Normal considers pension shortfalls; council fights over rules

Sep. 17--NORMAL -- Normal officials hope state action can help solve a longstanding local budget problem -- and won't cause any more.

The town's police and fire pension funds continue to be funded well below expectations despite long-term property tax increases, and leaders are looking to legislative consolidation of pension funds to address the situation.

Normal Mayor Chris Koos compared the performance of funds like Normal's to the Illinois Municipal Retirement Fund, which the town also pays into and which supports its non-union employee retirements.

"There are hundreds of funds out there, and we only have one IMRF fund, and we see the result," said Koos during Monday's meeting of Normal City Council. "The (Illinois Municipal League) is working hard to get bills through the Legislature that would consolidate those funds."

Normal's police pension fund stands at 55.88 percent funded for 2019, a decrease from 56.25 percent in 2018, versus 61.84 percent for its fire pension fund in 2019 and 60.64 percent for the fire fund in 2018. Officials hoped both funds would be 100 percent funded by 2040, and they're expected to be 90 percent funded then under state mandate.

The town's IMRF funding level was 91.7 percent in 2017, which was reduced to 79.7 percent in 2018 due to a change in the expected investment returns on that fund, said Normal Finance Director Andrew Huhn. He noted that fund has performed well, thanks in part to recent staff cuts.

Pension costs drove property tax increases for Normal every year from 2006 to 2017. The tax rate fell in 2018, and 2019's tax rate is expected to be published in November.

That information was discussed as part of Normal's annual financial trends and conditions report, presented by Huhn.

After the presentation, council member Stan Nord asked Huhn how the town might expect to react to cuts in the state budget suggested last week by Democratic Gov. J.B. Pritzker.

The town receives income tax, sales tax and motor fuel tax funneled through the state. In recent budgets, the state has assessed a fee for state tax collection and taken a flat percentage -- currently 5 percent -- of income tax revenue intended for municipalities.

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"If the state gets tighter, that's problematic, but we'll have to see how it shakes out," said Huhn. "Those (payments from the state to the town) could all change with legislative action. ... We're always at the state's whim budgetarily."

In other business, the council continued to fight over Connect Transit and its own rules and practices.

When Marc Tiritilli, a one-time mayoral opponent of Koos, began to speak about a vacant Normal appointment to the Bloomington-Normal bus system's board during public comment, Koos noted the town mandates comments relate to agenda items, and Connect Transit was not on Monday's agenda.

The Illinois Attorney General's Office is investigating a challenge to that rule filed by council member Karyn Smith this spring.

Tiritilli ultimately backed down, but Nord asked for his comment to continue during council comments at the end of the meeting. Koos said that was possible if the council suspended its rules; Nord and Smith voted "yes" while Koos and council members Chemberly Cummings, Kathleen Lorenz and Kevin McCarthy voted "no."

Nord then spoke about the vacant seat, which he also has pressed Koos to fill, especially given the recent controversy about Connect Transit. Koos said that "toxicity" has caused candidates he hoped to appoint to step aside.

Lorenz questioned whether Nord had in fact, reading from notes, delivered Tiritilli's message regardless, cutting off his response by saying it's a "rhetorical question." Tiritilli stood up after the meeting adjourned and said that wasn't true.

Koos also tangled with Smith when she attempted to amend the council's minutes to, in her opinion, better reflect what she said during the Sept. 3 meeting. Koos said that was inappropriate and that Clerk Angie Huonker knows how to do minutes.

Nord and Smith voted "yes" on the amendment, with Nord saying such changes are appropriate if they fit the video record of the meeting. Koos, Cummings, Lorenz, McCarthy and Scott Preston voted "no."

Contact Derek Beigh at (309) 820-3234. Follow him on Twitter: @pg_beigh

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