When the Fire Union local 1186 says the City of Vallejo should spend reserves on their raises, they are asking the City Manager and the City Council to break the law – it’s as simple as that.

And how could that be – how are they breaking the law you ask?

Here is an example of a “restricted reserve” that I think all of us mortals can relate to.

John Doe is 70 years old; knows he’s not long for this world.  When he dies, John knows that his family will want a traditional wake, funeral and burial, but he is worried that the cost will be a burden to his family.  So John places a $30,000 deposit with “Funeral Home X” to pay for his funeral costs when he dies so his family won’t have to. 

John Doe trusts (and “Funeral Home X” has a moral and legal obligation) that Funeral Home X will keep his hefty deposit in the bank and available when he dies.

But Mr. Jim Smith, the Funeral Home Director, has a gambling problem.  Mr. Smith used up his own money on gambling debt and he can’t pay his bills.  So Jim Smith figures, hey John Doe is only 70 and has some years on him – I’ll borrow from Doe’s $30,000 deposit to pay my bills for the month and my child support and mortage,  The rest I’ll take to Reno and WIN-WIN-WIN on bets, and then pay back John Doe’s deposit. 

But in Reno, Jim Smith loses the rest of John Doe’s deposit.  And then John Doe dies suddenly and unexpectedly.  John Doe’s family wants the proper funeral that their father put a deposit down for, but Jim Smith, Director of Funeral Home X has spent the deposit and now can’t afford the funeral that Mr. John Doe already paid for.

So what happens?  And how does this relate to our City and the Fire Fighters claim of “$15 million available”.