Excerpts from the ChicagoTribune.com:
The Lake Forest City Council is actively seeking solutions to manage the rising costs of maintaining its fire department, especially concerning pension obligations. According to a presentation made at the October 3 city council meeting, the fire pension levy was $466,229 in 2005. This year, it has climbed to $1.2 million, and officials predict it will reach $2.6 million by 2027.
When combined with police pension costs, total public safety expenses are expected to hit $6.7 million in 2027. Firefighters contribute 9.45% of their salary to the pension fund, while police employees pay 9.91%. Each department operates its own pension fund, overseen by a five-member board and supported by professional financial advisors.
Elizabeth Holleb, the city’s finance director, mentioned that the two pension funds hold approximately $60 million in total assets. “In late 2015 and early 2016, the market wasn’t performing well,†she explained. “We closed our books on April 15, and we had very low returns. We typically assume a 7% return.â€
However, the actual returns were far below expectations: firefighter pension investments returned just 0.28%, while police pension investments lost 1.64%. The city is responsible for covering this shortfall.
The fiscal 2017 fire department budget stands at $6.25 million, with 98% of that going toward personnel. The department employs 35 full-time staff members. Holleb emphasized that the city has always met or exceeded state-mandated pension contributions.
In the past, the city reduced staffing through attrition, but Holleb noted that the current lean structure makes further cuts difficult. “The problem is that we’re so streamlined; it’s hard to make those kinds of reductions,†she said.
City Manager Robert Kiely highlighted during the meeting that the cost of fire services is increasing faster than the city can generate revenue. “If left unchanged, the growth in public safety pension obligations alone would require significant tax hikes, fee increases, and severe cuts in other city services just to keep up,†he warned.
Alderman Stanford Tack read a prepared letter stating, “The committee found no major opportunities for revenue growth or fiscal efficiencies in the fire department that could significantly help address these unsustainable trends.â€
To buy time for long-term planning, the city council has directed staff to explore a $10 quarterly fee, or $40 annually, for residents. This would provide one to two years to study and implement changes.
The city is also considering partnerships with neighboring communities to potentially share fire services, though the exact nature of such arrangements remains unclear.
“We will not compromise public safety,†Mayor Don Schoenheider stated firmly.
"2015 Ram 1500 roof rack""2004 Chevy Silverado roof rack""jeep roof rack"
Guangzhou Dongsui Auto Accessories Co., Ltd. , https://www.dongsuiautoparts.com