Patrick E Cloney asks Kati Moulton…
Economic Priorities
In 2022, after passage of Measure H, Eureka’s huge sales tax increase, why did Eureka City Hall pass on buying the Jacobs property, stating it could not justify paying an additional $1.2 million over the appraised value of $2.8 million to meet Eureka’s City School’s asking price of $4 million, yet, in 2022, City Officials announced City Hall would be adding balloon payments to its pension debt payments of $6.3 million in 2022, $6.6 million in 2023, and $6.9 million in 2024? With City Hall moving forward on spending $35 million for its new “Cadillac level” corporation yard, yearly pension debt payments increasing to $8.4 million in 2029, and with a huge housing shortage, why can’t City Hall spend the extra $1.2 million and purchase the Jacobs property?
— Patrick E Cloney
Response
Kati Moulton
The piece missing from this question is the other party at the table with ESC and CoE …. CHP is a deep-pocketed state agency with few other options for a move they have to do. They are wealthy and desperate. Council is obligated to spend the public’s money responsibly. IMHO, getting into a further bidding war with the CHP would not have been responsible when buying a plot for the Corp Yard, and it wouldn’t be responsible when it comes to finding places for housing. In both cases, there are other options available, and limited funds to work with.
The pension payment schedule is meant to be a net savings given the nature of CalPERS and fluctuating interest rates, and the Corp yard build will NOT be the “Cadillac” version. That plan has already been through multiple rounds of cost saving changes, and will go through more before it comes back to the public.
We need to use what we have to make things work, not justify over spending by pointing at unavoidable spending.
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