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Payoff will save city millions
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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.