City Commission Passes Firefighter Pension Plan Amendment

Two items passed at the Thursday city commission meeting will work together to give benefits to firefighters and save the city some money. The vote came after a long series of closed-door negotiations between city officials and the fire department.

Ordinance 2011-10 stopped certain pension benefits, and ordinance 2011-11 immediately reinstated them.

The ordinance that stopped the benefits is so that the city can remedy the recent discovery that the long-term cost of the benefits is more than was anticipated when they were instated in 1999, Nancy Duggan, director of human resources, explained at the June 2 reading. The city and, thus, its taxpayers have been paying more for benefits without getting state credit for it. The cessation ordinance would allow the cost to be recalculated so the city can capitalize on state credits owed to the city that come from excise taxes on homeowners insurance.

During months of closed-door negotiations, 30 of 35 firefighters voted for the cessation ordinance so that the cost of their benefits could be recalculated without having to change or reduce them as a cost-saving measure. At the June 2 meeting, firefighters expressed concern over the proposed ordinance because they thought that a larger sum of the back payments from the state should go to the firefighters instead of to the city’s reserve fund. When city officials and firefighters were in negotiations for the contract, firefighters ultimately adopted the contract even though the exact amount was never clarified.

“How am I going to tell the taxpayer now you’re going to pay more?” Commissioner Julie Ward Bujalski said during the June 2 meeting.

“The union ratified the contract; that’s what it comes down to,” Commissioner Dave Carson said during the meeting, in which the commissioners voted unanimously to adopt it. “I don’t see how we can step back" to the table.

At Thursday’s meeting, George Treubig, firefighter union president, said new information was released by the state regarding the amendments that would hold them unconstitutional according to state laws.

Treubig recommended the board table the amendments until clarification of policy could be found.

Despite objections, the commission passed both items unanimously.

“If there is a problem, we will address that with the state,” Duggan said.

While tabling the items may have seen a reasonable solution, Duggan said it would require the process to be completely re-started. By rolling the dice with state laws the city finds itself with an easier-to-swallow, worst-case scenario.

“The state sometimes just wants different language. That can be addressed,” attorney Lowell Walters said.

If accepted by the state, these actions will save the city $180,000 in retirement contributions per year, and provide an additional $832,000 in state credits to the city's reserve fund.

The new amendment takes effect Oct. 1. The two-year contract expires Sept. 30, 2012.

[This article was updated Tuesday, July 19, 2011 at 2:29 p.m.]