With city contract bargaining season in full swing, it’s imperative that the city not just hold the line in one key negotiable area, but roll it back further to ensure long-term financial stability.
Gilroy has made progress in the defined pension area, but should continue to take incremental steps in rolling back pension benefits for retired city workers.
The city should not and cannot afford to have police officers, managers and firefighters retire at 55 or 60 and draw $100,000 per year in pension benefits for the remainder of their lives. It’s a liability albatross around the city’s neck that will drag down our community’s ability to offer other services, whether it’s better parks, recreational programs, swimming facilities or more officers on the street. The cost of benefits and pensions matters across the city budget board. Where the money is allocated is simple math.
The days of defined benefits in Gilroy should be coming to a close. The city should offer, and City Administrator Tom Haglund has experience in these matters from his previous position in Hanford, a 401(k) retirement package that employees can manage on their own with contributions from the city.
It’s difficult to move away from the present system, but the City Council should insist on, not just incremental progress, but a wholesale change in direction. How that should be accomplished should be a matter of grave importance on the Council agenda.
Mayor Don Gage is in a perfect position to lead in this regard since he has stated on numerous occasions that he will not run for mayor again. His political future is not in doubt, and the legacy he would leave if the city is successful in significantly reducing its long-term pension liability would be a good thing for Gilroy for many years to come.
With a well-thought comprehensive benefits package, Gilroy would most certainly still be able to attract top employees. Our city has a lot to offer, and one of the keys to attracting employees is long-term financial stability which should be a common goal.
