Katie Lichtig leaves her job in Santa Monica, retires from public service

May 27, 2020

Katie Lichtig

By JOSH FRIEDMAN

Former San Luis Obispo City Manager and current Santa Monica assistant city manager, Katie Lichtig, is retiring from public service this week.

Lichtig, 58, announced in January she would retire on April 9. Amid the coronavirus crisis, she delayed her retirement by nearly two months. Now, Friday will be Lichtig’s last day on the job in Santa Monica.

Though announced prior, Lichtig’s retirement comes about a month and a half following the abrupt resignation of the man who hired her. Santa Monica City Manager Rick Cole announced his resignation in April amid a dispute over budget cuts and public pressure over his handling of city finances during the pandemic.

Shortly before the Santa Monica city manager announced his resignation, a city resident launched an online petition call for the firing of both Cole and Lichtig. The petition garnered nearly 2,900 signatures, and it alleged Cole and Lichtig were abusing their power during the pandemic and blaming the crisis for the city’s already dire financial situation.

In his resignation announcement, Cole acknowledged Santa Monica faced fiscal challenges and “massive pension obligations” prior to the pandemic. During the pandemic, the city became faced with a projected budget shortfall of $300 million over 26 months. Likewise, fear and anger arose among staff and the community over looming budget cuts and layoffs, Cole stated.

The individual who launched the petition, a man identifying as Sir Santa Monica Steve, responded to Cole’s resignation by saying it was a success but Lichtig still needed to be terminated immediately.

“We have won this battle but still have work to do. Katie Lichtig is still employed and budget cuts are looming,” the person behind the petition wrote. “I think we can all agree how essential it is to have trustworthy, ethical leaders at the city’s helm, and Rick Cole and Katie Lichtig do not meet that standard.”

Cole, who had served as Santa Monica city manger since 2015, earned a base salary of $342,780 and $462,172 in total pay in 2018, according to Transparent California. That year, Lichtig received $278,296 in base salary and $388,789 in total pay.

Lichtig served more than 7.5 years at the helm of San Luis Obispo’s city government. She left the city of SLO in 2017 after Cole selected her from a nationwide field of candidates to become Santa Monica’s assistant city manager and chief operating officer.

“I sought out Katie because I knew about her achievements and skills in our profession,” Cole said at the time.

Early in her municipal career, Lichtig served a first tenure with the city of Santa Monica, spanning 1992-2001. She then served as city manager of Malibu and assistant city manager of Beverly Hills before moving to SLO and ultimately returning to Santa Monica.

“Public service has defined my life and it has been my honor to work on behalf of the city of Santa Monica. After 35 years, I am ready to start a new chapter,” Lichtig said in a statement released in January. “I take this step into retirement with tremendous gratitude for everything this community has offered me both inside and outside the organization.”

Lichtig’s tenure in San Luis Obispo included several controversies ranging from the amount of money she made to her appearance in a raunchy video. While with the city of SLO, Lichtig’s total pay regularly exceeded $300,000 a year.

The city of SLO fined Lichtig over her participating in a video that allegedly sexually objectified firefighters. The video was intended as a spoof to promote the San Luis Obispo Chamber of Commerce, but it resulted in Lichtig receiving a $2,659 fine and then-SLO fire chief Garret Olson getting fined $5,442.

Additionally, San Luis Obispo’s staffing and pensions costs rose considerably during Lichtig’s tenure as city manager, culminating with the city facing multi-million dollar budget shortfalls following a decision made by CalPERS to lower its investment forecast.

“That we reached out to bring Katie back home tells you all you need to know about how Santa Monica feels about her,” Santa Monica Mayor Kevin McKeown said in January. “Katie’s been an indispensable core part of every achievement our city takes pride in.”


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Retirement 80%-100% based on peak salary after 35 years. $300k * 0.80% = $240k/year minimum. SMH


Robert1

Once a robust community with a good budget, SLO’s public officials have milked the system to near collapse, which will happen in a matter of time.


Warren Buffet has a great saying regarding shortcomings,


“Only when the tides go out can you can see who is swimming naked”


Crisis reveals big financial shortcomings

https://calmatters.org/commentary/california-coronavirus-economic-pension-tax-financial-crisis/


sbjcl

Good riddance.


KAG2020

I do not understand why city managers get paid so much. CSD’s also. I agree, offer 100k MAX and qualified applicants will line up.


r0y

Because it’s incestuous; the high pay / big raise creates a false atmosphere (well, average managers make X). It’s all a collusion to make sure “X” is as high as possible.


Happens in the Corporate world, Academia, etc. It’s the institutionalizing of an environment. But hey, so many of us keep voting for more government, larger reaches, fewer freedoms and liberties.


Devo had it right: Freedom of Choice is what we got; Freedom From Choice is what we want…


shelworth

A famous politician once said “We’ve got to protect our phony-baloney jobs”. Sums it up nicely I think.


commonsenseguy

She’s laughing all the way to the bank. On behalf of the taxpayer, thanks for nothing. Her statement, “Public service has defined my life……” should be “Public service has defined my opportunity to fleece the hard working taxpayer to fund me and other nonessential public employees.” “Thank you all for YOUR financial support of me.” And you wonder why all of these municipalities are having budget issues. This is one reason.


Kevin Rice

Ten years too late. A wake of destruction left behind for others. SLO decimated. Forever ruined.


Kalifornia_Bud

300K to be a City Manager? I’d pay 100K tops. How do they justify that outrageous salary??? Oh, yeah, they vote themselves pay raises. With our hard earned tax dollars.


derasmus

I must agree with you K..bud, people often talk about outrageous salaries for government workers and City manager salaries are the poster child for that sentiment. Not sure how much Derek Johnson makes at the City of SLO but my sources in Morro Bay me their city manager makes around$170k salary, not including benefits. This is appalling given the population of that little town (9500-10,500).


I’ll bet if you offered $95 – $120k the candidates would be lining up.


Really, just amazing


KAG2020

Johnson in 2018 made 242k, pay/benefits.


r0y

Candidates might be lining up, but are they “qualified” (I read that as: fully compliant with the UN and its agenda, like SLO is?)


derasmus

“Qualified “ well maybe, maybe not..

In any event it appears from recent history that there is little correlation between high performance and high salaries, i.e. SLO and AG to name a few locally.


analyticone

Leaving was the best public service she gave SLO and now Santa Monica. A case of making herself seem of value by asking for me, especially when she failed.


analyticone

Meant to say ‘asking for more'[money]