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.
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.