A series of articles discuss the financial challenges faced by North Riverside, a small town in Illinois, where local officials have been underfunding firefighter and police pensions. The village is now considering privatizing its fire department as a way to address its growing budget deficit. These reports come from several reputable sources, including the Chicago Tribune, the Washington Times (IL), and Landmark.com.
According to the Chicago Tribune, North Riverside has failed to meet its pension obligations for several years, leading to a $5 million shortfall between 2008 and 2012. The state Department of Insurance recently held a hearing with village officials to determine if they violated state laws by underfunding these pensions. Village leaders emphasized their future plans, such as contracting with an external company for firefighting services, which could save the town around $745,000 annually. However, critics argue that the focus should be on resolving past issues rather than just looking ahead.
The Tribune editorial highlights that North Riverside’s budget deficit of $1.9 million is largely due to pension obligations. Privatizing the fire department is seen as a bold solution, allowing the village to reduce costs while maintaining essential services. The move is expected to become more common as other municipalities face similar pension crises. The article also notes that Moody’s Investors Service recently downgraded North Riverside’s credit rating, citing concerns over its financial stability.
The Washington Times reported that North Riverside Mayor Hubert Hermanek believes privatizing the fire department could save the village $700,000 per year. However, firefighter unions are strongly opposed, arguing that private companies may not provide the same level of service. Union leaders claim that the village is trying to shift blame onto firefighters for its financial mismanagement. Meanwhile, the Illinois Municipal League suggests that more communities might explore alternative service delivery models due to the heavy burden of pension obligations.
Landmark.com covered the legal implications of North Riverside’s proposed privatization plan. The firefighters’ union warned that the village would face legal action if it moves forward without a contract. The article also revealed that North Riverside plans to seek a property tax increase in November, which would significantly raise taxes for residents. Other measures include budget cuts and increased water rates, all aimed at addressing the town’s financial crisis.
Despite these efforts, the village still faces a $1.9 million deficit. While some solutions may help, the long-term sustainability of North Riverside’s finances remains uncertain. With the state threatening to divert funds to cover pension obligations, the pressure on the village is mounting. As the Department of Insurance prepares its recommendation, the future of North Riverside’s fire department—and its financial health—remains in limbo.
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