Pension Issues Weigh On Lake Forest, Lake Bluff Budgets
While both Lake Bluff President Christine Letchinger and Lake Forest Mayor James Cowhey said they are managing through the crisis, it remains a line item that won't go away anytime soon.
Scranton, Pa.
San Bernardino, Calif.
The list continues to grow of communities filing for bankruptcy or whose budgets are severely impacted by a variety of factors, including suffocating pension programs that carve out signifcant money.
Lake Forest and Lake Bluff are nowhere near that point, but pension programs are definitely on their radar.
Both Lake Bluff President Christine Letchinger and Lake Forest Mayor James Cowhey addressed the issue during Wednesday's annual Municipal Update at the Lake Forest-Lake Bluff Chamber of Commerce monthly luncheon at Deer Path Inn in Lake Forest.
Letchinger, who has served as village president since 2005 and said she does not plan to run again in April, indicated Lake Bluff pays more than $600,000 in pension funds.
She noted that for a village of less than 6,000 residents, Lake Bluff offers services that towns their size would not normally have, such as a full-time police department, a fire department, a library, a school district, park district and swim pool. Letchinger said the full-time police department could become more of a budget issue as smaller communities coupled with a sagging real estate market struggle to find more sources of revenue.
Cowhey, who became Mayor in 2009 after serving as Fourth Ward alderman for six years, believes communities that have budgeted conservatively will weather the pension issue.
However, his concern is focused on how state government will pay the billions of dollars in pension funds
"One of the bigger issues on my mind is will the state try to steal more monies from the municipalties?" Cowhey said. "It's something we're certainly aware of. When (City Manager) Bob Kiely and I sit down to talk about our financial outlook going forward, I always say, 'Let's put some money aside' because we don't know what's going to happen at the state level."
Both Letchinger and Cowhey believe their respective downtowns are holding their own against a rollarcoaster economy. Cowhey cited 16 new businesses in Lake Forest with more coming, including two to fill out the East Last Forest Train Station.
Letchinger said in creating its current downtown it didn't happen on the first attempt. "We failed twice before we got it right," she said. And the village's continued survival comes from business owners who are willing to "speak their mind" in looking for other ways to promote the village.
To that end, Lake Bluff will embark on a branding campaign as part of its strategic initiatives geared at both businesses and new residents. Letchinger said the village is experiencing a "graying" effect with 50 percent of the population age 50 or higher due to a real estate market that hasn't been inviting to younger families.
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In This article
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City of Lake Forest
220 E Deerpath, Lake Forest, IL -
Village of Lake Bluff
40 E Center Ave, Lake Bluff, IL -
Lake Forest–Lake Bluff Chamber of Commerce
272 E Deerpath, Lake Forest, IL (Suite 106) -
Deer Path Inn
255 E Illinois Rd, Lake Forest, IL
Paul
9:37 am on Thursday, July 12, 2012
"She noted that for a village of less than 6,000 residents, Lake Bluff offers services that towns their size would not normally have, such as a full-time police department, a fire department, a library, a school district, park district and swim pool." This is one of the reasons we moved to this town, and expect it to stay that way!
TheKidsareAlright
6:25 pm on Thursday, July 12, 2012
We in Lake Bluff already lost our garbage pick up to a company that makes us line our streets with ugly waste cans and garbage left on the curbs. Now you want to get rid of our park dist, pool, library, and police? Why would I want to stay here?
Robin p.
10:26 pm on Thursday, July 12, 2012
First the public works department is stripped to the bone. Now the police department appears to be next on the list. One of the reasons Lake Bluff has remained the quiet, family friendly town it is, is that the village employees take pride in where they work. We don't want our community to become just another dot on a north shore map!
With the taxes we pay, along with the revenue from the car dealerships , I don't believe for a moment that Lake Bluff needs to consider cutting any more of our services! What makes our town "one of America's top 10 Coastal Towns"? A community that cares!
RationalTht
12:00 am on Friday, July 13, 2012
Public sector "services" are expensive.
Me
7:12 am on Friday, July 13, 2012
The best way for Lake Bluff and Lake Forest to save money are to share more services. Each community does not need its own Parks Department. One department that administers both programs would save a lot. Similarly, there is no need for a small town to support its own school district. Same can be said for the police and fire departments.
Lake Bluff can still be a community that cares, it can just save a couple of bucks in the process.
Think harder
7:24 pm on Thursday, September 13, 2012
Absoultely NOT! sharing services is an opportunity for increased conflict. we share a HS. Look at that dysfunctional mess. that is quite enough. I want nothing from LF- not their overhead or their debt or their transfer taxes for RE transactions for buyers. keep it!
Gary
9:48 am on Friday, July 13, 2012
What percentage of your tax bill goes to pensions?
uscfan
10:18 am on Friday, July 13, 2012
Didn't Lake Bluffs city manager get 20+% pay increase and loan forgiveness on his city provided home mortgage? Any why is there a police chief and deputy chief? And we cant get garbage pick up, fix our pool, or get officers to catch speeders on our street???
Fran
4:49 pm on Friday, July 13, 2012
Has anyone looked at the cost a household is paying for police pensions, approximately $100.00 a year. That is $100.00 well spent. Have we forgotten about the man that was in the fire and was saved by our police officers. Our community is next door to communities that are having problems with gangs and shootings. We all need to look at what Lake Bluff is now and what it could be with what is being suggested.
Francis
Mike
8:22 pm on Sunday, July 15, 2012
Having been born and raised in Lake Bluff and falling in love with the many things that Lake Bluff had to offer I decided to raise my family here. Now I see many changes taking place that I am not happy with. Why are my services being cut? So our Village Manager can keep giving himself pay raises, and we can pay his mortgage? Cut my tax bill, and NOT MY SERVICES! We will move if this continues!
bsmith
7:13 pm on Thursday, July 19, 2012
The Village President is directing business to her husband's firm, she claimed it was recommended by the Villager Manager. The Villager Manager has been paid over $35,000 for his vehicle expense( He lives 4 houses away for Village Hall) since he started. That's what we cannot afford!