[Mpls] City pension task force releases recommendations

[Victoria Heller]

The Ponzi scheme unravels:

"Minneapolis property taxpayers could be on the hook for a projected $278
million pension fund shortfall if City Hall leaders don't come up with an
escape plan."

"By comparison, the size of the entire city property tax levy for 2004 is
$172 million." [Plus the $68 million TIF levy for lucky local real estate
developers and the NRP.]

"The city issued bonds to cover $46 million of the debt in 2004. The city
expects to issue another $30 million at the end of this year to cover
payments in 2005, Finance Director Patrick Born said."

Vicky adds:

The $278 million pension shortfall, plus the $46 million and the $30 million
of new debt this year, is on top of the $1.5+ billion of debt that the City
ALREADY OWES!

I suggest that the City file for bankruptcy protection and default on its
pension payments like United Airlines did two weeks ago.  See the Strib
article on 10/8/04:  
http://www.startribune.com/stories/535/5022027.html

For the past twelve years, Minneapolis has been running operating deficits
in the $20 - $50 million range per year - all funded with debt.  How long
can that go on?  Now we know.

Vicky Heller
North Oaks and Cedar Riverside