Tucson mayor and council approve bonds sale to fund public safety pensions
TUCSON (KVOA) - At Tuesday’s Regular Meeting, the Tucson Mayor and Council approved the sale of Certificates of Participation to fund the City’s growing obligation to the Public Safety Personnel Retirement System, it announced in a news release Friday. The PSPRS system funds the fire and police personnel pension program, the City said. The PSPRS obligation currently stands at $1.5 billion and is projected to grow to a peak annual cost of $240 million to the City’s General Fund, according to the City.
The strategy, approved by Mayor and Council, addresses the long-term PSPRS obligation by borrowing funding at unusually low interest rates and investing those funds. The investment earnings will be used to fund the pension obligation, the release said. This has the potential, over the 25-year plan, to save the City more than $800 million, reducing future burdens to the General Fund, preserving essential services, saving taxpayer dollars, and helping to stabilize the City’s financial future, according to the City.