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Tuesday, March 20, 2012

Former Mayor Says City Won't Go Bankrupt

Former Mayor Norm McFarlane has begun his cross examination at the defamation trial of former Common Councillor John Ferguson.

McFarlane, who chaired the Pension Board, says he could never see the city going bankrupt because of the pension plan's rising deficit.

He also denies the suggestion that the number of disability pensions approved by the pension board are especially high. McFarlane also told the jury it was not up to the pension board to make recommendations to change the city's pension plan. That would have been up to City Manager Terry Totten, at the time, who was also a pension board member.

McFarlane was asked about a motion by Common Council asking the Pension Board for alternatives to tackle the unfunded liability but he couldn't say if the pension board ever gave a response. He concedes no trustee wanted to reduce benefits.

McFarlane admits he knew the lawsuit would generate publicity and it could be bad but his character was at stake. He told the jury he had done nothing wrong but his credibility was being questioned and he was not going to allow someone to defame him.