Dixon Pension Obligations Could Spell Doom if Current Path Unchanged | Local News | AM 1460 WIXN
 
Dixon Pension Obligations Could Spell Doom if Current Path Unchanged
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Will the employee pensions for the city of Dixon end up breaking the bank. One might think so after the special meeting Tuesday evening.

According to Financial Director Paula Meyer and other city financial advisors the current path will put the city into negative budgets in a matter of a couple of years.

According to Mayor Li Arellano, the pensions could, in a matter of five years, eat up all the capital in the budget that would go towards infrastructure, capital improvements and even new equipment for the fire and police department.

In a short time, according to Councilman Mike Venier, the city may be spending more on paying people who no longer work for the city than they do for those who do work for the city. But Venier added the city has to honor its obligations.

Arellano and City Manager Cole O’Donnell said the council is looking at several options available to it. Arellano said one of the suggestion made by the city union was to take recovery money and invest it in the pension fund. They feel this would give a higher rate of return.

Arellano said the one option he is not open to is to seek tax increases, unless all other options have been tried first.

Arellano said they will continue to tighten and cut were they can. He said the city has already begun some of these steps by such things as eliminating or consolidating certain city positions.

He said in the near future of retirements may not be replaced. But, the mayor admits this can only go so far.

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