Steve Bishop’s Spring Grove Trustee Campaign Literature Posted on 03/23/2015 by Cal SkinnerMarch 23, 2015 As promised, McHenry County Blog will run candidates’ campaign literature. (Just email them to me.) Here is the palm card of Steve Bishop, who is running for Trustee in Spring Grove:
In addition to any bond debt, here’s what you need to be concerned about at the village level of government.
Police and Fire pensions.
Police is usually part of the village.
Fire is usually a separate taxing district.
“Pursuant to Public Act 95-0950 (House Bill 5088), each odd numbered year, the Commission on Government Forecasting and Accountability analyzes data submitted by the Public Pension Division of the Illinois Department of Insurance pertaining to the pension systems established under the Downstate Police Article and the Downstate Fire Article of the Illinois Pension Code.”
From that report.
Spring Grove Police Pension Fund as of 2013.
Accrued Liability – $5,239,963
Actuarial Value of Assets – $1,907,539
Unfunded Liability – $3,332,424 (amount that should be in the fund now but is not)
Funded Ratio – 36.40%
The unfunded liability is the taxpayer IOU to the pension fund.
It’s the amount that should be in the pension fund right now, but is not.
It is the amount that should be in the pension fund now, so the pension fund can earn the investment income calculated by the actuary.
Don’t let anyone tell you it’s ok because the entire amount is not due to be paid this year.
It’s only ok if you don’t mind paying more taxes in the future to make up the shortfall that exists today.
Underfunding throws off the actuary’s projections.
Many villages in Chicago area have no idea how they will make up the shortfall in their police and fire pension funds.
Just like with teacher pensions, state legislators and governors hiked pension benefits, even though pension funds were already underfunded.
It is absolutely dysfunctional government done for political reasons and not for any other reason.
And it was going on for 45 years ever since the pension sentence was added to the Illinois State Constitution in 1970.
Don’t worry because Spring Grove will have a tax, the current board members will be sure of that.
Especially Mazzanti, he’s all for a tax.
Miss Uppity…… great job of speaking out from behind a wall.
I voted to place the issue on the ballot, I am not all for a tax, but it certainly is one of the solutions.
The problem is much bigger than the tax increase issue.