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Pension consultants leave city in financial limbo

Consultants investigating the city of San Diego's pension deficit have let yet another month go by with nothing to show for the $20 million the city has paid them. Without their report, the city's is left hanging in financial limbo, unable to borrow on the bond market. KPBS reporter Alison St John has more.

The consultants, Kroll Incorporated, indicated they'd be done by the end of June, but July is now under way and the latest date for the release of the long awaited report has slipped by once again.
City attorney Mike Aguirre accuses the consultants of artificially prolonging the city's agony in order to postpone the day of reckoning for those responsible for the massive pension deficit.

AGUIRRE: "The essential facts are in and the whole idea that we are paying 20 million dollars to Kroll, that's primarily focused on stalling, it's preposterous."

Aguirre is also angry Kroll proposes to show their findings to the US Attorney, the SEC and the external auditor before releasing it to the city.

The mayor's spokesman Fred Sainz says the delay is highly frustrating, but it's wiser to let the federal agencies and the auditor see the report before its release. That way, he says, the city wont be accused of tampering with the conclusions.

SAINZ: "We would not be in a situation where the agencies were then crying foul on the various conclusions of the report after the fact."

Sainz says one thing's for sure -- the report will include more than 100 remediations. - Measures the city must take to be sure San Diego never runs up an huge deficit and tries to hide it from the bond markets again. Alison St John, KPBS News.

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