A.G. Gancarski
Jacksonville City Council members, upon hearing the details of the Lenny Curry pension reform plan, seemed optimistic upon first hearing.
However, as they were not at the bargaining table, they questioned the parameters of collective bargaining agreements, and wanted more detail on the actuarial projections.
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Councilman Bill Gulliford, instrumental in the 2015 pension reform deal, said “this is the very best option we have before us, potentially.”
Despite the “speculative” nature of the numbers, Gulliford noted the city council could “pony up” and bolster the contribution if desired.
“They really did well addressing questions I had in mind,” Gulliford said of the Mike Weinstein/Sam Mousa presentation.
Later, Gulliford noted that in the current deal, the PFPF is not negotiating benefits — a key governance reform of the 2015 deal that carried over.
Mousa also assured that the governance reforms of the 2015 deal would remain intact.
Council VP John Crescimbeni, meanwhile, had some detail questions, noting that “things can get kind of squirrelly sometimes depending on who wants to play with the numbers.”
“In 2030, are we going to be expected to have a conversation with the Beaches,” Crescimbeni said, regarding their current share of the Better Jacksonville Plan tax proceeds.
CAO Sam Mousa noted that the sales tax, post-2030, cannot be shared — but the “potential savings that the general fund might have” could be.
And Councilman Tommy Hazouri, who supports the plan, wondered if the city’s actuarial projections would jibe with those to be delivered by the Police and Fire Pension Fund Monday at 9:00 a.m.
Mousa believes they should be close, given the same input data being used.
Councilman Aaron Bowman questioned payroll growth, with CFO Mike Weinstein noting that “the requirement is for three years,” with raises after that being at the whim of the council.
“I think there’s value in looking at it,” Bowman said. “I would like to see what a real number might look like [regarding the raises].”
Weinstein clarified that there would be “step raises” for police and fire over the next 17 years.
Councilman Garrett Dennis had questions about the defined contribution.
Weinstein noted the current DC has 1,100 people, and it vests in five years. Police, Fire, and Corrections will vest more quickly, Weinstein said — after three years.
Team Curry also noted that the tentative agreements with unions include robust disability, survivor, and death benefits for people in the new plans.
Councilman Jim Love mentioned retention concerns; Mousa was unworried, saying the plan’s generosity would keep people on board.
Councilwoman Joyce Morgan, lauding the “great presentation” and a plan that may “possibly work,” needed help breaking the plan down into layman’s terms.
Mousa’s take: “the program aligns the payments for when the sales tax starts kicking in, which is going to help the general fund do more work in the communities.”
Weinstein, meanwhile, discussed the liquidity ratio, saying the floor was established as a safeguard before the sales tax kicks in.
“There won’t be drastic changes unless we do drastic things, but the adjustments are spread over thirty years,” Weinstein added.
If all goes well, the reforms will be implemented in time for the new budget.
If the reforms kick in, pension costs will be $208M next year.
If not, $349M will be the hit.
Ratings agencies see this as a “positive,” said Mousa.
It seems the City Council is well on its way.
“Until there’s actually a solution, they don’t give us credit for working on it,” Council President Lori Boyer said.
Boyer wants to see people hired for city departments, and Weinstein concurs.
“We do anticipate and expect that growth to happen,” Weinstein said.
Boyer expressed concerns, including the difficulty of council changing the collective bargaining agreements, and millage projections.
“We have seen historically years in which we’ve had good growth, and council reduced the millage,” Boyer said.
Mousa noted that the language was worked out, via a “reasonable, good-faith” process, to ameliorate concerns that old mistakes will be replicated again.
