Elk Grove newsletter details effects from state's pension-fund mandate on taxes
The Village of Elk Grove recently published a special newsletter for residents and businesses to detail several issues related to the pension-funding problems being faced by the village and other Illinois communities.
The chief concerns center on the addition of a state requirement that the village increase its annual pension contribution. The trickle-down effect on this requirement results in Elk Grove residents paying more property taxes.
“Despite the Village Board’s continued diligence in fulfilling our pension obligations, the state is now requiring the adoption of new actuarial tables, which require the village to provide funding for pensioners living to 120 years old,” the newsletter said. “This places a heavy burden on local taxpayers. The new actuarial tables require an additional $924,058 be contributed to pensions this year. As a result of this state requirement, the average homeowner in the village will pay an additional $35 in property taxes.”
The newsletter also said the village’s 2014 goal to make pensions fully funded within 15 years will not be met. It is estimated that even with the property tax hike, it will take up to 20 years to secure the pension fund.
“The current pension system is simply unsustainable,” the newsletter said. “Until the State Legislature fixes the broken system, pensions will continue to require additional funding, which means increased taxes on residents and businesses.”
The newsletter also contains an article related to the worsening status of the pension fund – despite increased contributions over the past 15 years – and contact information for state legislators so that residents can reach them with concerns regarding this issue. The newsletter can be found online at www.elkgrove.com/home/showdocument?id=3099.
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901 Wellington Ave
Elk Grove Village, IL - 60007