City of North Chicago Finance and Audit Committee met Nov. 11
Here is the minutes provided by the committee:
Alderman Runnels called the meeting to order
ROLL CALL:
Present: Jackson, Mayfield, Markham, Runnels
Absent: Evans, Allen, January
I. DISCUSSION OF FIRE PENSION:
Alderman Runnels explained the Tax Levy would be discussed at the Regular Standing Committee Meeting.
Treasurer, Kenneth Robinson introduced Fire Pension President, Doug Winston and Carolyn Clifford, Fire Pension Board Counsel. She explained a letter was sent to the Mayor’s Office October 5, 2020 questioning status of Fire Pension contributions after audited. The Board was cooperative in working with the City $1.3 million; the actual contribution was $1,105,680 leaving a deficiency of $194,321. Cumulative approach of only $60,000 additional including the $150,000 City contribution; payment was made independently to hold interception. The contribution timeframe was in 2018-2019 for 2016 & 2017.
Chief of Staff, Deb Waszak stated she was not present in the meeting with the Board and Interim Comptroller; she was unaware why funds were applying to the 2016 shortfall. The information received never mentioned that contributions were to be applied to 2016 or how far back funding was going. According to her calculations $337,000 would be accurate for the agreed scenario #1.
Ms. Clifford explained the calculations based on the audit by Lauterbach & Amen of the City contribution and funding transition plan. Chief of Staff Waszak reiterated that the understanding was to move forward not back.
Attorney Adam Simon explained the deficiency was not based upon the agreed transition contribution. Looking at the contribution of 2019 the City gave $1.4 million which resulted in a surplus contribution of $250,000. The $250,000 should roll forward. The City agreed to follow the transition plan.
City Treasurer Kenneth Robinson stated that there was never an indication that funding would be for future payments. Mrs. Clifford said that $150,000 contribution was received in 2019.
Attorney Simon calculated a deficit/shortfall of $92,570 for 2020. Mrs. Clifford suggested that the information be sent to the Attorney and Chief of Staff for further deliberation. Attorney Simon emphasized that the City’s high tax rate and didn’t not prefer to raise property taxes. Pension contributions were paid with property taxes and other revenue. When the City adopted the Tax Levy it would not reflect the entire contribution that was owed for 2021; it will be less. Mrs. Clifford understood.
Chief of Staff Waszak explained that the pension was from many sources within the budget. Ms. Clifford stated concern of funding the current pensions being funded. Treasurer Robinson stated that any dollars paid in excess of the transition plan would be stated for future contributions/obligations.
II. DISCUSSION OF 2020 TAX LEVY:
Per Alderman Runnels, this will be discussed at the next Meeting, November 16, 2020.
Alderman Mayfield moved, seconded by Alderman Jackson that Finance/Audit Committee Meeting stand adjourned.
ROLL CALL:
Ayes: Jackson, Mayfield, Markham, Runnels
Nays: None
Absent: Evans Allen, January
The meeting adjourned at 1:04 p.m.
https://www.northchicago.org/vertical/Sites/%7B52959CF2-969E-41D9-A9CF-CF0A11D0BEA9%7D/uploads/COM.11.11.20.pdf
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