On November 30, 2009, the Village Board unanimously passed the following resolution placing an advisory referendum question on pension reform on the February 2, 2010 ballot. The question on the ballot will read: “Shall the Illinois General Assembly and the Governor take immediate steps to implement meaningful pension reform which will relieve the unsustainable burden on local taxpayers?” For more information regarding municipal pensions, click here. Don’t forget to check both sides of the ballot, if using a hard copy.

RESOLUTION NO. 09-3844

RESOLUTION INITIATING THE SUBMISSION OF A PUBLIC QUESTION TO SUPPORT REGIONAL ACTIONS TO ATTAIN LONG-TERM PENSION SUSTAINABILITY

WHEREAS, preserving the public safety, health and welfare of its residents is a critical priority and of paramount concern to the Village of Barrington; and

WHEREAS, the Village of Barrington, like many communities across the state, has been experiencing an exponential increase in required contributions to fund the pensions of eligible municipal employees; and

WHEREAS, the actuarially required contribution for the Village of Barrington Firefighter Pension Fund has increased by $218,783 or 58.93% from the 2007 tax levy to the 2009 tax levy; The 2009 tax levy amounts to approximately $11,799 or 23.55% of salary per plan member; and

WHEREAS, the actuarially required contribution for the Village of Barrington Police Pension Fund has increased by $139,053 or 31.69 % from the 2007 tax levy to the 2009 tax levy; the 2009 tax levy amounts to approximately $14,095 or 21.23% of salary per plan member; and

WHEREAS, a combination of factors including investment losses, legislatively mandated pension benefit increases, cumulative wage increases and others have contributed to this situation; and

WHEREAS, both the Fire and Police Pension Boards have made reasonable and financially prudent efforts to maximize the investment returns under limitations and restrictions imposed by the State in an effort to reduce the burden on local taxpayers; and

WHEREAS, the Illinois Municipal Retirement Fund has also experienced similar investment losses but the contribution amounts have been offset by reductions in force so that the required contribution has decreased $12,991 or 5.81% from the 2008 to the 2010 calendar year; The 2010 contribution amounts to approximately $7,511 or 10.63% of salary per active, full-time equivalent; and

WHEREAS, these steadily escalating pension costs have created a fiscal crisis that is consuming an ever increasing portion of the Village of Barrington’s municipal budget and threatens the long-term sustainability of the pension funds and the continuation of existing levels of public safety services; and

WHEREAS, while the Village of Barrington recognizes that offering a quality pension program is vital for the recruitment and retention of quality public employees, we also recognize that increasing pension costs place public pension systems in financial jeopardy; and

WHEREAS, without both immediate and long-term legislative relief from these escalating pension costs, the Village of Barrington and many other communities across the state are faced with complex choices, including budget cuts that reduce or eliminate vital services, compromise public safety service levels, defer critical infrastructure maintenance and repairs, and/or increase the burden on local taxpayers; and

WHEREAS, because Article XIII, Section 5 of the Illinois Constitution does not allow pension benefits to be diminished or impaired, the General Assembly must exercise extreme care in any pension enhancements that may cripple governments’ ability to fund both pension and other essential operations, especially in times of economic hardship; and

WHEREAS, opportunities as set forth in Senate Bill 2011 provide short-term local taxpayer relief from significant pension contribution increases in 2010 by leveling and/or extending the required adjustments over multiple years, which Senate Bill was overwhelmingly approved by the Illinois Senate, but stalled in the House due to pressures from public safety unions.

NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Barrington, Cook and Lake Counties, Illinois, that:

SECTION ONE: Incorporation of Recitals. The foregoing recitals are by this reference incorporated into and made a part of the resolution as if fully set forth.

SECTION TWO: Public Question on Pension Sustainability. A public question shall be submitted to the voters of the Village of Barrington , Cook and Lake Counties, Illinois, at the February 2, 2010 General Primary Election (or at the next available election permitted by the general election law) as follows:

Shall the Illinois General Assembly and the Governor take immediate steps to implement meaningful pension reform which will relieve the unsustainable burden on local taxpayers?

Yes q

No q

SECTION THREE: Publication: Filing. The Village Clerk is hereby authorized and directed to publish this authorizing resolution within ten days after passage in a newspaper of general circulation within the Village and to file this authorizing resolution or other related matters with the appropriate election officials in accordance with applicable law.

SECTION FOUR: Effective Date. This Resolution shall be in full force and effect from and after its passage, approval, and publication in the manner provided by law.