RC Council Mulls Over Budget - Pension Liability
Mon, 05 Mar 2018 06:06:15 EST
Rogers City Council members and staff continue the process to develop and finalize the city budget for their next fiscal year, which starts in July.
In rough numbers, the city generally operates on a general fund budget of around 2-million dollars, the water treatment plant at around 5-hundred 50 thousand, and waste water treatment plant at around 1-point seven million.
One issue the city is working on is solving is their pension liability to around 50 former and current employees, which is at around 5.8 million dollars. The city has been lobbying to have the legislature change laws where the city could bond or borrow money to pay off the liability. Then the city would make bond payments, and convert to a 401 K, or similar retirement program.
Other municipalities have been lobbying for the same, while state lawmakers have just approved of new requirements that many municipalities will have to adhere to.
Mayor Scott McLennan recently noted that the general consensus is that bonding is the way to go, which would lower costs and put the brakes on what the city is liable to fund each year. "We're going to be diligent on holding the line on tax increases, and the preliminary numbers are on review, but we will remain focused to get the pension issue under control," McLennan said.
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