City Dips Into Fund To Cover Shortfall
Omaha officials say they will use part of a city fund to help pay for a $7.3 million shortfall created by a new contract with firefighters.
Mayor Jim Suttle said Friday he will tap into a $5.2 million fund created in 2011 to help pay legal settlements and reduce pension costs. Suttle said the shortfall is largely due to costs involved with paramedic training that will make 24 firefighters unavailable to cover regular shifts. Suttle said a new recruitment class will reduce the shortfall by $1.7 million.
City officials say the contract approved last month should save about $30 million over time by reducing the unfunded pension liability. It increases firefighters' pay, ends pension spiking and increases firefighters' contributions to the pension fund.
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