BP money to reduce pension debt

What’s the most pressing need for the $967,931.82 the town of Longboat Key received from a BP Deepwater Horizon oil spill settlement last month?

Four out of seven commissioners think it’s a consolidated pension fund that’s saddled taxpayers with approximately $23 million in pension debt.

At its Sept. 9 regular meeting, commissioners wrestled with what Mayor Jack Duncan called “a windfall that needs to be shared with the citizens of Longboat Key.”

The money, which was transferred to the town’s reserves account last month, can be used for any public purpose.

Town Manager Dave Bullock listed Bayfront Park, beaches, a future town center, paying for an undergrounding utilities project or paying for capital improvement projects as other potential sources commissioners have mentioned to him.

Commissioner Pat Zunz added a suggestion to use the money to build a future roundabout at the intersection of Gulf of Mexico Drive and Broadway.

But Commissioner Lynn Larson continued to press that the money should be used to pay off the pension debt even though several commissioners urged for a future workshop to discuss how to use the money.

“One of the most pressing issues this town faces is unfunded pension liabilities,” Larson said. “It’s the best use of this money for citizens long term. This is the best bang for the buck, and it’s an obligation to future residents and employees.”

“One of the most pressing issues this town faces is unfunded pension liabilities. This is the best bang for the buck, and it’s an obligation to future residents and employees.”

— Commissioner Lynn Larson

Vice Mayor Terry Gans urged for “a lengthy discussion with prioritization,” allowing commissioners to rank the most important uses for the money.

When Commissioner Phill Younger announced if there was a vote, he would vote to use the money to pay down the pension debt, Larson decided to call a vote and see if she had any support.

“There’s not a more important issue on this island,” Larson said.

Larson, Younger, Duncan and Commissioner Irwin Pastor voted to move the money to the pension fund.

Gans and Commissioners Jack Daly and Pat Zunz voted against the motion.

The money will be funneled into the pension fund before the budget is approved Sept. 28.

 on second reading on Sept. 28.

The town’s consolidated pension board that oversees three past employee pension plans that have $23 million in debt will decide how to use the money to pay down the debt.

The BP money, along with another $300,0000 the commission agreed to flow into the pension fund to pay down debt, will most likely be used to pay down the debt in the Fire Rescue plan, which has the highest unfunded debt.