Supplemental Information

Last update 8/5/2010.

This is a collection of memos and reports, videos and recorded audio, a list of key data sources used by YourPublicMoney.Com, and reports from a Peer Review Group of financial professionals who reviewed our analysis and conclusions regarding Mendocino County's debt. Also are reports from the Mendocino County Grand Jury.

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Some items are not links; the underlying documents are not available on line. For these items we tell you where you can find the documents.

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• Mendocino County's Financial Time Bombs - In Place and Lit: (8/5/10) A month ago I saw what I'm afraid is the specific path that will lead Mendocino County to financial disaster. - 6 page pdf file (467KB)
• How Pension Funds Work : (8/4/10) Actuaries plan and analyze pension funds. You can't know how our County got this deep in debt or what needs to be done about it if you don't understand what they do. This is my best effort to explain the basics as simply as I can. For concerned citizens who want to and officials who need to understand. Be prepared to spend a few hours. It's important. - 35 page pdf file (658KB)
• Our Summary of the "Kroll Report" : (4/7/10) The Kroll Report is the most comprehensive analysis of a case of terrible mismanagement of the funding of local government retiree benefits. There are some interesting parallels with Mendocino County. - pdf file (194KB)
• The Executive Summary from the "Kroll Report" - dated 8/8/06 : This is the Executive Summary of the Kroll Report. They summarize what went wrong and why, why it took so long to get to serious effective reform, and a list of powerful recommendations that are highly relevant to Mendocino County. - pdf file (260KB)
• Excerpts from First Mendocino County Debt Report dated 10/16/08 (NOTE - zip file link below): (2/4/10) The purpose of this excerpt from the original 45 page report is to show Mendocino County citizens the breadth, depth, and extent of this report that County officials have not made even one attempt to refute in the 16 months since it was published. - pdf file (915KB)
• Excerpts from First Mendocino County Debt Report dated 10/16/08 (NOTE - zip version): (2/4/10) A "zip version" of the report above - should download in 1/3 less time, but you have to be able to "un-zip" the file. pdf file (656KB)
• Supervisors in the Frying Pan - Two Huge Issues - 2009/10 Budget Report Card: Grade F: (12/1/09) Mendocino County's Pension Fund was $130 million below its target investment returns in the past 2 years. If nothing changed the County's payments would jump from $6 million to $60 million in a decade. This memo describes the two immediate challenges they faced. The BOS receives a failing grade. - pdf file (282KB)
• Lies, DAMN LIES, and Actuarial Statistics: (8/27/09) The Value of the Pension Fund is calculated by subtracting Total Pension Obligations from the value of Pension Fund Assets. But there are two types of Asset Values - the real Market Value, and the calculated Actuarial Value. It's extremely not to misuse or confuse the two, as County Officials are doing. - pdf file (371KB)
• The 800 Pound Gorilla: (8/27/09) A 1 page summary of the paper below - pdf file (296KB)
• The 800 Pound Gorilla: (8/27/09) 6 pages - The Market Value of the County's Pension Fund is about $113 million less than it needs to be to pay all the pensions it owes in the future. County officials are focusing on trying to reduce payments to the Fund over the next few years to help get through the current budget crisis. But they are ignoring the "800 Pound Gorilla". - This debt will grow 8% a year until it is eliminated. This is a very dangerous situation and there are no good solutions - pdf file (367KB)


• County Comparisons: California County comparative debt measures, rank ordering, and graphs based on the Annual Counties Report from the State Controllers Office - pdf files
  • County Comparisons - Fiscal Year 2007: (7/1/09) (397KB)
  • County Comparisons - Fiscal Year 2008: (8/18/09) (402KB)
• Unfunded Pensions - Situation: (4/30/09) Report immediately after County learned its Actuary predicts a $125 million Unfunded Pension Obligation as of 6/30/09 - pdf file (351KB)
• Questions for 3/18/09 Meeting: (3/12/09) Memo for meeting arranged by 2 Supervisors with me and Retirement Association officers - questions, data, analysis. Retirement officers did not prepare for these questions and for the most part have made no attempt to answer them. pdf file (398KB)
• Two Stories: (5/10/09) These narratives give a sense of how the County Board of Supervisors has approached issues relating to its debt including telling the people the truth - web page in new window.
• BOS Debt Actions: (3/8/09) A Sampling of Board of Supervisors actions regarding debt since 1996 - including telling the people the truth pdf file (333KB).
• Retiree Healthcare Debt Brief: (10/8/08) Analysis of Mendocino County's Retiree Healthcare debt-with AON consulting valuation attached - pdf file (519KB).

Grand Jury Reports

• 2010 Grand Jury Report - Unfunded Liability - Our Children's Inheritance: (6/7/10) The most recent Grand Jury report. ":MCERA neither reflect(s) realistic possibilities for financial growth, nor demonstrate(s) transparency in their reporting". " Mendocino County’s short term thinking has resulted in the real possibility of financial disaster including bankruptcy". "Major cuts in personnel, salaries and services are necessary ...". "Several past GJ reports ... have been ignored ... Current criticism by community members cannot be easily ignored. The questions raised need to be answered." "Communications with the public must be transparent and accurate". "Basic assumptions of MCERA need to be examined". "The citizens of Mendocino County need to hear truth, not rhetoric.". pdf file (140KB)
• 2006 Grand Jury Report - Dollars and Sense: a Report on Retirement Funding: (6/1/06) pdf file (399KB)
• 2003 Grand Jury Report - The Mendocino County Employees Retirement Association: (6/30/03) pdf file (366KB)

Mendocino County's Deeply Flawed Financing of Retiree Healthcare

We released our first in a planned series of videos examining Mendocino County's debt just before New Years. This video dives deep into Mendocino County's deeply flawed funding of Retiree Healthcare.

• Why this benefit was doomed by County officials from the start.
• How the County's Funding of this benefit directly increased long-term debt.
• How it severaly damaged thePension Fund.
• How this funding was extremely devious and hide the true financing from the public.

Click below (it's a serious video - slightly over 50 minutes)

First - Do No Harm , 12/1/09

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Other YPM Videos

• Retirees at Board of Supervisors 4/2/10 - "We've Been Betrayed": Mendocino County Retirees tell Board of Supes how they feel about termination of County funding of retiree health benefits (video - 16 minutes).
• Board of Supervisors - 9/15/09 - Part A: Good discussion of changes needed in County Planning process (planning for the County, not the Building Department). You see frustration at the lack of County Executive leadership. 15 minutes.

• Board of Supervisors - 9/15/09 - Part B: Supervisor Colfax gets very angry at another Supervisor - mostly uncut. 20 minutes

• Board of Supervisors - 6/3/09: Working on fiscal year 2009-10 budget. Issue - layoffs in Sheriff's Department. You will see for yourself the desperate situation. - 8 minutes.

• Video of 2 Peer Group Members "stirring up" County Supervisors: Financial Pros deliver bad news to the Board of Supes - some get excited (video - 24 minutes).
• Letter to BOS and Citizens: This is the text of the article that was published in the the Ukiah Daily Journal on 12/2/10. (pdf file - 92KB).
• Report to Board of Supervisors: This is a more detailed report of Peer Group findings and recommendations that was provided to the Board of Supervisors. (pdf file - 37KB).

• General List: A pdf file with many of the important data sources - pdf (321KB)
• County of Mendocino Audit (Financial Statements) Reports: Available online for 2000 forward. Previous year audit reports available in the County Auditor’s Office at 501 Low Gap Road, Ukiah.
• County of Mendocino Final Budgets:Some online. Previous year budgets available in the County Auditor’s Office or County Chief Executive Office at 501 Low Gap Road, Ukiah.
• Mendocino County Employees Retirement Association Audit (Financial Statements): Reports not on line - available at MCERA office, 625-B Kings Court, Ukiah
• Counties Annual Reports: State Controllers Office website page listing all publications - choose the Counties link.
• Public Retirement Systems Annual Report: State Controllers Office website page listing all publications - choose the Public Retirement link.
• Actuarial Valuation - Retiree Healthcare: (8/21/08) First report County ever received about its Unfunded Retiree Healthcare debt - pdf file (323KB).