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Dallas Police and Fire Pension faces financial trouble
FOX 4 obtained an email labeled ‘confidential’ where the leader of the city's bond task force informed the mayor and city council members that before the city seeks to use its entire bonding capacity for infrastructure needs, it may need to consider concerns about the police and fire pension.
DALLAS - Leaders of the Dallas Police and Fire-Rescue are concerned that future plans for their pension system could run into financial trouble again.
FOX 4 obtained an email labeled ‘confidential’ where the leader of the city's bond task force informed the mayor and city council members that before the city seeks to use its entire bonding capacity for infrastructure needs, it may need to consider concerns about the police and fire pension.
Seven years ago, retired Dallas police and firefighters packed pension board meetings as the fund faced a then-eminent threat of going broke.
Fearing drastic cuts to benefits, hundreds of police officers and firefighters retired.
"We're still recovering from what happened when we had the mass exodus of members," said Dallas Fire Association President Jim McDade.
The pension system faced a $3 billion shortfall overseen by then-Director Richard Tettamant. The fund made risky investments that lost hundreds of millions of dollars.
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The deals included ultra-luxury homes in Hawaii, Aspen and California and the $200 million museum tower in Downtown Dallas.
Tettamant was ousted in 2014.
Three years later, state lawmakers passed a bill that McDade says created a seven-year band-aid.
"Everybody recognizes this funding piece that we need to get in place," he said.
Monday, McDade and Dallas Police Association President Mike Mata wrote letters requesting that the mayor and city council delay the next bond vote until the city figures out how to fund the pension system's shortfall.
The current city proposal is to put $400 million toward the pension, but McDade says the real need is triple that amount.
"The committee the other day hit on the number about $1.5 billion that gets us heading in the right direction," McDade said.
Arun Argawal is the chair of the city's bond task force, examining infrastructure needs.
The city has a debt limit of $1.5 billion, but committees have already found needs going beyond that amount.
"They've come up with $1.8 billion in needs right now. And you can imagine I don't envy their job," Argawal said.
Argarwal says the bond as it is currently outlined would focus funding on five areas: streets and transportation, erosion and flood control, critical facilities, parks, and housing and economic development.
They are all important goals, but none are addressing the pension issue.
After getting letters from the police and fire associations, Argarwal sent the email we later obtained.
"It was my duty to inform the mayor and city council," he said. "They would request that the bond process should take a pause."
Dallas Mayor Pro Tem Tennel Atkins is chair of the pension ad hoc committee. He says the city will need to examine every option, and funding the pension is something the city must resolve.
New numbers about the pension's solvency are expected to be released next month.