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About Polk County itemizer observer. (Dallas, Or) 1992-current | View Entire Issue (Jan. 4, 2017)
ARE YOU PREPARED? GET READY Volume 142, Issue 1 CABLE BROTHERS Page 9A DOUBLE TROUBLE Page 10A www.Polkio.com $1.00 January 4, 2017 OREGON’S RETIREMENT SYSTEM PERS increases will put pressure on tight budgets for local governments By Jolene Guzman The Itemizer-Observer POLK COUNTY — Local governments’ 2017-18 fiscal year budgets have a shadow looming over them in the form of Oregon Public Em- ployees Retirement System rate increases. PERS officials say rising rates won’t be an anomaly, continuing for the foresee- able future. “As a human being I’m like, wow PERS, it’s awe- some, but as a manager, I hate PERS,” said Monmouth City Manager Scott McClure. He’s probably not alone in his mixed feelings about the pension program, created in 1945 by the Oregon Legisla- ture to see that public em- ployees maintained some income when their working days were over. McClure estimated the city of Monmouth will see PERS costs increase by $140,000 for the upcoming fiscal year. Combined with other in- creases, that means the city needs to either cut spending or find ways to increase rev- enue. He said the city has al- ready begun to draw down reserves in past budgets. “ We changed budget practices to see how that would affect overall spend- ing, so you either cut some- thing or come up with some new money because we can’t keep spending the way we’re spending, and everybody knows it,” McClure said. The Dallas School District is looking at a $660,000 in- crease, and for Central, the figure is $915,000. Polk PERS What do employer contribution rate changes mean for Polk County and already tight budgets? POLK COUNTY Rate increase: Tier 1 & 2 3.83%, OPSRP 2.32%; OPSRP Police & Fire 2.98% Estimated 2017-18 cost: $550,000 to $600,000. POLK COUNTY FIRE DISTRICT NO. 1 Rate increase: Tier 1 & 2 4.09%, OPSRP 1.37%; OPSRP Police &Fire 2.03% Estimated 2017-18 cost: unavailable. CITY OF DALLAS Rate increase: Tier 1 & 2 4.57%, OPSRP 2.95%; OPSRP P&F 3.61%; Estimated 2017-18 cost: $170,000. CENTRAL SCHOOL DISTRICT Rate increase: Tier 1 & 2 6.99%, OPSRP 6.35% Estimated 2017-18 cost: $915,000 CITY OF FALLS CITY Rate increase: Tier 1 & 2 3.83%, OPSRP 1.75%; OPSRP P&F 2.41%; Estimated 2017-18 cost: unknown, but expected to be small. FALLS CITY SCHOOL DISTRICT Rate increase: Tier 1 & 2 6.06%, OPSRP .81% Estimated 2017-18 cost: unavailable CITY OF INDEPENDENCE Rate increase: Tier 1 & 2 4.99%, OPSRP 3.23%; OPSRP P&F 3.89%; Estimated 2017-18 cost: $120,550. DALLAS SCHOOL DISTRICT Rate increase: Tier 1 & 2 4.87%, OPSRP 4.23% Estimated 2017-18 cost: $660,000. CITY OF MONMOUTH Rate increase: Tier 1 & 2 4.28%, OPSRP 2.91%; OPSRP P&F 3.57% Estimated 2017-18 cost: $140,000. PERRYDALE SCHOOL DISTRICT Rate increase: Tier 1 & 2 4.87%, OPSRP 4.23% Estimated 2017-18 cost: unavailable. ing available to pay those benefits, called the “unfund- ed actuarial liability.” In 2015, the number sat at almost $22 billion. He said past practices helped create that problem. Decisions made in the and 1980s and 1990s, when the program was making large investment earnings and crediting accounts at high percentages, allowed employees to retire with an- nual benefits that some- times matched 100 percent or more of their salaries. “The system was never INDEPENDENCE New chamber direc- tor ready to jump in. »Page 3A MONMOUTH INDEPENDENCE — Patty Nevue is just about to her one-year anniversary as di- rector of the Ella Curran Food Bank. She has seen the ebb and flow of the donation cycle, and said the food bank — and all who use it — is blessed to have so much support from the communi- ty year-round. Contributions have served about 9,000 visits to the food bank in 2016. “Now there can be over- lapping people, but that’s, like, 700 people in a month,” Nevue said. The food bank is open just 10 hours a week, so that’s roughly 17 people an hour. “It’s surprising.” Nevue took the job from Pat Jaffer in January 2016. She said she was surprised to see the scope of people served by the food bank. “It’s really all demograph- ics,” she said. “It’s workers, newly unemployed, young people, lots of senior citi- zens, people who are just THE NEXT 7 DAYS PLANNING FOR YOUR WEEK EmIlY mENTzEr/ Itemizer-Observer Patty Nevue, left, and Linda McBurney work collaboratively to supply the Ella Curran Food Bank to feed those in need in the Monmouth and Independence communities. getting started — it’s every- thing. Some people will use the food bank for a long time because of their life sit- uation, and then some peo- ple use it for a short time and then end up being donors.” Right now, the pantry is filled with donations from the holidays — a time when people’s minds are generally Visor cards for deaf/hard of hearing drivers arrive. »Page 7A designed to pay that much,” Crosley said. But those benefits were guaranteed, so when earn- ings fell back to earth, high- er employer rates were nec- essary to make the equation “benefits = contributions + earnings” match. “It’s a balance that we have to strike,” Crosley said. The past can’t be undone, at least not according to Ore- gon Supreme Court deci- sions overturning cost-con- trolling reforms, Crosley said. Those judges receive PERS. See PERS, Page 6A About 9,000 visits to the food bank in 2016 meant fewer people went hungry The Itemizer-Observer »Page 5A »Page 2A Ella Curran Food Bank feeds thousands By Emily Mentzer Nominations for the Dallas Community Awards are due Friday at noon. Falls City named a Tree City USA. KATHY HUGGINS/Itemizer-Observer on average about 4 percent for 2017-19. That represents $885 million in increased costs. Governments are pay- ing $2 billion into the sys- tem, and will pay $2.8 billion in 2017-19. Estimates have rates growing at the same per- centage every two years through the 2021-23 bienni- um, Crosley said. Crosley said the main cause behind employer rate growth is the difference be- tween what employees have already earned, called “ac- crued liability,” and the fund- DALLAS FALLS CITY Changes to Oregon Public Employees Retirement System rates will be costing local governments more. County will see between $550,000 to $600,000. The city of Dallas’ estimate is about $170,000, and Inde- pendence is anticipating $120,500 more in 2017-18. PERS revenue comes from three sources: Investment earnings (73.4 percent), em- ployer contributions (21.1 percent), and member con- tributions (5.5 percent). David Crosley, the PERS communication director, said systemwide PERS rates charged to government enti- ties — the employer contri- butions portion — will rise IN YOUR TOWN shifted toward helping oth- ers. Shelves are stacked with a variety of vegetables and fruit — something that is usually in high demand and low supply. Throughout the year, vari- ous food drives from the Scouts, churches, schools and the U.S. Postal Service help keep the food bank stocked, as well as contribu- tions from the Marion-Polk Food Share, with which Ella Curran is associated. One of the more consis- tent donations comes from the Mon Indy Food Project’s green bags, Nevue said. “Now that I’ve seen a year of how it all comes in, the end of September and Octo- ber, it gets a little bit lower (in terms of what’s on the shelves), and our communi- ty, because of their involve- ment with churches, and li- b r a r i e s , a n d d i f f e re n t things — and the green bags — we made it through, where other pantries have a hard time,” she said. The green bags have brought in 14,000 pounds of food in 2016, Nevue said. See FOOD, Page 3A SPORTS Dallas swimmers learning to love the water. »Page 10A Get involved in Central’s search Itemizer-Observer staff report INDEPENDENCE — Cen- tral School District will host a community forum regarding the superinten- dent search on Thursday at 6:30 p.m. in the Central High School Cafeteria, 750 S. Fifth St. in Independ- ence. Anyone who is not able to attend is invited to fill out the Central SD 13J Su- perintendent Search at central.k12.or.us. A report of overall re- sults will be submitted to the school board for its consideration in develop- ing a profile for prospec- tive candidates and use in search literature. ‘Winter Wonderland’ postponed mONmOUTH — Due to unforeseen circum- stances, the Winter Won- derland has been post- poned until Thursday from 1 to 3 p.m. at the monmouth Senior Cen- ter, 180 S Warren St. It seems to be working out well to have post- poned, as more people are coming. Food and gifts will be provided. Participants do not need to bring any- thing. Confirm with the senior center if you are still plan- ning on attending so the center’s volunteers can keep count for food pur- poses. For more information: 503-838-5678. wed thu fri sat sun mon tue Put your Scrabble skills to the test at Independence Pub- lic library at Scrab- ble with Betty. Prizes and snacks available. 1 p.m. Free. Join the Dallas lions Club at Hong Kong restaurant for a no- host lunch and a speaker. Noon. Free. Jam with other mu- sicians at the Guthrie Park Acoustic music Jam session, on Kings Valley Highway. 6:30 p.m. Free. Need health care? Head to the Polk Community Free Clinic at Trinity lutheran Church in Dallas. 7-11 a.m. Free. Grab breakfast at Buell Grange Hall on mill Creek road, just off Highway 22, northwest of Dallas. 8-11 a.m. $6. It’s never too late to learn an instrument with Willamette Val- ley New Horizons Orchestra. Players of all levels welcome. 6:30 p.m. $25/mo. looking for some- thing to occupy your young child? The Indoor Play Park at First Presbyterian may be the answer. 9:30 a.m. Free. Snow Hi: 31 Lo: 17 Sunny Hi: 32 Lo: 17 Partly sunny Hi: 34 Lo: 25 Rain Hi: 36 Lo: 33 Rain Hi: 42 Lo: 36 Rain Hi: 41 Lo: 36 Showers Hi: 42 Lo: 36