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2012
Retired Employee Benefits = $1,904,471
Active Employee Benefits = $824,820
All Other Expense = -$1,210,925
Total New Spending = $1,518,366
2013
Retired Employee Benefits = $2,976,565
Active Employee Benefits = $1,479,485
All Other Expense = $578,559
Total New Spending = $5,034,609
2014
Retired Employee Benefits = $1,015,500
Active Employee Benefits = $109,105
All Other Expense = $976,679
Total New Spending = $2,101,284
2015
Retired Employee Benefits = $2,023,659
Active Employee Benefits = $2,320,921
All Other Expense = $135,306
Total 15 Year New Spending = $4,479,886
From 2005 - 2019 cumulative 15 year new spending (spent equal amount of new revenue on retired employees then active)
Retired Employee Benefits = $23,831,278
Active Employee Benefits = $23,811,682
All Other Expense = $7,548,489
Total 10 Year New Spending = $55,191,449
From 2010 - 2019 cumulative 10 year new spending (spent more new revenue on retired employees then active)
Retired Employee Benefits = $16,438,035
Active Employee Benefits = $12,484,637
All Other Expense = $7,907,019
Total New Spending = $36,829,691
From 2015 - 2019 cumulative 5 year new spending
Retired Employee Benefits = $8,259,042
Active Employee Benefits = $10,017,650
All Other Expense = $7,545,390
Total 5 Year New Spending = $25,822,082
It is pretty clear that the issue in this city is that retired employee benefits are consuming so much of the budget that all other area of the budget are being negatively effected. Keep in mind the school budget today is less than the 2010 budget.
Just about 50 cents of every new tax dollar collected today, pays for retiree benefits.
Over $9 million is spent each year from the city budget on retiree healthcare costs. On the school side that amount is $600 thousand dollars.
What the stakeholders in the city need to do is develop a plan where cost saving can be realized by reducing the cost of legacy benefits and redistribute those saving back into compensation, benefits and tools that the existing employees need to perform future services. At this point even with a maximum tax increase every year, this city cannot meet the new revenue needed to provide existing municipal and educational programs and services while meeting escalating retiree expenses.
Hopefully we can all contemplate these numbers, not attack me the messenger and continue with a civilize debate.
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