State Sen. Yvonne Prettner-Solon, DFL-Duluth, introduced legislation Thursday that starts what city of Duluth leaders have said is an important step toward solving the city's $309 million retiree health care liability.
City officials are poised to set aside millions toward eliminating the liability. But they said they need a state-approved irrevocable trust fund, which would be invested with the State Board of Investments to produce maximum return,
The trust fund's creation will instantly slice off one-third of the liability. Mayor Herb Bergson said he has a plan relies on the legislation and avoid further cuts to the city's budget or raises in property taxes and fees.
Prettner-Solon's bill was referred to the State and Local Government Operations and Oversight Committee Thursday, according to information from the Minnesota State Legislature.
Bergson was in town earlier this week to discuss Duluth's priorities with state lawmakers.
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Legislators gave positive feedback about the trust fund, Bergson said, adding that public hearings on the matter could being next week.
State Rep. Tom Huntley, DFL-Duluth, will sponsor the legislation in the House of Representatives, according to Bergson.
