Eureka to address rising pension costs with reserve fund

EUREKA – City of Eureka looks to secure its financial future in the face of rising pension costs.
City Manager Greg Sparks said the 2016-17 fiscal year exceeded projections leading to a boon of $2 million.
While that money could go towards road repairs or facilities maintenance, council will instead deposit the surplus into a pension reserve account.
Sparks said that increases the chance that the city can absorb what is expected to be a more than $3 million increase in pension costs over the next four years.
“What that allows us to do is to not have to reduce services to the public because we won’t be laying off employees and not be able to do the work,” Sparks said.
The meeting begins Tuesday night at 6:00 at Eureka City Hall.