PEORIA, Ill. — Peoria City leaders are on the hunt for different solutions to a long standing problem, how to fund a growing mountain of police and fire pension obligations on time.
Under current state law, public safety pensions in Illinois must be funded at 90 percent by the year 2040.
As of Tuesday, Peoria is barely more than half way there at 48 percent.
Public safety pension obligations have risen three and four fold for communities all across the state, including Peoria and the clock is still ticking.
City Finance Director Kyle Cratty highlighted the pension burden locally in Peoria while delivering a report to Peoria City/Town Council members Tuesday night.
Cratty said, for example, the city has collected roughly $22 million in property tax revenues in the last year.
Nearly $19 million of that went to public safety pensions while just $3.2 million went to roads and infrastructure.
Cratty informed elected leaders they essentially have three options for covering police and fire pensions and none of them are necessarily appealing.
The city could issue new public debt in the form of pension obligation bonds, but Cratty pointed out how taking such a course would be risky, potentially leaving Peoria taxpayers on the hook for cost hikes due to future municipal bond market swings.
Cratty said City Council could also cut local public services — or — raise taxes.
There was plenty of discussion among council members after Cratty’s report on pensions, but no decisions were made.
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