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Andy Lear, BKD, LLP -- Quality of Life -- 2009 Police-Fire Pension Fund Issue, Springfield, Missouri

The Chamber Board of Directors has endorsed the November 3 ballot issue of the proposed ¾-cent sales tax increase that will be directed solely to the Police/Firefighters Pension Fund. We encourage all Chamber members to vote "yes on November 3 to help our community move forward.

The decision before Springfield voters is about more than just whether or not to increase the sales tax, but really about whether Springfieldians can retain local control over the City budget and our communitys future quality of life.

The pension fund has a current unfunded liability that is approximately $204 million. To put the scope of the problem in perspective, the Citys General Fund budget is about $70 million annually. City contributions to the pension fund have been at more than 50 percent of employee payroll the past two budget cycles, largely decimating City support for any non-pension services and programs including public safety.

The City of Springfield has a legal obligation to provide the earned benefits and if funding is not available to honor those commitments the City faces the likelihood of civil litigation. An attorney representing the police and fire associations has been candid about plans to sue the City if the ballot issue fails. According to Mayor ONeal, neither case law nor state law would be on the side of the City of Springfield should the matter be taken up in a court of law.

Now is the time for Springfield to deal with this critical issue head-on and not leave the decision up to the courts. It is time to eliminate this roadblock to other civic endeavors. It is time to get the City out of the local self-funded pension business. It is time to Vote Yes and help Springfield move forward.

Why is now the right time to support this ballot proposal?

Citizen Task Force
A 16-member Police-Fire Pension Fund Citizens Task Force thoroughly researched the pension fund issues for months and determined this proposal was the best solution.

Close the plan
New police and fire employees will be enrolled in the statewide LAGERS system for public employees. Current Tier II employees could also move voluntarily to LAGERS. LAGERS is a stable, well-funded and professionally managed fund that covers all other City employees. Benefits offered by LAGERS are set by state statue and are not subject to local negotiation.

Additional funding commitments
City Council pledged to put net proceeds from telecommunications settlements and the sale of city properties into the pension fund.

No new taxes
A resolution passed by City Council pledges not to initiate any new citywide sales taxes for at least five years.

Set a sustainable city contribution rate
The City will contribute 35 percent of payroll for Tier I police-fire employees to the pension fund. In recent years, that contribution rate has been as high as 52 percent, taking a significant portion of available general revenue funds. With reduced funding for other city services such as public safety, transportation infrastructure and parks, our community's high quality of life risks being compromised.

For more information and analysis about the Police-Fire Pension Fund, and to see additional steps the City is taking to adequately fund it, please visit
http://www.springfieldchamber.com/policefireballotissue .

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Auditorium Building - Wikipedia, The Free Encyclopedia
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Rapid City, South Dakota - Wikipedia, The Free Encyclopedia
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