Dear Members:

Here’s an update on the contract and Sergeant’s Exam.

Contract
We have had a few meetings with the City on the contract and we remain optimistic we will reach an agreement on our wages for 2014 that is consistent with our long-standing goals. As negotiations progress, I will keep you informed of our progress.

For those of you who don’t know, the St. Paul Police Federation arbitrated the issue of wages for their contract period of 2013- 2015. St. Paul’s Arbitration Award for 2013-2015 is as follows: 2013 (1% April 1st and 0.5% on Oct. 1st), for 2014 (2% April 1st) and 2.75% on April 1st, 2015. The Arbitration’s complete ruling is posted on our website’s homepage.

Sergeant’s Exam
It remains a mystery as to why there are routinely so many problems with a process as critical and yet as fundamental as a civil service exam. The City should be able to do a better job. Hopefully whoever was responsible for the mistake(s) will be held accountable as we would be held accountable in doing our job. The Federation is committed to using our available avenues to improve the process and limit (if not eliminate) these problems. We have requested, and the City has agreed, to have an internal review regarding the final results of the test. Hopefully upon the completion of this, we will be assured the final calculations were all done correctly. We will keep you posted on future developments.

Finally, I just want to thank all of you for the outstanding work you continue to provide to everyone who lives in, works in and/or visits Minneapolis. Your efforts make a difference every shift of every day. Keep up the good work and be safe.

Sincerely,
Lt. John Delmonico
President, POFM

Some like it hot. That sentiment does not apply to the Bond markets, when it comes to hotter than expected inflation. Learn what sectors of the economy are heating up, which ones are cooling off—and how the markets and rates responded.

Housing Starts were gloomy in June, as they declined by 9.3 percent from May to an annual rate of 893,000, well below the 1.020 million expected. This was the slowest pace in nine months, led by a drop in single-family homes and apartments. Building Permits, a sign of future construction, also fell by 4.2 percent to an annual rate of 963,000, coming in below expectations. There was a bright spot, as the National Association of Home Builders Housing Market Index came in at 53. Readings above 50 indicate that builders see conditions as good, and this was the first reading above 50 this year. Overall, the housing sector has shown signs of recovery, but activity has leveled off and some readings this year continue to be disappointing.

Retail Sales for June also cooled, coming in at the lowest level since the near -1.0 percent recorded in January. Retail Sales account for about one-third of consumer spending, and they are one of the main drivers of U.S. economic activity, making this report an important one to monitor. On a bright side, the report showed that consumers continue to spend at a better than modest pace.

Meanwhile, the Producer Price Index for June showed that inflation at the wholesale level came in hotter than expected. Remember that inflation is the arch enemy of Bonds, as it reduces the value of fixed investments like Bonds. And since home loan rates are tied to Mortgage Bonds, when inflation heats up, Bonds and home loan rates typically worsen. The upcoming Consumer Price Index for June will be closely watched for any signs that inflation is heating up at the consumer level.

What does this mean for home loan rates? If inflation continues to heat up, it could have a negative impact on Bonds and home loan rates, as we saw early last week. However, the continued tensions in the Ukraine and the Middle East could keep investors in the safe haven of the Bond markets, which would help home loan rates in the process. And earnings season is sure to have an impact—if numbers disappoint, Bonds and home loan rates could benefit.

The bottom line is that home loan rates remain near some of their best levels of the year and now is a great time to consider a home purchase or refinance.

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Dear Members:

As most of you probably are aware, over the last several months the Federation has taken steps to improve communication with members.  If you haven’t “liked” our Facebook page or followed us on Twitter, I encourage you to do so.  As part of these ongoing efforts, I will be sending a periodic newsletter to keep you up to date on matters of importance to the Federation and its members.

Board Membership
First, I want to first congratulate our new Board members on their election and installation into office and thank the outgoing Board members for their service.  Second, we have an open seat on the Board as a result of the resignation of Wally Krueger.  The Federation Bylaws provide that “the Board may, by an affirmative vote of two-thirds of the Board, appoint a successor who shall serve until the next regular election.”  The Bylaws do not provide for a special election.  Since the filling of a vacancy is discretionary and since we have not been deadlocked on decisions which require an odd number of directors to cast a “tie-breaking” vote, I have recommended to the Board and they have concurred that we leave the position vacant until the next regularly scheduled elections in the Spring of 2015.  My recommendation is based on my belief that Board members fulfill an important role for which the support of the membership is vital and, therefore, Board members should be elected rather than appointed.

Federation Time
Since its inception in the 1970’s, the purpose of the Federation Time bank is to allow the Federation to conduct union business without loss of pay to the members performing that service.  During my entire term as President, Federation Time has been granted to members only when they are performing service for the Federation, or serving in a capacity as a representative of the Federation at other places/events.  We have always had a transparent system in that the records of Federation Time used are available for review by any member during our regular business hours.  To further improve the process by which future Federation Time requests are considered and granted, I have recommended to the Board, and they have concurred, to adopt a policy by which requests must be submitted in writing to the Secretary who will then bring them as a standing agenda item for consideration by the Board at its regular meetings.  Federation Time is an important mechanism to encourage all members to be involved in their union.

Liability Insurance
I have heard concerns about a proposal being circulated by a couple of well-known anti-police activists for an ordinance or charter amendment that would require officers to purchase liability insurance.  First, such a measure would violate state statutes which legally obligate public employers to defend and indemnify their employees who are sued while acting in the course and scope of their duties.  Second, such a requirement would constitute a “term and condition of employment” which, under Minnesota labor laws must be the subject of collective bargaining and cannot be unilaterally imposed by a public employer.  Finally, we already have language in our Labor Agreement which provides that the City shall purchase such insurance if it sees fit. Therefore, there is no chance that the City Council or City voters could enact something that would force Minneapolis police officers to purchase liability insurance.  Of all the things in our job we have to worry about, you can cross this one off your list with certainty.

Please contact me if you have questions about any of these topics or if you have ideas for topics you would like to see addressed in future newsletters.

Be safe and thank you for the great work you do every day.

Sincerely,
Lt. John Delmonico
President, POFM