Novermber 15, 2010
"REMEMBER ME?"
THE QUEEN OF SPIN
It is absolutely amazing what the City Manager will spin. She states after the fact that she has new "facts" to justify her action... The facts are changed to make it appear that her new positions have always been her position.
A. Her position now. She presented a budget that had no tax increase. Reality: she supported a roll-back rate which was an almost 14% increase and the Commission cut it back to about 4% Source: NSB CC Agenda dated 7/28/10 and 9/15/10, as well as trying to sell it at four (4) Town Hall Meetings (7/13, 7/29, 8/11, and 9/2);
B. Her position now. She supported fixing the Pavilion for $135,000. Reality: she negotiated with a County branch to tear down the Pavilion, spend $2 to $3 million, and told the consultant to keep his mouth shut even though it could be repaired more cheaply; Source includes contact
with county officials and people at the meeting;
C. Her position now. She negotiated great savings in the fire department contract. Reality: she negotiated small savings and left the big ticket items in place for later despite saying that she would address them in 2011 if they just passed the free ride on the consent calendar in 2010; Source: CC Meeting Agenda s for 2009 and video from meetings;
D. Her position now. She saved $6 million last year. Reality: The Shadow is from Missouri, show me! Source: currently none we can find!!!!
Look, the Shadow is not negative. The Shadow has been trying to expose the nonsense and bring a little bit of sanity to a process that has depleted the reserves, talks about forgiving debt from the golf course of over $4 million dollars, and in a depression talks about a three year contract that does not on its face address the 800 pound mama grizzly sitting in the living room. That is the fire department pension program with early retirements of overpaid senior personnel that vests 20 years before the people paying the tab can draw Social Security. (SEE ARTICLE BELOW). On top of that the three to a shift staffing is totally unnecessary, creates the fallacy of a need for so-called higher paid supervisory lieutenants who are still union members, and has driven up the costs aggravating the unfunded debt. In addition to the pension issue, if the County only needs two to a shift with no loss in public safety, certainly that is where the City should also be heading.
2. HOW THE CITY NEGOTIATED THE FIRE DEPARTMENT CONTACT
The Shadow now has enough facts to speculate on the deal that the City of New Smyrna Beach has negotiated with the local fire department IAFF union chapter. It is in the “Memorandum of Understanding” (MOU) which is an integral part of the contract that they approved last Tuesday. Look at the end of the contract on page 130 of Tuesday, 11/09/10 Commission agenda. The Shadow believes that at the "shade" meetings (meetings discussing city strategy with union contracts not open to the public) the City Commissioners decided on the following and made a deal with the local IAFF: the City and the union would wait until whatever terms were imposed by Port Orange and Palm Bay after litigation is completed before seriously negotiating on the terms of the pension, pay and benefits. The purported architect of the Palm Bay deal is apparently an advisor to the Commission (at a cost of $25,000 CLICK HERE ) They put it on the consent calendar so there would be no public input exposing this strategy on the decision to defer. Oh, you can tell them later what you think but they have already voted on the issue. So we are left to speculate because these elected worthies do not trust you enough to even let you comment on the issues or the procedures. Another shade meeting was held last Wednesday.
The result is that the NSB union chapter receives three free years of continued current contract pension and pay provisions if Port Orange does not win its case currently before the State Office of Hearings and now awaiting briefs. It receives at least this year at the current union member contribution rate of only 1% even if over the next few months Port Orange wins because negotiations will not be completed at the snap of anybody’s fingers. While Port Orange could impose its terms today, politically it would be better it determined if it waited until after the hearing officer’s decision on the merits. The good news for Port Orange is that it will apply in all likelihood to 2008 through 2010 and beyond. By the way, we are told that proposed that fire department personnel take a 6% pay cut in the 2008 contract. With the 2 ½ % pay increase in the contract, the net effect if imposed in 2008 would be a 3½ % pay cut for 2008. Of course, until the litigation is over, the full effect will not be known. The Shadow bets you did not hear any of that at the last Commission hearing! CLICK HERE FOR REST OF ARTICLE
3. Gummey Bails Out Again
Well the Shadow believes that the time has come to hire a new City Attorney. Our current City Attorney, Frank B. Gummey, III, you know him as the guy wearing the bow tie who sits up on the dais with the Commission. He does not the Shadow believes think it is necessary to answer a question in a definitive manner. He has bailed out again on his responsibility to represent the City. See budget resolution (CLICK HERE for copy of contract) where we have now spent another $25,000 without even blinking to hire another attorney as apparently dear Frank does not have the expertise. Or could it be that he does not want to be involved with nasty negotiations with union employees? CLICK HERE FOR REST OF ARTICLE
NOTES
1. THE NEW POLICE CHIEF?
It is rumored that the City intends to buy out the Chief of Police. The Human Resource office says as of Friday night, however, that they had not been so informed. The Shadow believes it is true and there is change in the wind. Last time around when they had a vacancy they arranged that no minority or women was on the list of those who could be selected for the position of Chief of Police. With a woman City Manager and a woman Director of Human Resources we do not believe that will happen this time around. We do not believe that buying off employees is the best way to go, but we do think that this change is in the best interest of the City and that it reflects an acute awareness of the City Manager that she must make changes. The Shadow hopes the rumor is true. Credit where credit is due to the City Manager if this should come to pass.
2. THE CITYS WAR WITH OPEN GOVERNMENT
[MAKE LOWER CASE]
THERE IS NO TRUST BY THE CITY COMMISSION OR ITS CITY MANAGER IN THE TAXPAYERS RIGHT TO KNOW OR PARTICIPATE IN THE DECISION MAKING PROCESS OF THE CITY OF NEW SMYRNA BEACH. THEY HIDE BEHIND PRIVATE BRIEFINGS, MANY OF WHICH THE SHADOW BELIEVES VIOLATE THE SPIRIT IF NOT THE REQUIREMENTS OF THE SUNSHINE ACT, AND PUT MAJOR ISSUES ON THE CONSENT CALENDAR SO THAT THERE IS NO PUBLIC INPUT PRIOR TO THE VOTE. THE DISCUSSIONS ON UNION CONTRACTS CAN BE HELD IN SECRET, BUT YOU WOULD THINK THEY WOULD TRUST THE TAXPAYERS WITH THE RESULTS BEFORE THEY VOTE. THE BIG LOSER IN THE WAY THEY DO BUSINESS IS THE CONCEPT OF DEMOCRACY AS AN OPEN PROCESS.
3. NEGOTIATING WITH ONE HAND TIED BEHIND YOUR BACK
The Shadow believes that the course the City management has taken over the last few years in negotiating union contracts was short sighted, and certainly unflattering in seeking to benefit by others work. It has resulted in only minor changes in the union contracts here where drastic changes were needed. This course was also probably influenced by Commissioners who may have had personal interests in the outcome because of their relatives or friends working for the fire department or debts to pay for election support. As stated in the article above (ARTICLE 2) the Shadow does not believe that at any time the union was unaware of the City’s bottom line in negotiating its contracts, and that is not the fault of the Human Resource Director. What it means is that the City never could negotiate properly because the other side always knew what the bottom line was for settling. The Human Resource Director would have been better off going down to the Inlet and surfing for the afternoon instead of being left as the fall-girl for this unacceptable management of the taxpayer's money. It is time for the Mayor to take charge and correct the many years of throwing taxpayer money down the toilet. Adam, that means you!
BLOGS
Date: 
11/11/2010, 8:59 am
11/11/2010, 8:59 amName: The Well Known Ride Again
The Well Known Ride AgainWell today [Thursday] the County Council will discuss another possible ridiculous result of the down side of comprehensive planning. Out in Samsula we have three contiguous planning areas, NSB, PO, and Volusia County. They didn't work together for a uniform plan (called a joint planning agreement, or JPA). Of course years ago each area had a different situation and different needs. The problem occurred because the two municipalities expanded out into the County away from the environment that spawned their comp plans. Now all three are 'regulating' along a stretch of Pioneer Trail. Two developers have been fussing over a Publix site because one city's plan differs from the other and they operate on different sides of the street. So in comes a third developer. He owns a piece just down the same road that is in the County. The County Commission tentatively approved his parcel to do what the cities have been fussing over. A JPA has now been suggested but now any planning will really be a negotiation between developers and their political sympathizers. Had this type of planning agreement been utilized when the two cities annexed into a common area the playing field would still have been for political football but at least today's debacle would have been avoided? Who will be the first to cry UNFAIR!!
Date: 11/8/2010, 3:53 pm
11/8/2010, 3:53 pmName: Hope springs eternal at the Fire Pension Board Meetings!
Hope springs eternal at the Fire Pension Board Meetings!Look at the S&P over the past ten years....
In 2000 it was 1436, today; it’s @ 1169
DO YOU SEE AN 8 PERCENT GAIN THERE?
Now look at the DOW; in 2000, it was @ 10900, today, it’s @ 11440
DO YOU SEE AN 8 PERCENT GAIN THERE?
Now look at your 10 year T-bills.....2.66 percent!
Look at 30 year T-bills...4.01 percent!
DO YOU SEE ANY WAY THE PENSION BOARD CAN EARN 8 PERCENT THERE?
Now look at real estate, corporate bonds or anything else you like...
DO YOU SEE ANY WAY THE PENSION BOARD CAN EARN 8 PERCENT?
If you do, sign up for the Pension Board!
Date: 11/8/2010, 3:38 pm
11/8/2010, 3:38 pmName: Mr. Ed
Mr. EdThe key to understanding the unfunded liability issue is the "assumed" rate of return, on the Pension Fund's assets. For Example; currently, the Pension Board assumes a rate of return of 8 percent per year. And when the costs of the benefits are calculated, the difference between that, and what the Pension Fund WILL HAVE, or what it is "assumed" it will have (based on that 8 percent return)....is what the Unfunded Liabilities are... (In our case, $7.5 million).
However, if the assumed rate is lowered, to say 5 percent....that means the Unfunded Liabilities will INCREASE. (And Moody's noted in a recent article, that for "every percentage point drop in the assumed rate of return would increase reported pension underfunding by between 8 percent and 12 percent.").
So, if our assumed rate of return is lowered by 3 percent, our current $7.5 million dollars in Unfunded Liabilities will grow 24 to 36 percent, or from the current $7.5 million, to $9.3 million to $10.2 million.... IN FACT, the Government Accounting Standards Board (GASB) is now contemplating rule changes that will REQUIRE the city to lower its "assumed" rate of return, to something closer to what is actually POSSIBLE, in the market.
Another change, will force the city to pay-down is Unfunded Liabilities over a 20 year period, instead of the current 30 year. (This would be like you, refinancing your 30 year mortgage into a 20 year mortgage) (The payments skyrocket!)And these rule changes will be enforced, starting in 2013.
AND THE CITY COMMISSION KNOWS ALL ABOUT IT....And they already know that these new rules will require them to dramatically increase the taxpayers contributions to the Firefighters Pension Plan....read the articles; articles like these, have been all over the net for months... WHAT DOESN'T THE CITY COMMISSION UNDERSTAND?
AND WHY ARE THEY WAITING TO DO ANYTHING ABOUT IT?
States Face Pension Stress as GASB Rules Widen Gap
http://www.businessweek.com/news/2010-07-09/...
Public pension time bomb: GASB may shorten fuse
http://www.thefreeenterprisenation.org/blog/...
1. THE POET LAURATE OF NEW SMYRNA BEACH
You all know him as the vet doctor who took care of your pets for the last 20 years. He also is a poet who has been working for a few years on a rich array of both serious and humorous subject . Here are five of them he agreed we could include in the Shadow for your enjoyment. CLICK HERE
2. COMPARATIVE COSTS OF PENSION NEGOTIATIONS
Port Orange states that it has paid all most $100,000 on outside counsel. We have hired a $25,000 consultant for this year, and Port Orange has spent it looks like only $25,000 a year (2008, 2009, 2010, and 2011) each year for four years. If they win the union litigation now nearing its first resolution in Court, they benefit at much more than $25, 000 for each open year. It seems like our idea here in Mayberry to act as moochers might have been short sighted even on the money front.
DEAR PAM
As we have stated in the past, we realize that various City officials have limited resources available for pursuing cost reduction projects, so we have decided to help them out and provide draft letters for review. As we have said, this will free them up for important things, like dealing with all the serious problems of the police and fire department pensions.
Dear Mayor Barringer,
We pulled it off. Nobody knew what was going on when you voted up that fire department contract on the consent calendar. It is one great way to keep them in the dark.
PAM.
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