Friday, December 16, 2016

Medical marijuana dispensary ban up for vote in Norton Shores

Medical marijuana dispensary ban up for vote in Norton Shores | MLive.com:

Image result for Medical marijuana dispensary"...Norton Shores City Council came to a decision to draft an ordinance preventing dispensaries from opening, plus setting fees and fines.

Gale said if someone were to go against the ordinance and open a dispensary, the city would have to sue to shut down the business.

The fines would reimburse attorney fees instead of using taxpayer dollars.

The council will vote on whether or not to adopt the ordinance at a meeting Friday, Dec. 16..."

NS marijuana dispensary presentation. NS votes today!

Wednesday, November 23, 2016

$23.5M in unfunded liabilities spark change in city's retirement plan

$23.5M in unfunded liabilities spark change in city's retirement plan | MLive.com

"...Councilman Michael Hylland pointed out the urgency needed to improve the situation. 
He referenced a graph on a digital presentation showing that the city's unfunded liability doubled from 2007 to 2015.
Hylland said that the city could go bankrupt if it didn't make necessary changes.


NS work session 11-22-2016-Video-"Managing unfunded accrued liabilities"

NS-Managing unfunded accrued liabilities 1, 2, 3 





































Tuesday, September 20, 2016

My letter sent to Norton Shores city manager today concerning pension underfunding

Dear Mark Meyers,
You may have noticed the recent article concerning Montcalm county's employee layoffs (http://woodtv.com/2016/09/19/montcalm-county-cutting-staff-to-deal-with-budget-deficit/ ).
My sincere hope is that Norton Shores employees and residents will avoid a similar fate.
My belief is the city's financial situation is perilous and decisive action must be taken soon.

I was disheartened to see only one city council person attend our meeting last week.
Perhaps I was using incorrect email addresses when sending the invitation.
Image result for pension disasterWould you be able to forward this note to all on the council and any others with an interest in helping repair these pension funds?

My thoughts relating to our Friday, Sep. 9, 2016 meeting about the current Norton Shore pension and retiree health care underfunding:


  • ·         How we got into this mess is not nearly as important as is the plan to get on track to fully fund the promises made to Norton Shores employees. My understanding, as of our last meeting, is that no plan currently exists. Is that correct?
  • ·         You and your team have made certain adjustments to employee compensation but I have not seen your analysis of exactly how these changes will help (or hurt) the goal of full funding. Do you have that analysis? Will it be made available to the council?
  • ·         Your Internal Memo dated 9-14-2016 (attached) shows "additional contributions per fiscal year" to the pension fund totaling approximately $1 million from 1998-2013. (16 years. Approx. $62,500/yr.) An additional $500,000 for FY 2015 with the same promised for 2016 and 2017. Are the 2016-2017 amounts locked into the city budget?
  • ·         Given that an additional $500,000 is only 2% of the "best case" ($24,619,315 using 7.25% rate of return) net pension liability, do you believe that $500,000 additional per year above the required deposit is adequate to bring the pension fund to your goal of 80% funded?
  • ·         Even with "additional contributions…", the city pension underfunding rose from 2005-- $10,211,605 to 2015-- $20,334,449. Almost a double in 10 years.
  • ·         The retiree healthcare fund mess is not just an "old" problem. Since 2010, the retiree health care (OPEB) annual recommended contribution has been underfunded each year by the following amounts:
  • ·         2010-$1,278,640
  • ·         2011-$1,791,622
  • ·         2012-$1,619,208
  • ·         2013-$1,083,302
  • ·         2014-$1,110,535
  • ·         2015-$1,615,229
  • ·         Almost $7 1/2 MILLION dollars has been diverted from retiree funds in just the last six years. With an upward trend in the last three. Why did this happen?
  • ·         Clearly, many believe this is a very serious financial situation. Is this on any upcoming city agenda?

Below are questions from my last letter that remain unanswered.
I'm sure that the council would be interested in the answers.
As would I and other Norton Shores residents and business owners.

Questions from previous letter:

  • ·         If the city suffers serious financial problems because the retiree funds are underfunded, will current retirees be affected? Current employees?
  • ·         The annual required contributions to the retiree healthcare fund had declined precipitously in recent years. Why?
  • ·         The "funded ratio" is 4.35%. With over $38 million underfunded. Are you comfortable with this? Why/Why not?
  • ·         Why do you use 8.25% return when your money managers show expected returns of 2-6.56% ?
  • ·         What have been the pension fund investment returns for past years?
  • ·         You have plans to fix underfunding. Are they written? What are they?
  • ·         Will citizens be able to attend meetings to discuss this issue?
  • ·         Muskegon county posts their employee contracts online. Will Norton Shores do the same?
  • ·         Are there any other pension programs or retiree healthcare programs other than these?
  • ·         Are the city councilors liable personally for serious mismanagement?
  • ·         Is there something that we citizens can do to help the situation?
  • ·         Are any new hires offered defined benefit plans and/or retiree healthcare benefits?
  • ·         Have you considered looking into other cities that have 100% funding?
  • ·         Are you willing to meet together with other cities to understand and adopt similar pension and health programs.
  • ·         How can we approach this issue as a team? (Citizens and the council they elected serving together)
A final observation.
Whether the government requires a municipality to compute and/or make available to the public that computation of financial data, it is the responsibility of that public body to utilize "real" numbers to make certain that every spending item has a corresponding and equal revenue stream.
And it is incumbent upon each and every council member to demand a regular review and accounting to make certain that promises made to employees will be fulfilled.
Whenever one commits the spending of money, either right now or in the future via an employment contract, there is an implied responsibility to make sure the adequate funds will be available when needed.
Signing union or other contracts, knowing full well there is no revenue stream to fulfill your side of the bargain is, in my opinion, immoral.
It may also be criminal.

Thank you for your time.
I am readily available to meet with anyone to discuss these matters.
I look forward to receiving your response.
Jim Riley

Monday, September 5, 2016

Where is all the money that is supposed to go to Norton Shores retiree's pensions and healthcare going?!!

Image result for financial titanicNorton Shores, Michigan 
From the most recent Norton Shores Financial Report
What does this mean?

  • The top half is the retiree healthcare fund
  • It is supposed to have almost $40 million in it.
  • It has less than $2 million.
  • Its "funded rate" 4.35%. 
  • Astoundingly low! 
  • Detroit-style!!
  • The bottom half is the schedule annual required payments (Annual OPEB Cost)
  • The city's actual annual contribution is less than required.
  • And the annual contribution is going down!!
Where is all the money that is supposed to go to retirees pensions and healthcare going?!!
And how are the citizens of Norton Shores going to get the money to fix this?




Thursday, September 1, 2016

MuskegonPundit: Dallas Cops Get Wise to Impending Public Pension Catastrophe, Start Yanking Their Money Out of the System

MuskegonPundit: Dallas Cops Get Wise to Impending Public Pension Catastrophe, Start Yanking Their Money Out of the System:
Image result for public pension collapse"..."With their pension fund teetering on the edge of bankruptcy, Dallas police officers are grabbing what they can before the whole thing crashes down.
Panic has set in and dozens of officers are pulling their retirement money out of the system as quickly as possible, WFAA reported over the weekend.
One assistant police chief recently pulled $1 million out of the retirement fund and more than $300 million has been withdrawn in recent years, the Dallas ABC affiliate reported, citing unnamed sources..."

Tuesday, August 30, 2016

Meet the leaders of Norton Shores, Michigan 

Norton Shores, Michigan
Gary L. Nelund
(Mayor)
Term Expires November 2017
Mayor Nelund.JPG
Gary Nelund was re-elected Mayor on November 5, 2013 for a four-year term expiring in November of 2017.  Mayor Nelund is a graduate of Mona Shores High School, Kalamazoo College and Western Michigan University.  He is owner of Gary Nelund State Farm Insurance Agency.  Mayor Nelund serves on numerous boards and committees in the community.  He is married to Angie and they are the proud parents of Chloe and Harrison.
Phone: 231-798-4391
Fax: 231-798-7103
Email: gnelund@nortonshores.org


 M. Kay Beecham

(Council Member - Ward I)
Term Expires November 2019
Beecham.jpg
M. Kay Beecham was first elected to the Norton Shores City Council in November of 1983 and was recently re-elected to a four-year term expiring in November 2019.  She and her husband, Bob, have two children who live in Grand Haven.  Their five grandchildren are close to her Norton Shores home and she loves being able to take a very active role in their lives.
Council Member Beecham wants to see the Black Lake Park project get underway.  She feels that in this economy our parks will be an important resource.  She encourages business opportunities in the "walkable" area of Pontaluna and Grand Haven Roads, and stresses the importance of applying for grants to construct connecting bicycle paths. 
Phone: 231-798-4457
Fax: 231-798-7103
Email: mkbeecham1@frontier.com

Dick Dolack
(Council Member - Ward II)
Term Expires November 2019

Dolack.jpg
Dick Dolack was appointed to the City Council in 1978 and was first elected in November of 1979 and was recently re-elected to a four-year term expiring in November 2019.  He and his wife, Pat, have lived in the same house on Seminole Road since 1958 when the street was still a gravel road.
Council Member Dolack was a pharmacist for 50 years.  He retired from full time employment in 1994 after 20 years with Brookhaven Medical Care Facility.  He was also an official with the NFL from 1966 to 1991.
Mr. Dolack is currently a member of the Muskegon County Airport Advisory Board and has served on the Goodwill Board of Directors since 1975.  An issue of particular importance to him is the development of a boat launch for access to Mona Lake from Norton Shores. 
Phone: 231-780-3131
Fax: 231-798-7103
Email: ddolack31@yahoo.com


Michael Hylland
(Council Member At Large)
Term Expires November 2017
Hylland3.jpg
Phone: 231-798-9088
Email: mhylland@aol.com








Cindy Jurkas
(Council Member - Ward II)
Term Expires November 2019
Cindy_Jurkas.jpg
Cindy Jurkas was elected to the City Council on November 7, 2011 and was recently re-elected for a four-year term expiring in November of 2019.  Cindy is a graduate of Mona Shores High School.  She and her husband John (Jay) are the owners of Realistic Photography in Norton Shores and Sharp Digital Lab in Roosevelt Park.  They have three children, John, Taylor and Madison. 
Council Member Jurkas' priorities are road maintenance, business growth, public safety and maintaining a good relationship with the residents of Norton Shores.
Phone: 231-578-4204
Fax: 231-798-7103
Email: c.jurkas@comcast.net
 Jason Flanders
(Ward I Council Member)
Term Expires November 2019
Flanders.jpg

Jason Flanders was appointed to the City Council to fill a Ward I vacancy and was recently re-elected to a four-year term expiring in November 2019.   Council Member Flanders is a graduate of Adrian High School, holds an undergraduate degree in business and economics from Adrian College as well as a Masters of Public Administration degree from Grand Valley State University.  He is currently a medical sales consultant for Astellas Pharmaceuticals and is very active in the community, including founder of the Windflower Bay Neighborhood Watch Group and member of the Muskegon Elks and Rotary.  He is married to Carla and they are the proud parents of Brayden and Madden.
Email: jflanders@nortonshores.org


Donald Martines

(Council Member At Large)
Term Expires November 2017
Martinez_Don0037.JPG
Donald Martines was appointed to the City Council in April of 2009 and was subsequently elected to office the following November and re-elected to another 4-year term expiring in November of 2017.  Don has lived in our beautiful city since 1982 and has two daughters, one in London, England and one in Montpelier, Vermont.

Council Member Martines is the owner of West Michigan Grinding and Machine and ACE Tooling, located in Norton Shores.  He currently serves as Chair of the Muskegon YMCA Board of Directors, is involved in Arc, an organization that assists individuals with developmental disabilities and was appointed to the Budget, Audit and Finance Committee of Arc of the United States.


One of Council Member Martines' personal goals for the City is to provide education to residents on the value of the services they receive with one of the lowest millage rates in all of West Michigan.  He feels that any further reduction of costs and staff is not possible without jeopardizing public safety and other necessary services.  It's time to look at creative ways to increase revenue and invest in Norton Shores!
Phone: 231-855-1457
Fax: 231-798-7103
Email: ddmartines@hotmail.com



William Moulatsiotis
(Council Member At Large)
Term Expires in November 2017


Moulatsiotis.jpg
William Moulatsiotis was elected to the City Council on November 5, 2013 for a four-year term expiring in November of 2017.

Mr. Moulatsiotis owns and operates Greek Tony’s Pizza and Sub Shop on Grand Haven Road in Norton Shores.  He attended Mona Shores High School and Muskegon Community College.  Council Member Moulatsiotis has also served on the Muskegon County Airport Advisory Board and is the head soccer coach at Muskegon Catholic Central.
Phone: 231-798-4555
Email: bmoulatsiotis@nortonshores.org

Roger Morgenstern
(Council Member At Large)
Term Expires November 2017
Roger Morgenstern
Roger C. Morgenstern was appointed to the City Council on July 5, 2016 to serve the remainder of a four-year term expiring in November 2017.  Council Member Morgenstern has been involved in the community through his employment with Consumers Energy since 1999 and as a member of the EDC/TIFA/Brownfield Redevelopment Authority since 2005.  He is also an active volunteer with Harbor Hospice and the Muskegon Community YMCA.  His board experience includes United Way of the Lakeshore, Disability Connection, Volunteer Muskegon and Muskegon Area First, to name a few.  He and his wife Michelle have raised three children in Norton Shores.

Phone: 517-499-6320
Email: roger@nortonshores.org

Sunday, August 7, 2016

Norton Shores disaster awaits-----Detroit Was Just the Beginning: The Crisis of City Pension Systems in Michigan

Detroit Was Just the Beginning: The Crisis of City Pension Systems in Michigan [Michigan Capitol Confidential]:
http://www.michigancapitolconfidential.com/22617
"In 2014, Detroit retirees learned the consequences of waiting too long to reform pensions.
Retirees took a $1.3 billion hit to their pensions because of a mismanaged and underfunded system. Michigan taxpayers had to pay $200 million to clean up the problem.
But other municipalities around Michigan have underfunded systems, too, and only some are taking concrete steps to solve the problem.
Michigan Capitol Confidential looked at Michigan’s 100 largest cities and found that 80 of the systems were underfunded. 
Combined, these 80 cities and townships have only saved 62 percent of what they will need to pay the pensions of future retirees.
Even after Detroit's recent bankruptcy settlement, their total unfunded liability equaled $4.6 billion.
Five cities contributed the most to this liability, responsible for over half the total. Detroit comes in at the top of the list with a $1.6 billion liability.
Flint’s unfunded liability is $285 million, Lansing’s is $246 million, Warren’s is $207 million and Sterling Heights' is $166 million.
The total unfunded liability of these four cities is $2.5 billion.
Of the 20 cities that are not considered underfunded, most (14) offer a defined contribution retirement plan instead of a defined benefit pension plan..."
http://www.michigancapitolconfidential.com/22617
http://www.michigancapitolconfidential.com/archives/2016/July21-1.pdf



Only 5 cities, out of the largest 100 (including Detroit), have a WORSE funding mess than Norton Shores.

The Mackinaw Center (A fiscally conservative research center) recently exposed the fiscal cancer that threatens many Michigan city pension plans.
The report "Detroit Was Just the Beginning: The Crisis of City Pension Systems in Michigan" analyzed the pension solvency of the top 100 cities in Michigan.
Detroit fell into bankruptcy, in good measure, because of severe underfunding of its pension and retiree healthcare plans.
I was shocked to see that Norton Shores had one of the most underfunded pensions in the entire statehttp://www.michigancapitolconfidential.com/22617
http://www.michigancapitolconfidential.com/archives/2016/July21-1.pdf



Only 5 cities, out of the top 100 (including Detroit), have a WORSE funding percentage than Norton Shores.
Something is seriously wrong in NS.

Saturday, August 6, 2016

Even worse than pension underfunding!-----Retiree healthcare (OPEB) only 4.35% funded!

Amazingly, Norton Shore's retiree healthcare benefits fund (OPEB=OtherPost-Employment Benefit Plan) is in WORSE condition that its pension fund.
  • 1. Over $38 MILLION unfunded. (the pension fund is "only" $20 MILLION unfunded!)
That means someone's gotta find $38 million just to to get back to "on track". 
(Fully funded does not mean fully paid up. "Fully funded" means if you continue to make the required actuarial payments every year, you are on track to have enough money to pay the promised obligations in the future.) 
  • 2. The OPEB fund is only 4.35% funded! 
I've never seen a lower rate. 
Other than Detroit!
  • 3. The annual requirement (2015) was over $2.2 MILLION. NS contributed only $657, 183! Only 29% of the required amount!
  • 4. Plus, the amount contributed and percentage contributed are going down almost EVERY year!

CITY OF NORTON SHORES, MICHIGAN FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2015--- Page 45

Tuesday, July 5, 2016

Montcalm Co. cutting staff to slash $1.76M from budget

Montcalm Co. cutting staff to slash $1.76M from budget | WOODTV.com:
"STANTON, Mich. (WOOD) — The Montcalm County Board of Commissioners has OK’d sweeping staffing cuts, the largest concentration of which will be to public safety, as the county attempts to get its budget back in order.
Consultants Clark Hill and Rehmann Robson proposed the cuts that the commission approved during a Monday meeting.
In all, the board agreed to eliminate 22.5 full-time equivalent positions (two part-time positions generally equal one full-time position):
  • Four in the in judicial branch to save $267,203
  • 5.5 in general government to save $515,583
  • 10.5 from public safety to $849,221
  • Two from the Commission on Aging to save $100,000
  • 0.5 from the Friend of the Court to save $30,964
  • That adds up to more than $1.76 million in savings.
...The sheriff’s office is small department that covers a lot of ground in the rural county.
There are only 24 officers as it is — eight or nine of whom are contracted and paid for by local townships or cities.
That leaves about 15 for the rest of the county’s 720 square miles.
Now that number will be cut in half.
Image result for clueless meme...Consultants explained last week that the county has budgeted in a deficit during 12 of the last 13 years as county leaders overestimated how much money they would take in and didn’t decrease spending to square with actual revenue.
Further, the consultants, said, leaders weren’t keeping a close enough eye on how the spending was affecting the general fund. 
As a result, the county is now some $2 million in the hole.
But some commissioners told 24 Hour News 8 Monday night that they didn’t know about the budget problems until just this spring. 
So the question that remains: How did the deficit issues go unresolved for so long?..."