Baldwin Park Police Chief tries to sneak through an extra million dollars for retirement

Michael Taylor, BP Chief of Police
(Trying to show off his "good" side)

Fearing a new city council with the upcoming local elections, Baldwin Park Police Chief, Michael Taylor, tries to sneak through a contract that would guarantee him about an extra million dollars in retirement. Does the alcoholic, underperforming, bankruptee police chief ever stop with his schemes?

At the last two special council meetings, Taylor demanded a $50,000 raise; another week or two in vacation time, which would push his vacation time to be around 2 months, and a clause where he could only be fired for committing a felony - such as grand theft, murder, or pedophilia. According to the LA Times, no one has ever heard of this type of contract for a police chief.

Taylor and his wife could be retiring at an extra million. This is because, if he retires for 20 years, at an additional $50,000 - that comes out to a million dollars. In 2016, according to city-data.com, the average salary of an individual in Baldwin Park is about $18,000 - meaning that almost 50% of the residents live around the poverty line. Taylor persists to ask for huge raises, even after he fired a boxing coach for complaining that a forty cent an hour raise was not enough for working for the City for 20 years.

Taylor was fired in September 2016. After being rehired though, he's been the center of a number of corruption scandals in East San Gabriel Valley and in his hometown of Rialto. Besides the Grand Jury reporting that Taylor impounded cars illegally for $11.3 million, Taylor accepted drug money to run for public office at the West Valley Water Board. Although about $10,000 was accepted, evidence points to it being more.. In exchange, it appears that Taylor granted a convicted felon a marijuana license.

The bankruptee Taylor also cost the City of Baldwin Park even more by condoning First Amendment retaliation. In my case, after ordering me strip searched, Taylor cost the City of Baldwin Park $68,500 and cost Baldwin Park even more by code enforcing Greg Tuttle by putting up critical signs of Ricardo Pacheco. It appears, in Baldwin Park - the more corrupt acts you commit, like Taylor, the bigger your paycheck becomes.

Witnesses have seen Taylor's personal problems seep into his professional life. It's been reported that Taylor drinks up to 22 beers a night and then not report into work the next day. Divorce records confirm his rampant alcoholism. The bankruptee's spending sprees on city money are notorious, including the purchase of furniture that cannot be found. In other words, some the furniture purchased is not on site.

Was actual furniture purchased, or were the furniture invoices doctored? The Baldwin Park's former HR Director and other anonymous witnesses have alleged that Taylor sexually advanced on them inappropriately. (Them too.) My source that told me about the former police chief's daughter being caught with narcotics with a strange man at a hotel, allegedly originated with Taylor - who pushed for the publication of this story. (Later, he instigated the police department to vote "no confidence" for the former police chief. Sounds like Iago from Othello to me.)

I've emailed Taylor, asking him to confirm or deny the kinds of new benefits he's pursuing with his new contract. (His previous felony-clause-contract was approved by Mayor Lozano and Council Members Ricardo Pacheco and Monica Garcia.) I've also asked why he thinks his pay (including benefits) should total $300,000, when a Police Chief of Los Angeles gets paid $300,000 to $350,000. A Los Angeles police chief serves 4 million residents with 9,000 officers and 3,000 civilian officers. In contrast, Baldwin Park has officially 80,000 residents and about 80 full time officers. Taylor has refused to comment on the matter, even though tax payers will be paying him millions in retirement.

Doesn't this remind anyone of the City of Bell?

"Men should be what they seem." But in Taylor's case, as long as he remains chief, the Baldwin Park residents have a deceptive, morally and financially bankrupt public servant, who is a cancerous problem for us all.

Day 0 - At Home in Los Angeles

Duk-Guk (Bone broth and rice dumplings)
(C) tarasmulticulturaltable.com

When I came home, my cat Jeh Pan looked at me confused. Did he come back from the dead?  He thought. He let me pick him up and recognized my smell, but it took him a day to accept the fact that I was indeed back.

He has a new friend named Jeffrey now. There's a new chicken, but my favorite one died. Other than a few more cobwebs being in my room, home looked almost exactly the way I left it. It made me feel like I almost never left on such a big trip.

The next morning, my mother made me Korean chicken soup with rice dumplings. It was awesome, but I still had some jet lag and woke up at 4AM. I woke up feeling groggy, even though I slept enough hours.

It felt like I entered into a time warp - where time flowed much slower. There were no new people to meet, no new places to see, no exotic animals, no exotic foods, or new environments. Generally, people appeared to follow the course of the life they set themselves on, before I left.

How do you tell someone in one conversation how much your life has changed on such a big trip? How do you tell them about how much of what you've seen, experienced, tasted, and learned changed how you now saw the world? How about the fact that my communication skills in other languages also improved? That's why I felt like I entered into a world - where time was so much slower.

I had a boxing coach who always said that everything has a beginning and an end; so I guess coming home is a new beginning marked at Day 0. I traveled for 443 days, starting on July 1, 2017. My journey ended on September 18, 2018. I started and returned from and to Los Angeles. During that time, I was in 9 countries: Peru, Colombia, Argentina, South Africa, Mauritius, Spain, France, Switzerland, and Sweden. I've probably met over 1,000 new people. I've traveled an estimated 73,600 km or 46,000 miles. And during all that time, I lived out of a small suitcase and a backpack.

And that's it folks. My 2017-2018 sabbatical is official over. It's time to start a new chapter in my life.

Playing in Stockholm

Stockholm, Sweden

After 15 months of traveling, I was coming home from Stockholm, Sweden. It was my last chance to play in Europe; so, I was going to stay one week to live it up with the Swedes in their glitzy and creative and elegant capital. On my flight home, not only was I impressed with Stockholm; I was so sad to go.

I stayed at the Generator Hostel and chose it because of it's reasonable price and it's close location to the central metro and train station in Stockholm. It's one of those new and trending hostels that cater for backpackers looking to meet people like themselves from other countries.

After checking in, I met my roommate from the Netherlands, a Dutch guy name Daan. We got to talking, and later we sat in the lobby - where I met a number of Germans and other Dutch people. We'd often have breakfast together downstairs with the other guys and meet again for dinner. During the days most of us did our own thing.

Swedish meatballs at Mom's Kitchen

During the days in Stockholm, I drank beautiful coffee and ate good food and went to several museums. Swedes love their coffee, and I was particularly impressed with JOHAN & NYSTRÖM, which served a unique and aromatic aeropress coffee.

I told the owner, after I drank it, "It makes me feel so happy." He said, "That's what we aim for." So of course, I went a couple times a week, where I would write and read and do research.

For food, Daan and I ate local Swedish food often at a place called Mom's Kitchen. Although everything is expensive in Sweden, the food is at an awesome price for amazing food. The first night - Daan had meatloaf, and I had fried herring (a fish) with lingonberries, which is a kind of Swedish berry. The second time we went, we had Swedish meatballs in cream sauce with mashed potatoes.

A Picasso in Moderna Museet

For museums, I went to the Moderna Museet (Modern Museum). The museum is divided into the modern art gallery and the architecture exhibits. I don't know much about architecture, but I loved some of the Picassos at the museum. There hasn't been a Picasso I haven't liked though. (Guernica is still my favorite in Madrid.)

But I think more than the museum, I'll never forget the amazing walk from central station to the museum - where you must cross through the richest streets in Sweden and where we could view all the elegant and tall buildings on the waterfront. The sun shone, and it was pleasant, which in turn made all the people on the streets pleasant too. It's also fun to walk across the bridges to the different islands. Stockholm is capital made up of different islands - which are connected by bridges.

I also met with my friend Ivan - a Swedish friend I met from a different time and place. He wanted to become a doctor and was taking their standardized test. I haven't seen Ivan for awhile, and so when we met me at the metro stop, he gave me such a big and warm hug. Ivan, was super tall and big too and had blue eyes and long blonde hair tied in a ponytail. Back in the days, they would've hired him as a raider on a viking ship.

View in walking to Moderna Museet

He took me to an Indian restaurant, where we both ordered butter chicken. There, we caught up about our lives. I told him, it was cold and rainy. He said, "You should've come in the summer."

I told him, "I came the day the summer ended." And we bought laughed at hearing it. I gave him a big hug and said let's catch up again before we left.

On another day, Ivan and I met again at the subway stop. We took a ferry to the Swedish king's former hunting island. There, Ivan asked if I'd like to go to the ship museum or the aquarium.

Yellow sea horses
we saw at the aquarium

I choose the aquarium. I felt like we were kids again on a field trip. We saw the Amazonian fish, the tropical aquarium, and the native Swedish fish - both fresh and saltwater. The best thing at the aquarium was there frog exhibit - where they showcased frogs from all over the world. For the first time, I saw those brilliant and gem-like poison arrow dart frogs I've seen in books. They looked like little rubies and sapphires and amethysts that could jump. They looked very cute, but I heard one drop of their poison into your blood could kill you.

Some of the frogs looked like they came out of Jurassic Park. For instance, one of the frogs' claws had fingers that looked like sticks. It was a very bizarre but interesting creature indeed.

After, Ivan and I talked at there cafe, where I ate a shrimp salad. They told us the aquarium was closing down in two weeks. So, I felt like I made the right choice to pick it over the ship museum. We sat at a place that overlooked the water into the skyline of the city. I told him how much I enjoyed Sweden over Stockholm and how friendly the people were. I told him a story.

Daan, Me, (Portugese guy), Remi, and Belinda in Stockholm
(From left to right)

One day, while Daan and I were walking to get dinner, we passed by an art gallery, and I was taken by the watercolor paintings of cats and mice. A dignified elderly lady told me, "It's a book signing for a children's book. Go in and look." I told he we had to get to the restaurant before it closed, but we chatted for a good 10 minutes about our lives. She told me her children were coming to Los Angeles and wanted to see Mexico.

I don't know why, but I made a choice. I should offer my place. So, I did. When we left, she gave me a hug too; I didn't even know her. I told her, "Oh, you're a lot friendlier than the Danes." She said, "You can't trust Danes. They have an ugly language." I started laughing so much.

Ivan smiled. And I said, "Congratulation Ivan. You're not like the Danes. You don't have ice in your blood."

Ivan and I took a walk back towards my hostel. When he went as a far as he could, we said good bye. I told him to keep in touch.

Later at the hostel, as I walked out of my room, a Dutch guy said, "Hey - you're the American guy. You sat our table."

I remembered and said, "Oh, yeah. What's your name?"

"Remi."

"Oh, that's such a cool name. It's the name of my favorite X-Man." Then I said it in the French way - "Reh-mi!"

"The French way is way better than how the Dutch say it," Remi said. "You were at our table with the other Dutch guy [Daan]. I was sitting at the other end." Because Daan was so tall, Remi sometimes called him the "Dutch Michael Jordan." Remi made me laugh a lot.

"Oh, yeah. But I couldn't see you."

Later, we all started hanging out. Remi was really into organizing outings. He created a WhatsApp group and let people in or blocked them out. Remi kept complaining about a dumb guy who wanted in, but Remi wouldn't let him in.

On the last night, we were all going to a night club. Before going, Daan and Remi and Belinda from London and I all ate at a French restaurant nearby. We all ordered cocktails. Daan and Remi ordered quail in truffle sauce; they booked looked happy with their food. I ordered a foie gras taco. Belinda ordered a number of tapas. Remi was really into the waitress, who was cute and gorgeous and kind. We all talked about how the Swedes are beautiful and have an elegant and dignified vibe about them.

That dinner cost, but it was so worth eating outside - where the people envied us having a good time. The beautiful blonde girls who walked down the rich street did little stunts that forced us to stare at them - such as twirling their hair with their fingers while they passed us. Even the table next to us seemed full of happiness and said "Good bye," but we didn't even know them.

We went back to the hostel to drink. We picked up two other guys, one from Germany and one from French-Canada (which is a bad place, because it's second to both the U.S. and France). The German was grumpy.

When we got to the nightclub, there was a long line. I tried to ask the bouncer if he'd let me and skip the queue. He wouldn't, but I knew I almost got in. So, I brought Belinda with me. We said it was her birthday. He didn't believe us, but it was. He checked her ID and then mine, and he let us skip the queue. Unfortunately, we still had to pay. (I still wonder if I could have got in for free, had I done more. Hmmm...)

At the club, I sat down with Belinda - waiting for the rest. Two Swedish guys immediately joined us. We chatted. They bought Belinda drinks for her birthday. One was in the army. The other was a university student. They were very kind. It was the first time I met some new Swedes their age. They were from the country up North.

After our friends came, and everyone partied and danced until closing time at the club, which was 3AM. We ordered a taxi. I said good bye to everyone. I slept two hours. Then, I checked out and made walked to the metro station with my luggage. I was going to the airport. My sabbatical was over.

Well as Zara Larsson said: "My dream is to have a bed of my own in Los Angeles and one in Sweden."

A night in Geneva, Switzerland

Geneva, Switzerland

If getting into the French Alps was difficult to see my friends, getting out was even harder. It took over 3 hours to hitchhike out of the Alps and into Geneva, Switzerland. Then, from the edge of Geneva, I had to walk 5 miles to my hostel with all my luggage. Although it was a beautiful sunny day, the kind where everyone comes out to enjoy the sunshine, the weather and walk left me sweaty and sticky and tired.

I had to wait one hour to get a ride from someone in a village in the middle of nowhere. He was the owner of a car dealership, and even though he was a French white guy, he could speak Mandarin. I was surprised. He actually thought I was Chinese at first. He dropped me off by the freeway.

The second person to pick me up was an older hippie guy with a half African child. He smelled of weed, and he didn't take me to where he said he was going. I got kind of scared, because he was driving me closer to Italy than to Switzerland. He explained however he had some business for his kid there, and then he drove me 5 miles away from the Swiss border. I exited and walked to the freeway entrance to Geneva.

The third people to pick me up were an Indian guy from Madagascar and his wife. They were very pleasant and kind, and I was really happy to talk to them. They dropped me off five miles from the city center.

It was far. So, I stopped by a Swiss cafe called Pauly. I remember a documentary about it. The documentary showed how this baker wanted to make the best bread in the world for the world. But, the croissant was $4, and that was incredible! It tasted good, but it tasted just as good as my 50 cent croissant in France. This was crazy to pay so much for bread.

From the cafe, I got directions and walked toward the fountain and then across the bridge and to the only hostel in town on Rue Rothschild. The Rothschilds are some of the richest bankers in the world, and they are often behind conspiracy theories of world domination. Well, they obviously have enough money, if they have a street in central Geneva named after them.

When I get to the hostel, I'm glad I made a reservation at the hostel, because it was booked out. What I noticed here, was that so many people in their 40's to 60's were booking at this hostel, because Switzerland is so expensive! It was $36 to share a room. Incredible again.

The first night a few people wanted to talk, but I wasn't in the mood. I was tired from hitchhiking, baking in the sun, and walking 5 miles with my luggage. I didn't feel like talking to anyone.

For dinner, I had a sandwich. It cost $11! Prices in Geneva are actually unbelievable. And it is a lovely city, a lovely city indeed. But to me, it reeks of corruption. I saw all these rich people from other countries. I wondered if all of them came to open or access their secret Swiss bank accounts.

In the morning, I talked to an English guy and a Flemish guy and that was nice. Then, I took the train into the airport.

I was going to Stockholm, Sweden and then, home! It's been close to 15 months. 

Exiting France and arriving at the Swiss Border

A town by the Swiss border

It was difficult getting out of the mountains. My French host nearly cried when I left the Alps.

My host drove me to a secluded village an hour away. He had fun driving through the twisted and serpentine road in the fog and the rain.

He said it was like driving through a race course. There, I stayed at a hippy community for one night. The people were happy to have me, and they fed me good food and nice red wine and gave me free housing.

The leader of the commune asked me to come to his place and to have a drink of sherry he made with green walnuts.

The next day, we threshed seeds from radishes.

After, the lady who invited me took me to the next village.

I had to get to the largest town by 4PM, because there, I had a ride I paid for, who would take me to the Swiss border. And at the Swiss border, I had a French friend - who nobody knows about. I feel so fortunate to have some friends in Europe - how I know them and how I met them - only God knows.

I hitchhiked. But there were no cars. It was so difficult. Even though I gave myself an hour of being late, it looked like I wasn't going to make it.

No one was traveling through the Alps. One car took me to the next village. Then I waited for 30 minutes there. No one took me. I had someone take me to the village after that.

I waited by a bridge, and a retired French couple took pity on me and said they would take me rather far. I requested they take me to the large town, because I was running late.

They were from Paris but retired in the Alps. They felt bad for me and agreed. They called my ride and told them I'd be late.

It turns out he was late too. I made it to the large town. They gave me their email. I would email them later and thank them.

My ride was late. Very late. He took me to the border of France and Switzerland. My driver found me a hostel at the border of Switzerland. He said there was no way I was going to hitchhike to see my friend tonight, because he was in the middle of the French Alps - where nobody goes.

Several people wanted to talk to me at the hostel. But I wasn't in the mood. I was tired, especially from the stress of almost missing my ride.

For dinner - I ordered a kebab. I asked the cashier if he spoke English. He said, "No." So, I ordered in French, which made them smile. (I mean - of course I can order a kebab now in French. I've been here for over 2 months.)

It came out perfect. He smiled, and so did the owners.

I emailed my friend and said I wouldn't be able to see him tonight. It was late, and no car picks up a hitchhiker at night.

The next day, I got lunch in the village. I had a bit of culture shock, because I wasn't used to seeing traffic lights, cars, or even a shopping center. I was in the mountains for too long.

At lunch, I found a traditional French restaurant. The people next to me were locals, but I couldn't eat all the food next to me. So, I gave some of it to them, even they were strangers. They both thanked me, but it made everyone around me happier, as they watched me share my food.

The Grandmothers behind me asked if I wanted to try their dessert. I declined, but I said, "You look really happy," in English. And she said, "Always, when I'm eating good food." The old lady was talking about how she was tending her garden, and how much she enjoyed it.

Because, I didn't eat enough food, I felt tipsy from the wine. So, I rested at the hostel, before I had to hitchhike to see my friend.

I was very worried, because he was in the middle of nowhere, at the top of the Alps. And I had no idea how I was going to get there, especially because there was no public transport. I wrote down all the villages I had to pass through.

I hitchhiked for 10-20 minutes, when a car got me and took me to my first point. They were a young couple, and when they had such happy and bright smiles. They were going to the Alps for a wedding.

Then I hitchhiked for another 10 minutes, and then a car took me to the point after that. She was a middle age lady returning from work to the village.

Then, 10 minutes later, a guy got me, but he felt bad for me and took me all the way to my friend's village. He was a divorcee, who was picking up his son as per their custody deal.

He dropped me off at the local village bar. There, I told the bar owner I'm looking for my friend. The bar owner called, and my friend came with children! Then he took me in his car to his friend's place.

They had a big party that night. Everybody was impressed I had come to see him. It was really a mission. Maybe I'm the first person that visited from Los Angeles.

It was good seeing him and his family again, especially after 7 years. For dinner, his friends made a Thai dish. We drank wine and ate salami and nuts to wait. A lady friend of his sat next to me for dinner. We talked a lot.

The next day, after eating a wonderful breakfast, my host took me to the river with his children, and we swam in the river of the forest, with mountains behind us, and people fly fishing in the river.

It's been a long and hard journey. But I'm glad I made it to see my friend. He seems to appreciate and know how hard it was for me. I wish I could tell everybody who picked me up - how much it meant for this family that I made the effort to see them.

Day 431: My last days in France

Hiking through the French Alps

I feel conflicted about leaving France soon. I'm not going to lie: I fell in love with France. And I believe she loves me too. (Soon, I'll say that I know she loves me too.) This is my third trip in France, but it's in the Alps that the people won my heart over with their kindness and hospitality. It's been said that the kindest people in France are in the North; that they have big hearts there. I've never been. But I can say the people of the French Alps are some of the most wonderful people you can meet in the world.

I love my local butchers too. He has the best lasagne, even though it's an Italian dish. From him, I buy fresh filet mignon and cheesy potatoes. Sometimes, I buy a leg of rabbit or a quail. The quail is often sold out. His lentils with pieces of fat is also amazing. Just yesterday, I tried his smoked bacon, which was to die for.

How can you not love a people that care so much about food? It reflects their values in living an enjoyable and beautiful life.

I think the people of the village know I eat well; as they see me buying quail, filet mignon, rabbit, and the rich red wine I drink.

I've gotten to know the local baker, who has the best raspberry tarts, but those went out of season about two weeks ago. Now, he uses strawberries. He bakes the most wonderful rye bread and croissants. He speaks some English. He tells me, "You only care about food."

I smiled and laughed, embarrassed. I tell my uncle all the foods I eat every day, and he says, "You're going to get fat."

But I doubt it. I run almost every day through the Alps at sunset - when the sky becomes washed in a ruby and amethyst hue. Some of the trees are so tall and large, it seems like I'm nobody in this great world.

One time, I ran through the Alps after the rain, and it looked like clouds of steam and grayish-purple smoke were rising from the valleys of the mountains. It made me wonder if a dragon actually slept below the Alps. Perhaps, it's where the ancient Leviathan really lives. I wish I could find him and see him and then ride on his back into the heavens.

Another time, while running in the forest, I got caught in the rage of a storm. The brilliant blue lightning struck and two seconds later, the thunder roared, and the great rumble lasted for at least 6 seconds. Because I was so close the lightning, the noise was frightening. When Lucifer clashed against Michael and his angels, did the war in Heaven roar as loud as the thunder I heard that day?

A guy in a Mercedes felt bad for me, as he saw that I was wet, as wet as a stray cat in a storm. He picked me up and drove me back. That was kind of him.

Of course, you can imagine, I'm by myself a lot. I read the Bible and pray and reflect often. I do a lot of research, and if you've been following this blog - I've been writing a lot on the corrupt city. Maybe the fresh mountain air has inspired insights in me.

Some days after finishing a big pieces of research, I go to the local bar in the golden afternoon sun, take off my shirt, and bake in the Alp sunshine. My waitress brings me licorice alcohol, and I sit and think and enjoy myself. I'll sit and read my books. Of course, the locals have commented how bronze my skin has become.

If it's raining, I'll go see the baker - who'll serve me an espresso. After I drink it, I feel so happy, and I don't know why his espressos make me feel so happy.

Well, as the baker said, the summer is finished in France. It's definitely getting cooler up here, but today is nice and sunny and warm and beautiful. I should enjoy it. I have to make my way out of Europe now. And I can feel this chapter of my life closing; part of me doesn't want to let go, but part of me knows that life sometimes has clear chapters that end. Perhaps - it's more obvious for me with the end of summer in France - where everything comes alive and the people celebrate living life.

I missed and miss all my friends and family. I'll be so happy to see all of you. And I hope the cat and my friends' children remember me. I've learned: "À vaillant coeur rien d’impossible." (For a courageous heart - nothing is impossible.")

Baldwin Park cooks its books to give $1.7 million in raises, but will overspend $14.5 million next year.

by Banksy
Modified by me

Baldwin Park officials will give raises to all the city officials, including the mayor, council members, and city clerk and to its directors in the total amount of $1.7 M (million) for the fiscal year of 2018-2019. But how could it do this, when my independent audit reveals that the City is estimated to overspend $14.5 M in total next year, $9.8 M of which is in operational cost alone. Has Rose Tam, the City's finance director cooked the books again?

The budget appears to be misrepresented in mainly three ways: (1) inflating the city's income stream, (2) hiding ballooning legal costs, and (3) hiding and mis-categorizing the city's current debt and accruing interest. After the audit, the key finding is that the City will spend $1.7 in giving out raises, 71% of which will go to the city officials, directors, and the police brass. The City has decided to do this, even when it appears that the City will be running an operational deficit of $9.8 M and a capital deficit of $4.7 M**. In total, that's $14.5 M.

The following article explains what's happening in the budget and where the city officials are planning to do. All this is very concerning.

Here's a summary of a more accurate view of the City's finances. The analysis follows on how these figures have been reached.

Summary of City of Baldwin Park's Financial Project for 2018-2019 (In the Millions; doesn't include capital projects.)

Description Amount General revenue $28.6 Operational Costs -$29.5* Litigation Costs -$3.6 Interest Costs -$5.3** Operational Total: -$9.8

The City grossly inflates it's revenue stream; hence, the deficit will be closer to -$14.5 M, not $6.1 M.

The City is grossly inflating the amount of money it brings in. The City inflates it's revenue stream in two categories: (1) the general fund and the (2) internal service fund.

The key finding are as follows: (1) The City is more likely to be bringing in $28.6 M in revenue, not $37.9; (2) the City's operating cost will be at a loss of $9.8 M, and (3) the total loss project for next year, when capital projects are included, is -$14.5 M.

Here's how the actual numbers were figured.

The first red flag in the General Fund is that the City says it's going to make an incredible $4.4 M more this year in a category called "Charges for Services." But in 2016-2017, what the City actually brought in was $2.0 M in this category. (Even then, there's also a problem with these actuals, as the numbers don't match up to the actuals of the previous budget; I suspect they're being fudged to not make these cost increases look so big.) So, how did the projections jump by $2.4 M?

Then the City says it's going to bring in $2 M in marijuana money, called "Community Development Enhancement" fund. This is owed by business that received a marijuana license.

But Tam cleverly shows in her budget that money is put aside. Why? Because it hasn't even been collected yet, and against the City's own contract, Mayor Lozano gave out those licenses and still hasn't collected the money owed to the City. It's questionable if that money will ever be collected.

It appears, that the City is making up revenue, as it did with the successor agency, to make it's numbers look good. But unless that money is in their hands, they don't have $2 M.

Also, the City says it gets money from a vague category called "internal service funds" in the amount of $4.8 M. Apparently, that's money it used to collect but no longer does so. I asked an expert forensic auditor about this category of revenue, and she said that it's not real. Another lie, essentially. In short, the City is alleging $9.2 M more than it actually will have.

So, really after adjusting for all these numbers, the General Fund, which is meant for operational costs, should have about $28.6 M, compared to the City's alleged $37.9 M. (This is still a generous revenue estimate, but because it's more closer aligned to the actual figures of financial year 2015 and 2016, this seems like a more plausible sum.)

Next year the City projects that the operational costs - such as the police department, parks and recreation, and the city administrator - will be $33 M. That means, in operational costs alone the City will be running at a loss of -$4.5 M, $5.3 of which will be in paying just interest on loans. That means, the total operational loss will be $9.8 M.

According to the City's budget, the Capital projects will be running at least a $8.1 M loss. (I believe it's more of a $4.7 M loss, because the City adds loans on the interest payment in capital projects, which it is not.) Hence, when you add the operational losses with the capital losses, for next year, the City will be running at -$14.5 M loss, ($9.8 M in operations, and at least $4.7 M in capital projects).

City officials and employees in total will get $1.7 M in raises, even when the City will overspend -$14.5 M next year.

Although the City will be overspending -$14.5 M next year, -$9.8 M of which is for operational costs, such as payroll, litigation expenses, and interest loan payments. The City wants us to believe that it's almost running at $0 loss. But that's far from the truth.

This is how the City tries to deceive us. Next year, the City estimates it will be spending $33 M. If you go with the City's figure, because it brings in at least $33 M in the general fund, there won't be a loss.

But if you go with my estimated revenue stream of $28.6, the City will be running at an actual loss of -$4.4 M in departmental expenses, and another $5.3 in paying interest on its loans.

Here's who's going to get these raises.

-The City Council and City Clerk, asked for a total raise of $238,000+.
-The City treasurer asked for a $7,000 raise.
-The Police administration, such as Captain, perhaps even lieutenants, will get $227,000+.
-The Police Chief, Michael Taylor and his Chief department alone will get $209,000+.
-Rose Tam and her finance department will get $196,000+. (This is a lot of money, considering there are only 8 staff members in Finance. Rose didn't tell us how much is going to her alone.)
-The CEO, Shannon Yauchtzee, asked for $119,000+.
-Parks and Recreation Director, Manuel Carrillo, and his department will get $94,000+.
-The Public Works Director, Sam Gutierrez, and his department will get $67,000+.
-Community development Director, Andre Dupre, will get $25,000.
-Community development, for the Community Development block grant will get $410,000+.
-Of all the departments, the police department got the largest raise, which totals $770,000+.

Hence, the increase in cost of the city officials, the directors, and the top police brass totals $1.2 M out of the $1.7 M budgeted for departmental increase. In other words, 71% of all the raises is only going to the City officials, directors, and police brass and their departments. (This the same city, who gave the head boxing coach a 40 cent an hour raise before firing him. He worked there for the City for 20 years.)

The City hides it's legal costs of an estimated $3.62 M.

The City has it's legal costs spread out in different categories, rather than in one. There's a strong possibility this is being done to hide the real legal costs of the City and the true pay of the city attorney.

The City codes legal costs to the city attorney's office; under various departmental expenses, such as the police and administration; and under nondepartmental costs.

It appears that the largest and most alarming increase in litigation costs is in the non-departmental category, which has increased over $2 M. It appears this is the cost of the City's litigation insurance, which will be $2 M more next year. This generally happens because the insurance actuaries figured that Baldwin Park is too risky to insure, because it's chances of getting sued and losing big damages are incredibly high.

The actual costs of litigation cannot be deciphered in the City Budget. In 2016 - the contracted law firm of Tafoya and Garcia LLC charged the City over $614,000. In 2017, the city attorney charged the City $442,000 and projects to do the same for next year. (It could be much more, as we don't know if the City Attorney charged under other billing codes, which he at least did for administration and the police department.)

Nonetheless, besides hiding litigation expenses by different departments, litigation expenses have also been charged under the categories of "non-departmental" either "contractual services" or "transfer outs" or perhaps both. Besides Tafoya and Garcia, the City has outsourced legal work to at least three other law firms. In 2016, contractual services cost the City $1.01 M. Transfer out costs came to $920,000. Hence, a best guess of the legal fees being charged to the City is around $1.62 M a year.

Hence, legal costs for the next financial year is estimated cost $3.62 (legal fees and litigation insurance).

The City hides it's interest payments of $5.3 M a year.

What's not clear is how much interest the city will owe on the $119 million it's borrowed. The answer is obscured by the confusing breakdown of costs of the successor agency and the names of the various capital projects. (I think of interest payments on existing debt as part of the operational costs; so that's where I added it.)

Another big problem with the budget is that the City doesn't anticipate the interest it has to pay on it's pension bond of $55 M. But it does conveniently remove the cost it won't have to pay CalPERS - which again makes the numbers look better.

The interest the city has to pay on it's loans is estimated to be $5.3 M. The city alleges that its interest payments are about $3.4 M through its successor agency. But again, the city didn't add the interest payment it has to pay on the $55 M bond it wants to get. And if it doesn't get it, it needs to add back the interest payment it owes CalPERS.

A second check shows that $5.3 M is a reasonable estimate of the interest the city owes on its debt. The City owes at least $119 M. An average of 5% interest would make the yearly payment equal $6 M. So, that means the debt is anywhere between $5.3 - $6 M, assuming we found all their loans.

Key findings and Red Flags

The budget is riddled with red flags, stressing problems with accountability and oversight. Besides all the findings presented above, the City has not disclosed on its budgets that it owes $119 M (which is a combination of the pension debt and the loans it owes). In other financial statements, it's made up that it has $22 M in assets in a phantom successor agency. (Isn't that called lying?)

The City budget also doesn't reflect how much it has currently in all of it's bank account. Revenue streams are also missing.

The two big revenue streams missing is how much cash does the recreation program bring in for the City? (Is Carrillo pocketing the money himself?) Also, where is the income stream from the police asset forfeiture or the Baldwin Park Franchise Fund? Are these numbers not being reported, because players are taking this money for themselves?

Also, do the city council meetings reflect when all these financial decisions were made, and when, and why? Under the Brown Act, which requires transparency in government decision making, these decisions should have been presented to the public - before it went into a cryptic and confusing and "cooked" budget report.

It appears that the City's strategy for justifying the lucrative raises it wants to give itself next year is being done by misrepresenting how much money it actually brings in, hiding its debt and the accruing interest, and underestimating the cost of contractors (including the city attorney and legal services).

Thus, 31% of the City's operational costs are going to paying loan interest and litigation costs. Instead of fixing the problem though, city officials, management, and brass have all given themselves raises though.

Conclusion: Future Concerns

This report hasn't explored why the City is expecting to run a loss of -$4.7 to -8.1 M in capital projects. I wonder if this is because it plans to launder the $55 M bond money through contractors involving capital projects. The City of Beaumont did the same thing. It stole $43 million with over 40 secret bank accounts, primarily by using contractors.

At this rate, it won't be long before the City will have to file bankruptcy. Tam's best representation of the reserves is at $14 M. When I looked at the books years ago, it was at $6 M. So, running at a $14.5 M loss would require the City to exhaust its reserves or to go out for loan. (This makes me think that the $55 M bond it's going out for will have to pay some of the current operational cost, and not be used for its intended purpose of paying out the CalPERS debt.)

Although the $55 M bond the city is seeking may buy it 2-3 more years, because a third of its budget is on litigation costs and interest on loans, it cannot continue maintaining operating costs at this level at the current revenue stream. Imagine, if a third of your income went to paying off credit card interest alone.

Although it may be illegal for the City to do so, documents obtained by public records act requests have shown that the City put up the Recreation Center, donated by one the founders of In-n-Out, as collateral to U.S. Bank for all the loans. Hence, the children and senior citizens can lose their recreational programs, because of the city's financial mis-management and corruption.

What I think this is showing, and I'll write a follow up article, is that these city officials and directors want to take out a big $55 M pension bond to give themselves raises and retire lavishly. Follow up article to come.

This case study of dissecting and reconstructing Baldwin Park's budget stresses the problems with oversight and accountability regarding local government. The solution will require processes, law, and enforcement of law to hold accountable those who engage in deceptive practices, such as the one potentially illustrated here. As I studied in Animal Farm: “The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.”

Footnotes:
*I've taken out the litigation cost from the $33 M reported by the city, to show it as it's own category.
**The City's put loan interest payments as a capital cost, but it's an operational cost to me. I've removed it as a capital cost, and put it as an operational cost.

By Banksy
It's come down to us checking everything our government does.