Greg Stanton seeks to end pension ‘spiking’ - Yea, sure!!!!!! - Trust me!!!!!
I suspect that Phoenix Mayor Greg Stanton is just shoveling the BS in this article to get votes.
Phoenix Mayor Greg Stanton seems to be owned by the police and fire department unions.
When Phoenix Mayor Greg Stanton was running for Mayor he promised to end a sales tax which goes mostly for public safety, or the police. That promise was a LIE.
I suspect that Phoenix Mayor Greg Stanton claim that he wants to end spiking is just another lie designed to help him get reelected.
Source
Mayor seeks to end pension ‘spiking’
By Craig Harris The Republic | azcentral.com Wed Jul 24, 2013 10:15 PM
Phoenix Mayor Greg Stanton and two City Council members have asked the city manager to end a policy that allows pension “spiking” by police officers and firefighters, but no changes are imminent because the city must honor its labor-contract obligations until next fiscal year.
The practice of pension spiking in Phoenix, disclosed by The Arizona Republic in 2010 and earlier this year, has allowed a few senior public-safety retirees to become millionaires by adding the value of some unused benefits into final salary calculations, substantially elevating their annual pension payments. The practice is prohibited for most other city employees.
“We want to end any of the abuses in the system,” Stanton said in an interview this week with The Republic.
The mayor said he wants to change the practice, put in place at least a decade ago by city management, through labor negotiations that will begin later this year between City Manager David Cavazos and public-safety unions.
A police-union official said if the city takes away pension benefits, then Phoenix must increase other forms of compensation for public-safety officers. The firefighters’ union president said upper-level managers are typically receiving the large pensions, which puts rank-and-file employees in a negative light with the public.
The city allows public-safety officers at the end of their careers to cash in unused sick leave and vacation, deferred compensation, payment for emergency shifts, bonuses, and vehicle and cellphone allowances, counting all as compensation. The inflated compensation significantly increases or “spikes” annual retirement benefits — and the cost to taxpayers. All public-safety employees are allowed to spike, though the most costly cases have been top managers at the high end of the pay range.
The Republic in early May reported that the spiking, which may violate state law, allowed 10 retirees to boost their lump-sum retirement benefits to more than $700,000 each through the Deferred Retirement Option Plan. All also receive annual pensions greater than $114,000 a year, and some also cashed out additional unused sick leave and vacation for more than $100,000 each.
Stanton spoke to The Republic about ending the practice after he sent a memo to Cavazos last week calling for a handful of fiscal reforms and compensation enhancements for some exceptional city employees.
The memo took to task “executive level” employees who, it said, have abused the pension system and “given a bad name to all employees.” But the City Council and City Manager’s Office until now have allowed the pay spiking to occur for all other public-safety employees as well through contract negotiations with labor groups.
Councilman Sal DiCiccio, a vocal critic of spiking, said the city could immediately end the practice for upper-level public-safety managers because they are not subject to union contracts.
“The people at the top are the beneficiaries of spiking, and they’re winning,” he said. “Everyone on the bottom doesn’t win and it’s taking their money away.”
The memo to Cavazos said spiking “inflates costs, harms the city’s long-term financial health and seriously undermines public confidence that the city’s compensation for employees is fair.” It was signed by Stanton and council members Thelda Williams and Daniel Valenzuela.
The letter is the most aggressive public stance Stanton and the two council members have taken on pension reform for public-safety officers, many of whom supported Stanton’s 2011 mayoral campaign. It also comes after the Goldwater Institute, a Phoenix-based conservative watchdog group, in late May threatened to sue the city if Phoenix did not end the legally questionable policy allowing pension spiking.
“We are very glad to see that the mayor is asserting that pension spiking is unacceptable,” said Jon Riches, an attorney for Goldwater. “But it is still our position that the practice of pension spiking is illegal.”
Riches said his organization continues to do research on a potential lawsuit against the city.
State law says “unused sick leave, payment in lieu of vacation, payment for unused compensatory time or payment for any fringe benefits” cannot be used as compensation to compute retirement benefits.
State law also says that only “base salary, overtime pay, shift differential pay, military differential wage pay, compensatory time used by an employee in lieu of overtime not otherwise paid by an employer and holiday pay” may be used to calculate pension benefits.
A prospective Arizona retiree’s ending pay and length of service are key components in determining the amount of the public pension. Salary spiking, therefore, increases pensions.
Cavazos said he does not believe the city is breaking the law by allowing pension spiking, but he added, “That does not mean it’s the best practice.
“What we need to do is focus on the relationships we have with collective bargaining — we have contracts in place,” Cavazos said.
Cavazos cited an opinion by the city’s legal department that employees are receiving a higher salary in exchange for a “lessened benefit package,” and therefore that counts as the “definition of compensation” by state law.
However, public records obtained by The Republic show Phoenix has calculated pension benefits for public-safety officers by counting pay in lieu of vacation accrual and pay in lieu of sick accrual (unused sick leave), and other fringe benefits such as vehicle and cell-phone allowances.
DiCiccio believes state law is clear and that what the city is doing is illegal.
“What the city of Phoenix is doing in allowing pension spiking is robbing taxpayers,” DiCiccio said. “It needs to stop altogether.”
The city’s public-safety retirement cost is budgeted at roughly $129 million this fiscal year. In fiscal 2003, the city paid $7.2 million. Investment losses have been one of the biggest reasons for the increased cost, though pension spiking also has contributed.
Joe Clure, president of the Phoenix Law Enforcement Association, said the union of more than 2,000 members never would have agreed to the practice of pension spiking had officers thought it was illegal.
Clure said if city managers do not like the way public-safety officers receive pension benefits, they should find other ways to compensate officers.
“Unless you are willing to talk about an alternative pay and benefits package, then you fundamentally believe police officers make too much money,” Clure said. “I don’t think they do.”
Pete Gorraiz, president of the United Phoenix Fire Fighters Association, said it was curious that Stanton would send out a letter six months before labor negotiations started. But, he added, firefighters will come to a “reasonable agreement” with the city.
Even police pay has limits
Source
Even police pay has limits
By Editorial board The Republic | azcentral.com Thu Jul 25, 2013 6:43 PM
Police officers — indeed, all first responders — perform dangerous, difficult work for which they justifiably should earn fair, even generous, compensation from the citizens they protect and serve.
But there are limits. Or should be.
In fiscal 2003, taxpayers in Phoenix spent $7.2 million toward public-safety pension plans. This fiscal year, the tab is $129 million. It is expected to grow further, and fast. Should taxpayers simply accept whatever costs they are instructed to shoulder? Or should there be limits?
The limits question gains still more clarity when a couple of related issues are thrown in:
Pension “spiking” is one. The practice allows soon-to-retire officers, especially supervisory officers, to add the value of unused benefits to their base salary to spike their retirement income. As reported by The Arizona Republic’s Craig Harris, pension spiking has allowed a handful of retired police and fire officials to become millionaires.
It scarcely seems wrong for taxpayers to wish to limit that practice, which on its face appears to violate Arizona law prohibiting “unused sick leave, payment in lieu of vacation, payment for unused compensatory time or payment for any fringe benefits” to be used to compute retirement benefits.
Yet it has taken years for City Hall to take pension-spiking reform seriously. And, even now, Mayor Greg Stanton has declared his intent to end spiking ... when the current contract expires in another year. If it’s illegal, a contract doesn’t protect it.
The other cost issue is union-negotiated “release time” for union activities, which allows sworn officers to conduct union business on city time.
However dubious or unjustified, release-time clauses in union contracts are fairly common, although evidence shows that Phoenix’s primary police union has thoroughly abused it by lobbying the Legislature in opposition to City Council-set policies, campaigning for candidates and urging unrest against the police chief, according to Goldwater Institute litigator Clint Bolick, who sued to stop the practice.
If they want to do that on their own time, the First Amendment protects them. But doing it on the taxpayers’ dime? That’s an affront.
In April, a Maricopa County Superior Court judge found that using taxpayer money to fund union activity was not in the public interest and ordered an end to release-time activity on the part of the Phoenix Law Enforcement Association, or PLEA.
According to Judge Katherine Cooper, the practice cost taxpayers $852,000 a year, thus diverting “resources away from the mission of the Phoenix Police Department.”
The union is appealing.
Pension spiking and release time for PLEA officers are, obviously, related issues. They involve contracts between public-sector unions and city officials that raise troubling questions about who, if anyone, represented the interests of taxpayers during negotiations.
If PLEA had not so obnoxiously abused the release-time benefit, it is possible it may have escaped the scrutiny of critics, even the spending hawks at Goldwater.
Which brings us back to the question of limits. Do taxpayers have a right to ask for reasonable limits on what they pay their first responders? The line-of-duty officers who risk their lives on their behalf?
It is not an easy question to ask, considering the jeopardy public-safety officers face every day.
But here is the part of the equation that union officials and their abettors at City Hall are missing: By defending the indefensible, they are making the answer to that question easier for taxpayers every day.
Judge to decide if Phoenix Police have to obey the law
For some odd reason the Phoenix Police think they are above the law and don't have to obey it.
Of course if we were to do the same thing and say we didn't have to obey the drug laws because they are unconstitutional we would be instantly thrown in jail for breaking the law.
Sadly Phoenix Mayor Greg Stanton who by his acts seems like he is
owned lock, stock and barrel by the Phoenix Police unions seems to
think it is OK for the Phoenix Police to break the law in this matter.
Source
Judge to rule on pay for Phoenix officers’ union work
By JJ Hensley The Republic | azcentral.com Sat Jul 27, 2013 9:03 AM
The long-running dispute about whether Phoenix police employees should be compensated for work they do on behalf of a labor union is finally in the hands of a Maricopa County Superior Court judge.
Those involved, including two competing conservative think tanks and one representing the police union and Phoenix, presented their final arguments Friday before Superior Court Judge Katherine Cooper, who cut off several of the attorneys during their presentations to ask the same question: Why should I rule in your clients’ favor?
The city’s agreement with the Phoenix Law Enforcement Association, approved on a split council vote last year, authorizes the labor group to place six police officers in full-time roles with the union and allows a bank of hours those union officials can offer to other officers to perform union work.
The bank of hours includes more than 1,800 for training and conferences, and the contract authorizes full-time union employees to receive straight-time pay when they work overtime. Estimates put the cost of the practice at about $850,000 each year.
Cooper enjoined the practice before the union’s contract expired last year, following a lawsuit from the Goldwater Institute, and she again halted “release time” after a new contract was approved in 2012 that reauthorized the practice.
Goldwater sued the city and the union, arguing that the practice violated the state Constitution’s gift clause. The gift clause requires that public entities receive substantial benefit from any public money they spend.
The trio of attorneys representing the city, police union and conservative-advocacy group Judicial Watch argued that the City Council has the authority to approve such agreements. The attorneys told the judge that the release-time payments are a pittance compared to the entire labor agreement and that release time is part of the union members’ overall compensation package, like an insurance policy, which they should control.
The Goldwater Institute has invoked the gift clause in the past five years to oppose shopping developments, financing for a professional hockey team and tax incentives for an aquarium in Tempe.
State law prohibits public entities from making donations, grants or subsidies to private corporations or associations. But the Arizona Supreme Court has ruled that public bodies do not violate the clause if the expenditure has a public purpose and does not amount to an abuse of the government’s discretion.
Putting payments to police officers in the same category as tax incentives to real-estate moguls seems odd to supporters of the union’s position, but Goldwater Institute attorney Clint Bolick told Cooper on Friday that release time clearly fits the clause’s definition.
“Release time is a gratuity for PLEA,” Bolick said. “Release time is owned by PLEA, controlled by PLEA and used for the benefit of PLEA. As a result, it must be analyzed under the gift clause.”
The Phoenix Law Enforcement Association, the labor union that represents the majority of Phoenix officers and negotiates the contract with the city, has had the agreement allowing release time in place for 37 years, Mike Napier, the group’s attorney, told Cooper.
Other jurisdictions around the nation take different approaches to allow officers time off to represent one another during grievance proceedings, to respond to emergencies such as an officer-involved shooting and to conduct negotiations with city officials.
Some cities, including Chicago and Los Angeles, allow labor groups to reimburse the city for the union release time, according to court documents the Goldwater Institute filed. Houston and Fort Worth, Texas, have a bank of release-time hours to which officers can donate vacation time.
In Dallas, where Phoenix Police Chief Daniel V. Garcia rose to the rank of assistant chief in a 33-year career, the leaders of the largest labor group request “business leave” from their supervisors to conduct union business and are paid for their time through union dues.
After Cooper’s initial injunction, Phoenix officials proposed a system that would require full-time union officers to create a log of their hours and activities and that would require the union to reimburse the city for hours spent doing work that was not determined to be for a public purpose.
The union rejected those proposals, and the contract was approved through 2014 with few changes.
Attorneys for the union, the city and Judicial Watch said Cooper would need to determine that the City Council abused its discretion when it kept release time in the contract.
“Do not substitute your judgment for that of the council,” Napier said.
Cooper didn’t indicate when she might rule on the case.
Corporate welfare at Tempe Town Lake!!!!
Corporate welfare at Tempe Town Toilet!!!!
I have these problems with
Tempe Town Toilet
or
Tempe Town Lake
as the royal members of the Tempe City Council call it.
1) A large part of the time the park is not open to the public, but used for events to raise money for the royal rulers of Tempe. And these events are expensive to attend and most of the working class people
that live in Tempe can't afford to attend the events, despite the fact that these people
were forced to pay for
Tempe Town Toilet
with their hard earned tax dollars.
2) These events cause huge traffic jams and parking problems in the downtown Tempe area
3) When these events are concerts they routinely keep people awake late at night in the entire downtown area, and as far north as Roosevelt Road in Scottsdale which is also Continental Drive in Tempe. I am not sure how far south the concerts can be heard.
Also check out:
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Source
Tempe to weigh revising Town Lake plan
By Dianna M. Náñez The Republic | azcentral.com
Tue Jul 30, 2013 12:10 AM
The Tempe City Council took a leap of faith more than a decade ago when it sank $44.8 million into building a 2 1/2-mile-long lake in the desert.
The council hoped that risking the debt to create high-profile waterfront property would pay off in the long run for Tempe, then a landlocked city desperate for new development.
But 14 years after the lake opened in 1999, city finance officials say Tempe is faced with a reality check that Town Lake is far from reaching the city’s development goals.
Tonight, the council is expected to consider revising a financing plan for Town Lake.
City finance officials have said the revised plan would give developers a financial break on their share of costs tied to the man-made lake
, make private development more affordable
and, ultimately, advance Tempe’s plans to secure sufficient lakeshore private development to ease the hefty public costs of maintaining Town Lake.
But critics argue that taxpayers have long carried the financial burden for private lake development.
The new plan offers no guarantee that economic breaks for developers will actually spur construction, argue Joe Pospicil and Art Jacobs, two longtime Tempe residents who regularly question city finances and criticize lake expenses.
If approved, the revised plan also would shift the burden of paying for a new west-end lake dam, which the city has estimated will cost at least $37.4 million, to Tempe taxpayers, freeing developers from sharing the expense to replace the dam.
Approval of the city proposal would mark the second time a Tempe City Council, aiming to drive development, has tweaked the original 1995 lake-financing plan in favor of developers. The first was in 1997.
Mayor Mark Mitchell said he believes the proposal merits more time in the public realm so that council members may gain sufficient community feedback.
But it remains to be seen whether Mitchell’s colleagues agree that the council has a responsibility to arrange future forums for the public to question and comment on the proposal.
As of Monday, the proposed changes were included on the agenda for today’s council meeting.
The finance proposal is not set for a two-hearing process, which would have allowed for public comment at the first hearing and then required a vote and a second opportunity for public comment at a future council meeting.
That means the council could choose to approve the revised Town Lake financing plan with little opportunity for public input.
But before the council agenda was posted on the city’s website Friday, Mitchell said he still had questions about the financing plan.
“When we initially developed the lake, we had a plan, but it’s a working document,” he said. “We might change it, we might not. (But) we’ll have enough time to thoroughly review (any formal changes).”
Mitchell said he expects staff today to merely explain the long-term impact of the proposed changes.
The proposed finance changes were triggered by an economic reality check, Roger Hallsted, the city finance analyst for the Rio Salado Community Facilities District, told The Arizona Republic.
“From all of our original projections, (we were) thinking really by about this time ... the lake would be built out,” Hallsted said.
Tempe’s goal is for private development on 120 acres to generate assessment fees covering 60 percent of annual operations costs.
But a Republic analysis last year revealed that in the 13 years since the lake was filled, private development still only covered about 20 percent of operation and maintenance costs, well below the 60 percent envisioned in the original city plan.
Tempe taxpayers have and continue to pay the majority of the $2 million to $3 million in annual costs for operations and maintenance as well as most of the bill for the $44.8 million in original construction costs.
Private investment has spurred construction of about 24 acres of condos, high-rise office and commercial space around the lake. Town Lake supporters blame the recession for slower-than-expected development.
The proposed changes to the financing plan are aimed at making land surrounding Town Lake more attractive to private development, Hallsted said.
If the council approves the changes, Town Lake developers would pay less toward their share of payments for the original construction costs.
The proposal emanated from Tempe’s Enhanced Services Commission, Tempe Finance Manager Ken Jones said.
The commission includes representation from Jones; Town Lake developers; Nancy Hormann, the president of the group that manages the downtown Tempe district; and Arizona State University, which owns and is attempting to develop acres of lakeshore property.
A Republic review of public records from the commission meetings shows that commission members have spent the past year discussing development and maintenance plans for the lake.
At a January meeting, Jones asked for “the logic behind asking the council to cover the cost of replacing the dams,” according to public records of the meeting.
Hallsted said shifting the cost of the dams from being a shared debt with private developers to a taxpayer-only-funded cost is the result of the original rubber dam deteriorating years earlier than expected.
“These new dams, at $38 million to $50 million, if we were to put that in at the true cost, just the (Town Lake) infrastructure replacement budget would have gone from $531,000 (annually) to $2 million,” he said.
The city had to face facts, he said, that it would have to shoulder the dam’s cost rather than “bankrupting every single (lake) property owner,” Hallsted said.
The commission questioned whether it’s “more expensive to build at the lake than anywhere else in the Valley” and whether the city was “willing to offer an incentive to level the playing field,” according to public meeting records.
The commission recommended a plan that would lower an annual “holding fee” of sorts that developers pay until they build on their lake property.
If the revised plan is approved, that fee would be reduced from the current 5 percent to the rate of inflation, which is currently 2.2 percent, Hallsted said.
The financing proposal also includes lowering the annual interest rate developers pay over the 25 years they are allowed to pay back their share of lake construction.
The current interest rate is 5 percent, and the proposal would lower it to 3.64 percent, Hallsted said. He added that the proposal calls for the council to make the rate reduction retroactive to July 1, 2009.
If the council approves rolling back the fee, developers that have built existing commercial and residential development at the lake would receive credits on biannual debt payments they are currently making.
While critics worry that taxpayers are funding too much of the cost for Town Lake, Hallsted reasons that the revised plan will establish a realistic financing plan for the lake and encourage development that will help pay a greater share of the lake’s annual operations and maintenance costs.
“The key thing,” he said, “is being fair to the citizens, but try to make it more enticing for developers to come in.”
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