the big guy doesn't want his pension funded

[franksolich]

http://www.democraticunderground.com/10024266272

Oh my.

Omaha Steve (37,910 posts)   Thu Jan 2, 2014, 02:43 PM

Lawmaker: Sell MUD to pay debts (Another R wants to privatize a public utility success)

MUD info below story.

http://www.omaha.com/article/20131231/NEWS/131239820

By Cody Winchester Published Wednesday, January 1, 2014 at 1:00 am / Updated at 12:08 am
 
State Sen. Scott Lautenbaugh thinks he’s found a way to pay for Omaha’s costly sewer overhaul, with enough left over to help out its underfunded pensions and Omaha schools: Sell the Metropolitan Utilities District.
 
Lautenbaugh, an Omaha lawmaker who floated the idea in 2012, said he would introduce a bill this legislative session to privatize the district and use the proceeds to pay the $2 billion cost of the sewer separation project. The rest of the money would be used to upgrade technology and security in Omaha Public Schools and offset the city’s pension liability.
 
“Something’s got to give here to pay these huge outstanding liabilities,” Lautenbaugh said. “We’ve got to get out from under them.”
 
He estimated MUD could fetch $3 billion in a sale, though that number is speculative. He said “people in the industry” have examined the district’s annual reports and told him $3 billion is a reasonable estimate. He declined to elaborate.
 
FULL story at link.

after which a whole lot more blah-blah-blah

No primitive comments, and very few views, on a rather local issue.

MUD (the Metropolitan Utilities District) supplies natural gas and water-sewer services to most--not all, but most--of Omaha.  It's run pretty well, and its rates are reasonably low.

However, due to past Democrat mayors of Omaha giving away what wasn't theirs to give away, the city faces an enormous pension liability.  The big guy, for example, despite just being a file-clerk at the police department, is scheduled to receive a whale of a pension check seven years hence.

He's going to be in clover, fat city.

That is.....if Omaha has any money left.

I think it's too bad a sale of MUD needs considered, but well, what's going to pay for the big guy's lucrative pension?  For the record, taxpayers in Omaha are already among the most highly-taxed of all urban areas in the United States.

[Bad Dog]

Sounds like the taxpayers are just going to have to do a better job of budgeting to pay for their "affordable" health care and the weeping one's pension.  I'm sure they will manage.

[Ralph Wiggum]

....a public utility success....

 

[Ralph Wiggum]

Now seriously.  Could none of these "public" companies figure out the fact that all the pension money had already been spent to satisfy current liabilities?

Morons.  And they bitch about "us" wanting to put our money further into 401k's.

[EagleKeeper]

As unfortunate as it may be I think coach is right.

As I first read this post I was thinking that the weeping neckbeard was talking about the district creating a private venture opportunity along the lines of what milwaukee is doing.

Milorganite, if you care to you can read more about it here: http://en.wikipedia.org/wiki/Milorganite

But alas, that's not the case, instead of of providing a source of capitol the district is going to be capitol.

It's to bad really, the water purification business has alot of potential to operate at a profit but they never seem to grab the brass ring.

[GOBUCKS]

Man! This sounds like a great campaign issue for another run at city council!

Mini-tacos at Bear's!!

[tanstaafl]

Man! This sounds like a great campaign issue for another run at city council!

Mini-tacos at Bear's!!

Exceptin' the good and decent people in Bellevue NE don't give one crapola what goes on in Omaha. Actually, I think Bellevue would put gates up on all the southbound lanes, if they could get away with it.

[EagleKeeper]

Exceptin' the good and decent people in Bellevue NE don't give one crapola what goes on in Omaha. Actually, I think Bellevue would put gates up on all the southbound lanes, if they could get away with it.

Is it because Bellevue is not in the city of Omahas water district?

[tanstaafl]

Is it because Bellevue is not in the city of Omahas water district?

I'm not sure.

[EagleKeeper]

I'm not sure.

Yeah.

[franksolich]

Is it because Bellevue is not in the city of Omahas water district?

There's tiny overlaps in boundaries, but not significantly so.

In Nebraska, water-sewer services are wholly municipal (or some other governmental) agency.

Natural gas is either governmentally-owned or private; whatever the people want.

Electricity is wholly governmentally-owned, as private electrical utilities aren't allowed.

It sounds like primitive heaven, socialism, but that's not why it is the way it is.

And besides, Nebraska being a small place, "socialism" can work--but municipal, county, or state-owned utilities in bigger blue places would be nothing more than a boondoggle for Barney Franks and somesuch; if the primitives think Boston Gas & Electric is high, well, if it were publicly owned.....

The Democrat politicos gotta be paid off somehow, and they're not cheap.

[formerlurker]

They are paying either way, however in selling MUD they would be paying forever in increased utilities costs.  $2 billion for the sewer project is a hefty bond(s) of 30 years minimum I would imagine.   Their plan is to increase sewer fees to pay for that?   That's a hefty increase, one that will be felt by municipal buildings (which pay utilities also - including school district).   

I think what the good state senator needs to present is the cost to residents/taxpayers for increased utilities on the sale of MUD vs the hefty sewer fees that the resident will not only pay for their own property, but the increase in costs to municipal buildings via real estate taxes.   

I have a feeling that selling MUD is the cheapest route as the residents will have the added benefit of funding technology (which the Messiah is mandating with Common Core) in schools and funding OPEB, which they are paying for as they go now.    That could be a significant savings they will realize in their real estate taxes.

Just for chuckles, sprinkle in a hit to their bond rating as Moodys et al are looking at OPEB liability now when determining ratings for municipalities.  They continue to unfund it, or fail to develop a trust plan to start funding it and their bond rating will fall every time they borrow.

In short Senator, you have a presentation problem.  Work on that if you want a meaningful stakeholder buy in.

[franksolich]

Yes, yes, yes, that makes sense to us.

But my question to the big guy is this: how does he expect Omaha to pay for his lush pension?

[formerlurker]

Yes, yes, yes, that makes sense to us.

But my question to the big guy is this: how does he expect Omaha to pay for his lush pension?

As they are doing it now - they pay every year as they go.   Is it optimal?  no, hell no.   As more retirees go online that drain on the general budget gets bigger and unsustainable (and clearly takes away from other line item spending).  Is it a reality of the majority of states and municipalities across the country?   unfortunately yes.    

Public employee unions are bankrupting the country in a death by a thousand paper cuts kind of way.  No question.  

[CollectivismMustDie]

Yes, yes, yes, that makes sense to us.

But my question to the big guy is this: how does he expect Omaha to pay for his lush pension?

Any bets his answer is "thats not my problem"?

[thundley4]

As they are doing it now - they pay every year as they go.   Is it optimal?  no, hell no.   As more retirees go online that drain on the general budget gets bigger and unsustainable (and clearly takes away from other line item spending).  Is it a reality of the majority of states and municipalities across the country?   unfortunately yes.    

Public employee unions are bankrupting the country in a death by a thousand paper cuts kind of way.  No question.  

Public union pensions and healthcare are the main drivers that bankrupted Detroit and are dragging Illinois down quickly.

[formerlurker]

Public union pensions and healthcare are the main drivers that bankrupted Detroit and are dragging Illinois down quickly.

Yep.   

[franksolich]

Wow.

A whopping 116 primitive views, 0 primitive comments, at the big guy's campfire.

You know, if he wouldn't just post-and-run, he'd probably garner an audience (other than here).

[formerlurker]

Any bets his answer is "thats not my problem"?

It is his problem of course as he is a taxpayer and doesn't recognize the burden to pay his pension will be funded on his back.  

[GOBUCKS]

It is his problem of course as he is a taxpayer and doesn't recognize the burden to pay his pension will be funded on his back.

If they tripled Omaha's income tax, the big guy wouldn't pay in more than a couple of months' worth of his exorbitant pension before he's eligible for retirement.

But it's only right for a guy to get an enormous pension from the taxpayers after years of sifting their used rubbers from the incoming sewer water, and more years scrubbing their puke from the back seat of police cruisers.

(I'm surprised he hasn't posted anything about how this season is going for the Bellevue girls' basketball team.)

[formerlurker]

If they tripled Omaha's income tax, the big guy wouldn't pay in more than a couple of months' worth of his exorbitant pension before he's eligible for retirement.

But it's only right for a guy to get an enormous pension from the taxpayers after years of sifting their used rubbers from the incoming sewer water, and more years scrubbing their puke from the back seat of police cruisers.

(I'm surprised he hasn't posted anything about how this season is going for the Bellevue girls' basketball team.)

Revenue is not restricted to income tax as you know.   I am not suggesting that he is paying his own pension, but the tax burden for those pensions and retiree health insurance is staggering to the taxpayer in every state.  He is not excluded from that.  He is just too stupid to realize it.  He also doesn't realize those unfunded OPEB prevent his pet social programs from being fully funded, including education.   The morons that the entire democratic party is.

[franksolich]

137 primitive "views," 0 primitive "comments."

We're way ahead of Skins's island with this thread.

Too bad the big guy has a larger audience here, than over there; he doesn't know who his friends are.

[Airwolf]

Omaha and Bellevue are not only separate cities but they also are in different counties. Which is the biggest reason Omaha has not tried to swallow up Bellevue like they have Elkhorn and other suburbs in the area. So no extra tax base there until they get the state to allow the city of Omaha to cross the county line to do that.

[Mike220]

Why is Neckbeard working against his own best interests?

[franksolich]

148 primitive "views," 0 primitive responses, this morning.

The big guy really knows how to pick subjects to excite his audience, doesn't he?