West and gang fights on a regular basis.
3. Water park nearby.
Never happened.
4. Tracy mall.
Mostly Empty.
Most of my neighbors have been foreclosed on and some houses twice turned over since 2003. We used to have TWO hobby shops (now none).
At least we have a Macy's, wonder how that is going, because I never set foot in it.
Stockton at least had some vision, however miopic it was.
The shining star here is the Tracy PD and the apparent winning war against the gang bangers.
*(A bunch of trailers off of Mountain House now).
Or worse yet, in San Jose. San Jose is in the same predicament as Stockton, only the bondholders in San Jose have the legal right to force tax increases on property owners in the city, even in the case of bankruptcy, so they'll get theirs out of yours.
As for great public schools in Tracy, did you move here before or after there were STAR test scores for schools?
"A lavish water park that would rely on the city’s general fund dime should not be on the agenda at a time the city is trying to cut every ounce of spare flesh it can."
Indeed. Such a foray would be inadvisable in the best of times (let private enterprise do it and take the risk), and incomprehensible at this point, given city finances.
You cannot ask city employees, including police and fire, to make concession after concession, then kick them in the face by throwing money at something like this, something so unneccessary.
"ambitious dreams" is not going far enough.
Recall from critical thinking class...
For pete sake, ambition is the American dream.
You telling us the Tracy Press has no "ambition"?
Instead of innuendos, why not put the facts on paper?
They financed the entire city, including the parking garages, while unemployment doubled.
Hope that helps!