Former City Manager Tom Schwab is stubornly wrong again. His lack of professional knowledge is shocking and the damage just gets bigger and biger. For years the city of Grand Terrace has been contributing to Calpers the state's public employees retirement system for City Council Members. This can be done based only on the "Wages" or "Income Earned". For most of that it means that the "Employer and the Employee" pay into the varriouse funds approprately.
What he doesn't know, is fact because he says so. He said, he didn't know any cities that paid taxes on the stipends. Did he ever ask? Why didn't our "Professional" Auditors catch this? Turns out neighboring cities do collect and pay the payrol taxes on City Council Stipends. But, just because in Mr. Schwabs little world of his own imagination this is not a requirement he seems to belive in his own fictional reality. He was faced with a judgement or bill from the IRS and he was still wanting to dwell in that fiction.
Many of the lawsuits the city has lost were a result of Mr. Schwab's ego and stubbornness in trying to hold onto his fictional reality. The cost for those adventures were excessive legal fees.
Now, every present and past City Council Member has an IRS Audit to face. They too will be held accountable for not reporting the income, or paying the taxes on untaxed income they received from the City of Grand Terrace.
Grand Terrace is fortunate that the egos of Schwab and Berry went into self destruct over the City Manager's Job. If it had not been for the immaturity of either Schwab or Berry we would have them still in a management position, still doing things in the ways of the Schwab World.
Betsy Adams is doing a terrific job of trying to fix problem after problem that Mr. Schwab's incompetence and stubbornness left as a burden both financial and political on Grand Terrace.
This is what you get when you promote a City Manager to King. In the case of King Schwab he is more and more looking like the King Who Wore No Clothes. He looks like he is so stuck on his own ego and opinion he is unable to abide by the law, or management principals. Thanks for nothing Mr. Schwab. May you be audited with all the City Council Members.