Santa Ana City Council members are expected to approve a new contract Tuesday with the police union that will cost taxpayers over $27 million in the next three and half years and bump up pay for local officers.
It comes as city staff project a $30 million drop in sales tax revenue in five years as part of a decrease in Measure X, a 1.5% sales tax increase approved in 2018.
“We’re really scratching the surface of our finances right now,” Councilman Jonathan Hernandez said in a Monday phone interview. “We have a bargaining group who isn’t friendly, or respectful to the taxpayers resources.”
[Read: Santa Ana Leaders Warn Looming Sales Tax Cliff Could Tear Up Public Services]
It also comes after former City Manager Kristine Ridge and former Police Chief David Valentin both left city hall last year after a years-long battle against the police union and its president, Gerry Serrano, over raises and the push to expand Serrano’s pension. .
In a memo to council members, Ridge said Serrano’s campaign to boost his pension could “burn the city to the ground unless he gets what he wants.”
[Read: Santa Ana Officials: Police Union Boss Threatens to ‘Burn the Place Down’ to Boost His Pension]
When leaving her job, Ridge also filed a claim against the city, alleging that union interests hold outsized influence over city hall.
Valentin echoed a similar sentiment in his retirement letter.
[Read: Santa Ana Police Chief to Retire Amidst City Hall Tumult]
Meanwhile, Hernandez worries that to address the Measure X drop in revenue, funding for things like senior centers, community centers or parks will be the first to go.
Officials are scheduled to discuss the contract at their 5:30 p.m. meeting Tuesday which residents can attend in person or watch live on YouTube.
Hernandez said the Santa Ana Police Officer Association – the union – is using an election year as a bargaining chip.
“The POA uses the electoral cycle and they use recall campaigns and they use the mayor and potential candidates in these races as chess pieces, to do their bidding and to essentially to bargain with the council,” he said.
Santa Ana Police Officer Association President John Kachirisky said in a Monday email that – like other unions – the association supports elected officials and candidates who believe in collective bargaining.
“We also support elected officials and candidates who believe in the idea that all of the people of Santa Ana have the right to live in a safe and thriving city without the fear of being victimized by criminals who choose to violate the laws society has put forth,” he wrote.
Kachirisky added the contract will end in 2027 before Measure X revenues begin to decrease.
Councilman David Penaloza, whose 2022 campaign was supported by the police union, said in a Monday phone interview that the city needs to have competitive pay compared to other law enforcement agencies in the county to be able to attract and retain employees.
He pushed back against Hernandez’s claim the union was using an election year as a bargaining chip and said there is a need to fill public employee vacancies.
“The only way you’re going to fill these vacancies across the board is by having a compensation package that benefits somebody to want to work here,” Penaloza said.
He also said that with Measure X revenue decreasing, city officials should look at getting rid of the council aide program and find ways to attract new revenue and development.
He also said the city jail will be paid off in a couple years and that officials have refinanced the city’s pension reliability.
In a different approach, Hernandez said city officials should prioritize spending on community services like library programs and after school classes, which would reduce the need for more police.
Voice of OC reached out to Mayor Valerie Amezcua who told the reporter not to contact her on her personal cell phone and then refused to provide her city cellphone number.
Amezcua, whose 2022 mayoral campaign was heavily supported by the police union, did not respond to emailed questions about the police contract.
Councilmembers Phil Bacerra, Thai Viet Phan, Jessie Lopez and Ben Vazquez did not respond to a request for comment Monday.
How Influential is Santa Ana’s Police Union?
Tuesday’s meeting comes months after a redacted legal claim from Ridge surfaced this year, revealing damning allegations that elected officials went to bat for former police union leader Gerry Serrano and pressured Ridge to boost his pay and pension.
[Read: What Are Santa Ana Officials Hiding in a Claim Alleging The Police Union Runs City Hall?]
It’s a claim that officials long tried to keep hidden from residents and opted to pay $600,000 in taxpayer money to settle rather than fight it in court.
Ridge resigned in October two weeks after former Police Chief Valentin announced his retirement – citing “corrupt and compromised politicians” and “compromised staff.”
[Read: ‘Emotional Distress’: Santa Ana Pays $625k to City Manager Who Abruptly Resigned]
The police union also gave Valentin a vote of “no confidence” in 2021 after the former police chief reportedly clashed with Serrano’s push to boost his own pension.
The meeting also comes years after a tumultuous contract battle between police union officials and city leaders in late 2021 before approving a one year contract with a 3% pay raise for cops at the end of 2022 and rejecting a proposal that would have cost $25 million.
Shortly after that, the police union launched recall efforts against Council Members Thai Viet Phan and Jessie Lopez – two council members that voted for the 3% raise – which ultimately were unsuccessful.
[Read: After Contract Battle, Santa Ana Police Union Launches Council Recall Campaigns]
Mayor Valerie Amezcua, Councilmembers David Penaloza and Phil Bacerra at the time were against the 3% raise and wanted to continue negotiations.
Amezcua’s campaign, along with the campaigns of Penaloza and Bacerra, were heavily funded by the Santa Ana Police Officer Association’s political action committee.
[Read: How Beholden Are Santa Ana Lawmakers to the Powerful Police Union?]
The police union spent roughly $218,000 on mailers and digital ads in support of Amezcua’s 2022 campaign.
They also spent a total of $92,000 in support of Penaloza in 2022 and spent a total of $82,000 in support of Bacerra in 2022.
Penaloza said whether the police union supported him or not he would still be supportive of the contract.
“At the end of the day,” he said. “I care about public safety.”
Raising Police Pay While Barreling Towards a Fiscal Cliff
The contract would cost taxpayers close to $4.3 million the first year, about $9.2 million in the second year and nearly $13.7 million the third year.
If approved, the proposed contract would give police officers in the city 4% raise in July, another 4% raise in 2025 and a third 4% raise in 2026 and recognize Cesar Chavez Day as holiday starting next year, according to a staff report.
The proposal would also increase bilingual pay for officers to up to $300 and increase longevity pay for employees depending on how many years of service they have and whether they are sworn or non-sworn employees.
To view the proposed contract, click here.
Kachirisky said the Police Officer’s Association made many concessions before both parties reached a deal.
“It is important for our 500 members, both sworn police officers, and non-sworn employees to have these pay raises in order to maintain the cost of living and to provide for their families. The well-being of working families is the cornerstone of the Labor movement and SAPOA is no different in this philosophy,” he wrote.
On Tuesday, officials are also expected to finalize adopting next year’s budget and how to spend over $400 million from the general fund – a pot of discretionary money generated mainly from taxes.
According to the proposed budget, about 21% of the money – or about $86 million – is coming from Measure X, the sales tax that is expected to decrease in 2029 and sunset completely in 2039.
The city is also proposing to spend 40% of the general fund – about $163 million on the police department.
Santa Ana officials are not the only ones facing looming budget shortfalls.
[Read: Heading Off a Fiscal Cliff: How Are OC Cities Planning For Budget Shortfalls?]
In neighboring Orange, officials are staring down the barrel of a $19 million budget deficit and are moving to bring forth a ballot measure for November asking residents if they want to raise the local sales tax.
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.
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