To the community,

In November, after Measure C failed to pass, I did research regarding pension reform in California. I found that the California courts were ruling in favor of reducing pensions. There were precedents in the courts that allowed municipalities to reduce pensions. 

I then proposed to our City Council here in South Lake Tahoe that we need to reduce the pensions of city employees. I did this in writing at the last City Council meeting in November of 2017, and I followed that up with an oral explanation why this must be done. With use of tax increases, the problem will return in the near future and once again overwhelm our city budget. The City Council ignored me. 

Today, I once again see in your news report that city of Santa Cruz is near bankruptcy . 

Nancy Kerry understood that I was correct and began by removing the retirement benefit of paid medical expenses for retirees, beginning January 2019. Subsequently, Nancy Kerry was forced out of her city manager job. 

People need to start listening to me or we’re headed for bankruptcy.

The solution is reduce city employee pensions to a reasonable and sustainable level. This is exactly how the courts in California have ruled. I know that the issue is pending in the California Supreme Court. But as we wait for that decision, we are losing millions of dollars, perhaps $3 million to $5 million per year that is not recoverable. This needs to be done.

There is no avoiding this with new taxes.   

Daniel Harvey, South Lake Tahoe