Tuesday, September 21, 2010

Dear J. Wolf, J. Gray, D. Farr, J. Centeno, S. Carbajal our Santa Barbara County Board of supervisors, Please explain the use of excess returns that have been pulled from the SBCERS Pension fund!

From: sb_magic@hotmail.com
To: jcenteno@co.santa-barbara.ca.us; supervisorcarbajal@sbcbos1.org; jwolf@sbcbos2.org; doreenfarr@gmail.com; jgray@co.santa-barbara.ca.us
Subject: Pension fund challenges, over funded not under funded
Date: Fri, 17 Sep 2010 14:59:03 -0700

I wonder who pulled this quote from my blog?
J Gray you must do more than make a comment in a meeting!

Thursday, June 17, 2010
Article Tool
Share ArticleFourth District Supervisor Joni Gray blasted the Santa Barbara County Board of Supervisors majority Friday as the quintet conducted their final deliberations on what to cut for the 2010-2011 fiscal year’s $833-million budget they were finalizing to go into effect July 1
“I’d like all of you to leave this hearing with three words,” Gray said, actually using four words to initially describe her cryptic message. “Bus, bridge, and Ponzi scheme.”

I am wondering if you have seen my blog and pension fund concerns?
Please review my SBCERS data sheets and math charts as I see it.

Well as you can see there is a ton on my mind but I ma here today to explain why both past and present Santa Barbara elected officials such as the Board of Supervisors and County Controller Robert Gies must be criminally charged for fraud and misuse of public funds. Very quickly here in 1989 the County of Santa Barbara reported that SBCERS pension fund had a future obligation of 290 Million dollars with a value at that time of only 225 Million dollars thus only 77% funded. I was able to retrieve these figures from the Municipals bond market on Wall street. It turns out when there is a bond offer the City or County which makes the offer must give a current view of there Finances and future obligations. Now on this same bond document there was another choice I could have used. In there reporting investment returns they also had 345 Million future obligations and a 305 Million dollar value. I chose to use the lower of the 2 values for my example. Now all I had to do was the following.

1- start at 225 Million and come forward with the investment return factor.

2- Before multiplying by the return of a given year I also add the contributions

3- Example 1989 I had 222 Million plus 14 million in new contributions from employees and employers. So I went 225+14 = 239 million dollars x investment return factor of 10.5 =

4- I did this for every year and came current and my findings are located at both my word-press blog and at @ www.santabarbaracriminalcourtcorruption.blogspot.com

My results are startling and it boggles the mind to think our current Santa Barbara Board of Supervisors would have us believe there is a current unfunded future liability of 1 billion dollars. When in fact when you bring my totals to 2009/2010 multiply by 10.5 return on investments you get a fully funded pension fund of 3 BILLION Dollars, WOW where did the math go wrong. What does it say when you look at the 2009 SBCERS pension fund audit and in that audit it contains this. That over a given period the Santa Barbara County Tax Payer is charged for 350 Million dollars in amortized pension fund payments to the unfunded future liability. How ever if you follow those amortized payments you find that the Board of supervisors really only makes payments of only 200 Million dollars and do you know why? You see they charge the amortized payment at an interest rate of 8’16% yet there is no need for such a calculation and do you know why? Because the fund automatically will pull up or down the amortization payment based on the future funds performance. So there would be no need for an intereat rate to be used ever

Well my computer is broken so I am at the library. I must wrap this up for today but please remember that the SBCERS pension fund has claimed a hard number lose for the last two years and there for is not entitled to use my math to increase there losses after the fact. I will have to write a much better posting describing the amortization payment issue but another 150 million in fraud uncover by “Magic” no by common sense.

225 million fund value followed by 850 Million in new contributions for 20 years. Multiply this by a average return on investments for that 20 year period of 7.6 (yes I have also seen 6.7) and there is no possible way we have an unfunded pension plan.
This is posted @ www.criminalcourtcorruption.blogspot,com
I look forward to hearing back from you.


Larry Mendoza

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