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Leadership Omaha Alumni: Pete Festersen
As Greater Omaha continues to grow in 2010, officials have been working diligently to address the challenges associated with this year’s volatile city budget. The state of the economy, and recent streak of inclement weather, has contributed to Omaha's shortfalls in 2009 and in planning for 2010. “The city's budget is heavily dependent upon sales tax,” says City Councilman Pete Festersen. “We also have a significant amount of debt primarily due to our investments in downtown redevelopment and Qwest Center Omaha. Our largest financial challenge, however, is the $500 million unfunded liability of our police and fire pension system.”
Considering the enormity of these challenges, Festersen supported a budget alternative that did not raise taxes in 2010. “I felt strongly that we needed to handle our operating costs without a tax increase until we addressed our largest financial challenge, which is fixing the police and fire pension contracts,” he commented. “A task force has recommended cutting $15 million in pension benefits and adding an additional $15 million in city contributions per year for the next 30 years to address this unfunded liability.”
Mayor Suttle has negotiated a police union contract that has been approved by police union membership. Within a few weeks, the contract will be in the hands of the City Council for review. “Currently, there is no agreement with the fire union,” explains Festersen. “Unless these agreements end the practice of pension spiking, raise the retirement age, and cut at least $13-15 million in pension benefits, they will not be approved by the Council.”
Additionally, with the recent snowstorms, snow plow bills have put the city way over budget. The city projected it would spend $4.77 million for this winter’s snow removal. Barely midway through the season, the city has already spent well over $6 million. And, the winter weather has left Omaha with yet another expense – streets filled with potholes.
“On a positive note,” says Festersen, “we are making incredible progress on two other very important issues in our community. Violent crime was down substantially in 2009 due to community efforts at violence prevention. And, I am pleased with progress to date on efforts to update infrastructure and create jobs in businesses in Benson, Dundee and Florence, which are in my district.”