The latest news and financial insights from your friends at 1st Nor Cal Credit Union.
1st Nor Cal Credit Union - Website
May 2019
Table of Contents
Visit Website
Locations & Hours
Loans & Rates
Online Banking
Mobile Banking
Financials
Member Discounts
Contact Us
Win $50!
There are two member numbers spelled out within the text of this eNewsletter. Find your number and give us a call at
(888) 387-8632 to claim $50!
Follow Us:
Return to All Articles
President's Corner
Baseball Fans Cheering
Being a San Francisco Giants fan has been frustrating for the past five years since their third World Series championship in 2014. During the down years, Giants fans lower their expectations by rooting to beat their ancient rival, the hated Dodgers. Beating the Bums (yes; that is the Dodgers’ nickname going back to 1938 when they were playing in Brooklyn and the Giants in New York) feels like the next best thing to winning the pennant and World Series.

Expecting big things to happen can be counterproductive to one’s health. Sometimes, it is those little victories that keeps humans grounded and that can be built upon for bigger achievements later on. I recently had one of those small victory moments.

Several weeks ago, I received an e-mail from a taxpayer group from the town in which we live. The e-mail gave details of our city council’s proposal to replace the current community center with a structure twice as large which would include a theater, beer garden, and unspecified upgraded park facilities. The price tag? A cool $72 million!

For a town our size, this proposal was, at best, a fantasy, and, at worst, mass government waste. I calmly e-mailed all the city council members my objections to the plan, laying out the issues and suggesting possible alternatives. For example, we already have a well-functioning privately funded community center that anyone in town can join for discounted fees and an underutilized theater the city can partner with for events.

The biggest boondoggle in this proposal was the section in which the cost was “restated” in 2024 dollars. What that usually means is that under the time value of money theory, tomorrow’s dollar is worth less than today’s dollar due to inflation. The proposed 2024 dollars were 20% more than today’s dollars. In other words, the city is saying that a five-year project will cost up to 20% more because of inflation.

There is one major flaw in this analysis. Inflation has been at 1.5% for the past ten years and is projected to be about the same in the foreseeable future. It is nowhere near the 20% the city is projecting. This is what we accountants refer to as a “slush fund.” This is how $72 million becomes $86 million without the public being aware.

Within thirty minutes of sending the e-mail, I received a response from a city councilmember who said my analysis was flawed, my numbers were wrong, and I should attend the special council meeting to further discuss the “true facts” (aren’t all facts true by definition?)

Thinking this was a done deal, I did not attend the meeting (the Giants were playing that night.) A couple of weeks later, I got home from work, and my wife had the local newspaper laid out on the dining room table with a headline saying the community center project was being scaled down and re-evaluated. Near the end of the article was a sentence stating the city councilmember that accused me of a flawed analysis and wrong numbers had resigned from the building subcommittee.

I doubt my e-mail was the turning point and that many other residents stated their objections much more eloquently than I. Maybe the city council will think twice the next time they propose a massive project without prior resident input. More than likely, they will eventually build something too big and expensive anyway to feed their egos. However, I’m able to walk away with a small victory today. Who knows? Maybe this will lead to bigger victories. Go Giants, and Beat L.A.!

David M. Green

President/CEO
dgreen@1stnorcalcu.org
(925) 335-3802
BRANCH LOCATIONS
1111 Pine St, Martinez
538 Center Ave, Martinez
4261 Century Blvd, Pittsburg
560 First St, Suite B-106, Benicia
2500 Nevin Ave, Richmond
HOURS OF OPERATION
Mon - Wed: 9:00am - 4:00pm
Thursday: 9:00am - 6:00pm
Friday: 9:00am - 5:00pm

24-HOUR MEMBER SERVICE
(888) 387-8632
Federally insured by the NCUA
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administrations, a U.S. Government Agency.
We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.
We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.
Recommended Five-Star Institution by Bauer Financial "Because peace of mind matters"
Recommended Five-Star Institution by Bauer Financial "Because peace of mind matters"

www.bauerfinancial.com
The information contained in this email (the “Content”) is provided for informational and educational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Content is not intended to be and does not constitute financial, investment, tax or accounting advice or a solicitation to buy or sell securities. The Content is necessarily general in nature and is not specific to you or anyone else. YOU SHOULD CONSULT YOUR OWN INVESTMENT, TAX OR ACCOUNTING ADVISORS BEFORE IMPLEMENTING ANY ADVICE INCLUDED IN THE CONTENT. By viewing or utilizing the Content, you agree that you will not hold Marquis, Inc., 1st Nor Cal Credit Union or their affiliates or agents responsible for loss or damages resulting from the Content.
Copyright © 2021 1st Nor Cal Credit Union. All Rights Reserved. This email was sent to you by 1st Nor Cal Credit Union located at 1111 Pine St, Martinez, CA 94553.
 
If you no longer wish to receive emails from us please go here.
 
Security Key: 7D7224A3-D74F-488D-9DF0-1EBC36ADA349