(Saint John City Manager Pat Woods)
(File Photo)
With no solution in sight, the numbers continue to balloon for the city pension plan.
In a letter to council dated July.14th, City Manager Pat Woods says left un-resolved, this could result in a nine to ten million dollar additional yearly payment to the plan which in turn translates to a tax hike that could reach as a high as 17 cents.
Woods points out the alternative is to reduce services by roughly the same amount.
The pension plan has over $325 million in assets and Woods says it can meet it's obligations for many years but requires a long term solution not drastic short term action.
Woods is expected to present council with a plan to fix the debt laden plan in September.
