Can Santa Ana afford a $27 million police pay raise?

Santa Ana City Council members are expected to approve a new contract with the police union on Tuesday that will cost taxpayers more than $27 million over the next three and a half years and increase local officers’ salaries.

This comes as city staff projects a $30 million drop in sales tax revenue over five years due to a cut in Measure X, a 1.5% sales tax increase approved in 2018.

“We’re really just scratching the surface of our finances,” City Councilman Jonathan Hernandez said in a phone interview Monday. “We have a negotiating group that is neither friendly nor respectful to taxpayers.”

(Read: Politicians in Santa Ana warn that looming sales tax cliff could destroy public services)

This also comes after both former City Manager Kristine Ridge and former Police Chief David Valentin left City Hall last year following a years-long battle with the police union and its chairman Gerry Serrano over pay raises and a push to increase Serrano’s pension.

In a memo to council members, Ridge said Serrano’s campaign to increase his pension could “burn the city down if he doesn’t get what he wants.”

(To read: Officials in Santa Ana: Police union boss threatens to “burn the place down” to supplement his pension)

When she left her job, Ridge also filed a lawsuit against the city, alleging that union interests had excessive influence over City Hall.

Valentin expressed a similar opinion in his farewell letter.

(To read: Santa Ana police chief retires amid tumult at City Hall)

Meanwhile, Hernandez fears that the first step in dealing with the revenue shortfall from Measure X will be to cut funding for things like senior centers, community centers and parks.

Officials are scheduled to discuss the contract at their meeting on Tuesday at 5:30 p.m. Residents can attend in person or watch the meeting live on YouTube.

Hernandez said the Santa Ana Police Officer Association (the union) is using an election year as a bargaining chip.

“The POA takes advantage of the election cycle and recall campaigns and they use the mayor and potential candidates in those races as pawns to do their bidding and essentially negotiate with the council,” he said.

John Kachirisky, president of the Santa Ana Police Officer Association, said in an email Monday that the association, like other unions, supports elected officials and candidates who believe in collective bargaining.

“We also support elected officials and candidates who believe in the idea that all people of Santa Ana have the right to live in a safe and thriving city without fear of becoming victims of criminals who knowingly violate the laws enacted by society,” he wrote.

Kachirisky added that the contract will end in 2027, before Measure X revenues begin to decline.

City Councilman David Penaloza, whose 2022 campaign was endorsed by the police union, said in a phone interview Monday that the city must offer competitive pay compared to other law enforcement agencies in the county in order to attract and retain employees.

He rejected Hernandez’s claim that the union was using an election year as a bargaining chip and said public sector vacancies needed to be filled.

“The only way to fill these vacancies across the board is to offer a compensation package that makes people want to work here,” Penaloza said.

He also said that with Measure X revenues declining, city government should consider eliminating the Council Aide program and look for ways to generate new revenue and spur new development.

He also said that the city jail would be paid off in a few years and that authorities had refinanced the city’s pensions.

In a different approach, Hernandez said city officials should prioritize spending on community services such as 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 that he was not allowed to contact her on her personal cell phone and then refused to provide her municipal cell phone number.

Amezcua, whose 2022 mayoral campaign was heavily supported by the police union, did not respond to emailed questions about the police contract.

Council members Phil Bacerra, Thai Viet Phan, Jessie Lopez and Ben Vazquez did not respond to a request for comment Monday.

How influential is the Santa Ana police union?

From left: Gerry Serrano, former president of the Santa Ana Police Union, attends Phil Bacerra’s (right) election night party in 2019. Credit: JULIE LEOPO, voice of OC

Tuesday’s meeting comes months after a redacted lawsuit filed by Ridge surfaced earlier this year, bringing to light incriminating allegations that elected officials lobbied former police union president Gerry Serrano and pressured Ridge to increase his salary and pension.

(Read: What are Santa Ana officials hiding in a claim that the police union runs City Hall?)

The authorities wanted to keep this allegation secret from the residents for a long time. Instead of challenging it in court, they paid $600,000 of taxpayers’ money to settle it.

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 $625,000 to city administrator who suddenly resigned)

The police union also issued a vote of no confidence in Valentin in 2021 after the former police chief reportedly clashed with Serrano’s efforts to increase his own pension.

(To read: Santa Ana police union issues vote of no confidence in police chief after he said he was being politically attacked)

The meeting also comes years after a tumultuous wage dispute between police union representatives and city officials in late 2021 before agreeing to a one-year contract with a three percent pay raise for police officers at the end of 2022 and rejecting a proposal that would have cost $25 million.

Shortly thereafter, the police union initiated recall efforts against Councilmembers Thai Viet Phan and Jessie Lopez – two councilmembers who voted for the three percent increase – which were ultimately unsuccessful.

(Read: After a dispute over collective bargaining agreements, the Santa Ana police union launches campaigns to recall the city council)

Mayor Valerie Amezcua and council members David Penaloza and Phil Bacerra opposed the 3 percent increase at the time and wanted to continue negotiations.

Amezcua’s campaign, like those of Penaloza and Bacerra, was generously 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 about $218,000 on mail-in and digital ads supporting Amezcua’s 2022 campaign.

They also spent a total of $92,000 in 2022 to support Penaloza and a total of $82,000 to support Bacerra.

Penaloza said he would support the contract whether the police union supported it or not.

“Ultimately,” he said, “I care about public safety.”

Salary increases for police officers despite looming budget crisis

The contract would cost taxpayers nearly $4.3 million in the first year, about $9.2 million in the second year and nearly $13.7 million in the third year.

If approved, the proposed contract would give the city’s police officers a 4% raise in July, another 4% in 2025 and a third 4% raise in 2026. It would also recognize Cesar Chavez Day as a holiday starting next year, according to a staff report.

The proposal also calls for a salary increase for bilingual officers of up to $300, and employees’ long service allowances would increase depending on their number of years of service and whether they are sworn or non-sworn employees.

To view the proposed contract, Click here.

According to Kachirisky, the police union made many concessions before both parties could reach an agreement.

“It is important for our 500 members, both sworn police officers and non-sworn employees, to get these raises to cover living expenses and 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.

Newly elected Santa Ana Mayor Valerie Amezcua poses for a photo with members of the Santa Ana Police Department before the council meeting on December 13, 2022. (Omar Sanchez / Voice of OC)

On Tuesday, officials are also expected to finalize adoption of next year’s budget and the use of more than $400 million from the general fund – a pot of discretionary funds that come primarily from taxes.

According to the budget proposal, about 21 percent of the money — about $86 million — will come from Measure X, a sales tax that is expected to be reduced in 2029 and phased out entirely in 2039.

The city also proposes spending 40% of the general fund – about $163 million – on the police department.

Santa Ana authorities are not the only ones facing looming budget deficits.

(Read: Heading for a budget deficit: How are Oregon cities planning to deal with budget deficits?

In neighboring Orange, officials are facing a $19 million budget deficit and plan to hold a vote in November asking residents whether they want to raise the local sales tax.

Hosam Elattar is a reporter for Voice of OC and a member of Report for America, a GroundTruth initiative. Reach him at [email protected] or on Twitter at @ElattarHosam.

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