LETTERS

Petri claims don’t add up, says Marciano

Posted 9/9/14

To the Editor:

One of the greatest privileges we possess as citizens of the United States is the right to vote. With that privilege comes the responsibility to be well informed, and to be certain …

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LETTERS

Petri claims don’t add up, says Marciano

Posted

To the Editor:

One of the greatest privileges we possess as citizens of the United States is the right to vote. With that privilege comes the responsibility to be well informed, and to be certain that the information that we use to form our opinions of who is best suited to serve in elected office is based in fact. Today we get to exercise that right. I am incredibly proud to be an American, and equally proud to be a resident of the great city of Warwick. 

Last week’s editorial page included a letter from Stacia Petri who is running as a candidate for mayor in the Republican primary against the incumbent mayor, Scott Avedisian. Ms. Petri’s letter was in response to a letter that I had written to the editor in an attempt to clarify some of the information that she had presented in a leaflet mailed to voters that I had received at my home. 

In my original letter, I clarified two important points that she included in her leaflet using inaccurate details from undisclosed sources. The first point I clarified was the current status of the City Retirement Plan and how the Retirement Board functions. Secondly, I asked her to help the voters understand her claim that the city faces a “BILLION dollar” debt burden.

My letter was based on facts, plain and simple. 

Ms. Petri decided to respond with a personal attack on my integrity and competency. Not once did I question her honesty.  If you read her recent postings on her Facebook page, she accuses me, and others who support such factual presentations, of lying. It is unfortunate that Ms. Petri uses such terminology.  It is not very becoming of a mayoral candidate. 

To further make her point, Ms. Petri also accuses me of being “OK with pension inequality.” I’m not sure what she means when she uses such a phrase. The Board is very careful in fulfilling its fiduciary role to all stakeholders, in absolute and total compliance with the law. She also mentions that in my leadership role, under my “political appointed chairmanship,” the pension fund has eroded to a “critical status.” That is simply not true.

Let me be very clear. I was asked to serve on the Board several years ago. When the mayor approached me, he cited my education and my professional credentials as a Certified Public Accountant, licensed by the state after having demonstrated a high degree of competency in the field and passing the very rigorous CPA exam. He also noted that, with my partners, I have successfully run a CPA firm for what is now more than 30 years. Two years ago, I was asked to serve as chairman. I take no compensation for this role. While it is true that Mayor Avedisian asked me to serve, my proposed appointment was then brought before, and unanimously approved by, the full City Council. 

But I am not the only one with such credentials on the Board.  The mayor has also appointed other very well respected professionals, including another accountant, a banker, and a wealth advisor. He consistently surrounds himself with competent professionals to assist him in the execution of his duties.   

As to her claim of the “critical status” of the Plan, allow me to reiterate my explanation as stated in my previous letter to the editor. There are four city plans. One is closed, underfunded, and is currently on track to be funded to within the required funding guidelines. No one is denying that that particular plan is a problem. But the mayor has satisfactorily addressed that issue, again as required. The other three plans are the highest ranked plans in the state. The April 14, 2014 Gabriel, Roeder, Smith and Company consultant and actuaries report developed by Joseph Newton, FSA, states that the Municipal Plan had a funding ratio of 70 percent, Fire II had a funding ratio of 83 percent, and Police II had a funding ratio of 81 percent, all considered Tier I plans. That is a fact. All are within the required minimum funding ratios. And nowhere does she mention that through the skilled and artful negotiation of the mayor, and the cooperation of the unions, the unfunded liability of the city pensions was reduced by $32 million.   

Also included in her response, Ms. Petri states that “it is frightful” that as a CPA, I do not know the numbers relative to the city’s debt. I would direct her to review page 19 of the “City’s Comprehensive Annual Financial Report for the Year Ended June 30, 2013,” which was audited by the independent accounting firm of Braver PC. The Statement of Net Position (Net Worth) lists the total accrued liabilities of the city as $380,661,078. That is not the billion-dollar debt that she purports to be burdening the city.

To create fear, it appears that she chooses to disregard the actual liability number from the Net Worth Statement, and instead presents total accrual of the unfunded pension liabilities for the entire OPEB liability, which is misleading because this amount is actually amortized over many years.  

Unlike Ms. Petri’s letter to the editor, I did not attack her integrity. I simply challenged the data she has continuously used to spread her message. Once again, I would respectfully urge her to consider the sources of the data she is using.

All across Rhode Island today, voters will have the opportunity to freely choose their elected officials to serve in positions of leadership. It is my hope that all eligible voters cast their vote as well informed citizens, not swayed by political rhetoric, crafted numbers, social media hype, and misinformation. 

Alfred T. Marciano, CPA, Chairman

City of Warwick

Municipal Retirement Board

Comments

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  • Unionthug

    Once again this proves she and her camp are morons!!!! Good luck with that... Maybe in a couple years Stacia tries again, hopefully she carefully chooses who will be in her corner

    Tuesday, September 9, 2014 Report this

  • Unionthug

    Wrap it up Stacia, Roy, Bob..... Scare tactics don't work....

    Tuesday, September 9, 2014 Report this

  • Reality

    Steve D.....so sick of your rants.....you have no guts to get up at the microphone at city hall....identify yourself and articulate your vision for the city but the 3 people listened above do.....what does that make you Stevie .....a big mouth who's afraid of his own shadow.

    Thursday, September 11, 2014 Report this

  • Unionthug

    Ok Mr Reality Johnson...

    Friday, September 12, 2014 Report this

  • RoyDempsey

    Dear Mr. Marciano, If you want to make a point, please stick to the facts and avoid the back slapping how could I think I am rhetoric. Numbers are numbers. If you don't consider the total unfunded OPEB liability to be a liability of the city since it is not booked and OBEB is on a pay as go basis, say so. Others believe that it is a liability and taxpayers should be aware of it.

    Sincerely,

    Roy Dempsey

    Friday, September 12, 2014 Report this

  • Unionthug

    Roy, others who are not professionals...

    Saturday, September 13, 2014 Report this

  • patientman

    Once again Howell posts a letter to the editor on the "editorial" page. Ah, lazy and yellow at the same time.

    Saturday, September 20, 2014 Report this