abc
QUICK LINKS:

Duluth's Financial Picture Improving after Health Plan Reforms

Updated: 01/30/2014 11:11 PM
Created: 01/30/2014 11:06 PM WDIO.com
By: Darren Danielson

Mayor Don Ness Thursday painted a frightening picture of what the city of Duluth's financial situation would have looked like, had the city not made drastic changes to retiree health care plans.    

Flanked by charts and graphs, Ness illustrated the effect of the reforms made over the last few years.

The retiree health care plans put in place over previous decades, Ness said, could not be paid for and the City was moving toward bankruptcy.

"In 2005 the city's unfunded liability was $280-million dollars. However, if the issue was not addressed and if no changes were made, today in 2013 that liability would be $405-million dollars."

But many changes were made and the mayor unveiled the latest numbers Thursday.

"The latest actuarial report that just came out has our unfunded liability at 182-million dollars. That represents a 223-million dollar decline in our projected liability", Ness said.

The mayor says while the city's financial picture is brighter because of the reforms, that $182 million unfunded liability is still a large one.  

"Going forward, there are only two ways to deal with it: increase revenue or reduce city services".

Front Page

  • No Layoffs During 'Warm Idle' at Mesabi Nugget

    The parent company of Mesabi Nugget says it is planning a "warm idle" of the plant for six to eight weeks this winter, but workers will stay on the job. A spokesperson said workers will continue to report to Mesabi Nugget, largely for maintenance activities throughout the plant.

  • Dayton Proposes More Compensation to Farmers for Wolf Losses

    Now that wolves are back on the endangered list in Minnesota, Gov. Mark Dayton's budget proposal includes more money to compensate farmers for livestock losses.

  • Special Report: A Dog's Life

    Mushers often get the most recognition for winning sled dog marathons like the Northland's John Beargrease, but as many of them will tell you, the dogs are the real athletes. 

  • Measles Makes Comeback, Northland Medical Experts on Alert

    Nearly 100 cases of measles have been diagnosed over the past month in the U.S. and the virus is creeping closer to the Northland with a case was confirmed on Wednesday in a 20-year-old male student at the University of Minnesota in the Twin Cities. 

  • Minn. Bill Would Require Talking to Doctor before Skipping Vaccine

    A Minnesota lawmaker wants parents who don't vaccinate their children to meet with a doctor first. Rep. Mike Freiberg has a bill that would require those parents to learn about vaccines and their impact on diseases from a health care provider.

 
Advertisement