Mammoth Town government has a long-term, structural, financial problem that will require more cuts. That’s what Assistant Town Manager Marianna Marysheva-Martinez said when Sierra Wave News asked her if the Town has a chronic lack of money to cover costs, aside from the $42 million debt issue.
Next fiscal year, the Town expects a nearly $3 million shortfall. Revenues, Martinez said, are not keeping up with expenses. Partly as a result of this, the Town sent out letters to all Town creditors, including employees, to ask them to mediate lower payments. One of the Town’s legal firms is working to get a mediator on board to begin sessions this month. This type of mediation can be a prelude to bankruptcy.
Martinez said Mammoth is experiencing what many towns, counties and states now deal with – rising retirement, medical and other costs in the face of declining revenues. It means as things are now, Mammoth can not pay its bills long-term without making more changes. Martinez said Transient Occupancy Tax is not growing as it used to, and property taxes are dropping due to real estate issues. Sales taxes are growing but the increase is not keeping up with the expenditure side.
Asked how chronic the Town’s money problems are, Martinez said, “We’re in a very challenging situation. It’s structural. Long term, revenues can’t cover costs.” Martinez said that’s why the Town invited all creditors to mediate. She said there needs to be a “major restructuring involving operations, costs, employees and services provided.”
And, the costs are rising. Next fiscal year, Town employees’ contracts entitle them to a 4.5% pay increase. CalPERS, the state retirement fund, has lost money over recent years through its stock market investments. That means the Town has to pay more into the pension system. More recently, CalPERS experienced another revenue decline. Again, more money required from the Town. Medical insurance costs have gone up 5 to 9%, Martinez said. Service contracts have gone up. The bottom line – salaries, benefits and retirement are going higher than revenue on a consistent basis.
Martinez called it a “huge problem.” She said given the magnitude, it’s not enough to just look at services. Officials are now at work on what they call a Restructuring Plan which “attempts to take a little from everyone.” This plan is the key component in upcoming confidential mediation sessions. Martinez said the Town will ask mediation participants if the plan can go public.
All of this grim news does not even include Mammoth Lakes Land Acquisition and its $42 million debt. An Associated Press story published in many newspapers says Mammoth Lakes is the second local government after Stockton to use a new state mediation process as it contemplates bankruptcy. The AP reported that Assembly Bill 506 requires local governments to enter an evaluation process with bond holders, creditors, employee unions and retirees for up to 90 days in an effort to avoid Chapter 9 protection.
The Assistant Town Manager did say officials want to engage the public in the budget process to talk about how to deal with this long-term financial problem. Those public talks will not happen until later this month or next. Could the situation lead to cutting Town departments? Martinez said it could, but “we would have to hear from the public first.”
Everyone in Mammoth should read your post.
Good Job
I’m an old, grizzled retired, tea-bagger who didn’t plan for the future, in debt to my ears, refuse social security payments because after all – that’s socialism, I listen to Rush Limbaugh 3 straight hours a day and reruns on weekends, believe that Michele Bachman should be president, think that… Read more »
Maybe you are an old, experienced, grizzzled retired person who has experiencened your attempted govt. achieved dreams and has fallen short?
JUST ANSWER IT…are you a free-loader?
Wow! I had no idea there were so many rednecks in this part of the country!
Limbaugh must be having a field day with them.
dennis kostecki what do you do for a living? Retired, what did you do?
Winston Churchill once said, “What the people really want to hear is the truth-it is the exciting thing-to speak the truth” 1. The people of TOML should be told the truth why Judge, Jury, Appellate Judges and even the California Supreme Courtall agreed with the judgement and legal fees awarded… Read more »
Mo, Do you think we’ll get a good interest rate on the judgement bonds? My guess is the interest rate would be higher than any rates TOML could get after a completed bankruptcy and restructuring. I sure wouldn’t lend to Mammoth unless the interest rate was usurious. Bankruptcy is the… Read more »
Problem is the “truth” is ALWAYS filtered by politicians and their lackies like Wilbrecht, 3M, and their upper management minions. The truth is counter productive to their goals based in clandestine manuevers behind closed dorr meetings under the guise of “possible legal action”…
Dennis K. I wish you would stop criticizing us about people who blog using false names. I do so,so I can speak freely and not to draw attention to myself, my family and most of all my fellow workers. I listen to insults all day long about their anti- liberal… Read more »
Whenever I read the non-stop angry rants from those who refuse to use their real, honest name on this format, I’m reminded of the Wizard of Oz. “Pay no attention to that man behind the curtain!” And just what is behind that curtain? … A sad little old man who… Read more »
So Dennis K. has pitty for me. Save it. If you can’t handle people speaking their minds freely, stop blogging.
200k plus benies for the Town Manager
MMM as an Assistant Town Manager
A recently hired budget analyst (to analyze what exactly?)
A director, assistant, and three others playing cards down at the airport…..
Sure, let’s not look at the REAL problem.
CAN YOU HEAR US TOWN COUNCIL?
Principal Peter above has obviously discovered the largest concentration of Peter Principle refugees and generally useless individuals in the State of California, a virtual motherlode of incompetence. Peter Drucker must be smiling down on this motley crew as proof personified of his famous principle. And rumor has it that the… Read more »
MLLA Does NOT have to Mediate. LETTER FROM MLLA LAWYER TO TOWN OF MAMMOTH LAWYER: “We have considered your proposal for mediation of the amounts owed to MLLA by the Town of Mammoth Lakes (“TOML”). Under the circumstances, we must decline to participate. Source: https://thereal395.com/10954/mlla-wins-court/ The law/code (Assembly Bill 506,… Read more »
I just love all the articles by the Sierra Wave that FAIL to mention the OTHER OPTION Mammoth has… DECLARE A FISCAL EMERGENCY Here’s some articles by the Sierra Wave that FAIL to Mention this OTHER OPTION: April 11, 2012 “Assembly Bill 506 requires local governments to enter an evaluation… Read more »
I see from your comment that you regularly read sierrawave.net. When we learn new facts, we include them. Chill out and stay tuned. Oh, and I don’t care for bullies. So, if you send any more ill-mannered emails, they will head to the trash. Benett Kessler
Fair enough. Here is a NEW FACT….. …that, presently, is Not Being Reported by the Sierra Wave News: The TOML has two options. 1) engage in a neutral evaluation process with its creditors with the help of a mediator; OR 2) declare a fiscal emergency Sources: http://www.usatoday.com/news/nation/story/2012-02-29/stockton-california-bankruptcy/53296106/1 http://www.publiclawgroup.com/wp-content/uploads/2011/12/Executive-Summary-of-AB-506-Bankruptcy.pdf http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0501-0550/ab_506_cfa_20110909_183215_sen_floor.html Will… Read more »
I’m publishing this so I can tell you to knock it off. We got your message. You don’t need to pound it in with a sledge hammer. I’ll gladly consider the information that you already sent in previous comments. Consideration and respect will go a lot further to my hearing… Read more »
I have nothing but pity in my heart for those poor soul posters that hide behind a made-up moniker and like a Rush Limbaugh or Ann Coulter, lambaste everything and everyone associated with local or national governmental functions. They are victims of non-stop cruel propaganda and hate-filled ignorance. But my… Read more »
From the MercuryNews.com story of 6/22/11 , San Jose,CA “Opinon: Declaring Fiscal Emergency could make San Jose’s plight worse”……. “Just last year, San Diego considered adopting a similar Fiscal Emergency measure but decide against it after the City’s attorneys concluded that it was “unlikely that San Diego’s ongoing budgetary issues… Read more »
Hey Benett,
Anyone is allowed to say whatever they want, including criticizing your “journalism.” Lay off.
Under the same premise, I agree;and can talk back if I want. BK
In a small community like Mammoth Lakes, where some elected officials have their fingers in so many pies for so many years, it seems to be that it might be a good idea to have written into Municipal Code laws prohibiting and strict punishment for: projects and developments promoted for… Read more »
Until it is 100% illegal for an elected official to accept one penny from, partner with, or promote a project or development with the promise of a kick-back or favor, the system you have in place will be a corrupt one.
Dennis,
You must be talking about Rod Blagiovich !
You are correct.
To quote this article: “Assembly Bill 506 requires local governments to enter an evaluation process with bond holders, creditors, employee unions and retirees for up to 90 days in an effort to avoid Chapter 9 protection.” Absolutely WRONG! Assembly Bill 506 requires local governments, before resorting to bankruptcy protection, to… Read more »
I have yet to read AB506, but our story was quoting the Associated Press comments on that. I have now attributed that statement to them. Thanks for the info, but not the unnecessary scolding. Benett Kessler
“Assistant Town Manager Marianna Marysheva-Martinez” is going to be the fall gal when this is all said and done. She will then disappear as fast as she arrived having accomplished her mission. Her mi$$ion is to become the target of the electorates current and future anger. She is earning her… Read more »
I’m sympathetic to MMM. I think she’s doing what she can with a bad situation.
“Mammoth Town government has a long-term, structural, financial problem that will require more cuts. That’s what Assistant Town Manager Marianna Marysheva-Martinez said . . .” Of course it does, with parasites like the Tsarina who’s skimming $4,000 a week off the top while she flies around looking for a better… Read more »
“Mammoth Town government has a long-term, structural, financial problem that will require more cuts.”
No Way…Tell me it is’nt so.
GGW
Fire them all and file already
Mammot
Fire Martinez TODAY! Talk about over spending…. She is ROFLOL all the way to the bank.
“Shooting the Messenger” is a phrase used to describe the act of lashing out at the
Bearer of Bad News” ref. Wikipedia.
Mariana, considering the circumstances. Thank you.
What ever works and keeps the towns people comfortable and in denial. The government they elected is the government they deserve.
From the outside looking in this is great reading.
I missed the AP story, so I googled it: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/04/05/state/n141820D54.DTL
And this popped up: http://www.yakima-herald.com/stories/2012/04/11/yakima-names-city-manager-finalists
^ JD, now isn’t that interesting to learn about MMM?! Forgive me if this has been discussed elsewhere, but does anyone know when MMM went from being the TOML’s financial consultant to Assistant Town Manager? One of the local rags still calls her a consultant while the other calls her… Read more »
Maybe start with the Assistant Town Manager position? Why do we need a Town Manager and an Assistant Town Manager in a 4 square mile town with 8,000 people? Might also cut the funding of the legal department given it’s performance history.
Thanks, Benett. All this TOML secrecy needs to stop. It is outside of the legal process over MLLA. Now that the non-MLLA issue is finally front and center–at least on your website–how about TOML settling with MLLA and getting on with their structural crisis in public? The town council could… Read more »
This is what is playing out everywhere, or soon will be. Not even Helicopter Ben can keep printing Bernankes forever. The state is insolvent, the Town is bankrupt, and the most imaginative response by the federal and state executive branches is to stick it even more to “the rich”, the… Read more »
Most conservative criticisms about the ill-effects of taxes are exaggerated or untrue. Taxes are in fact good – they are dues we pay to enjoy the numerous vital benefits that government provides for our society. Personally I like my: Fire Departments, Police Departments, Public schools, Military, unemployment benefits, social services… Read more »
Dennis, Go ahead and raise the taxes on the top 1%. I’m fine with it. Per the Congressional Budget Office it will generate a whopping 4.7 Billion per year.!!! WOW With our present budget deficits running over a TRILLION DOLLARS per year. It’s an absolute joke to think that would… Read more »