Oak Brook trustee candidates focusing on pension issue

Oak Brook village board candidates are adamant their town doesn't need a municipal property tax - or any other new taxes for that matter - to address its growing pension obligations.

Incumbents Asif Yusuf and Michael Manzo and four challengers - Edward Tiesenga, Michael Wencel, Charles Thompson and Elisa Templeton - are vying for three seats on the board during the April 7 election.

With Oak Brook's annual contribution to the pension funds for its police and firefighters more than doubling to $2.8 million over the past decade, the question of what the village must do to continue making those payments has become an issue in the six-person race.

During an endorsement interview with the Daily Herald, several of the candidates blamed Springfield lawmakers for approving legislation that boosted pension benefits for police and firefighters, which then increased pension costs for Oak Brook and other municipalities.

"The root of the problem is the overly rich package of retirement benefits that the state legislature has mandated," said Wencel, a commercial real estate broker.

Manzo said the state "created the mess for the municipalities" and should be responsible for fixing it.

"We need to lobby our legislators to make real pension reform," said Manzo, who owns an insurance and financial services company. "We need to go from defined benefits to defined contributions."

However, Yusuf said, Oak Brook can't wait for state lawmakers to respond. "We could all die of old age waiting for Springfield to do something good," he said.

Yusuf and Manzo both said the village is in a strong enough financial position where it can afford to make its annual pension payments.

Still, Yusuf said it's "a burden that's increasing every year."

He said one way the village could reduce its pension liability is by using more contractors and part-time employees to do work in the police and fire departments.

The village already is using auxiliary police officers and has expanded the role of the community service officers to reduce the workload of sworn officers, Yusuf said.

He suggested the village could seek a deal with the firefighters union that would allow a part-time firefighter to work during each shift.

"You can't go all part-time," said Yusuf, who works in real estate and farming. "You need some continuity."

But adding part-time positions to replace full-time employees who quit or retire could take "a nice bite" out of the village's pension liability, according to Yusuf.

Tiesenga says officials need to determine the total amount of Oak Brook's unfunded pension liability before deciding what steps to take to address it.

"Let's find out how bad it is," said Tiesenga, an attorney.

He said "a multiyear actuarial study" must be done to pinpoint the number, which currently is estimated at somewhere between $20 million and $40 million.

"Let's at least raise the banner of the true cost of it," he said, "and let's talk about it honestly."

Determining the true cost of the police and fire pensions could force Oak Brook officials to make some changes to the budget.

Several candidates said they would be willing to cut spending in other areas to raise money to pay for the pensions.

But all the candidates oppose any efforts to levy a municipal property tax for Oak Brook, which always has operated without one and relies on sales tax revenues to fund village services.

"I think we have the ability to continue to fund it without looking at a new tax source," Yusuf said. "I don't believe in taxing unless there's no other way around it."

Meanwhile, Thompson, who works for a British investment firm, said he would use his experience and expertise to bring "a different perspective" to the problem.

If elected, Thompson said he would provide oversight to ensure the police and fire pension funds are getting sound investment advice from their consultant.

"I can be a voice with expertise to set a more clear direction," Thompson said. "And I don't believe anyone else has the sufficient expertise."

Templeton did not participate in the Daily Herald's endorsement process and did not respond to requests for comment.