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Bloomington eyes local pension fix by 2043

Published: Wednesday, Nov. 13, 2013 12:00 p.m. CDT

BLOOMINGTON (AP) — Bloomington officials hope to fully fund the city's police and fire pensions in the next 30 years, thanks in part to an increased utility tax.

WJBC Radio reports (http://bit.ly/1gKcd5J ) the city's alderman approved a plan during a meeting this week.

The strategy involves a five-year phase-in effort where the city will set aside an extra $1.5 million a year.

Bloomington's manager says the city will cover the cost of the extra pension money by increasing the local utility tax, which could bring in another $4.5 million.

The 2.5 percent utility tax can be raised to 5 percent under state law.

Mayor Tari Renner says he hopes the effort will make Bloomington a model for other communities struggling with pension obligations.

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Information from: WJBC-AM, http://www.wjbc.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
 

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