Coral Gables Pensions: Information to Confuse
January 5, 2011 Leave a comment
Thanks to Jackie Bueno Sousa for her succinct appraisal of Coral Gables’ annual financial coverup of the true financial disaster created by our commissioners and city managers. (Please see A CITY AGENDA page above for a few minimal changes in local government.)
Say that you’re among the few who bother to actually read the city’s annual financial report each year. You’d get all kinds of data about its pension program. Some of it is clearly outlined: the number of people receiving benefits, fund balances, contribution amounts and funding ratios.
Here’s what the report won’t tell you in plain, clear language: The city has been underfunding its pension plan for years. It now has an actuarial unfunded liability of more than $160 million.
Here’s what else it won’t tell you: Either major changes need to be made to the program or taxpayers probably will have to start kicking in more money — either by paying higher taxes or taking on more debt through bonds.