MONROE - The City of Monroe will be saving more than $1.3 million in interest and another $1.3 million in future payments by paying off an unfunded retirement liability early.
According to City Accounting Manager Casey Bradley, the plan involves securing a loan in the amount of $820,000 from the Wisconsin State Trust Fund Loan Program, at an interest rate of 6 percent.
Annual payments of $108,000 would start in 2009, and run for 10 years. If the city starts payments in 2010, annual payments would be $115,000, with $133,000 less saved.
The payments would not count against city budget levy constraints.
The city is paying off a fund providing retirement benefits for employees before joining the Wisconsin Retirement System. The interest rate is 7.8 percent, resulting in $1.6 million in interest being paid between 2007 and 2038.
The Monroe City Council unanimously approved the plan and authorized the loan proceeding to be started.
According to City Accounting Manager Casey Bradley, the plan involves securing a loan in the amount of $820,000 from the Wisconsin State Trust Fund Loan Program, at an interest rate of 6 percent.
Annual payments of $108,000 would start in 2009, and run for 10 years. If the city starts payments in 2010, annual payments would be $115,000, with $133,000 less saved.
The payments would not count against city budget levy constraints.
The city is paying off a fund providing retirement benefits for employees before joining the Wisconsin Retirement System. The interest rate is 7.8 percent, resulting in $1.6 million in interest being paid between 2007 and 2038.
The Monroe City Council unanimously approved the plan and authorized the loan proceeding to be started.