Pension costs
Town Board questions 1,000 percent increase
by JESSICA L. FINCH Associate Editor

Funding pensions is a mandated cost for the Amherst Town Board, but an increase of 1,000 percent over the past few years has Council Member William A. O'Loughlin Jr. asking questions.

During the March 5 board meeting, O'Loughlin sponsored a resolution that requests a meeting with state officials to understand the rising expenditure, which costs the town more than $6 million per year.

"With both major increases in stock and bond prices since 2003, our pension contributions should have logically declined but instead have doubled from $3.2 million to $6 million plus in the last four years," he read from the resolution.

According to O'Loughlin, since 2000, the cost has increased from $659,000 to $6,019,000 - an increase of approximately 1,000 percent.

Following the March 5 meeting, O'Loughlin said there may be a reasonable explanation for the $6 million being paid by Amherst, but with that much money being spent, he wants to understand the formula.

The resolution asks that New York State Comptroller Thomas P. DiNapoli or members of his staff provide the Town Board with an explanation as to why the pension contributions did not decline during the last four years but have risen approximately 1,000 percent.

Amherst Comptroller Frank Belliotti said there are 5,000 financial instruments included when determining how much towns will pay for pensions. Of that, 49 percent are from domestic stocks and 21 percent from bonds.

He said when the fund that pays the pension doesn't have the amount needed, then municipalities are told to make up the difference.

"It's a mandated cost, so I think it's a good idea to send the letter asking why and to tell us about the cost," Belliotti said. "The state comptroller ought to have an explanation."

He added that about four years ago, the state comptroller's office had said it would try to give towns a break, but that didn't materialize.

In addition, Belliotti said the town should be told what the future of the pension cost is going to be.

The Town Board is seeking the response prior to April 15 to allow better planning for the 2008 budget process.

e-mail: jfinch@beenews.com