Whereas, the Wisconsin Legislature and Governor have previously recognized the need for school districts to provide for their post-employment benefit obligations by establishing trusts and investing assets placed in trust to fund post-employment benefits under the Uniform Prudent Investors Act and via 2005 Wisconsin Act 99 have provided the legal authorization for those districts that have the need and made the decision to fund their obligations; and
Whereas, local governments (cities, villages, towns, counties and special districts) may have the same long term needs related to post-employment benefit obligations as school districts but are currently restricted to investments in vehicles that are of a shorter duration and have a lower potential long term rate of return; and
Whereas, local governments that choose to fund their post-employment benefit obligations will find their annual costs 25% to 40% higher if this legislation is not in place, with corresponding additional pressure on property tax levies; and
Whereas, Assembly Bill 184 and Senate Bill 93 have been introduced by Rep. Mark Gottlieb (R-Port Washington) and Sen. Julie Lassa (D-Stevens Point), respectively, to grant municipalities the same investment authority that has been granted to school districts; and
Whereas, the League of Wisconsin Municipalities ought to be on record as supporting legislation that will enable local governments the option to utilize trusts and investment vehicles allowed under the Uniform Prudent Investors Act to reduce the costs of providing for their post-employment benefit obligations.
Now, Therefore, Be It Resolved, that the League of Wisconsin Municipalities in conference assembled on October 4, 2007, urges the Legislature and Governor to enact AB 184/SB 93, allowing local governments the option to provide for their post-employment benefit obligations by establishing trusts and investing assets contributed to such trusts to fund post-employment benefits under the Uniform Prudent Investors Act.