CITY OF GROSSE POINTE — The city’s projected gap between expenses and revenues, due to even out at $500,000 over the next few years, is almost entirely attributable to employee legacy costs, according to Peter Dame, City of Grosse Pointe manager.
“The level of benefits being paid to retirees in terms of pensions and medical (coverage) are financially unsustainable,” Dame said.
Councilman Andrew Turnbull cited a solution being considered by Chicago Mayor Rahm Emanuel to shift the bulk of employee legacy costs to the federal government and taxpayers nationwide.
The plan shifts employees onto President Barack Obama’s Affordable Care Act government health exchange.
“Their plan is to take a $2,000 per-person penalty as an employer and offset about $23,000 per person (costs),” Turnbull said.