Debts loom on city's horizon

[icejammer]

Nothing that the informed didn't know was coming, but it's a less than rosy picture from the OWH...

http://www.omaha.com/index.php?u_pg=1636&u_sid=2220287

That purse is being squeezed. Revenues from sales and property taxes are increasing, but not fast enough to keep up with the city's major spending priorities. Then add these bills:

• The debt payment on the Qwest Center Omaha will shoot up in 2012.

• The city's pension funds have an estimated $320 million shortfall over the next 27 years.

• Then there's the cost of fixing Omaha sewers. That could reach as much as $3 billion.

And if you're interested, there's a couple public hearings today on the subject.

[joeglow]

Nothing that the informed didn't know was coming, but it's a less than rosy picture from the OWH...

http://www.omaha.com/index.php?u_pg=1636&u_sid=2220287

That purse is being squeezed. Revenues from sales and property taxes are increasing, but not fast enough to keep up with the city's major spending priorities. Then add these bills:

• The debt payment on the Qwest Center Omaha will shoot up in 2012.

• The city's pension funds have an estimated $320 million shortfall over the next 27 years.

• Then there's the cost of fixing Omaha sewers. That could reach as much as $3 billion.

And if you're interested, there's a couple public hearings today on the subject.

-Hopefully, I will be out of the city limits by then.

[Big E]

Hopefully, I will be out of the city limits by then.

Please feel free to not use our airport, baseball stadium, zoo, malls, restaurants, museums, roads, schools and, most importantly, employers while you're at it.

-Big E

[DTO Luv]

We'll get him eventually. I've also heard that some state leaders want to make it so Omaha can annex into other counties. That was from back in 2004. It's so things with the budget don't end worse for Omaha.

[Big E]

I don't think you'll ever see Omaha annex across county lines. You might see counties merge, but I give that about a 1:bazillion chance. The most likely scenario is a payroll export tax or some such thing. IE, you work in Omaha but live outside the tax area, part of your income taxes go to Omaha. Not sure how it would work, but I'm pretty sure other cities have implemented something similar.

-Big E

[DTO Luv]

When I have time and am thinking about it I'll see what I can find. I know lots of people have said that when Omaha fills up Douglas COunty that other counties were options.

[joeglow]

I don't think you'll ever see Omaha annex across county lines. You might see counties merge, but I give that about a 1:bazillion chance. The most likely scenario is a payroll export tax or some such thing. IE, you work in Omaha but live outside the tax area, part of your income taxes go to Omaha. Not sure how it would work, but I'm pretty sure other cities have implemented something similar.

-Big E

Hopefully, you realize I was being a bit tongue in cheek in my previous post. However, this CLEARLY shows why I oppose spending for items that have no real hope of bringing money in excess of their cost to the city. Not that these things are not great to add to the enjoyment as citizens. It is just that we need to spend first on higher priority items before other things. This appears to be a concept lost on most Americans (as evidenced by the NEGATIVE savings rate the average American has).

That said, there are a LOT of cities that have a 1% earnings tax (Kansas City, St. Louis, about every city in Ohio, etc.). Many of them do just what you say and only tax those living outside the city limits. I have often wondered why Omaha has not at least done a study looking at the revenue generated versus the cost of any potential companies looking to move outside the city limits.

[icejammer]

What to do when bills due?

They knew about the debt, the pensions and the sewers. They knew those bills would be big.

But like someone who has spent money all month and is still shocked by the final credit card bill, the Omaha City Council was hit Tuesday with the weight of all those expenses: Qwest Center Omaha debt payments that jump by $8.2 million in 2012. A pension gap of $320 million. A federally mandated sewer overhaul that could cost up to $3 billion.

[loyalomahan]

This isn't just an Omaha problem (pension debt, sewer separation), numerous eastern/midwestern cities are being confronted with this.

[Swift]

Cigarette tax.

[Big E]

Cigarette tax, gas guzzler tax, water/electricity overuse tax, (lack of) density tax...

You want your 12 MPG and green manicured lawn and three zones of AC and 1/4 mile driveway and 400' of sewer in front of just your house - well, pay for it.

-Big E

[joeglow]

Numbers have gone up a bit in three years:

Omaha Pension Funds $2.4 Billion Short By 2030

http://www.wowt.com/home/headlines/45473162.html

If steps are not taken to fix the situation, the pension funds for Omaha Police and Firefighters will come up billions of dollars short by the year 2030. That assessment was delivered Wednesday morning to the retirement board.

The board met at 8 a.m. At 10 Wednesday morning Mayor Fahey's task force on fixing the pension problem released its recommendations.

The retirement board was told this morning that the current shortfall is 520-million dollars.

[Stargazer]

I've got an idea... how about distributing the current values of these pensions today... eliminating them henceforth... and letting them contribute to a 401k plan like the rest of us (oh heck, throw in a 5% match for them as well)

[OmahaJaysCU]

I've got an idea... how about distributing the current values of these pensions today... eliminating them henceforth... and letting them contribute to a 401k plan like the rest of us (oh heck, throw in a 5% match for them as well)

Because that makes too much sense.

[Bosco55David]

I've got an idea... how about distributing the current values of these pensions today... eliminating them henceforth... and letting them contribute to a 401k plan like the rest of us (oh heck, throw in a 5% match for them as well)

Probably because it would kill recruitment efforts for the police and fire departments. I do not know of ANY police/fire departments which do not offer pensions, especially in large cities.

It's not going to happen, nor should it.

[joeglow]

I've got an idea... how about distributing the current values of these pensions today... eliminating them henceforth... and letting them contribute to a 401k plan like the rest of us (oh heck, throw in a 5% match for them as well)

Probably because it would kill recruitment efforts for the police and fire departments. I do not know of ANY police/fire departments which do not offer pensions, especially in large cities.

It's not going to happen, nor should it.

So long as it is sustainable. Clearly, we have promised too much at the levels. Additionally, the problem with pensions is that the city is on the hook for the investment risk that is taken.

[Bosco55David]

I've got an idea... how about distributing the current values of these pensions today... eliminating them henceforth... and letting them contribute to a 401k plan like the rest of us (oh heck, throw in a 5% match for them as well)

Probably because it would kill recruitment efforts for the police and fire departments. I do not know of ANY police/fire departments which do not offer pensions, especially in large cities.

It's not going to happen, nor should it.

So long as it is sustainable. Clearly, we have promised too much at the levels. Additionally, the problem with pensions is that the city is on the hook for the investment risk that is taken.

I'm actually extremely encouraged by the findings here. Of the $30 dollars needed annually (I forget for how many years) the responsibility is going to be split 50/50 between the police/fire departments and the city. All that, while spiking only accounted for 8% of the shortfall. I don't think anyone can deny that the unions didn't go above and beyond in their willingness to get this issue solved.

I think the garbage collection fee is the best method. I don't think $120 a year is too much to ask of the citizens of Omaha.

[joeglow]

I think the garbage collection fee is the best method. I don't think $120 a year is too much to ask of the citizens of Omaha.

I was wondering if this would even hold up. First of all, our trash service blows serious |expletive|. About a month ago, I took a Friday off of work (our trash day). Driving through our neighborhood, I decided to count how many trash lids there were. Out of about 150-200 trash cans, there were FIVE lids. Mine have been LONG gone, since the trash people could not be bothered with putting the lids back on the trash cans after emptying them. Additionally, there was trash all over the streets, as it was clear it fell out of the truck and was left there.

I have complained to my councilman many times throughout the year and things improve for a short while, but then go right back.

Second, our taxes already are supposed to pay for this. Why does the city do this? So that we can get a volume discount, as a city. Tacking on an extra $10 a month brings out total feels to what? How much less (if at all) is this now compared to what we could get with Papillion Sanitation, Elkhorn Sanitation, etc. (not to mention they are not NEARLY are restrictive in what they accept).

I just don't understand how you can charge a flat $120 to every household for trash service and then take the money for pension funding. Finally, it is a regressive tax, which I tend to oppose.

[Big E]

I just don't understand how you can charge a flat $120 to every household for trash service and then take the money for pension funding.

Consider yourself lucky. Since we don't have a driveway, we (along with our 30 neighbors) have to pay for private sanitation services ON TOP OF what we have to pay the city for nothing.

Talk about fisting.

[S33]

I just don't understand how you can charge a flat $120 to every household for trash service and then take the money for pension funding.

Consider yourself lucky. Since we don't have a driveway, we (along with our 30 neighbors) have to pay for private sanitation services ON TOP OF what we have to pay the city for nothing.

Talk about fisting.

Gotta love that "Urban Lifestyle", eh? :;):

[Stargazer]

For some reason I just assumed you all kept compost bins... and had a recycling party once a month.

[Big E]

For some reason I just assumed you all kept compost bins... and had a recycling party once a month.

We don't need compost bins, because - as you know - our |expletive| don't stink.

But the building does recycle with one of those Recycle Bank thingies (which we all voted unanimously to pay extra to participate in).