R-1079 - 07/27/2010 - ELECTION - ResolutionsRESOLUTION 2010 -EL- REF- P &FPCNTRB -R -1079
A RESOLUTION AMENDING RESOLUTION R -1078 IN RELATION TO
INITIATING THE SUBMISSION OF A PUBLIC QUESTION
TO IMPLEMENT MEANINGFUL PUBLIC SAFETY PENSION REFORM
WHEREAS, on July 13, 2010 the President and Board of Trustees approved and passed
Resolution R -1078, "A Resolution Initiating The Submission Of A Public Question To Support Regional
Actions To Attain Long -Term Pension Sustainability'; and
WHEREAS, the President and Board of Trustees of the Village now deem it advisable and in the
best interest and in furtherance of the general welfare of the citizens of the Village to amend Resolution
R -1078; and
WHEREAS, preserving the public safety, health and welfare of its residents is a critical priority
and of paramount concern to the President and Board of Trustees; and
WHEREAS, the Village, like many communities across the state, has been experiencing an
exponential increase in required contributions to fund the pensions of eligible municipal employees; and
WHEREAS, the actuarially required contribution for the Village Firefighter Pension Fund has
increased by $279,300 or 49.44% from 2007 to 2009; and
WHEREAS, the 2009 contribution amounts to approximately $26,385 per plan member; and
WHEREAS, the actuarially required contribution for the Village Police Pension Fund has
increased by $400,525 or 71 % from 2007 to 2009 tax levy; and
WHEREAS, the 2009 contribution amounts to approximately $23,530 per plan member; and
WHEREAS, a combination of factors including investment losses, legislatively mandated pension
benefit increases, cumulative wage increases and others have contributed to this situation; and
WHEREAS, both the Fire and Police Pension Boards have made reasonable and financially
prudent efforts to maximize the investment returns under limitations and restrictions imposed by the State
in an effort to reduce the burden the Village; and
WHEREAS, the Illinois Municipal Retirement Fund has also experienced similar investment
losses that have increased the required contribution to that pension fund by $100,115 or 10.64 % from
the 2008 to the 2010 calendar year; the 2010 contribution amounts to approximately $9,300 per active,
full -time equivalent including the 6.2% social security contribution; and
WHEREAS, these steadily escalating pension costs have created a fiscal crisis that is consuming
an ever increasing portion of the Village's municipal budget and threatens the long -term sustainability of
the pension funds and the continuation of existing levels of public safety services; and
WHEREAS, while the Village recognizes that offering a quality pension program is vital for the
recruitment and retention of quality public employees, we also recognize that increasing pension costs
place public pension systems in financial jeopardy; and
WHEREAS, without both immediate and long -term legislative relief from these escalating pension
costs, the Village and many other communities across the State are faced with complex choices,
including budget cuts that reduce or eliminate vital services; compromise public safety service levels;
defer critical infrastructure maintenance and repairs; and /or increase the burden on local taxpayers; and
Resolution 2010 -EL- REF- P &FPCONTRB -R -1079
Question Submission re: Meaningful
Public Safety Pension Reform
Page 2 of 3
WHEREAS, because Article XIII, Section 5 of the Illinois Constitution does not allow pension
benefits to be diminished or impaired, the General Assembly must exercise extreme care in any pension
enhancements that may cripple governments' ability to fund both pension and other essential operations,
especially in times of economic hardship; and
WHEREAS, the General Assembly reformed the pension systems for all public employees in the
Spring 2010 session with the exception of police officers, firefighters and sheriffs; and
WHEREAS, the Village also supports legislation that would reduce pension benefits for new hires
as was approved for thirteen other Illinois pension systems, but without penalties to municipalities that do
not meet certain funding levels.
NOW THEREFORE, be it resolved by the President and Board of Trustees of the Village of Oak
Brook, DuPage and Cook Counties, Illinois, as follows:
Section 1: The foregoing preambles are incorporated herein by reference as though fully set forth
herein.
Section 2: A public question shall be submitted to the voters of the Village, Cook and DuPage
Counties, State of Illinois, at the November 2, 2010 General Election as follows:
Shall the Illinois General Assembly and the Governor take immediate steps to
YES
NO
implement meaningful public safety pension reform which will relieve the extensive
burden on local taxpayers now that the General Assembly and Governor have
reformed the pension systems for all other public employees?
Section 3: The Village Clerk is hereby authorized and directed to publish this authorizing
resolution within ten days after passage in a newspaper of general circulation within the Village and to file
this authorizing resolution or other related matters with appropriate election officials in accordance with
applicable law.
Section 4: If any section, paragraph, clause or provision of this resolution shall be held invalid, the
invalidity thereof shall not affect any of the other provisions of this ordinance.
Section 5: All ordinances or parts thereof in conflict with the provisions of this resolution are
hereby repealed to the extent of such conflict.
Section 6: This resolution shall be in full force and effect from and after its passage, approval and
publication as required by law.
APPROVED THIS 27th day of July, 2010.
PASSED THIS 27th day of July, 2010.
Resolution 2010 -EL- REF- P &FPCONTRB -R -1079
Question Submission re: Meaningful
Public Safety Pension Reform
Page 3 of 3
Ayes: Trustees Aktipis, Carson, Moy and Wolin
None
Absent: Trustees Saived and Zannis
ATTEST:
OLUMkA4�
Charlotte K. Pruss
Village Clerk