Comments on: OC Register Spikes Ball Too Soon on Fullerton Pension Issue

By: TommyUI

TommyUI — Mon, 12 Jan 2009 02:21:22 +0000

Topic for spam?

By: David Zenger

David Zenger — Mon, 05 Jan 2009 15:44:21 +0000

Thanks, Tony for the info:

“There are adequate funds budgeted in the various department budgets to cover the cost of the agreement.”

WTF? This means that the increase was already budgeted LAST YEAR – before the City Council discussed (behind closed doors) the increase!

When it approved the budget did the Council know that the pension increase was already built it? And wouldn’t that tantamount to pre-approval?

By: Anonyms

Anonyms — Mon, 05 Jan 2009 05:42:42 +0000

Tony does the MOA only include the change to the pension plan? I only ask because without seeing the MOA I don’t know what it includes. How much is the entire city budget? It might be helpful to know what percent of the entire budget the 963K is. As Everett Dirkson once said about the size of the federal budget: “A million here, a million there and pretty soon you’re talking about real money.” Hell 96 dollars is a lot to me and 963K is a helluva lot but not in a multi-million dollar budget. I gotta admit though if that increase is more than a few points in the entire budget then its not a good idea in this economic climate. I’m inclined to agree with you on this one.

By: Tony Bushala

Tony Bushala — Mon, 05 Jan 2009 04:57:25 +0000

#2 and David, here’s a portion of the “Executive Summary”:

RECOMMENDATION
That the City Council
1. Adopt Resolution 0906 a Memorandum of Agreement with the FMEF dated August 11, 2008.
2. Adopt Resolution 0907 a supplemental Memorandum of Agreement with the FMEF regarding an amendment to the Agreement between the City and CaIPERS for Miscellaneous Employees.
PROPOSED COSTS:
The annualized cost of the memorandum of agreement is approximately $963,600. There are adequate funds budgeted in the various department budgets to cover the cost of the agreement.

By: David Zenger

David Zenger — Sun, 04 Jan 2009 22:14:20 +0000

The “staff report” is for the agenda item at the meeting. I presume that such a report would start with an “executive summary” with basic highlights – including added costs to the City. I haven’t seen the staff report which should be available on line in a pdf.

In any case, if there are added costs created by an action of the council they would have to be reflected in the City’s budget – a transfer from the appropriate fund to whichever fund would be affected. This transfer would be included as part of the approval action.

By: Anonyms

Anonyms — Sun, 04 Jan 2009 20:10:38 +0000

David don’t you have to take out all the added costs that aren’t related to the pensions from the annual budget first? Does Fullerton put their budget and the ‘staff report executive summary’ online.

Just checked the city website, not there.

By: David Zenger

David Zenger — Sun, 04 Jan 2009 17:49:55 +0000

#2, it’s easy to find out. Read the staff report executive summary and find out if there’s any added cost to the city’s annual budget.

By: Anonyms

Anonyms — Sun, 04 Jan 2009 02:39:00 +0000

Umm, sometimes you guys use that term “spiking” to mean ANY change in the pension plan. Is this a change that the employees are paying for or is it a change the employer is paying for? I think employees should be free to increase their contribution and thereby improve their pension benefit without criticism. While there are pension practices that need to be avoided, not all pension practices are bad. In fact, at one time pensions weren’t used to defer compensation providing employers with needed operating capital? Of course that was before crooks like Enron alerted us to the growing corruption within our midst.

By: David Zenger

David Zenger — Sat, 03 Jan 2009 21:39:11 +0000

Right. Don’t spike the ball until you’re in the end zone.