July 9, 2007
WHAT WILLIE AND THE CITY COUNCIL DON’T WANT YOU TO KNOW BEFORE THE ELECTION
Politicians love to hide the ball from the electorate. But there is no hiding this ball which is a huge one the size of a hot air balloon, filled with politician doubletalk.
This is the GASB 43/45 government accounting requirement to report the unfunded liability of retiree medical and life insurance liability. The county has already reported that it would mean a 22 to 24 cent property tax increase to fund this requirement. The MLGW has reported a $55 million dollar annual cost and they have in the past wisely put aside $56 million in a trust fund for this purpose.
The City of Memphis has not shown any figure in their 2007 annual budget. Obviously they want to put off this bad news until after the October election. This is what politicians do best. They put off any bad news until the future when they will be out of office and receiving their pension checks and health care benefits in a condo in Florida. What will happen is that they must show this unfunded liability in their 2007 financial statement which will not come out until after the election. If they do not put in money to meet this unfunded liability, their financial credit rating will fall. This type of unfunded liability is what bankrupted many major American Corporations, promises to retirees not backed up with money.
I have attached the PriceWaterhouseCoopers report on the City of Memphis situation. It discusses various scenarios including cutting retiree benefits to lower the cost.
Click here to read the PriceWaterhouseCoopers report on the City of Memphis situation. It discusses various scenarios including cutting retiree benefits to lower the cost
WHAT WILLIE AND THE CITY COUNCIL DON’T WANT YOU TO KNOW BEFORE THE ELECTION
Politicians love to hide the ball from the electorate. But there is no hiding this ball which is a huge one the size of a hot air balloon, filled with politician doubletalk.
This is the GASB 43/45 government accounting requirement to report the unfunded liability of retiree medical and life insurance liability. The county has already reported that it would mean a 22 to 24 cent property tax increase to fund this requirement. The MLGW has reported a $55 million dollar annual cost and they have in the past wisely put aside $56 million in a trust fund for this purpose.
The City of Memphis has not shown any figure in their 2007 annual budget. Obviously they want to put off this bad news until after the October election. This is what politicians do best. They put off any bad news until the future when they will be out of office and receiving their pension checks and health care benefits in a condo in Florida. What will happen is that they must show this unfunded liability in their 2007 financial statement which will not come out until after the election. If they do not put in money to meet this unfunded liability, their financial credit rating will fall. This type of unfunded liability is what bankrupted many major American Corporations, promises to retirees not backed up with money.
I have attached the PriceWaterhouseCoopers report on the City of Memphis situation. It discusses various scenarios including cutting retiree benefits to lower the cost.
Click here to read the PriceWaterhouseCoopers report on the City of Memphis situation. It discusses various scenarios including cutting retiree benefits to lower the cost
posted by watchdog at
8:36 AM
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