City Paid Illegal Benefits to Mayor, Council Members for Years

STOCKTON Stockton, the city that's looking at bankruptcy, has been paying illegal benefits to council members for more than 20 years, to the tune of nearly $277,000. "We need to fix this. None of the council members or I had any idea that this was the situation," Mayor Ann Johnston said. City officials learned that council members and mayors, both former and current, were enrolled in the state retirement system, CALPers, and that Stockton was illegally paying in to their funds in addition. Local newspaper columnist, Mike Fitzgerald with the Stockton Record, found it in the city's charter, and brought it to the attention of the city attorney. Be the first to know! Sign up for FOX40 breaking news alerts. "Took him a month to convince himself, but ultimately he decided that the benefit was indeed illegal," Fitzgerald said. "Just morally, it was put in there illegally. Wasn't supposed to be there. So give it back?" FOX40 asked the Mayor. "At this point, I need to look at what the options are and if I have any choices or not," Mayor Johnston said. "Weighing what options on what?" said Ralph White, a councilman from 1971-1986. "Whether to give the money back, or keep it? Do you wanna be a thief, or does she wanna give the money back. That's the option. I wanna be a thief and I don't care about the city of Stockton. Or I give the money back, 'cause I wasn't entitled to it." "A section of the city charter that seems to say it's illegal to receive retirement benefits. It seems to say so clearly and unambiguously," Fitzgerald said. "Do I think I need to know the city charter by heart? No, I go to the charter when issues come up. But I always defer to city staff. They are the financial and legal experts," Johnston said. "Our charter is like our Constitution," White said. "Every council member, and especially the mayor, is the chairman. She should definitely know the charter." Of the current City Council, two members and the Mayor are enrolled in the state system and illegally getting Stockton contributions. The Mayor's portion in this is about $45,000. She told FOX40 signing up for the Council is like starting a new job, and she enrolled in benefits under the direction of city staff.