Thursday, June 21, around 60 members and guests of the GOP Club in Leisure World gathered to hear John Moorlach, Orange County supervisor, Second District, discuss OC’s finances and financial future. Moorlach titled his talk “Orange County a Model During a Period of Municipal Meltdowns.” He used a power point presentation punctuated by humorous cartoons.
Moorlach touched on a number of local projects that were underway.
Moorlach said consolidation of smaller cities would reduce the duplication of services by the cities and thus save money. He praised Seal Beach as most desired by other communities seeking consolidation.
Moorlach presented the underlying assumptions of the pension plan: a 7.5 percent return on investments, a 25 year service with retirement at 50 with 4 percent per year pay increases, 3 percent cost of living increases after retirement and death at 80.
Using these figures, a retiree making $50,000 at retirement would make $157,055 at age 80 when the retiree conveniently died.
Further complicating the retirement benefits was the increase from 2 percent to 3 percent of highest income retroactive to the hire date of the employee.
Moorlach said that Orange County’s unfunded medical, retirement and pension plan obligations were $1.4 billion when he took office. This was reduced by 71 percent, or approximately $1 billion.
Moorlach closed with suggestions for fixing the financial quagmire: lower taxes so that more money goes into the economy; stop the out-migration of businesses and people; consolidate and combine wherever possible to reduce costs and return the retirement system to the old formula..
