WWL>Topics>>7-23-14 12pm, Garland, Firefighters Pension

7-23-14 12pm, Garland, Firefighters Pension

Jul 23, 2014|

The pension fund for New Orleans firefighters lost over 40% of its value in the last year alone. This amounts to millions of dollars taxpayers will have to pick up, or services will have to be cut.  Which would you choose…service cuts or taxes?

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Automatically Generated Transcript (may not be 100% accurate)

-- Did this whole. Thing. -- All of -- of people room bleak view. Or Mingo coalition controls that board Coolidge and try to do something about in particular -- neighborhood streets. And I stood and things weren't that well you know we're going to be more money we'll have more money. And they are saying do. -- you're pursuing in the greater plan that. Suggested. Things might view believed that and fracking -- severe budget watching it closely. Looking for a nickel and communities it could be pulled bullies or whatever. All the Maryland says it's he's been doing. But the the play and they've submitted that they told us about. I went from skeptical to. Those me. -- putting chants. It's well and I hadn't heard about both -- And and pointed out America but there appear back when you use a stroke. Back there and I'm sure it's worse now. We're talking about 4050%. Loss of drinking more broken pipes. Ancient. While -- oracle pipes. Underneath it does shrewd to underneath there buildings and get indoors. Well over a billion dollars frankly it's Obama talked to one point 21 point three billion. Don't have. Got a consent decree that caused some news soon on. Everything read. We're struggling. In the money. We've got and Craig may blog at these numbers for. Fourteen billion dollar great wall of New Orleans built brown -- after Katrina. Which is wonderful but. The X and it's. Maintaining. Is in the sense of milk and we you don't have that. So. It's becoming a very difficult thing where -- -- we're seeking. More moral cause more more projects. That haven't sorted hadn't been completed. Because we don't in the money or all of the month. So the question becomes. Where -- wouldn't get money in the -- news is New Orleans firefighters. And we're going to be talking about the problem we come back it was called what are your thoughts probably eight world there's 2601. -- -- Told -- -- anywhere in the country 866. -- nine and zero. Right I suspect. You in the public me able to get him on the Scopes action. Because. What bowl we don't yet here and and a bit of the city to. Since users see Leo were there see -- Financial officer. To get assumed overall I DO often looking upon this city. Consent decree. Big number. Two we don't have prison. Additional four men Leo we don't have the the great wall of New Orleans maintenance. Reports. In the structure. -- Drinking water pipes losing forty to 50% -- drinking water every breakthrough products over a billion dollars in the we don't have. And while we're talking about firefighters. The media and a federal judge and I'm that would make old calendars. Are brought -- prison. Because. Judgment rolling yeah actually and and to maybe. Of this kind of reports back on every point 40 -- oh. And regardless of which side you're rule and roofing ride along. Fortune news that -- vulnerability and throw -- Hogan and all this money mic built two more from the show our players' union president. Good to have usable. Thank you -- it's good to be as always thank you so much man assure the people listening. We always invite the -- will always boards have -- people rule over flight. -- representative period so for now. Tell me what the -- said. Okay the judge this was today's worst of all would set up what's the hearing -- again Pittsburgh's. We weren't going to court to enforce -- judgment this matter tortured by the civil district court. Of the city appealed -- firefighters won in the appeal to the fourth Circuit Court view here in Louisiana. Of the fourth circuit ruled that the city -- in. Be -- and the city took this to the queasy and a Supreme Court. And their decision. Upheld the decision of the local boats and the city even appealed to the United States supreme court -- -- stay. And that was an -- and this city. -- -- locates it comes back down to the ball court for enforcement. Enforce the judgment. And the CB we met with the city we tried to use worked things out and -- the answer was no and so we took commotion. Of contempt of court to -- -- court to order them -- to move up to the judgment. Man that a couple of weeks ago the judge. Said okay I'll give you a little time come back. In July. The 22 and report back to me. How you'll make him and we reported that that we -- make you know and 00. And and then council member -- Was placed on the stand -- him. And she basically was the testimony was given nail on why this city could not be. The seventy million dollars judgment in its. That it was -- city and Adam. Basically she told them. It would take. Two out of four million -- surplus that they found. In the police department budget. And they would do their own four million -- -- -- to move to bow out of that idea that four million well I believe was allocated for. Up incoming recruit classes for police officers. And and then they would. Punish five fighters. And furlough firefighters only. That she believed would bring them about a million dollars. Which would be three out to seventy. Then it. You know. You know to call them on -- -- she was asked repeatedly. Would she appropriate all put an ordinance fool would. To appropriate the necessary funds as required by law as required by the judicial. Judgment that was issued by the court and basically she said no she would. -- The judge. Should quote. And a group that was who missed under -- that representative. Their jokes I'm giving you some -- that you may well hangers so we're at I don't know how us to say it. And it and a -- in these reports that judge. Has the power to jail Lou as cynical to remember there. Well they judge can hold them in contempt and jail time could be a result of -- fines could be you. A remember wants her school hours sitting well you know good point because I remember. There was a situation under the -- administration. Then we -- in front of the judge and the judge says that if Nagin did not comply with his older. That he wanted phones not from the city coffers but from his personal. Account. So that could it could be something to I'm not gonna try to second guess the judgment. But you know it's just truthfully -- and I just don't understand. Why now a city leave his. All placing the members of judiciary in this type of position. I don't think I think time has come it is it is time to listen we will work and have worked with the media is trying to locate. Revenues and find new revenues were with him I was just in the legislative session supporting. Every revenue measure that this media. Will have wanted whether it was cigarette tax whether it was. The Milledge property increase whether it was the hotel motel. Against my good friends that I in the downtown development district in and hotel motel people and hospitality industry. You know and and I wanna tell them you know and and give -- Schiavo the -- that we are gonna work this out it is my absolute. Determination. That we -- gonna Warrick caught it tried to find new work with everybody the business community. The men and women and fired a ball went along we have. The citizens to find a result of an iMac and just let this article has limited -- parts of numbers the drug was ruling the city -- the day. Is -- September 3 seventy and a million. Will you close. On September 3 we all wanted back to call to. And she says. In the me and just policies and it's it's justice says that lead to see a lot more movement. -- to seventeen and -- You know she's gonna you know be so -- to bill or rights of that seventeen and that's correct but there's of figures 75 million by the end of the year does that. Include the seventeen errors in the addiction to. Okay that's part of the seventy and even Paul what is happen now is it's it's kind of like. Where we were talking before you have certain obligations and use of certain. Game. And just like your property tax just like your sales tax if you feel to -- year after year after year. There -- consequences for that failure to pay. So this penalties and interest in things like that and then the whole thing mushrooms. From an actual real point of view peso. If this could have been resolved. We have a simple few million dollars or early on and it's gotten to this. Very ridiculous seventy million dollar figure and that's the business model that the mayor has vacancy to choose to use. Run the bill up Megan looked huge in on attainable and then he believes it goes away. Well it's isn't -- in June and on the -- the region. I just listed by the -- off the top of mind correct. Federal imperative we have the war yes we have the empire and we have please. And everywhere you look we don't have the money. Do you see anywhere they can and 75 million. I believe without a joke we can find not one. Whether we find it in one lump sum is questionable. Whether we come together with the son of a solution remedy. A funding instrument. OK but what we have to do. He stopped saying no I'm mad can be anything. We got to stop finding. And we have as firefighters. Put. Up now we have gone to the legislature and and we have increased would we take out of our pockets we've taken more. We've raise. The length of time. Before you can time and change the benefit string. We have agreed to give the mania additional representation on Delphi pension board. We have agreed. To. He is the same manager. Okay that. Governs his pension fund and Stacy -- manages their -- and -- revolved that's already in place all these things are in place. We used to average Al best 36 months. I mean 48 months of service. And we've used. We've already increased the amount of of of of -- firefighters put him and an in have to you know. So we've we've we've done certain things. And already to do anything else all other things let's say to help. This process along but if you remember. We went back. You know he failed and a 100 million dollar gap that the previously and left McCain. Point of this filling that gap the majority of it was on the fund that was part of the business model. I'm getting to under fund our prejudices he paid everything else he completely paid the police. He completely -- -- east to the assesses. He completely plays to the city of New Orleans -- But he had the ability without legal. Complications of -- snatching the money like all the other ones and he. Absolutely fouled the business model now former mayor Ray -- in on the funding how mentions. And it is absolutely. Devastating to the wrong. And we want to make sure every -- five awards are mentioned on this not sustainable. OK it's just like nobody wants to retire without enough money everybody wants to with the money they need to enjoy their retirement that would be foolish to even consider something. So we are absolutely positively. Want to work. Warning to roll up our sleeves but it's going to take. Some portion of the city. Its ability to fund -- system. But we wanna find it with that we won't work with them and I'm committing to everybody that we will but the city has come out with a number of incidents. Does says -- publish their budget in Toronto yes. And have been in -- people your financial pupils said and said. Let's go to them today here's where we can get 203040. Bit. Anybody done that yes there have been some investor -- they have also been some local people. Okay. Businesspeople that we have been in discussions with. But you know it's that the politics always enters into it and and and return. The Mayo and his chief financial officer and his city CAO and compliment. Every turn wants to re litigate. -- that I already. -- now they wanna go back conceive because of this because of that and they wanna Whittle it down and we need she'll all the numbers they wanna Whittle it down. We owe them money. -- -- -- -- That's it that's their model and it's not the case and it it falls short of doing like every other points lists pension funds can work. The state firefighters pension system. Made either twelve or 14%. Imagine if we could attempt at seventy million dollars. A game and did exactly what they do which is a good model please pink we would have beat the benchmark which -- and a half percent. And that would lol the cities and but no we can't get them we can't do anything that's gonna you know let -- a 100% on nothing. All right very good -- Rico short taking calls. And again if you're listening and he says -- City Council staff matters that. We've we've sent out the reports many and -- -- we have -- -- debates I have with leaves or farm -- or concerning its would you waterborne. We always invite the city and so anybody listening the want to purchase but it it was called to -- 01 -- public. Told Corey it's exits -- -- 087. All right. Lot of publicity about firemen lately. Performed. Why this city seventeen and have a million books and that's part of all of us every five million dollar. Bill coming due -- the end of the year. And federal judge I mean civil -- record Drudge yesterday. Sent to the city is seventeen and have militant you've got to pit and come back September 3. Tell me hard you know when you're gonna do it and and the judge said quote. To vicinity. I'm giving news from -- that you may very well fingers so -- And losses say we have via firefighters union president -- -- this and that Phil and again -- portions forum but I would think a lot of people 260170. Or are you concerned about that is you've. Can can you figure rob. How we pay it is the federal courts all -- them museums were in court so we've got to. Continued the group hope we do that's good June -- Georgia embryo -- nick -- Day. And -- I just wanted to go. Here the key in this thing all. -- they give -- -- What they have won't be getting. You're getting -- doubt that the yeah you don't beyond ridiculous. Fire in your that they treated like acting like a spirited and compared QB Auburn dirt. You know you're. And I think -- by the mirror in the rear view you can answer that as well -- Posted drugs so we don't have them via -- and and like you know and and it's a good point you know. And in in and Jim you you you you you come you hit home and at the end of the day you look at we have a 504. Million dollar budget. Annually from that you've received from various sources of income. And a lot of that is spoken for and dedicated that they can't do bullet and what it is -- but there is still some money out. Then we believe that there is. The ability to pay -- you have to remember. For five years. Five budgets. The mayor has paid. All of these other. Priorities over idea and has not paid his bill. Is required is legal requirement to the firefighters. Now here you know to me. The end of the day you need to pay the us and maybe don't -- somebody else opened its -- if that's true that you don't they have the money attitude. And all this -- public safety. Is now number one priority and -- while it didn't sound like public safety was too much of a concern when they -- and take away from the police and take a win -- they wanted to. And -- you know stood the states periods proposals yes according view and going through reading pollutants from the troops group. Basically says that if if they have to go get this seventeen. Million. Pulled four out of the police department. Right now and and use to of that. And rural low fire fire fire fighters -- one day a month the rest of you and and how many of -- partners to preserve what it would fire that would -- every firefighter on the ball and you have a real idea how much money that would save or may contain them by her predictions about one point two million. So. -- document 3.2. Million miles title and from what would that mean to firefighters rooms of the Joe's. One person at one pars station per day missing palm that would probably I'm I'm I'm guessing to tell you exactly -- It would seriously hamster -- already you have to remember it's bitten. 34. Years now since we have replaced. A hundred to 135. Guys that have already retired. We have enhanced the luxury of recruit classes like the police department as I'm glad that the head of a wish they would some law police recruits. But we have and we have constantly and allow weighed down. From 880. -- -- firefighters. That we. To date Katrina hit so we now down on the 500 in ninety something so I mean it's already we -- running short. And furloughs would even make things worse no doubt. One of the things unit in the media the printed in the U. They say -- your pension Poland's assets dropped in value by low reporting percent and then today. Call it a break in on the city finances after years of field investments. In your pension. And once again the media continues. To hammer away at things. That in and create pictures that don't really accurate now I will tell you in no doubt. -- They law investments that every pension fund every invest. As good days and bad race. -- like Drew Brees he's gonna throw some interceptions. I'm going to Rome. Okay. You know he's gonna get sacked you know we got to understand and you gotta give up dust yourself off and move falls. Like marriage. Okay. High risk reward. The gate sometimes in what 50% of them go south OK but then don't mean nobody should it matter OK we got to get past that. And to cherry -- investments. And say oh you're doing something -- all. Each and every one of those investments and -- due diligence on -- Even the me as pension plan and it good decisions and bad decisions. We have to live and that's the nature of investing if not who put your money in the CD's aren't lifts. It brick home we come back porch and -- clones. Those bad decisions according review and some of the media we use the people have to pay for the -- solutions. We'll find out of that is true and if so why. You have called this this is something that you know we've -- to go by -- over their -- over their -- -- taxes at all. -- -- -- -- of picture property to the effects -- for other things stay what is double Tokyo 260. 187. Or we're thinking about New Orleans firefighters yesterday used so those are code drugs. Told the city of New Orleans fuel oldham seventeen -- have million dollars -- September 3 to a mailer and period. So cities mostly ended and that's portable 75 million -- pavement by the end of year. And nick filter and a beer with -- part players' union president. We're talking about the news reports. There were one side report this Serbia have refused to -- energy department for what five years on the -- plug. Yeah and then. We look at the reports that that. Your investments haven't done too good forty some -- -- fell last year and you and I think maybe a good point up. That happened stool -- and portfolios and this year you want. Well this year the -- this is the year that they took. The loss and rolled to actually lost all this occurred over some years. But it sort of drives it's -- goods from -- absolutely they have -- yet. Yeah and when you when you look at the strand all how well pension form or invest or zone doing. You once again we don't do that cherry picking -- -- Which you do is look at it over twenty years over thirty years because that's what it's about. And I can tell you back and say -- if we would look -- elected. That we head records the last time I saw a report that it illustrated that we look at the period from 1989. To 20072000. -- to some -- and they took that the pension fund rose. At that time in 198964. Million dollars or they about a value. And right before the bad quarter of 2000 and a we will act. Over 200 in fifteen million. Now that showed losses and gains some good calls some bad calls some we made money on some we've lost money on some that go flat. But over that period of time you saw that type of growth. We have. Also. The reduction. In the amount of firefighters that will putting into the phone and an increase in numbers of firefighters that were receiving benefits from the they've paid out hundreds of millions of dollars in benefits while the funds still grew it warrants. But it has to be properly fund. All right let's go to more -- callers to -- ignored. -- would. You be. Different. Oh. Steve obviously commuters. -- in -- the question. I get from callers. News. Why don't we have pretty -- why do we have to pickup the short. Okay. The way all of the pension funds -- set up throughout. You know united states of game is that the employees. Pick up. And pretty a certain percent it's it's on average it's about 10% of this oil and and and the city -- Apportioned. And that money gets cold in -- make investments. And when they hit. Seven and a half percent. The city enjoys not having to. Not the five. Firefighters will continue paying the growth in Korea so they take. Put as -- it and do exactly what. They wanted to they wanna bet. And reduce their payments during the good times and understand that the city will pay out on -- Happens in Shreveport Monroe Alec Lafayette lake show. No -- -- it it doesn't -- that's the way it was set up the game and you know while I understand it doesn't -- right now for them. And you're ready to change it. We can discuss that. But at the moment we can't really. How would you say. You know do anything about that without destroying the pension and I -- America and it's a law. It's a law number 10 it's the law and absolutely in the in this. Why you know what Vicki Hoff and on this day in investment and investment a wanna lets you know that. They ought to pension funds for average of two principals. At all fun and and don't. And this city. McCain took in bankrupt. This is why we are so scared to let them takeover. They banked -- -- -- -- -- Absolutely cannibalize. A 170. Million dollars. So now. A firefighter and it makes 151000 dollars a year in the -- fun. We are paying 30000 miles of it because you pay and pension. -- a page ecosystem. And you paying off debt service. That was a 170 Mary -- -- the ages eight up and didn't do. With the war fiduciary league responsible to do and that is why firefighters fear. The -- coming in and taken over the system. There's a big juicy prize money. And investments that they wanna get their hands on and that. Is -- Got a couple amendments. And what are the ideas those who which I still think they -- vote. And as for whether or not. We can raise our war yes property Jackson 5 -- yet. Of words there in this City Council vote yes ma'am would you vote no and yes. Are you guys couldn't confident or are you going to be important thing statewide. To. Told somebody in both jurors sitting make sure you go to oppose and vote yes for five -- increase in New Orleans for fire yes. And now we'll tell you arm. Currently we have on the books. A five meals to police in five bills to five dedicated already okay. So this new law on this new constitutional amendment will bring it. 2105 additional Morse will be ten in ten and game and in 1989. Calm myself and former president William Sanchez. Rode around us we did we rode around to make the initial constitutional amendment. Okay and road this state three times and bold talk -- you yeah -- well you all Longoria interest in the -- of the beauty of it is is that we -- union. And we all I have my it is it's three point we got firefighters in mom -- Mac no he's. OK and we sit guys help us as you know we need help with the help you to. And we made that happen. Absolutely would I call them. Always pledges -- thank you so much go on and hopefully when there will -- -- as you appear instantly broke will be here we can actually get through these thank you so much we have a good -- we'll be here but yeah. Do not go where is that it's -- field in the ready for a very very soon. Savor this. Portal two review at.