Mayor John Cranley told CityBeat Friday that he's still troubled by the practice of "double dipping," but he said the incoming assistant city manager is only eligible to receive a salary and pension benefits because of policy set by City Council.
Bill Moller will be rehired by the city in February to fill in as assistant city manager. Because Moller is a city retiree, he'll be eligible to draw a city salary ($147,000 a year) and pension benefits.
The concern: Allowing city workers to double dip, or tap into both a
salary and pension benefits, could encourage the kinds of abuse
already seen in other municipalities, where public workers can reach eligibility for
maximum pension benefits, retire one day and get rehired the next day to effectively receive both a salary and pension.
On the campaign trail, Cranley called double dipping "abusive" after City Council repealed a ban on the practice so the administration could hire John Deatrick, a city retiree, to lead the $132.8 million streetcar project.
Cranley said he will sign any legislation reinstating the ban on double dipping. As a council member, Cranley supported the ban when it was originally instated in 2008.
Under the previous ban, city retirees rejoining the administration would need to temporarily forfeit pension benefits or face substantial limits on salaries and health benefits.
Despite his opposition to double dipping, Cranley cautioned that he still supports Moller's hire.
"Obviously I like Bill Moller," he said. "But the city manager is working within current policy."
The city administration on Tuesday justified Moller's hire by pointing to his previous budget and finance experience in Cincinnati, Hamilton and Covington.
"At this point in time, Cincinnati needs not only someone
who is proficient in all aspects of municipal finance, but in the
aspects of the city of Cincinnati’s finances in particular. Mr. Moller
has that experience," wrote Interim City Manager Scott Stiles in a memo.
It remains unclear whether a ban on double dipping would influence Moller's decision to return to the city administration.
The latest administrative shakeups at City Hall spurred
controversy after the city administration confirmed City Solicitor John
Curp will leave his current position and one of the new hires — Bill
Moller, a city retiree who will become assistant city manager — will be
able to “double dip” on his pension and salary ($147,000 a year). Councilman
P.G. Sittenfeld said on Twitter that City Council will discuss the personnel changes at today’s council meeting. The hiring decisions are up to Interim City Manager
Scott Stiles, but some council members say they should be more closely
informed and involved. (This paragraph was updated after council members called off the special session.)
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Bill Moller is a city retiree who will be eligible to “double dip” into his pension and a city salary ($147,000 a year) when the city rehires him in February to fill an opening for assistant city manager, city spokesperson Meg Olberding confirmed in an email to CityBeat. Whether he does is entirely up to the interim city manager, Olberding wrote.
The possibility could draw criticism from city officials looking to balance Cincinnati’s structurally imbalanced operating budget. Last year, City Council drew opposition for its decision to hire Streetcar Project Executive John Deatrick and allow him to double dip on his pension and a city salary.
Update: Councilman P.G. Sittenfeld said on Twitter that City Council will discuss the personnel changes at Wednesday’s full council meeting, instead of a special session on Thursday as originally planned.
Moller will eventually replace Assistant City Manager David Holmes, who helped oversee efforts for The Banks and 2012 World Choir Games and filed to retire on April 1, Interim City Manager Scott Stiles wrote in a memo to City Council and the mayor.
“At this point in time, Cincinnati needs not only someone who is proficient in all aspects of municipal finance, but in the aspects of the city of Cincinnati’s finances in particular. Mr. Moller has that experience,” Stiles wrote, noting Moller’s budget and finance experience in Cincinnati, Hamilton and Covington.
City Solicitor John Curp will also leave his current position to instead act as chief counsel for the city’s two utilities, the Metropolitan Sewer District and Water Works.
“The utility has been undergoing a merger of back office functions to save ratepayers money, and also has been expanding services and service areas to decrease costs,” Stiles wrote. “John (Curp) has the private sector experience to assist the utilities with a market-oriented approach, and is uniquely positioned to understand both the particulars of MSD and GCWW as well as the areas in which they can expand.”
The move should save ratepayers money by allowing both utilities to rely on Curp instead of outside legal counsel when legal issues arise, according to Stiles.
Although widely praised by city officials, Curp’s move is unsurprising given the politics surrounding Mayor John Cranley’s election. Curp offered legal guidance for the parking privatization plan and streetcar project, both of which Cranley opposes.
Terrence Nestor, currently the city’s chief litigator, will replace Curp as city solicitor until a permanent appointment is made.
Stiles announced other changes as well:
• Markiea Carter, currently a development officer, will move to the city manager’s office to act as assistant to the city manager.
• Karen Alder, currently risk manager for the city, will begin assisting Finance Director Reginald Zeno as the city’s deputy finance director.
Stiles is currently filling as interim city manager while the city conducts a nationwide search for a permanent replacement to former City Manager Milton Dohoney. Stiles could apply for the permanent role, but his application would need City Council support to win out over other potential candidates.
The city expects the city manager search to last through June, at which point further administrative changes could be expected if the city hires a new permanent city manager.