Council at first voted 8-0 to divert the entire Local Services Tax or “commuter tax” of about $13 million a year for 30 years into the pension fund, in a bid to avert the takeover. The Mayor, not liking the idea, pledged to veto it promptly, so that his veto might be promptly overridden and Council’s will be done before the deadline.
Then suddenly specific legal covenants were discovered upon revenues collected from the LST. So now they’re instead going to pledge $13 million annually from the Parking Tax (which also ordinarily becomes a part of the city’s general budget) along with cashing out the $45 million Fund-No-Longer-In-The-Nature-Of-An-Irrevocable-Trust-For-Debt-Service-Reduction. I don’t recall the Mayor promising anything specific about what he’d do or not do with this “new” wrinkle, and there appears still to be some concerns over whether the present value of this pledged revenue will ultimately be calculated as sufficient to achieve 50% funding when the figures are calculated on both ends. But politically, we seem close to settling on this course of action.