A Few Observations
***I never understood why there was neither General Employee nor Police Officer that would REMONSTRATE with the Council after I would, year in and year out, report my readings of the CAFR. The only reason that I could think of was that the City’s pension management firm was not giving the Employees and Police Officers the notification letter required by federal law, or that the Employees and Police Officers were not reading the required annual notifications. The General Employees’ Pension would have been rated “endangered” for six of the last seven years. The Police Officers’ Pension would have been rated “endangered” for fourteen of the last fifteen years. To repeat, very nearly “critical” in 2013.***
*** The other thing I never understood is why the City would continue to say that it would “cost too much” to end the General Employees’ and Police Officers’ Defined Benefit Pension Plans and begin Defined Contribution Plans instead…when the City ALREADY “took out a mortgage” to CONTINUE the Defined Benefit Pension Plans, with the SAME management firm!***
***Over all of these years, comparing same sections of the CAFR’s, not only have trends been revealed, charted, and graphed but the “where” and in “what form” The Mountain of Money has been husbanded has been tracked. For five years, 2010 to 2014, the corresponding pdf page 6 “Deposits and investments” section reported $40 to $44 Million in bank money market funds earning about 0.1%,***
A Goal To Strive For
***In a similar way, examining the CAFR pages that report the annual General Fund and Total Government Funds, often reveal millions of dollars of revenue more than the year’s expenditures , and an incrementally growing year “Fund Balance, Ending”. (See the last six years CAFR pdf 120930 excess revenues over expenditures $2,052,090, pdf 130930 excess revenues over expenditures $10,417,835, pdf 140930 excess revenues over expenditures $9,707,956, pdf 150930 excess revenues over expenditures $4,751,235, pdf 160930 excess revenues over expenditures $8,123,854, and pdf 170930 excess revenues over expenditures $1,056,097. The total of excess revenues over expenditures for the last six years = $36,109,067.) That $36 Million added to the “unrestricted” $37,574,247 (See pdf pages 7, 8, and 9.) with the unfunded pension liability annual amortization payments, one might see the way to pay off and close both General Employees’ and Police Officers’ Defined Benefit Pension Plans and roll the assets over into a new Employee and Police Officer owned Defined Contribution Plan; with the Tax Payers finally “off the hook.”)***
Truth Of What The City Owes; On and “Off” The Books
There were also a couple acronyms for two more governmental employee benefits that I had never heard of before reading a CAFR: DROP and OPEB. DROP stands for Deferred Retirement Option Plan. OPEB stands for Other Post-Employment Benefits. OPEB was not required to be included in the Plantation CAFR until 2009.
Although the CAFR includes a description of the City’s long term debt as $109,984,924 (See PDF Page 24.), the CAFR includes two other sources (DROP and OPEB) of multi-million dollar unfunded liabilities: DROP for the General Employees = negative $8,471,181 (See pdf page 20.), and DROP for the Police Officers = negative $24,053,619. (See PDF Page 21.) OPEB = negative $31,315,195. (See PDF Pages 22 and 23.)
Looking at this another way:
DROP and OPEB require their own discussion, perhaps at a later time, as they have a gigantic impact upon the Tax Payers as well as government employment, wages, promotion, and retirement.