City pension fund debt

According to the city’s 2015 financial report, the unfunded portion of the various (city employees, police and firemen) pension funds is about $355,000,000.

Add that to the $2.1 billion that we talked about earlier this week and we are at $2,455,000,000.

Don’t forget that the majority of the quality of life bonds need to be added in also.

You should also consider what the bill will be if the city ever decides to fix our roads.

We deserve better

Brutus

13 Responses to City pension fund debt

  1. […] in debt, and we’re in deep, as highlighted by Brutus over at ElPasoSpeak, here, and here, and […]

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  2. Reality Checker says:

    I have two words for you: Detroit and Stockton.

    As I commented two years ago, El Paso has been following the Stockton bankruptcy script to a t, including ballpark debt and rampant over-development.

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  3. taxpayer says:

    can we just get rid of the pension fund and have city employees contribute to a retirement account like everyone else? chk out emma’s “retirement.” My IRA will not pay me a guaranteed $90k for the rest of my life.

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    • In theory, yes, you could start with new hires being offered no pension and with the employees contributing to a retirement. However, it is unlikely that you can undo the contract of city employees who are vested or retired. For fire fighters and police officers and some others, mandatory retirement happens at a younger age than is the practice in private industry. Thus the first responders would not have a work life long enough to generate the retiremnt that others have in less physically demanding jobs. It remains to be seen if you could recruity the quality of workers that we seek. Maybe so, maybe no.

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  4. Anonymous says:

    Looks like the city is just following the example Congress established when they spent all the Social Security nest egg and made it into a Ponzi Scheme.

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  5. […] here we are. Two and half billion dollars in debt in the second poorest large city in the U.S. Taxes are going up and El Pasoans are fleeing for […]

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  6. Haiduc says:

    They should tear up their credit cards….

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  7. Obviously, the bonds and spending have to be brought under control. I suggest one way to help spending is to dump the City Manager position (and, all the administrative and staff costs associated with it) and return to a strong Mayor form of government. At the same time, just scrap all the unfinished bond projects, especially the stupid downtown arena, and call a moratorium on all incentives to businesses in a ridiculous effort to entice new ones. Instead, fix our streets, and concentrate on making this a city worth living in, without all the fringes and fluff. If your city is attractive, by itself, the businesses will come and the businesses will build all that extra stuff y’all want so badly. Oh, and why not look into selling off city assets that are not being used?

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  8. Diagnones says:

    Perhaps one way of dealing with the issue of unfunded pension funds is to refuse to approve any new bonds until the debt is paid and steps are taken to avoid future debt. These first responders should not be risking their lives and their pensions.

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  9. ManintheMoon says:

    Brutus does any one really know how much the City of El Paso really brings in each your to pay this debt?

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    • Brutus says:

      Stay tuned.

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      • ManintheMoon says:

        Brutus just wondering because in 2015 they were saying it was less the 150 million but saw some where it is now up around 350 million which I think was manipulation of the truth. Reason asking we want to know where they sit to the 1:10 ratio of income to debt. If other want to take a shot at this please do!

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