Sutter County, like most California counties (55 of 58) can’t pay its bills. In 2021, Sutter County’s Unrestricted Net Position was $129,488,822 in the red. Its unfunded pension liability is now more than $200 million.
The county has been living above its means for many decades. Supervisors are schmoozed and bamboozled by county administrators. They can’t get an intellectual grip on the crisis so they go along to get along.
The late Charles Ponzi must be in shock. He served years in prison for richly rewarding initial investors with the payments from new investors. All the while he lived lavishly on the hustle.
The county pension plan (CALPERS) employs Ponzi’s strategy. More and more of the county budget plus current pension contributions, pay designated “Cadillac” benefits to a growing number of former employees. And, how about those celebrity county salaries ($200,000 - $700,000)! The Sutter County mantra is “We’re Worth It.” So obnoxious.
What’s worse, the county is smitten with mismanagement thereby forfeiting its reason for existing i.e. public safety. The 2020-2021Grand Jury found that “Sutter County continues to underfund its Fire and Emergency Services. The underfunding potentially endangers the people of Sutter County and risks doubling or tripling home and fire insurance rates. 65% of the Sutter County Fire’s equipment is outdated and needs to be replaced”.
Supervisors ignored the Grand Jury until they needed a public relations ploy to pass a sales tax (Measure A – it failed) in 2022. During the campaign, tax opponents discovered that Sutter County had received over $300 million from Proposition 172 funds for public safety but refused to fund fire? It was a well-kept secret of bureaucrats.
Another blunder. In 2017, Supervisors leased the vacant KMART property to take it off the market to remodel for county offices. They paid $715,000 and annual payments of $145,000 for control and a right to purchase. The county also paid $135,000 - plus annually for maintenance. The building is a wreck.
In February 2021, the county then purchased the property for $8.24 million. In August 2023, Sutter County Administrator (CAO) Steve Smith proposed paying the property off for $10 million and offering it for sale. The aged building sits for sale and the county continues to pay for repairs.
After the Measure A Sales Tax Increase failed, the county continued its spending spree. No cuts were made. Supervisors approved raises at 18 of their meetings. Most agenda items requested raises for 5, 10 and even 20 positions.
In April of 2023, CAO Steve Smith and Assistant CAO Leanne Link suddenly, “cried wolf.” The County had a shortfall of $3.2 million. However, even with the massive deficit, Smith asked that the Supervisors approve nearly $1.8 million in raises.
Supervisors Micheli, Ziegenmeyer and Conant voted to wait until the budget was confirmed and balanced. Supervisors Flores and Bains voted for the increases ignoring the deficit.
Surprise! Within two weeks, Assistant CAO Link said that the budget was miraculously balanced. She found millions of dollars and just like that, all Supervisors approved the raises.
Recently, Governor Newsom announced cutting 10,000 jobs to address the state financial collapse. However, these were unoccupied positions. CAO Smith then announced his hiring freeze that wasn’t. It was to last two weeks or until they really needed someone.
People wonder how Supervisors are unable to meet the basic requirement to be a county but want to fund the massive development of Sutter Pointe on the Sacramento County line. Specifically, no one can explain how the county can fund all the infrastructure and services to build-out Sutter Pointe when Supervisors cannot care for minimal public safety, infrastructure and pensions now.
Currently, the Supervisors are using taxpayer funds contrary to the Constitution to persuade voters to pay more taxes. (Unconstitutional conditions doctrine. Under this principle, the government may not use its spending power to purchase the constitutional rights of the spending's beneficiaries.) Watch for the new tax measure to fleece the flock once again on the November 5, 2024 ballot.
The way back to financial safety? Shrink government drastically. Replace every department possible with contractors. Stop doing with government what the private sector does better. (County salaries can be viewed at Transparentcalifornia.com).
(Lou Binninger can be heard on No Hostages Radio podcast, live on KMYC 1410AM 10-1 Saturdays, read at Live with Lou on Facebook and at Nohostagesradio.com)
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