UPDATE: 2:40 p.m. Friday – Statement from the San Diego County Taxpayers Association, via the Libertarian Lass:
SDCTA Denounces Outrageous Otay Water District Proposal
Retirees and dependents receive free lifetime healthcare; customers get the bill
(San Diego) – At a time when their customers are paying double digit increases for water, the Otay Water District board of directors is considering approval of a deal at its board meeting this afternoon which would provide an extraordinary lifetime healthcare benefit for executives, managers, and supervisors, as well as their dependants.
The deal would give the qualified employees:
- A 7% salary increase between now and July 1, 2012
- Enhances lifetime retiree healthcare and dental benefits
- Newly added healthcare and dental benefits (at 88% coverage) for the retiree’s dependants
Otay Water District managers can retire as early as age 55 with 15 years of service to receive this benefit. Worse, the Board will also be asked to consider adopting this benefit for its represented employees next month.
“It seems we’re getting an early start on the Golden Fleece Awards for next year,” said Lani Lutar, SDCTA President and CEO. “It blows my mind trying to figure out how the District can possibly justify this proposal. This would be an egregious giveaway of ratepayer dollars.
“The District boasts that employees will be paying more toward their pensions as if it’s a huge sacrifice. Employees are finally being asked to pay their fair share of their pension costs, something they should have been doing all along, and it’s going to be offset by salary increases. This can hardly be considered any sort of sacrifice,” said Lutar.
Otay Water District rates have increased by over 40% since January 1, 2009 for the average homeowner.
SDCTA calls on Otay Water District customers to make their opinions known immediately to board members in an effort to stop this giveaway from being approved. Customers can call (619) 670-2222 to express their outrage. “It’s critically important that people send the District’s board members a strong message to stop this gravy train from ever leaving the station,” said Lutar.
CONTACT: Lani Lutar, 619-838-9065 or lani@sdcta.org
Gayle Lynn Falkenthal, APR, 619-997-2495 or gayle@falconvalleygroup.com
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From the San Diego Union Tribune’s Watchdog:
At a time when many public agencies are cutting back on retiree benefits, the Otay Water District is set to give lifetime health care to managers and their spouses.
Health care for life - Click image to download board packet - 11MB PDF, Page 248
The new benefit is proposed while raising rates 7.7 percent for the fiscal year that started this month.
The district says the cost of the lifetime benefits will be offset by increasing employee pension contributions from 1 percent of salary to 8 percent. The water district’s Board of Directors will vote on the plan today.
Read the entire story in the Union-Tribune by clicking here.
What could possibly go wrong?
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(DISCLAIMER: The opinions presented here are mine and not necessarily those of my employer, the North County Times).