4/15/11
The Excelsior Fire District Board is considering a preliminary 2012 budget increase of 6%. All of the proposed increase seems to be to fund the firefighter pension account. The 2011 budget increase was virtually zero and the Fire Board used reserves to deal with the pension funding problem. Now, it seems reserves aren't being considered.
Shorewood provides about 50% of the Fire Districts budget dollars. So standby to see if the pension funding problem hits a wallet near you in 2012.
The pension funding shortfall issue is one being dealt with across Minnesota and the country due to the recent financial market problems and significantly reduced yields on pension funds invested. Unfortunately, the problem is made worse by pension funds making very optimistic assumptions about earnings on invested money and/or allowing growing pension benefits when income doesn't match the growing expense. The Excelsior Fire District's pension has these structural problems and just throwing more tax dollars at them is not the real answer. Of course the Board can take the politically easy out, but do you want more spending or pension reform? The Insider would like to hear from you.
Happy Reading!
The Insider
There has not been a fire in a long time in Shorewood. Does that mean that the firemen have earned their pension for a job well done, or that we should think of cutting back?
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