Our paper has been writing the about the city’s pension problem since 2008. The City of Pensacola can not afford the current pension plans offered to its general, fire and police employees. Past city council and city administrations have made terrible decisions regarding these plans that could be covered up when the economy was booming and the city was growing. The “can” can’t be kicked forward any longer.
We saw four years ago that the trends weren’t good. The annual contributions were quickly surpassing the city’s ad valorem tax revenue. The city’s contribution to pensions for city employees, police officers and firefighters jumped 416 percent between fiscal year 2001 and fiscal year 2008, rising from about $2.48 million a year to $12.81 million a year.
Mayor Ashton Hayward formed a pension advisory committee to look at the problem. They made several recommendations and many of which were used by the mayor’s union contract negotiation team.
The City’s general, fire and police lieutenants have tentatively agreed to adjust their plans and move to the Florida Retirement System. As we learned, this week the Fraternal Order of Police, which represents the other police officers, has not. Of all the plans, the police employees contribute the least, only half of one percent. Firemen contribute 11 percent.
The Pensions Advisory Committee made a presentation on its findings:
Total city contributions to the pension plans continue to escalate:
FY 2011: $16.1 million
FY 2012: $16.1 million
FY 2013: $18.4 million
Unfunded Liability (what is owed all employees it had to paid at once)
FY 2011: $76.1 million
FY 2012: $79.2 million
FY 2013: $116.7 million
The City of Pensacola has the highest percentage of its covered payroll expense going to pensions
Pensacola 69.7%
Orlando Aviation 45.3%
Riveria Beach 40.6%
North Miami 39.1%
Winter Haven 38.1%
See the slideshow:
