Mayor Kelley lines her retirement fund on the back of MV taxpayers

Thanks for the lifetime health care benefit

Sometimes cutting corners to save money results in poor news reporting.

In today’s Register coverage of the June 21st Mission Viejo health care benefits vote they reported that “the lifetime benefits would cost the city $38,000 for Kelley and $40,000 for Ury. Those amounts, along with estimated interest earnings of 7.75 percent per year, would ‘generate sufficient funds to cover the total estimated payouts to the individual council members/employees over their retired lifetimes,’ according to a city report.”

I am disappointed that the OC Register representative failed to request a clarification on those figures from the city in that no one ever challenged the $250,000 estimate for this identical benefit when recalling mayor MacLean earlier this year. Reporters need to be bold when accepting, without questioning, the city’s “spin” reports.

The problem is that the average yield of our city investments is just below 4 percent.
Are we anticipating a return to the double digit hyperinflation days of president Carter?

If you set aside $40,000 as reported today, and were able to achieve that projected ROI for the next 20 years, it would result in $160,000 to $180,000 in cost to the taxpayers of our city. What happens to our outlay if we are unable to see that ROI?

The statement by Trish that she is “covered under her husband’s medical insurance policy” sends out a big red flag.

By rejecting the Motion to remove herself from the plan, Trish, who is 59 years of age, will continue to take the $825 per month, or $9,900 per year, compensation for this benefit which is placed into her tax deferred retirement fund. So at the end of ten years, in addition to all of her other stipends, she would pocket roughly $100,000 of taxpayer funds. While we do not know the cost of adding Trish to her husband’s insurance policy, it surely is not $825 per month.

However, the voters in Mission Viejo have the power to correct this self-serving vote by removing Trish Kelley in November.

Perhaps this benefit should be placed on a future ballot and let the voters decide if it is warranted.

As always reader comments are welcome.

PS: Mr. Willis. Copies of this post are being emailed to all named parties.

Note: I believe that Frank Ury is 46 years old.

About Larry Gilbert