No Tax Hike In New Burr Ridge Pension Policy: Official

BURR RIDGE, IL – Burr Ridge officials say they have found a way to pay for police pensions long-term without a property tax hike.

At last week's Village Board meeting, trustees approved a change in policy on how to cover pension costs.

Under the previous policy, the village was preparing for quickly escalating pension contributions. Officials said the fund now consists of 40 pensioners and 27 contributing officers.

The village's contribution is $923,000 this year, up from about $600,000 in 2016. Under the old plan, the contribution was expected to rise to $2.1 million by 2040.

The new policy, which changes how unfunded liabilities are spread over time, prevents a huge spike, officials said. Now, the 2040 payment is estimated at $1.2 million.

As part of the new policy, the village is set to make a one-time $200,000 additional contribution to the pension account.

In presenting the new policy, Village Administrator Evan Walter said the current trajectory of payments was unaffordable. He repeated three times that the new policy would not require an increase in property taxes.

Deputy Police Chief Ryan Husarik, who also heads the police pension board, spoke positively of the new policy.

"I'm encouraged that the board is talking about increasing contributions above the bare minimum," he said. "I've been on the (pension) board for 14 years, and every single one of those years it's been the statutory required minimum contribution."

The vote for the new policy was unanimous, with Trustee Guy Franzese absent.

Village President Gary Grasso said the village's police pension fund is in a good position compared to other towns.

"The vast majority of municipalities have fallen significantly short of 70 percent," he said. "There are police and fire pensions in other villages that are under 50 percent."

Burr Ridge, though, benefits from a huge property tax base. For instance, its base is more than 40 percent larger than downstate Decatur's, yet Decatur has six times Burr Ridge's population.

According to the state's comptroller's website, Burr Ridge's police pension account was funded at 69 percent in 2021, compared with Decatur's 67 percent.