Staff Writer
Pension reform might put some people to sleep, says City Council member Kevin Hyde, but the issue needs to be resolved before it’s too late for the City and taxpayers.
“It’s not glamorous or sexy, but there’s not a more critical issue,” said Hyde.
Hyde told the Meninak Club of Jacksonville Monday that Jacksonville isn’t the only city grappling with the problem, but “we were the cover story” on the topic, referring to a March 2009 article in Florida Trend magazine.
“Folks, we’re sinking. I don’t know of any other way to gloss over it,” he said.
He told the group that in the city’s $1 billion budget, 11 percent last year went toward pensions, which combined with the 50 percent devoted to public safety and 27 percent for debt services leaves less than 20 percent for everything else.
He said that, without reform, pension costs would take 20 percent of the budget next year and then 25 percent the year after.
“We’re going to need your help with this,” said Hyde, who described some of the recommended changes to the pension plans as unpopular in some circles and likely to lead to verbal attacks on public officials.
“At some time we will have to make a very difficult vote,” he said.
“People will say we’re out to hurt people,” said Hyde. He added later that “all of us are in this together.”
The public sector has caught up to and surpassed the private market in terms of benefits offered its employees as private companies adjusted to the economic downturn, he said. The city’s pension obligations also continue to grow.
Hyde said that steps like changing the age and service formula for retirement and modifying the guaranteed 8.4 percent rate of return on investment in the Deferred Retirement Option Plan would help reform the city’s pension programs, he said.
Almost 100 Meninak members turned out to hear the presentation. “I think it was an honest approach to an issue that has to be dealt with,” said Kris Robinson. “I think he hit the nail on the head.”
Hyde’s been making the rounds to civic organizations and the community to discuss the importance of pension reform and said he welcomes the opportunity to make the issue more visible to the public.
The atmosphere at each meeting has been relatively the same, he said, as people realize the issue.
“Everybody wants a fix,” he said.
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