By John Pacenti
It’s been ugly. It’s been weird. And it’s not over yet.
It’s been a nine-month standoff in contract negotiations between the Police Benevolent Association and Delray Beach — particularly Mayor Tom Carney.
The mayor has said an increase in the Deferred Retirement Option Program, known as DROP, is meant to put millions of dollars into the pockets of negotiators and top brass.
The PBA has used every tactic it has to shame Carney, employing movable billboards during the St. Patrick’s Day Parade — a stunt that got it banned from next year’s event.
Union leaders filled the commission chambers with police officers. They have deployed various citizens — at the July 15 meeting, it was moms. Vice Mayor Rob Long has read statements on behalf of the PBA during meetings.
The dispute revolves around extending the DROP from five to eight years.
The program allows police officers who are eligible for retirement to continue working for a set period, all while their retirement benefits accumulate. During this time, the officers earn their regular salaries, while their pension payments are deposited into a special account.
This accumulated amount is then paid out when the officer officially retires at the end of the DROP period.
DROP is primarily used as an incentive to retain experienced officers. It offers a compelling alternative to officers simply retiring to start collecting their pensions and pursuing other employment opportunities.
Now, Special Magistrate Thomas W. Young III has ruled in the union’s favor after hearing both sides at a May 14 hearing.
“The plain and obvious answer is not only can the city afford it, but it saves the city millions of dollars,” Young wrote in his July 4 ruling.
“This would appear to be contrary to the elected officials that claimed to have run, as the City Manager (Terrence Moore) stated, on a platform of ‘fiscal conservatism, doing what they can to restore savings and municipal operations to every extent possible.’”
This financial jujitsu occurs, according to an independent actuary cited by Young, because the DROP funds would help write down the city’s unfunded pension obligation, thus resulting in $6.1 million in savings.
Furthermore, extending the DROP — Young said — would make Delray Beach competitive with other municipalities. The union said in June that 26 officers had left the force since negotiations started last year.
The city has offered a $15.3 million pay increase over three years, raising starting salaries to $72,000 — up from $61,000. Third-year salaries will increase to more than $80,000.
The commission met in an in-the-shade executive session on July 22 concerning the contract, but was told by City Attorney Lynn Gelin not to speak on the matter. Commissioner Juli Casale has sided with Carney on the DROP issue, while Long and Commissioner Angela Burns have supported the PBA.
The swing vote has always been Commissioner Tom Markert, who was waiting on the magistrate’s report.
It is worth noting, as a formality, that the city responded to the magistrate’s report on July 24, rejecting all of Young’s findings. It appears to be a formality as negotiations continue, but there seems to be plenty of daylight between the city’s and the magistrate’s positions.
The city rejects not only the DROP finding, but also findings on mandatory drug testing and mental health evaluations. Attorneys representing the city in front of the magistrate say the DROP recommendation would siphon nearly $30 million over 30 years from the taxpayers.
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