Number
031026
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution regarding an Intergovernmental Agreement in connection with pension obligation bonds for the Milwaukee Public Schools. (Comptroller)
Analysis
This resolution specifies certain items to be included in the Intergovernmental Agreement between the City and MPS relating to the Pension Obligation Bonds anticipated to be issued for MPS.
Body
Whereas, Milwaukee Public Schools ("MPS") provides pension benefits to current employees and retirees; and
Whereas, MPS sets aside funds each year to provide for pension benefits as they are earned; and
Whereas, The amount currently set aside to fund the pension benefits already earned is significantly below the actuarial cost of providing those benefits; and
Whereas, It is in the best interest of employees and MPS to fully fund accrued pension liabilities; and
Whereas, It is in the best interest of the Citizens of the City of Milwaukee ("City") that future tax-payers are not burdened by the cost of benefits relating to services provided in the past; and
Whereas, MPS is currently considering the sale of up to $200,000,000 of bonds ("Bonds") through the City and through the Redevelopment Authority of the City of Milwaukee ("RACM") to finance all or a portion of the liability for accrued future benefits owed to the Wisconsin Retirement System ("WRS"); and
Whereas, These proposed Bonds will save MPS over $410 million in future interest costs ($35 million in today's dollars) before the liability can be fully amortized; and
Whereas, Full funding will assure that all current and future employee pension benefits already granted through collective bargaining will in fact be provided; and
Whereas, This resolution has no impact on the rights of its employees or retirees to receive benefits already established through collective bargaining, but establishes the expectation of full funding of any future ...
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