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.
The extra cost — effectively a double payout for city retirees who are rehired — could further strain Cincinnati's structurally imbalanced operating budget.
On the campaign trail, Cranley called double dipping "abusive" after City Council repealed a ban on the practice so the administration could hire John Deatrick, a city retiree, to lead the $132.8 million streetcar project.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.