Archive for August, 2009
Mary Discusses Privatization, Public Pensions
LOCAL GOVERNMENT, SHASTA COUNTY
![Shasta_VOICES_Newsletter_July_2009[1]](http://movetoredding.com/files/2009/08/Shasta_VOICES_Newsletter_July_20091.jpg)
Local business groups funded a study of privatizationof public services in Shasta County. Mary Machado of Shasta Voices prepared the report which will be released Monday. Mary met with Realtors to highlight some of the findings contained in the report.
First, Mary met with administrators from City of Redding, County of Shasta and union representatives to hear their thoughts on privatization as a way to potentially save taxpayer dollars and bridge the ever-widening budget deficit. Perhaps in response to Mary’s efforts, Redding formed a committee composed of 5 citizens and all 5 city council members to explore privatization. Ironically, the city council will be the ones to review/approve their own recommendations. Very odd!
Mary cited Rancho Cordova, a new city east of Sacramento, as an example of a city that decided to privatize most city services except police protection. They are a model for the cost efficiencies of privatization according to Mary. They had a distinct advantage while forming their city in 2003 looking around at what works and doesn’t work with regard to structuring city government.
Mary demonstrated how a public employees salary cost pales in comparison to the total cost for that employee when health and retirement benefits, Workman’s Comp and other perks are added in. The total cost is nearly twice the annual salary. She used the Redding Convention Center staff salaries for this example. The city has had to kick in more than $1 million/year to keep the convention center in the black. She made the point that the center is only used 40% of the year and sits empty the rest of the time.
Pensions for police officers were enhanced to encourage early retirement because these officers were not as capable to carry out their duties as they neared their 50’s. The 3 at 50, or 3% of your salary for each year worked means a police officer can retire with nearly 90% of their highest salary after 30 years of service. One trick commonly played by those contemplating retirement is to convert sick time, deferred comp time and accrued vacation time just before retirement to inflate their lifetime pension. Pensions are based on the final year salary. This incentive has worked better than expected-many officers took early retirement and received generous payouts.
Mary also shared a list of local city and county employees that have pensions over $100,000. Some of the names were familiar like Mike Warren and Bob Blankenship. Others were not. Statewide, their are nearly 5000 public employees living comfortably on six figure pensions.
Mary has scheduled a lunch and learn seminar for September 24th where many speakers will discuss and answer questions regarding privatization.
Here is a link to the report:
http://shastavoices.com/Home_Page.html
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Redding Home Prices Show Continued Stability
FHA LOANS, INDUSTRY NEWS, TIPS FOR BUYERS
After falling roughly 40%over three years, home values in Redding appear to be stabilizing. A local appraiser that monitors home prices monthly released the most recent statistics for Redding and surrounding communities indicating the average cost per square foot is $131. That is down slightly from June’s $133/square foot.
January 2009 saw the Redding average at $138. The average sales price began the year at $244,803 compared to July 2009 of $230,553. Anderson and Shasta Lake City home prices average $157,763 or $112/square foot, down from $164,644 and $117/square foot in January 2009. One reason the averages are lower for Anderson and Shasta Lake has to do with sample size. Smaller numbers of units sold lead to more variations.
At the peak of the market, the average home price in Redding hovered around $300,000. One could get a rough idea of their home’s value by multiplying their square footage by 200. Some homes are selling for half that today! What appears to be bad news for home sellers is good news for home buyers. Combine depressed prices with low interest rates and you have a window of opportunity for first-time buyers and investors.
Investors are finding that buying rentals in the current market makes sense. Low prices and interest rates make these properties pencil out assuming a reasonable downpayment of 25-30%. Rents have not fallenwith home prices. Investors can purchase a home in good condition around $200,000 and break even after paying interest, taxes and insurance on their mortgage. Rents in Redding for a three bedroom avearage $1,100/month.
First-time buyers are jumping into the market after years of waiting out the market. FHA loans remain popular for those buying their first home. These loans require only 3.5% down and have less stringent underwriting guidelines than conventional loans. The seller can assist buyers utilizing FHA loans with closing costs. This allows buyers to leverage their available cash to buy their first home. Move-up buyers also find FHA loans attractive if they don’t have enough cash to move forward after selling their smaller home.
The number of home sales pending has nearly doubled since January. Home buyers in Shasta County have gotten the message about low home prices and interest rates and have stepped up and made the plunge into home ownership. I expect an influx of retirees once the recovery takes hold in the larger metro areas of California. Sales of upper end homes remain sluggish in Shasta County with more than 80% of sales occurring below the $300,000 price point.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL SALES EXPERIENCE
Cool Trinity Alps Camping Spot
REDDING LIFESTYLES, REDDING RECREATION
Big Flat Camp Ground Trinity County
The ruggedly beautiful Trinity Alps are largely inaccessible except for those willing to strap on a pack and hike for miles and miles to reach the namesake granite peaks. One campground I frequent is situated adjacent to wilderness near the heart of the Alps. It serves as a starting point for hikers and horse packers heading to Caribou Lakes, Packers Peak, Tri-Forest Peak and Red Rock Mountain and points beyond.
Big Flat Campground is located at the terminus of Coffee Creek Road. Technically, the road continues a couple more miles to some private residences below Josephine Lake, but the campground is the last place the public can access. This campground has several unique features:
- At over 5000′ elevation, this spot offers a cool respite from summer heat common to lower elevation campgrounds
- A little known spring on a hillside below the campground offers plenty of fresh cool water for hikers and campers
- Trailheads heading north, east, west and south to wilderness areas in the Trinity and Salmon Mountains
- Cool clean swimming opportunities near the headwaters of the Salmon River just below the campground
- Best of all-camping is FREE
Horse packers help keep the campground clean and well stocked with firewood. Most campsites have a fire pit and firebox. Keep in mind campers must pack out there own garbage and pit toilets are the only facilities available.
To get there, follow Hwy 3 north from Weaverville to Coffee Creek Road, head west to the end of the road (about 15 miles). The first 5 miles or so of Coffee Creek Road is paved then the road turns to dirt and is very rough in places. 4WD is not required but a vehicle with high clearance is recommended.
This is one of the best spots I’ve found for camping in the Northern California area. Contact me for additional information if you’re planning a trip!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Home Price Declines Slowing
Sales of new and existing homes rose last month leading some to believe the three year slide in home prices may be nearing an end. Existing home sales have been increasing month-over-month for the past three months while sales of new homes increased in June by the largest percentage in 8 years according to numbers released by the National Association of Realtors and the U.S. Commerce Department.
Home prices in Redding continue to get beat down by a steady stream of distressed properties sales. Bank repo’s are lowering the bar on home prices forcing homeowners to compete with banks that are offering below market pricing, closing cost credits to buyers and commission bonuses to agents that represent buyers of REO properties.
Some skeptics believe the market is merely taking a time out before prices fall further. Market statistics have been showing positive signs of recovery for several months in major cities across the country. Maureen Maitland, vice president for index services at Standard and Poor’s was quoted as saying “It is very possible that years from now we will say April 2009 was the trough in home prices.”
I believe prices in Shasta County will fall even more before they start heading back up. REO’s and short sales must represent a smaller portion of the listing and sales volume before prices stabilize in this part of California.
530-224-6767 or 530-941-7492
BRAD GARBUTT
RELTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Alpen Cellars Offers Fine Wines, Surroundings
I couldn’t help myself as we headed home from a Trinity Alps camping trip when the sign said winery-this way! Located in a remote valley at the east edge of Trinity County is this fabulous treasure of a spot to enjoy delicious wines while overlooking the lush green grounds from a picnic table. I’m familiar with their Chardonnay which is available at Costco, but had no idea they produced so many varietals.
You can reach the winery via French Gulch if you don’t mind miles of dirt road or you can take Hwy 3 north of Trinity Center to the paved road on the west side of Trinity Lake. I believe the winery is about 13 miles southeast of Hwy 3. Despite the remote location, the wines and scenery are well worth the drive. The winery is open 7 days week through Labor Day.
Cross the steel bridge over a branch of the Trinity River past the vineyards up a windy drive to a farm house surrounded by lush green pastures and several small warehouse buildings. Behind the home are large trees shading the picnic area where the wine tasting takes place. From this vantage point, you can see the valley, river and mountain ridges to the south. A small pond is crowned with a water wheel surrounded by pasture with several horses and a mule. Even as Redding sweltered under record heat, we sat comfortably in the shade enjoying a gentle breeze and one great wine after another. Our grand kids made their way to the swing set and entertained themselves while we tasted away.
Keith Groves hosted our tasting as well as injecting some history about the winery started by his father. Alpen Cellars produces about 5000 cases per year. They grow grapes on-site and on nearby property and buy grapes from other vineyards to make other varietals.
We started with a dry White Riesling that was not too sweet. This was followed with a crisp Gewurztraminer, lemony Pinot Gris and two different Chardonnays. Reds offered for tasting included two Merlots, a Pinot Noir (my favorite varietal) and Sangiovese. Unlike most wineries I vist, all of these wines were well made and very reasonably priced. We bought and stuffed a case in our station wagon overloaded with camping gear and headed over the mountain toward Redding via French Gulch glad to have made a jaunt to this hidden jewel!
This winery is a true asset to the north state. If you are looking for a great road trip, give this winery a try. I think you will be pleasantly surprised!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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