Kalamazoo More Debt Is Coming Your Way
The Kalamazoo City Commission on Monday night voted to issue up to $100,000,000 dollars in bonds to fund their government unfunded retiree healthcare liability.
This amount was recommended by the City’s Legacy Task Force created to determine how to deal with this huge financial problem.
This is not a done deal yet but you should be made aware of the debt the city is looking to put on you and your children.
Those of you from other cities be aware this is possibly coming your way. Many local government agencies are also extremely underfunded.
What you as Kalamazoo residents should know is that Kalamazoo employees who retired prior to 2007 only pay an average of $342 per retiree and spouse each year. Yes each year not each month. Post 2006 retirees and spouse pay $1,672 per year.
Great deal if you can get it. You are very generous people in Kalamazoo if your former employees salaries were commensurate with the private sector or even better.
Another issue is the $100 million limit is being reported as about 75% of your city’s borrowing limit per a state law. How do they intend on borrowing money to fund other projects like infrastructure?
One of the problems is the city has not been contributing enough for over 20 years, who has been running your city?