When Mayor Lenny Curry announced his pension reform efforts this year, the goal was to solve a crippling budgetary detriment “once and for all.”
Extending a half-cent sales tax starting in 2030 as a dedicated payment source also offered the hope of immediate budget relief — early discussions forecast as much as $100 million a year. Now Curry has a number.
The possible savings: A minimum of $40 million a year.
Curry said Monday an updated actuarial report being finalized within a week will show that by simply following the plan he fought to have approved by the Legislature, the city will realize those savings starting in fiscal 2017-18.
The report is being done by Milliman, which has done previous studies for the city. Milliman is a Seattle-based global actuarial and consulting firm.
Voters first must approve the sales tax referendum on the August ballot. Then collective bargaining would close the current pension systems.
The plan requires all city employees, including public safety, to pay up to 10 percent toward their retirement. An updated 30-year amortization schedule, as opposed to 24 years, would ease the city’s financial burden.
Curry said no additional steps, including borrowing, would be needed. It all would come from updated actuarial calculations using 2015 demographics — employee counts, salaries, etc. — as opposed to the 2012 figures used in the past.
“We weren’t pursuing it (reform) for savings,” said Curry of the $40 million minimum. “It just happens.”
He said the annual savings demonstrate the city “could ride this out” until the pension-dedicated tax takes effect in 2030.
Still, he said, residents should focus on how a “yes” vote Aug. 30 would solve a longstanding problem, not how it would free up money starting a year from now.
The mayor’s senior staff has been plugging away at putting a budget together to present to City Council on July 18. So far, enhancements have been minimal — and the latest revelation won’t change that.
“I’m just trying to solve a problem,” Curry said.
If and when those savings are realized, though, the mayor said his focus remains on public safety. That includes additional police officers, community service officers and possibly even body cameras, should Sheriff Mike Williams ask if the money is available.
“We will have to look at those funds and prioritize,” said Curry. “It won’t take long (to spend it) given the hole.”
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