Eric Bartkus Lowell City Council

Over many years the city has developed an unfunded liability to the employee pension fund of about $4 million dollars. The city has closed the plan, which pays benefits to the employee and spouse for life, but we still have a number of deserving individuals. Many cities in Michigan have this same problem. Pension debts were one of the main reasons for Detroit’s bankruptcy in 2013. Lowell’s situation isn’t at all close to the same level, but it is one of our top problems.

City Manager Mike Burns has a detailed explanation of the problem on page 4 of the city budget document. Let me know if you need help accessing that document. A few years ago the city was close to the 60% funded threshold where the state would have “taken over” some of the city functions. Thanks to Covid recovery funds and marijuana taxes, the city has been able to make $400K in payments to the system in the last 3 years.

At the recent Chamber of Commerce breakfast, Mike Burns announced that the latest report from MERS (Municipal Employee Retirement System) showed the city with a 68% funding. Good news that we are improving. Both State Representatives (Albert and Johson) mentioned that this is a top priority for Michigan lawmakers. I don’t know if the State will assist Lowell in this problem, but we must continue to pay down this liability. Now is not the time to reduce the city tax millage which would slow this recovery. If elected to the council, I will continually search for funds that could be put to this need.