Bloomington eyes local pension fix by 2043
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.
Information from: WJBC-AM, http://www.wjbc.com