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Smart Voter
Stanislaus County, CA November 8, 2011 Election
Measure R
Advisory Vote
City of Modesto

Advisory Vote Only

Pass: 17,482 / 75.10% Yes votes ...... 5,797 / 24.90% No votes

See Also: Index of all Measures

Results as of Nov 18 1:55pm, 100.0% of Precincts Reporting (152/152)
Information shown below: Impartial Analysis | Arguments |

Shall the City Council of the City of Modesto move the City employees retirement benefit calculation from a single highest year salary baseline to an average of the employee's last three years of salary as a baseline?

Impartial Analysis from City Attorney
The City Council of the City Modesto ("City") has directed that an advisory measure be submitted to the City of Modesto voters seeking a non-binding advisory opinion as to whether the City Council should seek to move the City employees retirement benefit calculation from a single highest year salary baseline to an average of the employee's last three years of salary as a baseline.

Currently, the City's contract with the California Public Employees Retirement System allows for an employee's retirement benefit to be calculated upon the use of the employee's single highest year of salary as the baseline for the retirement allowance the employee will receive. This is in contrast to a retirement benefit that would require that an employee's retirement benefit be calculated upon the use of an average of the employee's salary over their last three years of employment. Use of a three-year average salary as a baseline may result in a reduced retirement benefit.

This advisory measure asks the voters to voice their opinion with respect to whether the City Council should seek to move a City employee's retirement benefit calculation from a formula that uses a single highest year, to an average of the employee's last three years salary. The outcome of the election will be presented to the City Council as information concerning the opinions of the voters on this measure. However, the outcome of the election with respect to this measure will not bind the Council to act in any particular way with respect to this aspect of the City's retirement program.

You should vote "YES" on this measure if you want to advise the City Council that you are in favor of the Council seeking to move the current City retirement benefit calculation baseline from a single highest year salary to an average of the employee's last three years of salary.

You should vote "NO" on this measure if you want to advise the City Council that you are not in favor of the Council seeking to move the current City retirement benefit calculation baseline from a single highest year salary to an average of the employee's last three years of salary.

The measure seeks a non-binding advisory opinion only. According to California Elections Code Section 9603(c), advisory votes express general voter opinion but do not bind the City or the City Council to act in any manner.

/s/ Susana Alcala Wood
City Attorney
City of Modesto

The above statement is an impartial analysis of Measure R. If you desire a copy of the measure, please call the City Clerk's Office at (209) 577-5396 and a copy will be mailed at no cost to you.

  News and Analysis

Modesto Bee

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Arguments For Measure R Arguments Against Measure R
Should the City of Modesto:

  • Seek to avoid "pension spiking" by city employees by moving to an average of the last three years salary as baseline rather than the current last single highest year? Yes or No.

Pension spiking allows public employees to set their retirement benefits by the highest single year of pay. Doing so creates an artificially high baseline for setting retirement benefits.

The City of Modesto has already moved to prevent future employees from engaging in pension spiking, however, nothing prevents current public employees from doing that.

This advisory measure will encourage future councils to take measures to end pension spiking. This would most likely take the form of requiring the city to determine pension benefit levels by averaging the employee's last three years, instead of basing that number on just the single top- earning year.

If we do not make this change, then the City of Modesto will have to turn to increased taxes or reduce services to fund the costs of public pensions.

Please join with business groups, taxpayer advocates, and residents of Modesto from all avenues of life in supporting this measure to ensure the fair determination of all public pension benefits for current employees by keeping their benefit determination in line with that of future public employees.

/s/ Brad Hawn, Vice Mayor City of Modesto
/s/ Cecil Russell, President and CEO, Modesto Chamber of Commerce
/s/ Dave Thomas, President, Stanislaus Taxpayers Association
/s/ Janice E. Keating, Former Modesto City Councilmember

Rebuttal to Arguments For
As Ronald Reagan said, "here they go again." Brad Hawn knows that pension spiking in the City of Modesto is illegal. Modesto and its employees have already agreed to a three-year average salary for pension compensation purposes. Brad Hawn is now asking for an advisory vote on whether the City of Modesto should do something that he has already voted to do. Brad Hawn's claims about increasing taxes and reducing services if Measure R fails are political doubletalk. Brad Hawn knows better. Don't be fooled by politicians who are trying to create issues and enemies to further their personal ambitions. Brad Hawn and the City of Modesto refused to hold committee hearings and conduct a financial review of this measure. They want the true cost to taxpayers hidden. Beware of politicians who say "trust us" instead of giving facts and figures.

/s/ Adam Christianson
/s/ Susan Azevedo, Businesswoman
/s/ Tim Tietjen, President, Modesto City Firefighters Association
/s/ Diana L. May, Crime Victim Advocate
/s/ Will E. O'Bryant, Former Councilman

Measure R is more political grandstanding by the city council! The city and Modesto's employees have already agreed to move to the three year average calculation for pension purposes. Do they want to change now? M

Measure R is not needed, is poorly worded, and is nothing more than political grandstanding. Pension reform is a serious issue. Measure R is not a serious measure. Both the city of Modesto and its employee associations agree to the three year average concept for new employees. Let's not fix something that isn't broken.

No one supports pension spiking. Do not let the politicians undermine significant reform with phoney advisory elections designed to mislead and confuse. Measure R is a costly ballot measure that will change nothing, will accomplish nothing. It only serves to provide conveinent cover for politicians who want to claim to have done something positive during their long years in office.

Don't reward do nothing politicians! Vote No on Measure R!

/s/ Laurie A. Smith, President, Modesto Confidential Management Association
/s/ Antonio Arguelles, President, Modesto Police Officer's Association

Rebuttal to Arguments Against
Measure R will allow the people of Modesto to have their voices heard the next time the City Council negotiates labor agreements.

Public employee unions want to continue the practice of pension spiking which allows public employees to artificially boost their final year pay and increase their retirement.

The City of Modesto already moved to prevent future employees from engaging in pension spiking, but current employees are able to continue spiking their pensions.

Measure R is simply an advisory measure to encourage future city councils to stop pension spiking.

Vote YES on Measure R. Join with business groups, taxpayer advocates and residents of Modesto from all avenues of life in supporting a fiscally responsible Modesto.

/s/ Donna Worley, Resident
/s/ Nancy Hinton, Retired School Teacher
/s/ Sandra Ogden, Retired UC Administration
/s/ Angela A. Anderson
/s/ Linda Alexander, Resident


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