Prescott Continues Quest To Fund Public Safety Pension Liability

Published: Monday, April 3, 2017 - 4:52pm
Audio icon Download mp3 (1.2 MB)

Prescott has been looking for ways to pay a roughly $80 million liability to the Arizona public safety pension system, and the city is pushing forward with a land sale as well as a proposed sales-tax increase.

The City Council has approved putting four pieces of excess property up for sale. The land is worth roughly $1.7 million. Officials had hoped the money could be used to pay down the city’s liability to the state public safety pension system. But most of it would have to go to other accounts, like the water fund.

The proposed sales-tax increase would be for three-quarters of 1 percent. If approved by voters, the tax would last for 10 years or until Prescott’s unfunded liability drops to $1.5 million. The increase would start in 2018, and Prescott would be legally required to use all of the money for the pension system.