'Only Negative' In Burr Ridge Audit Report

BURR RIDGE, IL — In reviewing Burr Ridge's annual audit Monday, Mayor Gary Grasso said the police pension fund was the "only negative" in the entire report. As with most towns, Burr Ridge has a hard time keeping up with its fund's escalating liabilities.

This budget year, Grasso said, the village has to come up with $760,000 to make its contribution to the pension account, a 40 percent increase from five years ago.

"That number is quickly going to get up to $1 million year," he said.

One of the big drivers of pension spending is the state's requirement that pensions rise by a 3 percent compounded rate every year. That is significantly higher than inflation. For instance, a person starting with a $70,000 pension a decade ago would have seen that amount rise to $83,400 if it went up with inflation. With the compounded 3 percent rate, it would reach $94,100 by this year.

At Monday's Village Board meeting, Grasso called the pension requirements an "unfunded mandate."

"What that means is Springfield tells us what we have to pay in pensions, but never provides a revenue stream. Irresponsible government," the mayor said.

Last week, Darien officials discussed at a meeting how taxpayers must increase their annual contribution by nearly $200,000 more into that town's police pension fund.

In Burr Ridge, Grasso said the town's financial situation looks good. The village ended the last budget year with a $278,000 surplus in its main account and a total fund balance of $5.3 million, he said.

"This is a very healthy economic position to be in for a village," he said. "I talk to mayors all the time... Mayors would envy us for what we have been able to do for our village and the kind of reserves we have in this village."

Burr Ridge's median household income of $144,600 is more than twice the state's.

Here is the level at which area towns have funded their police pension accounts:

Source: Illinois Comproller's Office Local Government Warehouse