Google’s booming hometown of Mountain View, California, which has a jobless rate of below three percent and a median family income in the six figures, may need to raid its rainy day fund to cover its unfunded pension liabilities for public employees. The Mountain View Voice reports:
Under a plan put forward by the city’s finance team, Mountain View would draw about half that amount ($6 million) from its reserve fund, a pool of money normally set aside for emergencies. But by doing so, they warned, the city would need to tweak its longstanding policy to keep at least 25 percent of its general fund in reserves, which could threaten the city’s AAA bond rating. That isn’t very likely, said Finance Director Patty Kong. She assured the council that bond-rating agencies would probably look favorably on the “positive action” the city took to pay off its pension costs.
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