Chicago suburb reaches pension fund repayment agreement
HARVEY, Ill. -- The Chicago suburb of Harvey has reached an agreement with its police and fire pension funds that ends a dispute over withheld state tax revenues.
The repayment agreement apportions previously withheld and future tax revenues between the involved parties until the city's debts are paid in full.
The Illinois comptroller has withheld approximately $3.3 million in sales, income, local use, transportation, motor fuel, replacement and excise tax revenues from Harvey since February. The comptroller's office says it acted in response to state law that lets pension funds certify to the office that municipalities haven't made required payments.
Harvey attorney Bob Fioretti said he expects the city to meet its required funding commitments to the pension funds in the future.
Harvey will receive about $1.65 million of the $3.3 million withheld since February. The remainder will be split between the police pension fund, the firefighters pension fund and a trustee for city bondholders.
Information from: Southtown Star, http://southtownstar.chicagotribune.com/