Despite the backdrop of a horrible economy, massive spending imbalances at the state and federal level and constrained revenues locally, Scotts Valley has navigated today’s stormy waters far better than most have over the past few years.
Santa Cruz County is looking at deep cuts again this year, with department heads ordered to make 20 percent worth of cuts in 2010 on top of last year’s 20 percent reductions. Sacramento, facing another multibillion-dollar debt with no solution in sight, is in even worse trouble.
Scotts Valley hasn’t faced and won’t have to face situations this dire, because of the fiscal frugality we’ve always demonstrated. Nonetheless, in 2009, we enacted mid-year cuts of 5 percent in our budget, letting go several valued staffers and instituting a one-day-a-month furlough. Special credit goes to Jim Reed, now mayor, whose focus on the city’s budget was the driving force behind this action.
Thanks in large part to these reductions, we’ve kept spending essentially flat over the years, despite increasing costs for retirement, medical and workers’ compensation that are beyond the city’s control. In fact, since our 2005-06 budget, spending has gone up at just a little over 1 percent a year.
Measure C allowed us to both retain police officers and build a healthy reserve of nearly $2.3 million. Those reserves will be drawn down during these tough economic times, and the upcoming expiration of Measure C revenues will present a challenge in future years, but continued good fiscal management will allow us to overcome these issues. Town Center
We also have good news on the horizon on several fronts. While I was mayor, the City Council voted to move Suburban Propane from Mount Hermon Road, a presence that had stalled previous efforts to build the Town Center.
We have a great Town Center plan that’s approved and controlled by the city, and as the economy bottoms out and recovers, I’m hopeful we will see progress on that front. Reading renewal
A new library is in our future. Since 1990, the city has been legally obligated to construct a new library in town with a library-only revenue stream (much like a layaway plan) that has been building since then and is now about $3 million. Scheduled payments that the county collects each year are about $330,000. A contractual penalty of $100,000 a year will also be imposed by the county if we don’t complete a library by summer 2011.
These payments, coupled with anticipated lower building costs, make it an opportune time to build this nearly 13,000-square-foot library. Progress on the library has been steady, and we anticipate opening the new library by the 2011 deadline. Lawsuit continues
Our lawsuit against the county, which would increase our share of property taxes to the legally required minimum, was won.
The county has appealed the trial court’s decision. Its brief is due Friday, Jan. 8. Our brief is due 30 days later. We don’t expect any decision on the matter until June, at the earliest.
We are disappointed that the county supervisors, even after a judge has ruled in our favor, continue to take sides against the city and prolong this costly lawsuit. Good-faith government
The past two years also saw important city measures on environmental protection, water conservation, improvements to infrastructure on and around school property, a hotel planned for Scotts Valley Drive and other positive news. But, most of all, I feel good that the city has upheld its reputation for transparent government, inclusiveness and conduct that’s consistent with the best of our town. We try to be accountable for everything we do.
This has not always been easy, especially in the face of repeated false allegations about the city and city personnel, in addition to occasionally boorish conduct demonstrated by a handful of opponents of the Target project.
Despite these disappointments, I believe the Scotts Valley government will remain worthy of its citizens by answering falsehoods with facts and anger with reason.
It’s always been an honor for me to serve as one of your City Council members, but it’s truly been a special one the past two years that I’ve had the privilege of serving as your mayor.
• Randy Johnson sits on the Scotts Valley City Council. He was first elected to the council in 1996 and has served as mayor four times.




You will never dismiss critics again, if you bother to do this. You will see why
council does not want you to study it. While your driving to target in Watsonville to save a few dollars..well, it is disheartening.
Public sector wages should be scrutinized
We can all agree that California's inability to balance its budget is caused by insufficient revenue and too much spending. Like any other business, the cost of labor has to be one of the state's largest annual cash outlays.
Historically, public sector employees have never been a particularly underpaid group. The elected officials who have determined their wages have generally been fair, because their employees are also their constituents. Disgruntled employees are unlikely to vote to re-elect officials whom they consider unfair.
About 30 or 40 years ago, California's public employees became unionized. Since then, their wages and their retirement benefits have skyrocketed. In many small California counties, public sector jobs are considered to be the best paying jobs available.
Perhaps the state should commission a nonpartisan group to compare private and public sector wages in order to create a matrix that could guide public sector officials who have to deal with labor unions regarding the pay scales and retirement packages of their employees.
Doug White, Scotts Valley
"I really doubt at this point that Randy, Jim, etc., give a hoot. They'll just sit back, cross their fingers, and hope economic salvation comes around in time for their next election"
Leadership? Continue to add personnel when budget will not support?
Just look at the annual expense for one retiree member example of what your tax dollar pays for!
Now they want to sell our city to expand to pay more like her more (10x?)than would earn anywhere else! Lay off educated, to keep middle school mentality, is a questionable financial solution.
Invest in educators, not uneducated.
Bottom line here is that things have not worked out the way our city leaders had hoped. They are putting a nice face on it, as one would expect them to do. Big deal. Everyone knows the reality on the ground. We don't need every little mis-step pointed out. Those who read this weekly journal are reasonable well-informed of who's who and what's what. So if the bloggers want to spend their time this way, knock yourself out. I really doubt at this point that Randy, Jim, etc., give a hoot. They'll just sit back, cross their fingers, and hope economic salvation comes around in time for their next election.
You appear rational here. I would like to comment on what you said.
I realize you are making a simple assessment of this council from dealings at an arms length vantage point. However, I really believe there is a deeper problem with this council mix the community is failing to see. All of the council members here are capable people individually I am sure. But as a gang, as a voter's block, things get sideways fast.
First off, I respect Mr. Bach and Mr. Kertai for their tenacity by continuing to be watchdogs presenting the hard facts on projects and financial decisions made by this council and city management. I agree their behavior has become aggressive, it is aggressive on both sides now, and everyone is being judged. It is very apparent both Bach and Kertai are angry at the ignorance of this council but more so on how the council tries to personally divert the hard facts by attacking their personal character as a means to get them off their backs. Make sense?
This is a very common tactic in city government; make your watchdog look like a crazy and no one will believe what they say. Politics101. So don't be fooled so easily. Think through this before you write these guys off. They are not doing it for fun I am sure. They are doing it to protect our community.
You really have to roll back the tapes to understand how this all got here. Now I am not defending the KerBach actions at all, but there is validity in what they are trying to present. I too have been a little taken back on the approach and comments. I have been watching this council's behavior and tactics equally as much. I have also reviewed the KerBach facts over many months as they presented them publicly (I am a business owner here and advise large corporations how to run their business better). I would consider myself very qualified to review the council's financial numbers and those refuting them and come to a conclusion on the discrepancies between both parties.
The fact is Mr. Bach and Kertai's numbers have been accurate. Both on the Target project and the Library. The council has be less forthcoming with these numbers for sure. I know the "Friends of the City Council" group here does not want to hear it, but numbers are numbers and actions are actions and no city council recap letter like the one here can change the facts. You have to give Randy some credit for trying to sweep it under the carpet as if to put it behind us with his glory tone.
So in the end we have a problem here even if Randy Johnson wants to paint a high-level, fact-less rosy picture and call those who are watching them as boorish. Name calling is childish, I expect nothing less from him.
This council has too many buddies all seeing the same thing the same way and with local blinders on. They have too many biases and are too intertwined in local government, construction and have too many networks (clicks) of friends that impact their impartiality to make decisions for the greater good. The hard decisions.
You can read everywhere about what happens to a community when a "voter's block" is installed and how it creates animosity, secrecy and hostility in a community often resulting in anger and escalation of words. WE ARE THERE.
My suggestion to reduce the friction and get back on track is to vote carefully this year to diffuse all the high school drama.
There are two seats opening. I strongly recommend you carefully consider replacing two of the four members that always vote together regardless of the overwhelming facts that tell us it might not be the best plan. Voter's blocks are very bad for a city our size.
I believe having someone on our council that is newer to our community, that will challenge some of the spending going on, that is not interconnected into the government, police or builder's community, that will give us some fresh debate, possibly some educated experience in economic development and financial management would all be very refreshing right now. Shake it up and let's get some new perspectives from a better sampling of our community!
Our city is running at a deficit which is a fact that none of our council members has or can refute.
• From 2005 when measure C was passed to September of 2009 the City General fund spending increased from $7.3 million to $8.3 million. A $1,000,000 increase. As a percentage a 13.69% increase.
• If the city does not further reduce its spending levels, the City Council will be running an annual deficit of $700,000 per year when Measure C expires in March of 2011.
• On November 4th, the City Council approved Scotts Valley Resolution No. 1831.1 authorizing the sale of up to $9.4 million dollars worth of Scotts Valley City Bonds. The City Council has substantially increased its debt load on the city and committed the tax payers to paying high interest payments on the bonds.
• The City Council elected not to ask for a vote by the taxpayers. In fact the transaction was rushed through the Council so fast that few tax payers were even aware of the additional debt the city had assumed.
• Would the taxpayers have approved up to $9.4 million in debt if they had been given a chance to vote on it?
• $9.4 million is substantially more than the entire annual general fund budget.
• The Bond sale of this magnitude likely depletes the City’s ability to issue additional bonds even if it has a substantial need to do so. Don’t you think the taxpayers should have had a chance to vote on this massive debt increase?
• Further departing from public transparency our City Council voted to remove a City requirement that council minutes (the legal record of the Council meetings) must be presented at the next Council meeting. The requirement for the public to have access to the minutes no later than the next council meeting had been part of the City since it’s founding in 1966.
• Council members publicly claimed to be open minded and impartial to the development of a Target at the South side of Scotts Valley, yet Councilwoman Lind drove around town with a Scotts Valley Welcomes Target bumper sticker on her car. Yes a photo was take of the bumper sticker in order to preserve the record of the farce.
In his commentary Former Mayor Johnson makes many claims about “fiscal frugality” and “transparency”. By presenting easily documented facts and events I am questioning his claims. Perhaps instead of deflecting the spot light with personal attacks, Randy Johnson or others on the Council could address why they believe these numbers and facts are not correct.
I firmly believe that any governmental body that refuses to be questioned should not have our trust and respect.
Paul Bach
The only thing that these council members gain from serving this city is my respect and I bet the respect of many more good luck guys and gal keep up the good work.
You increase spending 1% to $1.01
$0.21 per dollar spent, or 21%
Does this disappear because you attack?
the funny thing is he can take this because everything posted here is true.
paul bach has abused staff -- ask cliff Barrett about what he wrote.
Paul Bach has told multiple lies -- see examples below.
paul Bach has threatened city workers and elected officials with jail -- ask multiple city workers.
Paul Bach can not back up the charges he has made here so he calls his lawyers. How typical and how sad.
I doubt that I’m the only one who thinks you are demonstrating very aggressive and unstable behavior and I hope that you seek some profession help. Your vicious and repetitive personal attacks at the same time that you continue to ignore the fiscal issues that have been raised isn’t doing your cause any good.
These boorish posts appear to be from a single or a handful of Johnson supporters and they are a perfect example why the Press Banner shouldn't allow anonymous posting.
Peter if you are reading this I would like to make a suggestion. If the Press Banner were to include the ip address of each poster along with their posting, the poster could keep their identity private yet the community could see when a single poster is trying to bully their way through a comment board. The name of a user associated with an IP address would remain private since a court order is required for the user identity to be divulged. Implementing such a practice might restore some level of intellectual discussion and civility to the forum. Just a thought....Paul Bach 831-430-9655
If I'm wrong why don't you show me how I am wrong?
If the city spends too much money why can you not even give one example of general fund spending you agree with?
The answer to the first question is that you do not tell the truth and the answer to the second question is you do not have the guts.
Come on just one example of general fund spending you do not like. Since spending has only increased at 1% a year over the last four years there is not much fat and it seems you can not identify any but that does not stop you from criticizing.
Pathetic.
You
are
a
hypocrite
and
your
inability
to
back
up
your
own
charges
proves
you
do
not
tell
the
truth.
http://www.scsextra.com/story.php?sid=78222
that Kertai lied about him and his partner/boss Bach not getting notice of meetings.
From what Cliff Barrett says this is special notice Kertai wanted over and above what everybody else in town gets.
Kertai what do you have to say for yourself when exposed by Cliff Barrett as a liar?
What an entitlement mentality Kertai you are a perfect fit for a gated community that ruined the most beautiful hillside in town.
You increase spending 1% to $1.01
Only $0.80 cents revenue.
$0.21 or 21% magically disappears because you attack those who question this.
Now thats some scary truth!
why does he do this. Because he is spreading the lie that a big box store is coming to the north end of town.
Why is he doing this. Because he finally has realized that he has turned off an entire community with his hate and lies and anonymus smears and because he knows nobody wants to help him now that Target is dead.
Paul Bach your hypocricy has resulted in you reaping what you have sowed. Your numerous falsehoods that you have been shown to have done below and a brand new one that you told here for the first time show that to be true.
Still waiting paul Bach where is the documentation and evidence with which you can back up your falsehoods. I will remind you of them.
1. you say johnson calls himself a conservative republican. In santa cruz that is not a popular thing. PROVE IT.
2. you said on tape on 9/2 at the council meeting that Bustichi Johnson and lind say they will not renew measure C. PROVE IT.
3. what have you to say for yourself regarding the disgraceful conduct and lies that Cliff Barrett exposed about you here:
http://www.scsextra.com/story.php?sid=78222