Elburn could consider service cuts to fund police pension obligation

Elburn President Dave Anderson said Wednesday he was disappointed, but not surprised, by voters’ refusal to establish a property tax to pay police pensions.

He said he understands no one wants to add a tax. But the village still has to make the payments, per state law.

So how will Elburn come up with the money?

“We’re up for suggestions,” Anderson said.

The village board will discuss the matter at a committee of the whole meeting at 7 p.m. Monday at the village hall, 301 E. North St.

“At this point, there are no sacred cows,” Anderson said. However, the money is not likely to come from the water and sewer operations. Those are paid for primarily by utility customers.

That leaves administration, streets and walks and the police departments.

Anderson couldn’t say if staff will be laid off or have their hours or pay reduced.

One of the items already bandied about was snow removal. The village figures it costs at least $2,500 per incident to plow village streets after a 2-inch snowfall. It could decide to wait until snow reaches 4 inches. A bunch of small cuts like that, such as eliminating mosquito control, could add up to real money, he said.

The proposed budgets for the administration, police and streets and walks departments total $2.71 million. The request includes $100,000 for the police pensions.

The village doesn’t know yet exactly how much it will have to pay in 2012-13. For the 2011-12 fiscal year, which ends April 30, it expects to pay $162,800. It started contributing in June 2011 when Elburn received its certified 2010 Census results. That census showed the population had climbed above 5,000, the point at which the state requires a village to have its own police pension fund rather than participate in the Illinois Municipal Retirement Fund.

Not only does the village have to run a separate pension fund now, it also has to contribute a higher percentage of an officer’s salary than it did to the IMRF. The officers’ contributions have increased, too.

“We have absolutely no control over that,” Anderson said.

The village has already requested its property taxes that will support the 2012-13 budget; the county clerk is due to finalize the extension in the next few weeks, and then property tax bills will go out.