I'm a City employee as well. It is demoralizing to read stories like this, knowing that our so-called leaders will not do anything to fix the problems.
Term limits are one big reason for this situation. Politicians are naturally short-term thinkers, but term limits have made the situation much worse. Dealing with big-long-term problems now just gets kicked down the road to the next group of folks. The employee unions share some of the blame here, though pay and benefit increases have to be approved by elected officials; if they had stiffer spines, perhaps we would have better balance.
The pension issue is huge. Like almost all companies, the Federal Government got rid of its pension program over 25 years ago because it was completely unaffordable. The City and state face the same issues, but are far too late in making the needed changes.
I will disagree with some of the other comments regarding City employees generally. While there are certainly those who abuse the public trust or do as little as possible, a LOT of us believe in public service and care about making the City work. If you've enjoyed a park or Griffith Observatory, been helped by a police or fire officer, or had a pothole filled on your street, those are City workers. We don't like seeing the waste and abuse either, but the people setting the policies are the ones chosen by the voters. If this story makes you mad, DO something about it!