On May 22, a special election is scheduled within the City of Pine Bluff for the purpose of considering an increase in the millage levied to sustain the pension funds for retired police officers, retired firefighters and their surviving spouses. This letter is to inform you of some of the facts concerning the pension funds and allow you to make an informed decision about the question.
These pension funds are of long standing, the Police pension fund being created in 1941 and the Firefighters pension fund being created in 1947. Until 1983, these were the only retirement funds for public safety employees. Police and firefighters hired after 1983 are enrolled in a state-funded retirement system; however, for those who were hired before, the local plans serve as their retirement pensions. An important fact is that under a quirk in the law, police and firemen do not earn Social Security credits during their period of service with the city. This means a career policeman or fireman with years of service under the city pension plans has no Social Security retirement in addition to his city pension.
The city pension funds are sustained by millage levied against the assessed value of real and personal property in the city. Remember, that “assessed value” of property is only 20 percent of market value. Currently the millage rate levied is eight-tenths (0.8) of a mill on the dollar of the assessed value of the real or personal property, per fund. A mill, by the way, is one-tenth of one cent. This means the actual levy is eight-one hundredths of a penny on the assessed value, per fund.
The special election on May 22 is to decide whether the millage rate for each funds increase two-tenths per mill, or two-one hundredths of a penny. To illustrate what this increase would mean: if you own a home with an assessed value of $75,000, the increase would equal $3 per fund, or a total increase of $6 per year.
This increase is needed because the funds are becoming insolvent and must have additional monies to shore up their financing. The proposed increase will help close the gap in funding.
Independent reporting for Pine Bluff & Jefferson County since 1879.
Without the millage increase, the pension funds shortfall will have to made up either by a reduction in benefits to retirees or by the city contributing money directing from the city’s general budget. With the millage, the likelihood of a benefits reduction is decreased, as is the amount the city would have to contribute to the funds.
Often the public is reflexibly against any tax increase. It is essential to counter this reflex with the facts related in this letter. All members of both pension boards, as well as all members of the city council, and the mayor, have endorsed this millage increase. It has been endorsed by the Jefferson County Mutual Aid Organization. It has been recommended by the professional actuary for the funds and commended by the director of the Arkansas Pension Board.
The millage increase is set forth on the ballot as two separate questions, as necessary since there are two separate funds. We urge you to go to the polls on May 22 and cast your ballot “FOR” both millage proposals. Also, please urge your friends and relatives who live in the city and can vote to support the millage increase. Remember, vote “FOR” both proposals on the ballot.
All campaigns cost money and your help is needed to defray the costs associated with this one. To contribute, mail your check or money order, payable to “Fire and Pension Millage Campaign,” to 146 West Little Lane, White Hall, Arkansas 71602. Any amount will help, and Thank You.
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Eddie Lunsford, Co-Chair — Retired, Chief, Pine Bluff Fire Department
Lee Hurd, Co-Chair — Retired, Captain, Pine Bluff Police Department