[Mpls] Bonding for pensions in Mpls.

[Phyllis Kahn]

I gave the Strib a few days head start  on this (along with all city
council members and RT). After only getting a reply from Zerby, I
thought I would post it to the list. I know pensions and present value
costs are just too boring to be worthy of discussion, but I'm trying.

The last action of the Minneapolis City Council was probably  among its
stupidest ( or  more charitably, incomprehensible). Eight city council
members, urged on by the mayor, voted to reject a Minneapolis Police
Relief Association pension plan that, in return for a minor benefit
(about enough to cover medical cost increases)  would have saved the
city $16 million in the coming year and from  $24-40 million over the
next five years. (the lower figure comes from the city's own
actuaries; the higher from the funds; no one disputes the direction).

     Meanwhile the city council has authorized $25 million in bonds to
cover pension deficits, an action no other city in the state (and few in
the country) has taken. This action was not approved by the Board of
Estimate and Taxation, but the Council went ahead anyway.

    Their excuse was a desire for a universal solution for all the city
pension funds. I eagerly await this along with the name of any
Minneapolis legislator willing to sponsor it.

     My major effort will be to  repeal the language in state law that
allows bonding for pensions without a referendum. The need for a vote of
the people for this form of fiscal irresponsibility will at least entail
public discussion of this issue.

     Of the eight council members voting against the partial solution,
three are not running again and apparently have little interest in long
range solutions. The other five (Ostrow, Samuels, Schiff, Zimmerman and
Goodman) and Mayor Rybak need serious opponents who will take them on on
this issue.
  

State Rep. Phyllis Kahn  59B