Jacksonville's police, fire pension fuss gets Tallahassee cold shower

The big political issue in Jacksonville right now is the Police and Fire Pension Fund. The fund in its current condition is unsustainable and a drain on public resources: virtually every candidate and office holder agrees on that issue. The disagreement is on how to handle it.

Mayor Alvin Brown‘s administration has advanced a proposal, originally passed 16-2 by City Council, which has been sent back with revisions from the powerful PFPF. Though the Jacksonville Electric Authority, a key component of the funding proposal advanced by the administration, has approved its end of the plan, the ultimate fate of the pension deal is up in the air.

In the wake of her recent rejection by Gov. Rick Scott‘s office to investigate the pension fund, Rep. Janet Adkins took her cause in front of the Joint Legislative Auditing Committee on Monday. She did not receive immediate redress. However, she did secure something of a way forward — dependent on a Council resolution to call for action from Tallahassee.

In introductory remarks Adkins pointed out the “$1.6 billion unfunded liability associated with the Police and Fire Pension Fund,” an amount both she and Jacksonville City Council President Clay Yarborough believe is under state purview because state funds are involved. She cited specific issues with the volunteer pension plan for senior management that went unreported from 2004 to 2011 and rules regarding entry into and departure from the DROP programs to make the case that “clearly, the public trust has been broken” regarding the matter.

Yarborough spoke next to “echo the request” and “from ground level, offer a little insight” into the pension issue that “year after year” causes “frustration and confusion for taxpayers,” for whom an audit would be in the “best interest”.

Yarborough cited a 2012 opinion from the city’s Office of General Counsel that the plan is illegal, and argued that it “raises a lot of concern for people in Jacksonville.” With “funded assets below 50 percent,” he said, the plan is tantamount to a violation of the public trust. The pension plan, he continued, is “a much bigger issue than just Jacksonville,” involving state funds that are under the purview of the Legislature.

Then came the questions.

First up was Sen. Rob Bradley, a Republican who represents Clay County, yet sees himself as part of “Team Northeast Florida.” Bradley wondered what Tallahassee could “add to the conversation.” Yarborough advised that Tallahassee could take a “deeper look into it” because of the use of Chapter 175 and 185 funds. “Based on [PFPF] behavior for many years”, Yarborough said, “we have reason to be skeptical.”

Yarborough went on to assert that the city council has attempted to end the arrangement, but to no avail, as the “Police and Fire Pension Fund attorney tells them they can basically do what they want to do.”

To this, Bradley responded that the state law trumps the municipal charter. “I’d sponsor a bill tomorrow to get rid of the Senior Staff Retirement Plan”, but “people need to stand up and be counted.” By this, he means that he wants to see a request from the mayor or the city council.

This last bit was the sticking point for committee members from both parties.

Next was Sen. Audrey Gibson, a Democrat representing a large portion of Jacksonville. Gibson, very much attuned to the local political discourse, voiced skepticism toward Yarborough during the most interesting exchange of the discussion.

Gibson contended that although Yarborough said he was “here on behalf of the city council,” he’s just one member, and asked where the others were.

Yarborough’s response — “I am the top official” — led Gibson to observe that “you’re here as yourself” and to ask whether there as any support for his action.

Yarborough then responded that “there has not been official action in that regard.”

From there, Gibson asserted several objections. “It appears to me that city council has the authority to move forward” with changes in the pension plan. She expressed doubt about the timing and effectiveness of the proposed audit “given current negotiations” and also given that “JEA has access to an audit before they would proceed.”

Yarborough was undeterred. He said he seeks an “unbiased, independent review to make sure [the plan is on] solid footing.” He also added that “nothing official has been handed to council” regarding the JEA proposal, and that “this needs to move forward anyway.”

Yarborough’s desire was thwarted, though. Gibson’s declaration that she “would like to see more consensus” from council before moving forward with such action carried the day when the motion to temporarily postpone further action passed with one negative vote.

For Adkins and Yarborough, the move provides another opportunity to refine the scope of their critique and request for action, plus the issue is still in flux on the council level. However, the setback does raise concerns, yet again, for local observers of Yarborough, who recall his grandstanding on the issue of funding Jacksonville’s Museum of Contemporary Art this past fall when he objected to the museum displaying a photograph of a nude pregnant woman, supine on a couch, which he deemed “pornographic.”

The ultimate measure of his council presidency may be whether he can marshal meaningful support for a state audit of Jacksonville’s pension situation. It raises an existential question for the young conservative firebrand, who is leaning on state government to resolve a local issue that most observers think is under the purview of his council and the mayor.

That said, the call for an audit is supported by at least one mayoral candidate. When contacted today, Lenny Curry spokesman Brian Hughes asserted that his candidate “supports all efforts for public accountability and transparency when it comes to taxpayer dollars. Given Alvin Brown‘s failure as a financial steward, demonstrated by misplaced funds and proposals with higher taxes and more debt, we deserve to know the state of the pension fund. Brown wants Jacksonville taxpayers and JEA ratepayers to be on the hook, so a complete accounting of the fund is a smart approach.”

At deadline time, the Alvin Brown campaign had no comment about Monday’s proceedings.