This clears up nothing.

This is from today's Duluth News Tribune I know I have said this many times but here again I don't believe that Mayor Bergson does not really want to fix the health care problem facing Duluth. Especially if it is a big hit against the union. This mayor can not afford to lose his big supporters at this time. Mayor Bergson is trying to keep his head above water.


City outlines plan to cut debt
CITY COUNCIL: An update from the city's chief executive officer Monday shows headway being made on retiree health-care debt.
BY SCOTT THISTLE
NEWS TRIBUNE STAFF WRITER
The Duluth City Council got its first comprehensive update from Mayor Herb Bergson's administration on what's being done to counter the city's massive retiree health-care debt.
In his January State of the City Address Bergson embraced the recommendations offered by a City Council-appointed task force on the $280 million debt.
Monday his Chief Administrative Officer, Julio Almanza, gave a step-by-step outline on how much the city administration has done regarding the 15 task force recommendations.
"We don't have all the answers yet but I hope you get a flavor of us continuing to work on this issue very seriously," Almanza said.
In a priority-setting discussion, all nine city councilors said solving the retiree health-care issue remains a top priority in 2006.
Bergson further relaxed a citywide hiring freeze and will allow the hiring of 13.5 full-time positions in a range of city departments from finance to parks and recreation, Almanza said.
Some of that new staff is needed to work on the health-care issue. That includes a labor relations expert and a person to manage the city's health insurance fund, Human Resources Director Gary Meier said.
Bergson enacted the freeze in 2004 so new city employees couldn't add to the city's health-care debt. Currently, lifetime retiree health-care benefits are negotiated into all contracts the city has with its various labor unions.
"This was a long discussion in looking at what we have to do," Almanza said. The decision to relax the freeze applied only to specific positions and were the results of give-and-take exchanges with the city's various department heads, Almanza said.
The mayor attended Monday's non-voting, working-group council meeting, but allowed Almanza, Meier and Finance Director Genie Stark to give the update on retiree health care.
The administration is negotiating with three of the city's collective bargaining units and has informed them the city intends to move from contracts that promise lifetime health-care benefits -- a key task force recommendation.
Almanza is optimistic the city will be able to reach contract agreements with all its bargaining units by the end of the year.
"It could be naive if we think the negotiations aren't going to be very difficult this year," 3rd District Councilor Russ Stewart said.
Union leaders, so far, have recognized the seriousness of the problem and most are embracing the task force recommendations, Almanza said. "I'm hoping they won't be as cantankerous as you've indicated," he said.
The administration is gathering more information on the benefits retirees receive, Almanza said. The city will try to reach a cooperative agreement with retirees before asking a court to rule on whether the city can unilaterally change retiree benefits, he said.
The task force suggested the city ask for the court ruling first.
Another task force recommendation, creating a Canadian drug reimportation program is being researched, Almanza said.
But Bergson and the administration first need to understand the full impact reimportation would have on local pharmacies and the community before moving forward, Almanza said. Some are skeptical reimportation could save the 25 percent on health-care costs predicted.
Efforts to set up a new trust fund to help pay retiree health-care costs are progressing. Stark is working on that task force recommendation with State Auditor Patricia Anderson's office.
New state law allowing the city to set money in the fund and to invest it in higher yield funds is needed, Stark said.
The state's investment board may end up with oversight of the fund or allow it to be invested with other state retirement funds, Stark said.
Efforts to create more competition in the city's health insurance business are in the works.
An independent audit of the city's current health insurance plan has been completed and is set for review, Almanza said.
Other task force recommendations to find more money to pay for health care costs by increasing property taxes and utility rates or to tap the city's share of Fond du Luth Casino profits are being set aside for now, Almanza said.
"We first want to look at reducing costs," he said. The administration is not taking seriously the task force recommendation that the city find a good municipal bankruptcy lawyer, he said. "We don't believe that's a realistic option."


Source Duluth news tribune,http://www.duluthsuperior.com/mld/duluthsuperior/13812219.htm.