Wednesday, September 22, 2010

Employee and Police Pension Plans

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I know that Lake Worth has the word "stupid" written all over its forehead. Last night was no exception when it came to the 2nd reading on the Employee and Police Pension Plans. One Commissioner was there to derail any purposeful dialogue. Maxwell said that it was "gross misrepresentation because details were not in the back-up." Oh, boo, hoo, hoo. Politics always gets in the way. In fact, I suggest that anyone taking a campaign contribution from any Union should have disclosed this fact before saying one word.

It is getting to be a joke here. Just utter the scary word "sue" and you have this City reduced to Depends. It happened with the billboard blight. These people came to town and said if you don't allow us to install obnoxious billboards we will sue. What did we do? Even though it was against our ordinances, we capitulated. The threat of a lawsuit happens all of the time when people do not get their way even if what they want is against our Comprehensive Plan, against our laws--even if they never perform like the flim flam man.

Last night the Chamber was packed with Union members, their friends like Mary Lindsey, a few that have been convinced by them that the City is doing them a gross injustice as well as the lawyer for the Employee and Police Pension Plans. If I heard the name correctly, we had our own outside lawyer with Lewis, Longman and Walker, Glenn Thomas. The lawyer for the Unions acted as if he was in a court of law and got to plead his case...we don't want any changes; we want it all...the wordage is ambiquous in your document and we'll have to go to Court so that someone can explain it.

We have $58 million in accrued UNFUNDED liability. Is that easy to understand Mr. Union Lawyer? The City Manager, Susan Stanton, said that it is more appropriate to reduce the cost of government today and reduce the long-term costs...the most responsible way to maintain city services.

Next year the City's contribution just to the Employee's Pension Fund is $4,056,252 which represents a 29% contribution. Is that one easy to understand Mr. Union Lawyer? The last company for which I worked which was a public company whose stock was traded on the NASDAQ, did not match one dime of my 401(k) contribution. There was NO retirement other than what I saved myself. Most corporations who have a 401(k) will match up to 3%. Our City employees believe in this out of whack entitlement just to show up and do their jobs and get an unbelievably high paycheck.

As indicated in the proposed budget, in FY 2011, the City’s total estimated contribution for employee pension contributions is $7.4 million and is projected to increase to $9.7 million by FY 2016. The total unfunded actuarial accrued liability of the General Employee’s Retirement Plan for FY 2010 is $30,644,940. Because of the benefit level offered to plan participants and the early age in which employees can retire, there are more general employees collecting City pensions than there are current employees contributing to the plan. Anyone can understand the problem here, even a Union attorney.

The Unions, after months of not answering e-mails, not communicating at all, are now talking. What they have suggested is that the City raise taxes and raise Utility bills so that they can maintain their cushy and out-of-line- benefits. Well, Mr. Union Lawyer, the taxpayers of this City can well understand the problem with this.

What I suggest is to hire non-union labor; eliminate those jobs of all those who are unwilling to work with the City during these difficult economic times and hire contract employees in a new job description. For the employee who threatened to not vote for anyone on the dais who was for amending these Plans, I want to remind you that this Commission is interested in 1) our city being financially sound 2) trying hard not to lay you off in the biggest unemployment for decades where it might take you years to find another job and 3) living within its means. If you can't comprehend that, then let's find someone for your job who will.

In order to help ensure solvency of the City of Lake Worth going forward, amending Pension Plans across the Board is imperative and has been recommended by Staff as well as the Finance Advisory Board. Union Pension Plans have broken this City and it is now time to change the course of these events to a realistic and sustainable level.

Last night's delay until Friday at 7pm will result in nothing new. The newly printed back-up that Commissioner Maxwell needs so badly to render an opinion will not change anything. We must reduce the costs of employee services and remind the Unions that they do not run this city...the taxpayers do, and it is the Commission's job to remind them of that fact by passing all amendments to the Employee and Police Pension Plans by October 1.

5 comments:

  1. Thank You Lynn, Being called a friend to our city workers is indeed high praise.

    Mary Lindsey

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  2. Being a friend is one thing--supporting unsustainable pension funds at the detriment and possible demise of our City and at the expense of our residents is another.

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  3. How thrilled will our fellow taxpayers be when they find out the exorbitant legal fees and judgements we'll be forced to pay because this City Manager fails to follow state laws regarding collective barganing units for city employees. Ms. Stanton said as clearly as possible last night that her only concern is presenting what looks like on paper is a balanced budget this year. That is EXACTLY what she pulled off last year and had to raid the reserve funds 2 months later when the truth came out about her unilateral and illegal action to reduce employee health benefits. How much more money is this City going to pay outside counsel to cover her incompetence, arrogance and total lack of respect for the law? How much more indignity and abuse will our employees be made to suffer as scapegoats for her inability to manage effectively?


    Mary Lindsey

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  4. Hey Mary, how about being a friend to all of THE TAXPAYERS OF LAKE WORTH!!!!You know, us stupid peons who are the reason these greedy, deadbeat EMPLOYEES even have A JOB ! they ought to be damned THANKFUL to even have a job, but we can't even pull their bloated rear ends away from the gravy train called LAKE WORTH ! The first loyalty of our elected officials BETTER be to the taxpayers of Lake Worth . I say change the job descriptions and FIRE ALL OF THEIR UNGRATEFUL BUTTS !!!! People will be lined up around the block to grab up the jobs! Most likely BETTER people than we are now stuck with.

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  5. The city commission and city manager MUST act on behalf of the city as a whole with the better part of their reason at the forefront.

    Edmund Burke quite rightfully said the following:

    “Society cannot exist unless a controlling power upon will and appetite is placed somewhere; and the less of it there is within, the more there must be without. It is ordained in the external constitution of things that men of intemperate minds cannot be free. Their passions forge their fetters.”

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