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