A.G. Gancarski
[Updated 3:10 PM with Lenny Curry comments]
In a Wednesday afternoon press conference, Jacksonville City Council Finance Committee Chair Bill Gulliford put the perpetually embattled Police and Fire Pension Fund on blast, in the wake of the long-awaited results of the forensic audit.
Adding to the intrigue: former PFPF director John Keane had not seen the audit before the release, according to WJXT.
“We have not seen a copy of the report,” Keane said. “I had previously contacted finance committee chairman Gulliford and asked for a copy of the report or a draft copy. Chairman Gulliford told me that as soon as he has a copy of the report he would forward it, and make sure we got a copy. We have not received a copy yet and therefore we have no comment, there is nothing for us to comment on.”
Keane, who may be subpoenaed to testify at Finance, has been a lightning rod for criticism.
In Wednesday’s press conference, Gulliford issued a blistering statement.
“With all the needs in this city I have witnessed in my over four years on the city council, the revelations in this report are reprehensible. A vast and staggering sum of money has been recklessly squandered, and now lost forever to this community,” Gulliford said.
“From higher pay for police officers, firefighters, and general employees to downtown development, neighborhood revitalization, children’s programs, better streets, whatever the need, we don’t have the money… because of a huge unfunded, bloated, and excessively expensive pension fund that no one was properly watching,” Gulliford added.
The audit pointed out major underperformance: $370 million of lost returns compared to even a “very conservative S&P benchmark.”
Gulliford pointed out that the auditor, Edward Siedle, has “impeccable credentials” to perform the audit, which should and will raise “ire and questions.”
Key audit findings include the following:
— The lack of transparency is a “red flag.”
— The City Council may ask Governor Scott to investigate the fund, a request that no doubt will be reinforced by Representative Janet Adkins, who was on hand.
— The City Council was advised to subpoena information not provided by the board, which may be subject to personal liability for breach of federal standards.
— The FBI and Securities and Exchange Commission may be involved in investigation.
General Counsel Jason Gabriel confirmed that subpoenas have been issued, which undoubtedly will make for lively Finance Committee meetings. As well, Gulliford and Keane will have meetings to “talk about this thing” and secure “resolution.”
Adkins called the audit a “very important first step,” stressing the importance of ensuring the pension fund is fully funded.
Meanwhile, Gulliford put the issue in relief.
“As to the magnitude of the issue,” he said, “Florida’s unfunded pension liability is $10 billion.”
Jacksonville? 25 percent of that.
The auditor gave the administration of the fund a D- grade, stressing anomalies like “expensive travel to exotic locales” and the cost to the pension itself of stonewalling public records requests.
Much more to come on this subject.
Update: At an afternoon media availability, Jacksonville Mayor Lenny Curry said he “applauded the efforts” of Gulliford and others on this matter.
While he’s “going to have to be briefed on it,” he said that “I echo and applaud the findings.”
