PENSION LIABILITY: Siskiyou County has a large
($19.5 million) unfunded pension liability. Currently, the County deposits funds each
payroll in an account with the California Public Employees Retirement System (CalPERS) to
cover the pay out of benefits due its retirees in the future under various union and
employment agreements. The adequacy of that reserve is determined by actuaries based on
statistical probabilities such as the average age of retirement, age of death, length of
service, etc. (In other words, what they figure will actually be paid out over the life of
our employees.)
Several years ago, a CalPERS stock market investment slump followed
by a new formula for determining the amount of reserves needed, left Siskiyou County, the
State of California and most other Counties with inadequate reserves to cover all the
retirement benefits that will come due. CalPERS has been loaning the difference between
reserves needed and reserves on hand to the various retirement accounts and charging a
substantial interest. Under the CalPERS formula, County payments currently amount to
around $1.8 million a year, but the payments are not fully funding the debt. It is
estimated that under the current formula, with CalPERS interest charges, that the debt
will grow to $30.7 million in 30 years.
Siskiyou County is in the process of refinancing that debt through
the issuance of a bond. Through bonds, the County will borrow to fund the reserve deficit
incurred in the past. It will allow the county to gradually pay back the borrowed amount
over 30 years with interest. Without additional payroll costs, this will redirect the
current $1.8 million a year paid to CalPERS to repayment of the bond. This should reduce
liability to a maximum estimated $7.7 million at the end of 30 years as long as new
retirement benefits are not added. A lower bond interest payable or additional funding
could reduce the bond to zero within 30 years.
CONTINUED ASSAULT ON NATURAL
RESOURCE ECONOMY: AB 1032 (Wolk) has moved
through the State Assembly on a partisan vote with Democrats voting in favor and is now
moving through State Senate Committees. It is scheduled to be heard by the Senate Natural
Resources and Water Committee on June26. The bill would allow the Department of Fish and
Game (DFG) to close rivers to suction dredge mining without a permit. It further forbids
the issuance of a permit unless the Commission can find that dredging is not bad for fish, wildlife, aquatic amphibian,
endangered or other species of concern. In effect, this shuts down mining until a whole
bunch of studies can be funded and performed. (If they are performed.) Two suits to halt
suction dredge mining in the Klamath River system involving the Karuk Tribe have already
been decided in favor of the miners. This legislation would allow the DFG to bypass the
latest decision.
Meanwhile, the State Water Resources Control Board (SWRCB) is holding
a workshop on Tuesday, June 12 at 10 a.m. at the Resources Building in Sacramento to hear
comments on the impact of suction dredge mining on water quality. (Written comment period
ends June 22.)
A budget trailer bill has been proposed to expand coho mitigation and recovery
requirements beyond those currently proposed by the Board of Forestry.
On the farming and ranching front, the draft coho Incidental Take Permit for the Scott
and Shasta will soon be out for comment. Environmentalists have protested the use of
public grant funds to pay for some of the fish restoration efforts - indicating that costs
should now be the sole responsibility of the landowner as mitigation for his harm to a
public resource.
The Department of Fish and game has indicated that 1603 streambed alteration agreements
are required for anyone substantially diverting water from a stream – not just for
work in the stream. Meanwhile, the North Coast Regional Water Quality Board has indicated
that it will enforce requirements for a Section 401 Army Corps of Engineers Clean Water
Act permit and accompanying certification for dredge and fill into “waters of the United
States,” (which includes all rivers and streams and associated wetlands in Siskiyou County.)
NCRWQCB is currently working with landowners in implementing its TMDL (Total Maximum
Daily Load) Action Plans to reduce sediment, temperature and nutrients in the Scott and Shasta
Rivers. Supposedly, most land use activities will now be covered under a Conditional
Waiver of a Waste Discharge Permit as long as landowners agree to work with the Board.
(Does a “waiver” of permit mean that all farming/ranching activities could now
be subject to permit? Does this mean that there is no longer a right to farm?) NCRWQCB is
also currently working on the TMDL for the Klamath River. In addition, we have yet to see
what awaits us from the SWRCB as it considers new riparian and wetlands regulations.
As Siskiyou County’s major industries are still natural resources based, this
assault does not bode well for the local economy and small retail businesses dependent
upon those circulating dollars. According to the 2005 Crop and Livestock Report,
agriculture is a primary contributor to the local economy with a raw production value of
$147.6 million. Tourism comes second in value with a value of a little more than a third
of agriculture and then timber at $47.6 million. There is very little industry in Siskiyou
County. |
