Prescott has an unfunded liability to the state’s public-safety pension system of almost $80 million.
Today, the City Council will consider a sales-tax hike and land sale to make up a projected funding shortfall.
The sales-tax increase would be for three-quarters of 1 percent. Even if the City Council signs off, voters will get the final say in August.
If they agree, the increase would start in 2018. The tax would last for 10 years, or until Prescott’s unfunded liability drops to $1.5 million. Prescott would be legally required to use all of the money for the public-safety pension system.
The City Council will also consider putting several pieces of excess property up for sale. The land is worth roughly $2 million, and the revenue will likely also be used to pay down the city’s liability to the pension system.
