Attachment 3 - Public Comment11-7-17
A LACK OF ACTION IS COSTING US MONEY:
Earlier this year, I was very pleased that the council picked three highly
qualified residents to work with the finance committee. The first meeting
was March 23rd. Since that time there has been a lot of talk, numerous
meetings, some action, and 0 invested of the $1,300,000 the council put
aside to pay down the unfunded liabilities debt.
That was 7.5 months of earning 1%. With an inflation rate from Feb thru
Sept of 2.0%, you have lost more than 1% of the investment. In addition to
costing ourselves that 1%, the market in that same period of time went up
7.65% for a total of 8.65% of a lost opportunity.
The Dow Industrials from 7/2015 to 9/2017
Had we just earned 5%,
$1,000,000 would be
worth $2,650,000 in 20
years, and $ 4,320,000
in 30 years. But to do
nothing is a waste of the
residents tax dollars. I
am asking the council to
take immediate action
on Section 115. Don’t
try to time the market.
Dollar cost average if
that is a safer way to
invest, but we were
waiting in September of 2016; March, June and September of 2017 and
that has cost us money.
How long should it take to make a decision?
This town operates with a very heavy list of priorities and things to do, but
the burden appears to be greater than the council’s and staff’s ability to
handle the issues at hand. It is my opinion that the council needs to take a
ATTACHMENT 3
hard look at reworking your whole system. But we (you) are so
overburdened that you’re efforts to save us money are costing us money.
I don’t have to be convinced that each of you work hard for no pay. But are
you spending your time on the critical issues as our pension debt far
exceeds $70M and will be increasing in the future. There is more work and
bureaucracy that needs to be fixed. Too much time is spent deliberating
and procrastinating decisions. The Section 115 decision was a 2 month
decision that took 7.5 months to make, and that’s assuming that you make
the decision tonight and it’s implemented tomorrow.
There is too much to do, and while trying to get things done, we’re not even
investing money that can do the work for us.
Jak VanNada
Los Gatos Community Alliance