When asked recently about Encinitas' chronic underfunding of pensions, Mr. Stocks claimed that Encinitas was not, in fact, underfunding its pensions. He said that pension funding was complicated, that it fluctuates, that sometimes you're up, and sometimes you're down, etc.
In fact, pension records indicate that Encinitas pensions have not been fully funded for even a single year since Mr. Stocks' 2005 vote to increase pension benefits 35%. Even after the recent market rebound, Encinitas' pensions remain severely underfunded.
The truly frightening aspect of this article is that it uses 2010 figures. CALPERS investment returns for the 2011-2012 fiscal year were 1% (versus the target of 7.75%). I am pretty sure that this would put Encinitas well below a 50% funding level. Also, the lower your funding level, the more the investment return shortfall compounds against you.
ReplyDeletePerhaps instead of using Chapter 9 of the bankruptcy code we could simply opt for liquidation and go back to being an unincorporated community of San Diego County.
CalPERS had a big 2011 (+20%) and a bad 2012 (+1%), but you are correct that once your funding level gets this bad, it's hard to catch up because of compounding.
DeleteEncinitas is probably still around 60% given those two years.
Stock,( as much as he sucks) wasn't the only one to vote for the pension increases.
ReplyDeleteHe's the only one still on the council.
DeleteAnd who else voted to allow pension increases??
DeleteGuerin, Houlihan, somebody else.
DeleteBond voted no.
ReplyDeleteSo if you go to the Encinitas You Need Us web site, you can watch a video of Shaffer talking about the budget. BUT, she never says how to balance the budget, nor explains that borrowing money is wrong for the city. Nor does she come out and say that programs MUST be cut to balance the budget. It's all just feel good nonsense, talking about the budget without saying anything. She'll be a great politician if elected.
I smell a wolf in sheep's clothing.
By law the budget is required to be balanced. It's hard to talk about how to balance the budget as an outsider without knowing how the present council is shifting available money around and prioritizing projects. The whole process is not transparent.
DeleteThe problem with borrowing money is that the council always does it with Lease Revenue Bonds, which only require a majority vote of the council. It would be nice to have voter consent on borrowing. We residents end up paying for it.
We know the wolves on the council. Let's get rid of them.
The problem with borrowing money is it needs to be paid back, with interest. Any council can borrow money then resign, move away, and leave the citizens of the community holding the bag.
DeleteDalagar was the other person that voted for the pension increases.
ReplyDeleteOf course. How could that slip my mind?
DeleteBond was the only one to vote against it.
DeleteCity council to increase city manager salary to offset his own pension obligations. Ahhhh NO!!!
ReplyDeleteWhy is it appropriate to pay Gus Vina more, when he is already paid over $110 per hour and he spends his time on the donkey fable with stupid picture of him and Peder Norby for the dot exercise. Don't they know that they crowd was already ready to kill pounce on them and rip them to shreads?
ReplyDeleteThe dot exercise conclusions have to be thrown out! It was an artificial construct and it is invalid! What a stupid waste of time and money. Gus Vina needs to find another city to bankrupt. He has a vote of no confidence here too!
Vina should drop to his knees every day and give thanks he works in Encinitas in the public sector. He could NEVER work her in the private sector.
ReplyDeleteHe receives paid health care.
Paid car and insurance.
Paid junkets.
Paid phone.
Every other Friday off with pay.
Paid holidays.
Free office space, pays no rent, no electricity, nor phone, no water bills.
I truly hope we have change in the council in Nov and the first order of business is to fire half the staff and cut the pay of the other half by 50%. Any staff member that doesn't agree to a salary reduction...fire them. Let them go work in the private sector.
Any council member that votes to increase his pay must GO!!!!!
And what's going on with the secret negotiations between the city and firefighters union??
We are going to be told how lucky we are to have Gus Vina as our city manager, isn't that what they told us about Kerry Miller??
ReplyDeleteWere City staff this big of screw offs under Phil Cotton and Kerry Miller? I seriously think if anything, they have gotten worse!
ReplyDeleteHowever, look at their model of leadership!
Did he get the money???
ReplyDelete