Archive for February, 2011

Local Pension Initiative Passes

Measure L, the Menlo Park pension reform initiative, passed easily with a 72-percent “yes” vote.

Under the reform measure city employee would get in all cases, more than the Social Security payment non-public employees would receive after working the same number of years as a public employee.

Measure L raises the minimum retirement age for new public employees, excluding police officers, by five years to 60, and also decreases their maximum pension benefits by 0.7 percentage points to 2 percent of their highest annual salary averaged over three years.

Under this measure, a new hire who retired at age 60 after working for the city for 30 years would receive 60 percent of that average salary. Current employees can retire at age 55 and get 81 percent.

The measure headed to voters after a grassroots campaign organized by the Menlo Park Citizens for Fair and Responsible Pension Reform collected enough signatures to place it on the ballot. Council candidate Chuck Bernstein and Planning Commissioner Henry Riggs spearheaded the drive, along with Mr. Sardina and Ed Moritz.

Pensions an Ethical and Financial Issue

From CalPensions:

CalPERS bent the rules to avoid hitting state and local governments with a big rate increase after heavy losses in the stock market crash. Now it’s being criticized for passing some of the cost for today’s workers to future generations.

The president of a new group working on a pension reform initiative, Dan Pellisier, said in a newspaper article last week that a CalPERS decision to remain underfunded is a “Ponzi scheme” and “intergenerational theft,” legal but immoral.

A consultant, Girard Miller, who said he wants to save CalPERS from itself, told a pension “boot camp” sponsored by a reform group last week that paying off unfunded pension debt over 30 years is “kicking the can to our children and to our grandchildren.”

Most of the post-crash concern about CalPERS and other public pension funds has been that their rising costs are not “sustainable,” resulting in a number of proposals or labor agreements to raise employee contributions and give new hires lower pensions.

The new criticism seems to recast the problem as a dilemma:

Make much bigger pension contributions now that could increase pressure for tax increases and crowd out funding for education, health and other programs — or require future generations to pay for government services they did not receive.

Read more

City Manager Pay

Earlier this year Jerome Stocks waffled on how much he thought  City Manager Phil Cotton should be paid. The council voted 4-1 against giving Cotton a raise, who was making $200,000   a year.

Cotton’s contract stipulated annual pay, however a UT investigation uncovered that he has been paid more than stated in the contract. Excerpt below:

Sabine did not respond to requests for an explanation. Cotton similarly declined to respond to questions from The Watchdog.

Phil Cotton receives general praise from the City Council majority. Rarely, is the praise supported with specific examples of  his decisions or analysis which have led to “millions” in savings for the taxpayer.

Public input sought on city manager appointment

Next week’s city council meeting, February 9, will be the opportunity for the public to be heard on the appointment of the next city manager.

Agenda item #6:  City Manager Recruitment

Full agenda

Those who can’t attend the council meeting are encouraged to e-mail comments to council@ci.encinitas.ca.us.

What qualities do you want in the next city manager?  Do you want someone from inside the city staff or outside?