Showing posts with label police and fire sales tax. Show all posts
Showing posts with label police and fire sales tax. Show all posts

Monday, October 12, 2009

Springfield Should have Limited Focus to Passing Pension Sales Tax in November

Attempt to stage November's ballot language to enable the city to influence a future sales tax repeal vote may threaten passage of pension sales tax next month

Springfield, MO - There has been repeated reference made by City attorney Dan Wichmer that state statute restricts and limits what the city may, or may not, include in the ballot language of a sales-tax initiative to fund the police and fire pension plan. What is interesting are the deviations from the ballot form RsMo 94.579 has indicated the city must "for the most part" follow. Why oh, why, do they chose the deviations they choose? (Well, keep reading.)

RsMO 94.579 states:



The ballot of submission for the tax authorized in this section shall be in substantially the following form:

Shall ...... (insert the name of the city) impose a sales tax at a rate of ...... (up to one) percent, solely for the purpose of providing revenues for the operation of public safety departments of the city?

Other than a yes box, a no box, and some voter instruction, that's it...the end.

Had the City of Springfield, and its City Council, which approved the City of Springfield's official ballot language on August 24, stopped with the first part of the paragraph, which reads:


“Shall the City of Springfield impose a sales tax at a rate of three-quarter of one percent (3/4-cent) solely for the purpose of providing revenues for the Springfield Police Officers’ and Firefighters’ Pension System,"


...my yes vote would have been secure but, they didn't stop there, instead, they added:


"with said tax to sunset upon the Pension System fund reaching a fully-funded (100%) status as determined by an independent actuarial study conducted for the Pension System Board of Trustees?”

With that, and a heavy heart, my no vote was secured, instead. A heavy heart because I do recognize the importance of the tax being passed, it is the reason I voted in support of the failed February pension sales tax of 1 percent.

The ballot language has been troublesome for many citizens, and personally, I think if public confusion rises to the level the City Manager feels it is necessary and appropriate to initiate passage of a City Council resolution clarifying the language, then there is an obvious and very real problem with it (see: Council Bill 2009-254, purpose and explanation).

The reason the second half of the ballot is troublesome to me rests in its potential to make me a liar in 2014, should I wish to make the decision to repeal the tax.

By voting yes on "question 1," I would not only be approving the 3/4-cent sales tax to fund the pension plan but, in my view, I would, in essence, be endorsing funding the pension plan to a 100 percent funded ratio before I would vote to repeal the tax.

Since I do not believe that full funding is either necessary to reach the city's goal, and question whether it is the best funded ratio by which the city could reach their goals, I am uncomfortable with endorsing a 100 percent funding of the plan.

A couple of things stop me from committing to endorsing paying the sales tax until the pension plan is funded at 100 percent.

1. The city is under no threat of the state withholding sales tax revenue to fund the pension plan, so long as the pension plan is funded at a 60 percent or higher ratio.

2. Milliman actuaries recommended the funded ratio which would best reach the city's long term goals as 90 percent, when they performed a study prior to the failed February vote.


"Under both 6 percent and 7.5 percent [investment return] scenarios, funding to the 100 percent target appears to overshoot the desired results long term," the Milliman actuaries advised. "The 90 percent target scenarios seem to better match the desired long term outcomes." - Nov. 19, 2008 issue, "Community Free Press," page 2)

I also resent what I perceive as an effort, on the city's part, to set up language today which will more than likely be used to coerce or guilt the public into approving it again, five years from now.

If I can be even clearer: I planned to vote in support of a 3/4-cent sales tax to fund the police/fire pension plan but, because, instead of placing a straight-forward and focused question before me, the city wrote language with an eye toward influencing my vote in five years, I will be unable to vote in support of the over-all question. I hope they have not ensured this sales tax initiative's failure.

They lost my affirmative vote by over-reaching what should have been the clear-cut objective of simply passing THIS sales tax initiative on THIS day (November 3).

It truly was a yes vote that was the City's to lose.

Disclaimer: I have not written this post to try to influence the vote of any other Springfield resident. I simply cannot, in good conscience, support the ballot language of "question 1," as it was crafted.

Related: "Law sought to give Springfield voters voice in funding choice" - Source: "News-Leader.com"

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Wednesday, September 09, 2009

Special Council Meeting Thursday Night

The Springfield City Council is going to hold a special meeting Thursday night, September 10, at 6:30 p.m. in City Council Chambers.

There will be a public hearing on Council Bill 2009-235: "A resolution outlining the November 2009 Police-Fire Pension Fund sales tax vote."

It appears the Council intends to vote on the resolution after the public hearing.

Under "new business" the Council agenda states they will also refer "the draft CID Ordinance to the Community Involvement Committee."

Source: The City of Springfield Public Information Office

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Thursday, August 13, 2009

Special Springfield City Council Meeting Called

5/8 or 3/4 cent sales tax, that's the question

There has been a special City Council meeting called for Thursday evening to have first reading and public hearing of two separate bills. The two bills, 2009-206 and 207, give the City Council a choice of approving the call for an election to institute a 5/8 cent sales tax (2009-206) or a 3/4 cent sales tax (2009-207) on retail sales within the City of Springfield.

Both sales taxes would provide revenues for the Springfield Police and Firefighters Pension System if approved by voters in November, 2009. If passed, both ordinances also provide for sunset of the tax, either five years from the date of passage or when the pension fund reaches a fully funded status, whichever comes first.

If you would like to attend the meeting tonight, it will be held in the City Council Chambers at Historic City Hall. Council Chambers are on the 3rd floor. The meeting time is 6 p.m.

If you wish to speak to the Council, you'll need to sign one of the cards provided and present it to City Clerk Brenda Cirtin. Public comments will be limited to 5 minutes per speaker.

Source: City of Springfield Public Information Office

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Thursday, March 05, 2009

Saving Our Springfield (SOS) Citizen Coalition Spokesman Chappell: "We need time to make a good choice."

SOS spokesman Darin Chappell penned a letter to the Springfield News-Leader which was published as a "Voice of the Day" column in yesterday's paper, "...there have been a few questions and critiques raised that deserve to be answered directly. As one of the spokesmen for the coalition, I would like to do so here," Chappell wrote.

One of the issues Chappell addressed was the true intent of the plan. He noted he felt it was unfair to discount or dismiss the plan based on the fact that it will not bring the plan to a 90 or 100 percent funding ratio for more than twenty years. To be honest, I'm not sure that the 1/4-cent sales tax the group has proposed would provide the momentum, on its own, to ever create enough funding that it would reach the 90 to 100 percent funding level needed in order for the pension system to become self-sufficient but, I don't think that was SOS' intent.

Chappell spelled it out more eloquently, and concisely, in his letter to the public than I could summarize:


"We need not fund the pension at 100 percent (or even 90 percent ), unless the city anticipates a mass retirement of the officers and firefighters in the immediate future. What we do need immediately is to fund the pension at the state-mandated level of 60 percent, thereby giving our City Council the opportunity (and the responsibility) to take further steps to make the fund permanently solvent. We need time to make a good choice, not just the easiest one."


The best I can tell, this alternative solution will simply shore up the plan, protecting our City from action on the part of the State. You see, the State has the ability, if the pension plan is funded below 60 percent, and if the City does not make a full actuarial recommended contribution once in every five years, to seize 25 percent of the City's sales tax revenue (which the State handles) and contribute it to the pension plan on behalf of the City.

SOS' plan, I think, is intended to keep the pension plan funded above the 60 percent level to ensure the State can't take action against the City while other options are considered in a more deliberate way.

Deliberate, good. Rash, bad.

I have no inside knowledge about SOS' alternative plan. Oh, I was aware discussions were being held. Heck, Jericho said as much on his show. I wasn't privy to any of those discussions so, I'm learning about SOS' alternative plan along with everyone else.

I like the idea of slowing things down and taking a more deliberate approach, and besides we don't know what is going to happen tomorrow, let alone between now and April 7, or now and at any point in the future of our City.

Today, the City of Springfield released news that there has been another telecommunications settlement, this time between the City and AT&T Mobility. The City will receive $10.22 million from the settlement.

Here are some details from that news release*:

"Under the settlement agreement approved in a closed City Council session on Tuesday, March 2, AT&T Mobility will pay the City of Springfield $10.22 million, which includes back taxes owed as well as taxes paid under protest that will be released. AT&T will voluntarily pay the gross receipts tax on wireless service going forward.

Mayor Tom Carlson said he will recommend to City Council that the $10.22 million settlement be applied to the Police/Fire Pension Fund. That amount would equal the amount the City underfunded the pension plan during four years from FY2004 to FY2007, plus interest."


So, there's another $10.22 million for the fund that, yesterday, we had no idea we'd have, and according to the release, "Litigation continues with AT&T (landline company that was formerly SBC) and Alltel." (I intend to look into the news release's claim that this takes care of the "interest," on what the City failed to contribute in the past.)

These settlements are good news for the pension fund.

I had some questions about information Mr. Chappell shared regarding the CIP in his letter published in the News-Leader. I have asked questions of the City regarding that particular aspect. I am told I should have answers within 24 - 48 hours of asking them. That's a rule of thumb, according to the Public Information Office's Director, for dealing with "citizen journalist's" requests for information because, citizen journalists are not generally on a "deadline." I wouldn't argue with that. I have no deadline here.

As a disclosure, I recently made the decision not to continue to contribute to the Community Free Press. Their publisher once told me, "I have no magic formula for how I pay people." That was the truth, folks. There was no consistency in how I was paid for my work, and no agreement was forthcoming in regards to my compensation so, with no pending agreement, I made a decision to look at, and for, other options.

Now I have to wait for information from the City, just as every other citizen who has a query has to wait. That simply means I won't be getting preferential treatment because I'm on a deadline. That's okay. I'm among good company. Besides, it usually took 24 - 48 hours to get answers to my more involved questions anyway so, I probably won't notice much of a change.

*For a list of City government news releases from the past 30 days, click on this link.

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Wednesday, March 04, 2009

Wow!!!

Somebody hit a tender spot today!

One wonders which writer might have stirred up the most animosity!???

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Sunday, March 01, 2009

Council Candidate Endorses Group's Alternative Plan for Funding the Police and Firefighters Pension Plan

I received a press release from Tom Martz earlier today. Martz is a candidate for City Council General Seat A. As always, any City Council member or candidate, or Mayor or Mayor candidate may send press releases to me for posting, my email address is posted under my personal profile at this blog.

Following is Mr. Martz's release:

TOM MARTZ for CITY COUNCIL - GENERAL A

March 2, 2009

P R E S S R E L E A S E

For Immediate Release

I am pleased to announce my full support of the “Save Our Springfield” citizens coalition proposal to allow the voters to decide if the current ¼ cent CIP Sales Tax should be allowed to sunset in 2010, and be replaced by a new ¼ cent Sales Tax to go directly to the Police and Fire Retirement Pension Plan.

This tax neutral proposal would ensure that the City meets its legal obligations as required by the State of Missouri, while still forcing the City to reduce expenses and spending to fully fund the Pension Plan.

Springfield is blessed to have citizens who will step up to find real alternatives to the City’s failed tax increase solution. The Save Our Springfield citizens group, which drew up this proposal, gave their own time, energy and effort to find a workable solution to this problem, and I support their efforts and their proposal.


Tom Martz, Candidate for City Council – General Seat A

Contact: Tom Martz, Tele: 417-894-4322

# # #
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Thursday, February 26, 2009

City of Springfield Invites Public Input on Police/Fire Pension Issue in a Variety of Ways

The City of Springfield is seeking input from the public on the Police and Firefighters Pension issue in three different ways.

They will be mailing out an election follow up survey to randomly selected voters. Those voters who receive a survey will be asked to mail it back to the City in an enclosed envelope or fill it out on the Internet. The deadline for returning the mailed surveys is 5:00 p.m. on Friday, March 6.

A short survey regarding the February 3, ballot proposal is available the City's homepage to those interested in filling it out or, if you'd prefer, you can go to the Busch Building at 840 Boonville Avenue and pick up a copy. That survey will be posted, online, through 5:00 p.m. on Friday, March 6.

Or, if you really want to get involved, you can apply to participate on the Police/Fire Pension Fund Citizens Task Force by submitting an online application, that form is also available at the City's homepage. The deadline to submit those applications is 5:00 p.m. on Monday, March 9. Of course, there aren't any promises you'll be one of the citizens chosen to serve on that task force but you'll never know unless you try.

Better git busy.

(Source City of Springfield News Release)

Monday, February 16, 2009

Election Results as Certified by the City Council on February 9, 2009

According to City Clerk Brenda Cirtin, the agenda for the February 9, City Council meeting may not ever be published at the City Web site (the City has been fighting a computer virus).

Since Council Bill 2009-032, certifying the February 3, election is still not available in a bill search at the City's Web site, I thought I would go ahead and post those certified results as a community service. I did not verify whether any of the other bills which were passed at the February 9, meeting have been made available through a bill search at the site.

Following are the the election results as certified by the City Council at the February 9, City Council meeting:

For the office of Mayor:

Jim O'Neal 10,967
Sandra Queen Noble 1,507
Christopher M. Donegan 3,689
Tamara Finocchiaro 1,725

For General Council Seat A

Robert L. "Bob" Stephens 7,814
Lyle Q. Foster 3,819
Tom Martz 4,165

For General Council Seat B

John Rush 8,178
Jason P. Lillard 2,730
Fred B. Ellison 4,811

For Council Zone 1

Nicholas Ibarra 1,413
Denny Whayne 1,191
Cameron Eaton 602

Question 1:

"Shall the City of Springfield impose a sales tax at a rate of one percent solely for the purpose of providing revenues for the Springfield Police and Firefighters Pension System with said tax to sunset upon the earlier of A) Five (5) years from the date of the commencement of collection of this tax or B) the Pension System fund reaching a fully-funded (100%) status as determined by an independent actuarial study conducted for the Pension System Board of Trustees?"

Yes 9,160
No 10,041

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The two candidates who received the majority of votes were certified as eligible for the General Municipal Election in April 2009.

Those candidates were: For Mayor, John O'Neal and Christopher M. Donegan; for General Council Seat A, "Bob" Stephens and Tom Martz; for General Council Seat B, John Rush and Fred B. Ellison; for Council Zone 1, Nicholas Ibarra and Denny Whayne.

It was also declared that Question 1 failed to pass.

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Thursday, February 05, 2009

The Bleeding of the Pension Fund is not Enough?

Sacrificial Slaying of Core Services should be Carefully Weighed

There is one criticism to the suggestion the Springfield City Council deny City manager Burris' recommendation to make the full actuarial recommended contribution of over $13 million in fiscal 2009-10 to the pension plan which should be addressed. The criticism is that those who have criticized the City for not making a full contribution in 2005-2008 are now suggesting the City not make it in the next fiscal year. On the surface, that seems like a fair criticism. It would appear those who suggest the City not make the full contribution in the next fiscal year are taking a hypocritical stance. The difference is, the economic times are not the same today as they were in those previous years when the City failed to make the full contribution and there are other variables to be considered.

The City Council, certainly, should be seeking to contribute every single penny they are able to save in the next budget deliberation cycle to put into the police and firefighter's pension plan. That is a no brainer. They should severly cut the next fiscal budget but, there should be a requirement to exercize some common sense and make those drastic cuts selectively and responsibly.

One of the key questions the City management should be asking and the City Council should be considering in the next budget deliberation cycle is:

Is it going to do the City less damage in the future if the City continues a hiring freeze in the police and fire departments and continues its hold on the police and fire acadamies in order to make the full contribution in the next fiscal year, or would it do less harm to the City should they make as much of a contribution as possible but, not the full actuarial contribution, and not at the expense of continuing the hiring freeze in the police and fire departments and the hold on the academies?

At a Council luncheon in September 2008, a new City manager attended, I believe, his first Council luncheon in his official capacity as City manager. He led the Council in a brainstorming session designed to narrow the field of issues viewed by the City Council as "long term priority issues." You can view the list of long term priorities the Council came up with here.

To my knowledge, the Council and manager have not yet revisited the subject of long term priorities but, what was interesting to me was that Burris presented the Council with the most current Council resolution reaffirming the City Council's six priorities. Those six priorities were: Public Safety; Transportation/Traffic; Quality of Life and Economic Development; Communication with Citizens; Center City Revitalization; and Long-Range Planning/Vision 20/20 for next year.

The resolution (RES8721) (Bill 99-438) was passed in 1999 and, in the background information provided, it was noted the six priorities were not listed in priority order. The background also listed the "Action Step Priorities" for each of the six listed priorities.

If we consider the City's recent Citizen Survey report, in planning for the city's future, 98 percent of the respondents placed, "keeping the crime rate low" as their number one priority; the number two priority of the citizens who responded to the survey, by 93 percent, was ensuring quality public health services are available, and respondents felt the city should give the most emphasis to traffic flow, street and infrastructure maintenance, and the quality of police protection in the next two years.

It appears the citizens of Springfield and, at least, a past City Council recognized the importance and priority positions of street and infrastructure maintenance, traffic flow, and quality police protection. Though the City Council's 1999 resolution pointed out their priorities were not listed in the order of priority, one can't help but notice public safety and transportation/traffic are listed in the number one and two spots. Arguably, health department services address issues of public safety as much as the police and fire departments.

As the City manager makes recommendations for budget cuts in City departments, and as the City Council weighs those recommended budget cuts, consideration should be taken for the priorities of public safety, public health services and street and infrastructure maintence. That is, if the City manager and City Council are weighing what is best for the City rather than, solely, what is best for the police and fire pension plan, and certainly, getting the pension plan to solvency is in the best interest of the City, as well.

It may be, at this particular time in our City's history, that what would be in the best interest of the City, as a whole, would be for the City Council to approve making as much of a contribution to the police and fire pension plan as possible, reopening the police and fire academies, and ending the freeze on hiring in those departments. They might also want to consider cutting, where possible, in the health department while not jeopardizing the well being of the citizens of Springfield, and perhaps, they should consider ceasing new infrastructure projects and focus, instead, on maintaining the streets and infrastructure we currently have.

We are in a recession. Sales tax revenue receipts have not been coming in at the City's predicted rate in the recent past, and are not expected to reach the level expected by City staff for the foreseeable future. These are not the same economic times in which to make a full contribution to the police and fire pension plan as they were in 2005-2008.

It is the duty and obligation of the City manager to have a key focus on making recommendations which best serve the entire City and its residents, and it is the obligation of the City Council to implement policies and base their approval of fiscal budgets on criteria which will best serve the populace of the entire City. State law does not require the full contribution be made in the next four years.

The 1 percent sales tax to fund the police and fire pension plan was not approved Tuesday. Citizens spoke. There was a larger turnout at the polls than, historically, turn out for a February election. Burris has complained not enough people got out to vote. There have been no complaints on the part of the City, in the past, when there was a low voter turnout which resulted in the passage of a sales tax, why should there be complaint over low voter turnout when a tax is defeated? The City needs to simply accept the voice of the people and focus on the next fiscal budget at this time.

If the City chooses to place this tax before the voters again in June, they will be caught up in budget deliberations and a campaign to pass a 1-cent sales tax at the same time. To set themselves up to be so distracted, due to promoting a sales tax, that they cannot give adequate and proper consideration to the next fiscal budget does not seem wise.

So, in response to the criticizer of the "critics" (whoever they might be) who disagreed with past City Council's failure to make the full actuarial pension contribution in the past but, who believe the City should carefully weigh what is the best action for the City, as a whole, rather than the pension system, alone, in 2009:

We are not living in the past and today, we are in an economic recession. While making the full contribution would have been the best action from 2005-2008, today, there are other considerations. It might not be the best action for the City to make the full actuarial recommended contribution in 2009, and it is, certainly, worth careful consideration.

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Wednesday, February 04, 2009

9 Council Members Still Haven't "Sung"

Though I voted in support of the police and fire pension sales tax, to say I am disappointed it did not pass would be disingenuous. I really was conflicted and for many reasons.

While one blogger was sitting in a room full of Council members and City officials, another was riding out the night at a chicken wing bar with, at least, a couple of the Council primary candidates who didn't support the sales tax. My guess would be, the atmosphere was quite different from one gathering to the other.

Mr. Burris stated something to the effect that the budget cuts he outlined in his worse case scenario would be made. I've yet to hear the Council weigh in on whether they will follow through with Burris' recommended worst case scenario budget cuts but, what is certain is, the over $13 million contribution Burris insists will be made in fiscal 2009-10, will no more effect the daily losses in investment returns in the pension fund than the $12.5 million the City contributed in fiscal 2008-09. So, the question remains, if the City plans to bring the tax initiative to the voters again and again until enough of Springfield's citizens vote in favor of it to get it passed, what is the real point of continuing a hiring freeze in the police and fire departments and on the police and fire academies, cutting street maintenance and repairs, and cutting city/county health department and parks department funding, when such cuts will do little to shore up the pension and keep it from bleeding out?

Such actions, I predict, will be viewed by the citizens of this City as just an, "I told you so," effort to penalize the public for not supporting the sales tax. It will not cure the problem and won't even do much of anything to help the pension system's funded ratio.

There is a difference in educating the public and trying to scare them into compliance, and it is not necessary to punish the public for not toeing the line the government has drawn. Honesty would be a good starting place and real education, rather than partial education and scare tactics because, why? Because real education would take more time and be more trouble to provide?

Clearly, the public sees beyond the scare tactics. They understand cuts don't have to be made to make the full contribution in the next fiscal year, and they understand making those cuts to core services, such as the police and fire departments, isn't the answer and won't even really buy the pension fund any time.

What would happen if the City owned up? Healing? Forgiveness? A chance at trust in the future? Who knows? It would be nice to find out.

I warned some time ago, as I was heading out the door to Burris' worst case budget scenario presentation:



"It is a complicated issue, the new city manager has done a good job of trying to articulate it so the public understands the issue. As long as he continues to do that he also continues to build credibility. If he fails to tell the whole story or tells it selectively? He runs the chance of damaging the credibility he has built."


Continuing to suggest the City must make the full actuarial contribution in fiscal 2009-10, since the sales tax has failed, when the public is fully aware that the City is not required by state law to make that full actuarial contribution, and when the public has an understanding it will do little to stop the loss in the pension fund but will, as Burris himself, offered, "set the City back 10-20 years," is not only selectively telling a story, it is falsely telling a story, and it certainly does damage and has damaged the credibility Burris had built early on.

That falsehood has been the foundation of much of the City's argument in favor of the sales tax and is a key factor in the public's characterization that he and City officials are using "scare tactics." If the drastic cuts he has recommended to the City Council are carried through, I don't see how the public can view it as anything short of punishment to prove an unnecessary and unwise point and in the long run, I have to consider true education, rather than what some City officials (or the Chamber of Commerce?) might have thought was expedient promotion, would have been the best tactic of all.

Based on Burris quotes, posted by another blogger, Burris seems to have forgetten his place, or perhaps he simply doesn't know it:

The tentative and/or final budgets for fiscal 2009-10 have not even been presented to the Council, as yet. The City Council has some sway and input over what budget recommendations are accepted and may modify particular areas of the budget, if they choose.Under the City Charter, next year's fiscal budget begins on the first day of July. Section 5.8 of the City Charter indicates the city manager has to submit a final budget with an explanatory message sixty days before the beginning of the new fiscal budget year. That would mean Burris must present his final budget no later than June 1. The budget is to, "provide a complete financial plan for the budget year. (It should be noted: Burris is not required to wait until June 1 to submit a final budget.)


Section 5.11:

"After the conclusion of such public hearing or hearings, (see City Charter Section 5.10, find it in my "links") the council may insert new items or may increase or decrease the various items of the budget, except for specified fixed expenditures. If it shall increase the total proposed expenditures, the council shall also increase the total anticipated revenue to at least equal such total proposed expenditures. The budget shall be adopted by the favorable vote of not less than a majority of the entire council, not later than the last Monday of the month preceding the first month of the budget year for which the budget is intended. Should the council take no final action on or prior to that date, the budget as submitted shall be effective without council action."


It still ain't gonna be over till 9 Council members sing. I'd suggest our City Council get another early start on budget discussions this year. Last year they started in March and they took extra public input, even genuinely considering it. It was a wise decision then, I think it would be a wise decision now.

The natives appear to be restless.

Update:

Related: busplunge: Why Did The Sales Tax Fail?
City Manager Greg Burris on the Results of the Police/Fire Pension Election « Life Of Jason

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Monday, February 02, 2009

Will Jackie Vote Yes or No on the Police and Fire Pension Sales Tax?

How I'll vote and why

Each of us have many choices to make tomorrow but none of the choices is more important than the police and fire pension sales tax.

I suspect I have grappled with the issue for longer than most people since, I began watching the issue and following it for the Community Free Press (CFP) long before most of the community began trying to sort out the details and make an educated decision. That's not a brag, chances are, if I hadn't been covering the issue for CFP, I wouldn't have gone to extreme efforts to fully understand the issue either.

In the beginning, after watching Assistant Fire Chief and Pension Board trustee David Hall make his presentation regarding the status of the police and fire pension system at a City Council luncheon, before City Manager Greg Burris was even City Manager Greg Burris, I leaned toward supporting the sales tax but, later, I wavered and I'll tell you why.

I believe the "worst case budget scenario" presentation Mr. Burris made, at a later City Council luncheon, did more harm than good in trying to garner support for the sales tax. Further, some of the information and tactics on the part of the City to pass the sales tax were very distasteful and some, through omission of some facts, or selective sharing of information, struck me as not quite honest.

As an Independent conservative, many of the items on Burris' list of cuts he claimed will be required to make up the shortfall they need to raise to pay the full actuarial recommended contribution in fiscal 2009-10, were very appealing and I, and, I suspect, many others, began to think maybe, by not passing the 1-cent sales tax, some needed fiscal budgeting changes will come to the City, maybe they will begin to reset their priorities and begin to let some of their wants go by the wayside and address what we all, in our heart of hearts, know are the true core City services.

Core services, in most people's opinions, are not parks and parking garages, redeveloped, dilapidated department stores and, truly, are not even swimming pools being open 6 days a week in the dead of August, or fireworks displays in July.

Core services are the services we need and require to be safe in our neighborhoods and to run our businesses, and lives, free from overly stringent government interference. Core services are, primarily: SAFETY; clean water; sanitary sewers; utility service; clean air to breathe; and the ability, through infrastructure maintenance and unencumbered roadways, for movement of the people. Those are services the City should provide (now, how they are provided, that, is debatable) and they should be providing them without the help and assistance of non-profit groups, in my opinion. The City has, in the past, commended some non-profits for doing work in core City service areas so that the City is not forced to expend as much money as they would otherwise to provide them but, if the City was not spending so much of its money on non-core City services would the City even need that help and assistance?

The new City Manager and City Council have spent a little time in exercises intended to determine, "what are core city services?" Well, I believe we all know what they are, these exercises are futile and instead of simply identifying core City services they are identifying core City services with an attached wish list of everything that each member of the Council, personally, feels is important.

There are many important services the City provides which are not "core," services, they are services a City might provide when times are good and a pension fund is flush, unfortunately, our City continued to provide non-core services during times when the pension fund was not flush and times were not good. In fact, they withheld $10 million from the pension fund over four years during a time when they were purchasing the Heers building unnecessarily. Mr. Prost merely needed their approval to extend a loan with Great Southern and held two different loan approval letters in his hand the night the City Council swept him and other well respected Springfield business leaders aside to, instead, cut Prost out and take over the responsibility of the Heers building, accompanied by interest payments, until it could be sold to another owner who now, just like Prost, is unable to uphold an agreed upon timeline of redevelopment. I could say more, as an Independent conservative, about the City's ill use of taxpayer dollars but, that is only part of the point I am trying to make.

It is very tempting, indeed, to vote no for the sales tax and try to force the City to cut out their ongoing redevelopment plans and change their introverted, "I-want, vision-20/20" from looking in a continued, ill-conceived direction.

Then, I read the News-Leader's, by now, infamous "Our Voice" column announcing their position against the sales-tax, which, by the way, I felt was an overall, reasonable position.

Then, I read Cindy Rushefsky's foot stomping letter, which didn't sway me.(Unfortunately, though I searched extensively, I could not find a link to the Rushefsky letter which was published in the News-Leader after the News-Leader's "Our Voice" column was published).

...And, then I read the statement emailed to me by Councilman Doug Burlison and my potential no vote, again swayed, ever so softly, back toward yes. Here is the reason why:

Burlison wrote, in part:

"The resolution that we recently passed has added other protections that secures the interests of the taxpayer, and the pension fund recipient. The current management, and a majority of the upcoming City Council will not have had a hand in getting us to this point, yet will need the tools to fix this problem.

The question is, "Do we take care of this now?" I think at the rate of at least $39,000 per day of interest income lost, the answer is a resounding, "Yes!" I have no personal love of taxes, and have worked to avoid increasing them. Higher taxes are not good for any public economy, but then again, neither is bankruptcy. If we do pass this measure, we need to work to shorten it's duration as much as possible; but before anything else, we need to insure that the shortfall in the pension fund gets taken care of, completely.


My main motivation behind my support of the 1 cent proposal is to avoid passing this problem on to others so they will have to take care of it in the future. Instead of handing down a list of bad choices to subsequent councils, and instead of sticking my head in the sand and letting my children's generation deal with this, I will take a stand that is politically unpopular with several in our community, and vote in support of the sales tax. The honest truth is that this proposal is the cheapest way to shore up this pension plan, and any delays will greatly increase the mountain of liability that we will have to overcome."



Bottom line, my thinking is this:

If the tax is passed, the City will be able to afford the genuine core City services they need and are obligated to provide to the citizens of Springfield, and the fact of the matter is, Mr. Burris and the Finance Department of the City of Springfield may recommend how money is spent in the next fiscal budget but it is our elected, representative City Council who will approve the budget. So, what do we know about our representative Council who will determine what are core City services and where money should be budgeted in the next fiscal year? We know who five of those Council members will be: Doug Burlison, Dan Chiles, Cynthia Rushefsky, Ralph Manley and Scott Bailes.

We have some opportunities to effect change in April among the City Council, we will determine tomorrow who will survive by a primary City Council election. Whether the pension sales tax passes or not will determine where their work will lie. I'd like to give our new City Council an opportunity to focus on providing funding for legitimate core City services in the next fiscal budget, we all really KNOW what those core City services are, we need the City of Springfield, led by the new, elected, representative City Council to recognize what are true core City services and what are services on a want and wish list, and we need them to act responsibly in, what are shaping up to be, some tough economic times, not just for our City but nationally. We need to hold this future Council, of our choosing, responsible for, as Councilman Burlison wrote, "work(ing) to shorten it's (the sales tax's) duration as much as possible."

I'd like to see the new Council have a little elbow room in which to make these decisions. While I am sympathetic with some who would like to force the City to pay the consequences for past actions in how they have dealt with the police and fire pension fund, forcing a City Manager and a City Council who were not in office during the creation of this crisis, out of what appears to be spite, to deal with the sins of past management and Councils, doesn't seem the most wise or forward thinking response.

I'd like to give a new Council and City Manager the opportunity to get our City back on the right track without punishing them for a crisis in which they played no role, and that is why I, personally, plan to vote in support of the pension sales tax tomorrow. This is also why it is very important that citizens place the right candidates on the City Council in April. Choose carefully tomorrow. Choose carefully in April. Find out as much as you can about the candidates, they will be your representatives, and, whether they are paid or not, they are accountable to you.

If we vote well and communicate well with the incoming Council, perhaps they will represent us well as they enter into budget discussions and determine where they can cut expenditures for the future. We will be voting them in and, inevitably, whatever comes of their service is the voters' responsibility. In other words, lack of attention on the part of the public in the past is where the buck stops. Whatever action or inaction was taken in the past on the part of your elected, representative City Council is your responsibility.

I'm not telling anyone else how to vote but, I felt it was a fair and reasonable thing to do to inform you of how, after all the study, research and open minded consideration I have spent on the issue of the police and fire pension sales tax, I came to the conclusion, in my own mind, that it is best to vote in favor of getting the issue of a sales tax behind us and move forward toward holding our new, come April, City Council accountable to represent all of us in regards to the provision of core services. We elect them and we are responsible, in the end, for the decisions we allow them to make on our behalf. For now, I believe it is in the best interest of our City to support the sales tax and then, do everything we can to keep ourselves educated and involved in the future actions of our representative Council.

Saturday, January 31, 2009

A City Council Primary Candidate Responds to Councilman Burlison's Statement Regarding the Pension Sales Tax

Fred Ellison, a City Council primary candidate for General Seat B, forwarded an email to me, in which he has responded to Councilman Burlison's statement on the Spfd Police/Fire Sales Tax:

Mr. Ellison's response:

I believe that approval of the 1% Pension Sales Tax would be a huge mistake. As a matter of fact, Tom (General Seat A, City Council primary candidate, Tom Martz) and I discussed yesterday that this would be a 38% increase in the city/county portion of the sales tax (2.625%) that we already pay.

There are several specific reasons that I cannot support this proposal:

1) The proposed rate is too high for the economic situation that currently exists. To date we have a better economy than many other areas and will risk aggravating the downturn in our local economy.

2) If the sales tax is approved, all incentive for City government to improve efficiency, reduce wasteful spending, and get control of personnel and benefit costs will be eliminated. It will be back to 'business as usual'. Automatic wage and benefit increases will resume and the deferrred compensation of City management will be 'reviewed' (as approved in the Council Bill 2008-368, ( http://www.springfieldmo.gov/egov/agenda/2008-368.pdf ) see item #6 at line 128. (Is it any wonder that city staff supports the sales tax proposal? They are also being told that if it doesn't pass, they will risk termination.)

3) City management and the City Council are betting that the 1% Pension Sales Tax will get the funding level of the Police and Fire Retirement Plan (the legally correct name of the pension plan which was not used in the ballot language) back to reasonable levels before the settlement of the Telecommunications Sales Tax Lawsuit. If the settlement is received after the majority of the pension sales tax funding is received, the settlement funds will not go into the Retirement plan and thus can be spent on other 'priorities'.

4) The fundamental cause of the Retirement Plan under funding is that benefit increases granted in the late 1990's, as a result of poor personnel management (which continues today), has caused the liabilities of the Retirement Plan to spiral upward long before the investment losses that have occurred in the last six months. These benefit increases include: 1) The 100% return of employee contribution. 2) The inclusion of payments of accumulated leave, holiday, sick and vacation pay at the end of employment and overtime compensation in the calculation of pension benefits. The Police Officer and Firefighter Associations (Unions) need to accept their share of the responsibility for the unrealistic increases in these benefit costs. In 1996, the City's Annual Required Contribution was $2,578,429. In 2006, ten years later, the ARC was $9,834,917 an increase of almost 400%.

Based on these facts and that the 1% Pension Sales Tax will not be a permanent solution to the problem until the basic causes have been addressed, I cannot support the proposal.

Fred B. Ellison
Council General B Candidate

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Note: Any other City Council member or City Council or Mayor primary (or otherwise) candidate who wishes to respond to Mr. Burlison's statement, or simply make a statement on the police/fire pension sales tax issue, may do so by contacting me at JMltnMO@aol.com - Jackie

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Tuesday, January 27, 2009

An Unexplored City "What-If-Scenario"

The complicated police fire pension issue, with its attached 1-cent sales tax solution, is almost entirely based upon projected scenarios which are based almost entirely on projected assumptions, for instance:

What if the pension sales tax passes?

a. The City of Springfield projects they'll get a return in sales tax revenue for the pension fund of $40 million annually, minus the state's 1 percent handling fee, again, projected at $400,000 if based on the projected $40 million annual revenue they assume the state will collect on behalf of the City under the sales tax. (Just try to keep up ;)

b. The City of Springfield projects they will be able to restore all past cuts to City services and not be "forced" to make drastic cuts to City services in the next fiscal budget. In other words, the City projects everything will be right with the world if the voters approve the sales tax initiative and they won't have to cut services to the public or do the hard work of trying to find cuts in the City government to make a full recommended actuarial contribution in the next fiscal year, a full recommended actuarial contribution which, in fact, they are not required by law to make in the first place (but, we've discussed that in the past, here, no sense rehashing it again).

What if the pension sales tax doesn't pass?

a. The City Manager is, more or less, promising Joe and Josephine Q. Public that they'll cut your services, even though not legislatively required to do so. If you think the public swimming pools being closed a couple of extra days last summer was bad, wait till they start removing the PAR and COP officers from your neighborhood. Chances are, you wouldn't allow your children to walk to the public swimming pool even if they were open 24 hours a day after your neighborhood's police presence further plummets.

b. The City projects the police and fire pension system will languish and the City will never, ever be able to catch up because, according to the City and it's Council, the only way to really address it is by taxing the public.

Now, let's look at the case of a City Councilwoman's quote which was recently published in the daily paper:


"Politically, it wouldn't make sense for those employees to continue to contribute when the city doesn't have to (contribute)."


Rushefsky's comment was made when and if, as I suspect, during the course of an October 21 luncheon meeting, discussions of a number of "what-if" scenarios arose as a result of a presentation offered by two different Milliman actuaries. (See CFP, November 19 issue, page 2).

What I wanted to point out was, during the course of that October 21 Council luncheon meeting, there were several discussions which took place. I failed to write about one projected scenario in the November 19 issue of the Community Free Press (because, it wasn't my focus at the time) and to my knowledge, Wes Johnson of the News-Leader never wrote about it either.

As earlier established, just about everything the City is discussing is in terms of "ifs" or "if nots" in regards to the pension sales tax's passage or failure. Since, at last night's Council meeting, the City Council was discussing the potential of moving new hires and possibly Tier 2 police and fire employees into the LAGERS system, should the pension sales tax be approved February 3, the October 21 luncheon meeting becomes more relevant. The Rushefsky quote was a part of a broader discussion. I think we shouldn't leave the Rushefsky quote flopping like a fish on the table of condemnation without the water of context.

Milliman actuaries were projecting and predicting a surplus in the pension system at certain points in the projected future, if the sales tax initiative passed.

Rushefsky's comment came about during a discussion of whether the City could cease contributing to the pension system after it reached surplus funding. Rushefsky, I felt, made a good point. If the surplus in the fund was so large and was growing larger and larger as the Tier 1 retirees decreased in number, leaving only some Tier 2 employees, it would seem as moot for the police and fire employees to continue to throw their pennies into the fund as it would for the City to continue to contribute. "Politically," as Rushefsky phrased it, it would seem unwise to release the City from their responsibility while continuing to demand the pension beneficiaries be bound to a similarly, unnecessary responsibility.

The discussions didn't end there however, and bearing in mind this is another one of those projected, assumed, what-if/what-if-not-scenarios everyone has been hanging their hats upon in the early days of a new City Manager's reign, here is that other scenario that never found voice outside that room that day and which I don't believe any reporter has exposed:

Someone asked, what would become of the money left in the old pension system fund after the last Tier 1 retiree has died and if new hires were put in LAGERS and the Tier 2 employees had elected to move into LAGERS?

City attorney Dan Wichmer said it could be written up somehow that the City would become the inheriter of the system's left over funds when it had served it's purpose and the last beneficiary of the plan was gone.

In this what-if-scenario, based on similar projections and assumptions the City cites when they ask the public to weigh their pension sales tax decision (or actuarial assumptions and projections delivered to the City Council October 21, 2008 ):

If the citizens of Springfield pass this 1-cent sales tax on February 3 and if it reaches a level of funding between 90 and 100 percent (causing the projected future surplus in the fund), and if new hires and Tier 2 police and fire employees agree to move to the LAGERS retirement system, when the last Tier 1 police or fire retiree dies, the City could stand to inherit the remains of a pension system fund with projected future assets worth an assumed value of between $8.8 and about $500 million.*

Cha-ching!!! < Click me

*And while we're what-iffin, the projected assumed value would be effected by whether the City and employees continued to contribute into the fund after it reached a surplus level.

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