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Friday, July 23, 2010

Growing Trouble For City Pension Plan
















              (Saint John City Manager Pat Woods)
                            (File Photo)

With no solution in sight, the numbers continue to balloon for the city pension plan.

In a letter to council dated July.14th, City Manager Pat Woods says left un-resolved, this could result in a nine to ten million dollar additional yearly payment to the plan which in turn translates to a tax hike that could reach as a high as 17 cents.

Woods points out the alternative is to reduce services by roughly the same amount.


The pension plan has over $325 million in assets and Woods says it can meet it's obligations for many years but requires a long term solution not drastic short term action.
 
Woods is expected to present council with a plan to fix the debt laden plan in September.