Submitted By
Cara Pavlicek, Village Manager
Agenda Item Title
Title
Police and Fire Pension Discussion related to FY19
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Overview
Overview
This is the second meeting of the Finance Committee related to the FY19 budget. The October 11, 2018 meeting will focus on the Fire and Police Pension Funds as well as a discussion of the recommended agenda related to future meetings of the Finance Committee.
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Anticipated Future Actions/Commitments
Recommendation
The Police and Firefighters’ pension recommended contributions are 100% funded via property tax levies which are typically approved by the Village Board in December along with the General/Corporate and Debt Service Fund levies. The recommended levies (annual employer contributions) per the Lauterbach valuations for the public safety pensions are as follow:
Compared to the prior year, the police levy recommendation increased from $5,470,687 to $6,211,250, or approximately 13.5% while the fire pension levy decreased from $5,277,679 to $5,158,133, or about 2.3%.
In addition, there were no changes to any of the assumptions used by Lauterbach & Amen. A summary of the major assumptions are included in the attached memo.
Lauterbach & Amen previously attended quarterly pension board meetings to present and discuss the actuarial valuations and answer questions from both Boards. The Fire Board previously submitted their tax year 2018 levy request which agrees to the L&A recommended contribution and is included in this agenda item.
Separately, the Finance Committee has begun its review of the recommended Capital Improvement Plan for 2019-2023 holding its first meeting on Monday, October 8, 2018. The following schedule is proposed for Finance Committee review of the recommended FY19 budget in advance of the FY19 Budget’s review by the full Village Board which will begin in November.
Monday, October 8, 2018, 6:30 p.m. the Finance Committee reviewed the Recommended Five Year Capital Improvement Plan (CIP) 2019-2023.
i. Overview of the CIP Process (5-year capital plan)
ii. Review of the Capital Improvement Fund: Pages 7-65
iii. Review of the Sustainability Fund: Pages 66-70
iv. Review of the Building Maintenance Fund: Pages 71-161
v. Review of the Fleet Replacement Fund: Pages 162-168
vi. Review of the Water and Sewer Fund: Pages 206-238
vii. Review of the Parking Fund: Pages 189-205
viii. Review of the Equipment Replacement Fund: Pages 169-187
Thursday, October 11, 2018, 6:30 p.m. the Finance Committee will be asked to review:
a. Fire and Police Pension Funds
Tentatively, the Finance Committee will be asked to meeting Thursday, October 11, 2018, 6:30 p.m. to review:
a. Review of Internal Service Funds
i. Review of Debt Service Fund
ii. Review of Health Insurance Fund
iii. Review of Self Insured Retention Fund
b. Review of Special Revenue Funds
i. Bullet Proof Vest Grant
ii. Community Development Block Grants
iii. Community Development Loan
iv. Downtown TIF
v. Earth Fest
vi. Emergency Solutions Grant
vii. Farmers Market
viii. Federal RICO
ix. Foreign Fire Insurance
x. Harlem Garfield TIF
xi. Health Department Grant
xii. Keep Oak Park Beautiful
xiii. Lead Hazard Grant
xiv. Madison Street TIF
xv. Motor Fuel Tax
xvi. Special Service Area #1
xvii. Special Service Area #7
xviii. Sustainability Fund
xix. Travel, Training & Wellness
Tentatively, the Finance Committee will be asked to meet Monday, October 22, 2018, 6:30 p.m. to review:
a. Review of General Fund Revenues
b. Review of General Fund Expenditures
Tentatively, the Finance Committee will be asked to meet Thursday, October 25, 2018, 6:30 p.m. to review:
a. Review of Enterprise Funds
i. Water & Sewer
ii. Environmental Services
iii. Parking
Body
Report
Chapter 2 of the Municipal Code establishes the foundation for the Municipal Budget and provides:
• The Village fiscal year is January 1 - December 31 annually.
• The Board of Trustees must adopt the annual budget prior to the start of the Fiscal Year and passage of the annual budget shall be in lieu of passage of the appropriation ordinance.
• On or before the Village Board of Trustees' first regular meeting in November of each year, the Village Manager shall submit to the Board of Trustees an annual Municipal budget which contains estimates of revenues together with recommended expenditures in conformity with good fiscal management practice.