Thursday, September 15, 2016

Dear city manager Mark Meyers and finance director Michael Huston,

TJ Parker and I are looking forward to our meeting Fri. Sep. 16 at 9:30, in your city office.

Below are some questions that I would like to discuss with you.

I've copied the city council members in the hope they might attend our meeting or may decide to ask these questions privately.

Also, I invite all copied on this email to send me any other questions that they feel might be helpful.

Much of my initial interest in the retiree underfunding came from this article: http://www.michigancapitolconfidential.com/22617

And this attachment showing Norton Shores as the 6th most underfunded employee pension of the largest 100 cities in Michigan: http://www.michigancapitolconfidential.com/archives/2016/July21-1.pdf

I am using your 2015 financial audit as basis for my questions: http://www.nortonshores.org/index.asp?Type=B_BASIC&SEC={B9072D7B-1C69-45CF-9937-9312580FF750}

The first and most important question: Would you agree that the underfunding of the NS pension and health benefits for retirees is a concern? Why/Why not?
· If the city suffers serious financial problems because the retiree funds are underfunded, will current retirees be affected? Current employees?
· Do you agree with the American Academy of Actuaries that the goal of Norton Shores government is to fully fund the retiree pension and health insurance plans at 100%?

· What are your plans to remedy this underfunding?
· The annual required contributions to the retiree healthcare fund had declined precipitously in recent years. Why?
· The "funded ratio" is 4.35%. With over $38 million underfunded. Are you comfortable with this? Why/Why not?

Why do you use 8.25% return when your money managers show expected returns of 2%-6.56% ?

· What have been the pension fund investment returns for past years?
· You have plans to fix underfunding. Are they written? What are they?
· Will citizens be able to attend meetings to discuss this issue?
· Muskegon county posts their employee contracts online. Will Norton Shores do the same?
· Are there any other pension programs or retiree healthcare programs other than these?
· Are the city councilors liable personally for serious mismanagement?
· Is there something that we citizens can do to help the situation?
· Are any new hires offered defined benefit plans and/or retiree healthcare benefits?
· Have you considered looking into other cities that have 100% funding?
· Are you willing to meet together with other cities to understand and adopt similar pension and health programs.
· How can we approach this issue as a team? (Citizens and the council they elected serving together)
I will attend this meeting tomorrow and will report back to you.

Link to Mackinac Center conference (live on web tomorrow, 9/15. Noon.):

How Pensions Are Bankrupting Cities and States and How to Fix It

Thank you for your time,

Jim Riley