Portland's police and fire pension and disability unfunded actuarial liability was most recently calculated under these assumptions:

1. The most recent actuarial valuation was performed as of July 1, 2006. Liabilities and costs as of July 1, 2007 were estimated using the July 1, 2006 valuation and the growth in benefit payments and covered payroll since that valuation was performed.

2. The annual required contribution has been computed using the Attained Age Actuarial Cost Method. Under this Method, as applied to the Fund, the actuarial accrued liability is computed using the Projected Unit Credit Funding Method. The present value of future normal costs is computed in the aggregate as the excess of the liability for fully projected benefits over the actuarial accrued liability. The present value of future normal costs is spread over future payroll to produce the normal cost. The unfunded actuarial liability is amortized in level dollar payments over a 30-year period from the date of the valuation.

3. The actuarial value of Fund assets is $750,000.

4. Liabilities and costs are shown using the discount rate of 6.04% set by the City Treasurer.

5. The Consumer Price Index (CPI) is assumed to increase at the rate 3.5% annually.

6. Salaries are assumed to increase at 3.5% per year in response to CPI increases. In addition, members are assumed to receive increases due to productivity and due to longevity and promotion at the rate of 1% annually.

For fire fighters, longevity and promotion increases are assumed to be 8.5% per year for the first five years of service and 0.75% per year thereafter. For police officers, longevity and promotion increases are assumed to be 5.5% annually for the first five years of service, 1% per year for the next 22 years, and 0.0% per year thereafter.

7. Benefits under the Old Plan are assumed to increase with acctive pay levels at 3.5% per year. Benefits under the New Plan are assumed to increase by 2% annually, ill step with the statutory increases under the Oregon Public Employes' Retirement System.

8. All other assumptions are as described in the Actuarial Valuation as of July 1, 2006.

$5 Billion is a real fiduciary nightmare and public-oversight embezzlement ... compared to what?

Behind the falsification of US economic data, by Peter Daniels, Global Research, June 5, 2008, from WSWS.org

In recent years, it has become increasingly clear to those who follow US economic statistics that there is something dubious about the numbers released by official government agencies and used to guide many aspects of social and public policy.

Some of the consequences of the falsification of data can be translated into dollars and cents. If the CPI had not been systematically understated, Phillips explains, Social Security checks would be 70 percent greater than they currently are.

How many countless think tank reports and magazine articles, trumpeted by Democratic and Republican politicians and academic figures alike, took as the gospel truth that the “Anglo-American” model of capitalism, compared to its more regulated rivals in France and Germany, meant lower unemployment? This and similar claims were based largely on lies.

American capitalism once prided itself on the accuracy of its economic statistics. ... Where American capitalism once required accurate data, today it requires lies.

(... and LIARS ... paid by advertising ... paid by 'passing along' higher prices to customers. I don't recall exactly when it stopped, but youngish readers perhaps can not sing this jingle -- 'You can trust your car to the man who wears the star, the big, bright, Texaco staarrrrr' -- as there were decades when gas stations bought TV advertising, and the ad cost was merely added to the price of a gallon of gas. Today, pay TV (cable and dish) bankrolls candidates, campaigns, elections, and 'government' ... there is unfathomable detail in the full-out explanation of junk issues / leverages / holding companies / derivatives, but, at the bottom line, everybody's monthly money to the Cable TV company paying for channels we don't even watch, is what buys the (wal)nut-shell facade behind which the public-money pea disappeared and 'actuarialized' treasuries are bankrupted empty. Proprietary advertising is your governing investment-economy. Pay TV is your governing investment-economy on cash accrual.)

The house next door just sold to folks from California. They're pouring money into the house big time. I wonder if they know the big picture here in Portland? Meanwhile, my house is for sale. Maybe I should advertise in California...

Hmmm. Real estate disclosure laws...I don't think they cover City debt, do they?

"Maybe I should advertise in California..."

Internet/MLS already pretty much does that.

So...aside from Jack, does anybody have any serious ideas or plans as to what's going to happen to Portland if the city's sued for that level of debt? Or is everyone going to impersonate a Borders employee and shove their fingers in their ears and hum really loud while waiting for Santa Claus to save them? (No, I'm not talking about you. Or you. I'm talking about the folks in complete denial about the real consideration that Portland may become the largest city in the country to have to declare bankruptcy in our lifetimes.)

You think Mr Tensk is scary - Wait until you see Sam Adams financial acumen in dealing with this debt. The best is yete to come.

Jack, are there any write-in positions in local governments that you can run for now?
We need you just on this one issue of understanding public debt. It would be a blessing to have even one voice asking the right questions.

This debt does not compare to the really important things Portland has accomplished in the past couple years:
Vision PDX
Restorative Listening Project
Ban on Duct tape for the Rose parade.

Bankruptcy will be the best thing that ever happened to Portland. It will allow the city to crawl out from under its phony unfunded promises to retired cops and fireman.

Jack,

Adams is taking applications for PDC comissioner during the next couple weeks. You should apply and make Sam reject you.

Or in a rare moment of sanity apppoint you.

Everyone get on board the Jack for PDC train.
Come on,,, it's the perfect steppping stone to clean up the mess.