Auditors give Warrenville an 'A' rating

With assets exceeding debt by tens of millions of dollars, Warrenville's fiscal 2007 performance gets an "A" grade, auditors told aldermen Monday during the presentation of an end-of-year report.

Meeting as the Finance Committee of the whole, the city council reviewed budgetary spending for last fiscal year, which ended in April. Of the city's $123 million assets, about $98 million is invested in the form of infrastructure, such as buildings and streets. Another $14.7 million is available for spending on capital projects or other needs, an increase over last year.

At the same time, Warrenville carries about $24 million in debt, much of it coming from tax increment financing bonds. That money must be repaid by the TIF district, not Warrenville residents.

"Nearly all of my (municipal) clients have significantly more debt," auditor Dan Berg of Aurora-based Sikich, LLP, said. "Warrenville is in a very good position."

Aldermen also reviewed the city's police pension fund, long a concern for the city council. The fund got a "B" grade from actuary Timothy W. Sharpe, of Geneva, since the city is keeping up with its contributions but pensions remain just 56 percent funded.

In 2006, the Warrenville Police Pension Fund investments had a total return of 9.32 percent, an improvement over previous years. Still, as of April 2007 the fund had an a long-term un-funded liability of over $4 million.

By state law, pension members must contribute 9.91 percent of their pay to the fund annually. Finance Director Kevin Dahlstrand told aldermen that, in order for the pensions to be fully funded by a 2033 deadline, the city would need to increase its contribution to the fund by about $175,000 each fiscal year, in addition to the annual tax levy.

But Sharpe said that 100 percent pension funding is moving goal, since the city likely will never get to the point where it doesn't have to contribute to the fund. Warrenville will have to pitch in more money whenever a new officer elects to participate in the pension program, he said.

"The pension fund really looks in really good shape," Sharpe said.