WAPA is 9 Pay Periods Behind On GERS Contributions, Owing $3.1 Million; Authority Says Funds Are Tight

Government Employees' Retirement System Administrator Austin Nibbs said Thursday that the Water and Power Authority was nine pay periods behind on employer contributions, with an outstanding balance of $3.1 million.

The matter drew attention during G.E.R.S.'s meeting Thursday, with board members discussing possible courses of action if WAPA fails to come current within 60 days. Mr. Nibbs said he would negotiate a payment plan with the authority, and said that if an agreement for payment fails, G.E.R.S. would pursue legal action.

The administrator read a letter from Noel Hodge, WAPA interim executive director, which said WAPA was “working to secure the necessary funds to pay the authority’s outstanding employer contributions.”

The letter cited unexpectedly "high fuel cost and a longstanding unfavorable regulatory and political environment" as reasons why WAPA has not “realized sufficient revenues in the past 10 months to fund some essential expenses. As a result the authority was unable to remain current with it’s bi-weekly G.E.R.S. contributions.”

According to the letter, WAPA was awaiting a "supplemental appropriation," and the authority promised to pay as soon as it secures the funding.

G.E.R.S. Board Trustee Andre Dorsey, after hearing WAPA's explanation, made a motion to seek relief in court. “They have shown that they have the monies; they recently publicly promoted individuals internally, so they have monies at the highest levels of the system," he said, lending support to his motion. "They have been receiving millions of dollars from federal monies as well as the local government.”

Board Trustee Ronald Russell sought further discussion on the motion before it could be adopted, and Trustee Leona Smith sought Mr. Nibbs's opinion. Mr. Nibbs said he had been in constant communication with WAPA on the matter. “I think we should continue to work with them, understanding their situation… I think we should work with them to see how we can get a payment plan together first," he said.