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(Edited for grammar and punctuation)
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2/4/2010, 2:38 pm
MRiptide
I'd like to begin a discussion that is more pertinent to all of us and that's property taxes. I just read Skeeter's blog on the NJ's website about the fate of next year's property values and taxes. He makes a lot of sense to me. I will try to reiterate. SOH was intended to curb government spending while protecting the homeowner from being taxed into poverty. The local governments ignored this voter mandate and used the loophole of taxing non-homesteaded property and commercial property well beyond TRIM to continue the uncontrolled spending rather than being content with an annual increase in 3% of taxable property value. Then we passed Amendment 1 and they still don't get it. If we could find a way to stop or limit the cash flow to local government they wouldn't have the bucks on projects that are not core services.
2/6/2010, 10:10 pm
Fuzzy Math Pension Plan
The fire and police pension plans hired their own lawyers and financial advisers. The plan projects 8% a year returns and makes unrealistic assumptions about the city's employee churn rate. The plan also doe not take into account that the last few years the city gets a promotion that doubles their salary which has the effect of giving them a 100% pension. The way the plan works is that it takes how much in made in the last few years to determine what you receive. The fire and police departments take turns getting promoted to high pay positions just before they retire. This is the real secret of the problems with the plans. The city should not be promoting people just before they retire or give them a lot of overtime in the last few years they work for the city. That is why the plans are sunk. Hopefully, the new auditors will report the real condition of the plans.
2/6/2010, 8:52 pm
Mr. Ed
To Frogger;
The City is currently paying 34.6 percent of salary into the City's FF Pension Plan. ( this is in the City's latest Audit, 2008, page 66)
The County is currently paying about 20 percent of salary into the State's FF Pension Plan.
So to answer your next question;
According to the City latest Audit, FD payroll covered under the city's pension plan was $2,626,590 ( as of 2007)
So the difference between the City's Pension Plan vs the States Pension Plan is a Taxpayer Contribution of approx. $920,000 vs $577,000...
Or, the City's Plan costs us $343,00 MORE than the States Plan.
And I'm sure this difference is even more today, since they've all received step increases and COLA's since 2007, which means covered payroll has increased.....and the State's Pension Plan contribution rates for FF and Police Officers actually went down slightly since 2007.
In the meantime, our FF's Pension Plan Trust Fund has lost millions. To say nothing of their "assumed" 8 percent rate of return, that they didn't make either....
So, in other words, all the indications are.... that this Pension Plan of theirs is one BIG SNAFU that our City Commission has to address.
But, probably won't, considering thier past performances......