Why Can’t Coral Gables Cut Pensions: FL Cities are Cutting Pensions Now

August 22, 2010 Leave a comment

Please read what other cities are doing.  Coral Gables employees, including police and firefighters should accept big cuts now.

Once they were considered a sacred perk for public sector employees.

But pensions have morphed into an albatross for many municipalities, compounded by shrinking tax revenues, investment losses and longer life spans.

…

Recent money-saving measures range from Sunrise raising the retirement age from 58 to 62 for new general employees to Hollywood requiring greater pension contributions (9 percent, up from 7) from their general employees. Other cities, including Pembroke Pines, Fort Lauderdale and possibly Hallandale Beach, are shifting new hires to 401(k)-type plans, which are subject to fluctuations in the market.

…

Municipalities with the largest payrolls are beset with heavy pension shortfalls. They include Fort Lauderdale ($306.8 million shortfall), Hollywood ($353.3 million) and Pembroke Pines ($201.4 million) in Broward County and Delray Beach ($51 million) and West Palm Beach ($90 million) in Palm Beach County.

Retirement contributions for Fort Lauderdale firefighters and police, for example, will rise from 8 to 8.25 percent of their base pay in October 2011. New hires already contribute 8.5 percent.

In Pembroke Pines, general employees hired after July 1 will shift to a 401(k)-type plan… New officers and firefighters hired after May 1 won’t receive longevity pay, while current employees will have their longevity pay frozen at the current rate.

via South Florida cities begin slashing pension costs – Sun Sentinel.

Filed under Coral Gables, Employees and Unions, Pensions

The Ad by the “RESIDENTS FOR GOVERNMENT REFORM”: A Message to Coral Gables

August 22, 2010 Leave a comment

See today’s Miami Herald, Neighborhood Section, Coral Gables (p. 21SE) for the following interesting ad, from which I quote and in which they urge you to get in touch with your Commissioners:

23 CENTS OUT OF EVERY $1.00 IN THE CITY’S BUDGET GOES SOLELY TO PAY PENSION BENEFITS.

CORAL GABLES RESIDENTS owe the Pension Fund approximately $200 Million since the pension fund has been underfunded for years.

THE CURRENT PENSION SYSTEM IS UNSUSTAINABLE.

UNLESS PENSION REFORM IS ENACTED, PROPERTY TAXES WILL CONTINUE TO GO UP

SIGNED:  RESIDENTS FOR GOVERNMENT REFORM

Filed under Coral Gables

Teamsters Local 769 vs the City of Coral Gables

August 21, 2010 Leave a comment

This coming Monday at 9am the City Commission, in an Impasse Meeting, will take up the failed negotiations with the International Brotherhood of Teams Local 769, who represent employees of the City of Coral Gables, and are unable to reach agreement with the city over a series of proposed salary and pension concessions.

In a talk before the Ponce Business Association, Mr. Mike Scott, Local President of the Teamsters Local 769, gave the views of a group of city employees (excluding police and firefighters who have their own contracts) who he represents.

The head of the Teamsters Local indicated that a required mediation process between the union and the city has failed; and the union will not accept the city’s proposals that includes an increase to 10 percent in pension contributions, a change from a rule of 70 to a rule of 80 to join the DROP and an across-the-board reduction in salaries

The view of the Teamsters is that the employees included in their negotiation should not have to take a larger concession than the police or the firefighters are taking.  The firefighters made a volunteer contribution of 5 percent (and as I understand it is compensated in later years by an earlier participation in pensions, which rough equals the value of their 5 percent contribution), and the police will negotiate a new contract later.

The problem with the Teamster’s representations is that, since the firefighter and police contracts are not up for negotiation at the same time, the other employees will not accept concessions unless the police and firefighters are treated the same.  This is a classic Catch 22 in which none of the unions want to begin the process of concessions.

It is urgent that the city start a process of reductions in salaries and pensions, and it should begin now with the employees represented by the Teamsters, although this may be painful for employees.

The ultimate beneficiaries are the taxpayers who cannot live with the huge pension liabilities that we have to pay now and in the future.

Filed under Budget, Coral Gables, Employees and Unions, Finance

“Roadmap to Florida’s Future”: A Guide for the Future of Coral Gables?

August 19, 2010 Leave a comment

I have been reading through the “Roadmap to FLorida’s Future:  2010-2015 Strategic Plan for Economic Development”.  This provides an solid basis for thinking about new sectors, clusters and strategies for the growth of Florida and for regions that are able to think about their future.  I will be adding some additional comments on the roadmap one basis for the future of Coral Gables and South Florida.

Filed under Business and Commerce, Coral Gables, Economy

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