Inflated Pension Expenses.

pensionMy two cents …..
I am of the opinion this scheme may be:…   By unnecessarily  inflating the total bottom line, on this years budget, they will have an extra milliom dollars to play with, within the 2015 budget.   While telling the taxpayers they are holding the bottom line total to the same as this years budget.
Pat ………

Ted Noftall
10:03 PM

to Hank, gkisela, Bob, Dennis, don, Drew, Mayor

Pat,
These comments better explain the video clip posted below.
State law mandates  that  independent Pension Boards,  determine the annual  contribution required  to properly fund the City’s  pension plans for the coming year.  Those Boards  do this with the aid of  professionals,  including  professional Actuaries  licensed  in the State of Florida.
In the clip below the Police Pension Board Actuary  confirms at 5:37 and again at 6:02 in that clip  that  $ 2.512 million is the duly  calculated minimum required contribution  to properly fund the police Pension Plan for the upcoming fiscal year.
Manager Kisela and his finance staff,  none of whom are licensed professionals  to my knowledge,  apparently believing they are  infinitely wiser  than the independent Police  Pension Board and the licensed professionals they employ,  decided the correct police pension budgeted contribution expense   should be $453,000 higher at $2.965 million.
$ 2.965 million is the amount that is in the Police budget and Port Orange residents will be  paying  property taxes higher than would otherwise be required on a $ 453,000  excess that was not found necessary to properly fund that pension plan by the by the State mandated independent pension board.
The Manager has likewise increased the Fire Pension budgeted contribution expense  by $ 493,000 over the $ 2.849 million that the independent Fire Pension Board  and its Actuary  determined  to be  the  minimum required contribution  to properly fund the Fire  Pension Plan for the upcoming fiscal year.
The Manager and his Finance Director have  yet to provide the total budgeted expense for the General Pension Plan so as to allow an exact disclosure of the unnecessary budgeted excess  for that plan.   I would estimate that excess expense to be in the $200,000 range.
The bottom line here is that the property tax bills  Port Orange residents will be receiving a little over a month from now will be higher than would otherwise be required  because their  taxes are based on inflated pension plan expenses exceeding $ 1 million dollars.
None of this is acceptable,    AND  while it  too late to adjust the recently adopted millage rate downward,   it is not too late to reposition the budget and reallocate that $1,000,000 inflated pension expense to reserves targeted to reduce future property tax increases.
Council needs to acknowledge  they failed to  properly assess those inflated pension expenses   which are  totally unnecessary to properly fund the City’s   pension plans and reallocate them accordingly before the 60 day deadline to do so expires.
Ted Noftal

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