Pension plan woes directly impact cities across Wisconsin

From Pension Plan Woes Could Cost Cities:

The stock market's recent decline and its effect on public employee pension plans may directly impact services available in municipalities such as Eau Claire, Rebecca Noland, the city's finance director, said Friday.

Noland said there is talk that the Wisconsin Retirement System may be considering a 0.5 percent rate increase for employers in 2010.

"That 0.5 percent increase would cost the city's general fund about $115,000 per year and about $150,000 for all city funds, general fund included," Noland said. "We are restricted by levy limits in the amount the city may raise taxes, so we will most likely have to further reduce services in 2010 in order to cover the rate increase."