Excerpts from the Daily Herald:
Barrington filed a lawsuit against the Barrington Countryside Fire Protection District, alleging that the district is withholding over $1.2 million owed to a jointly managed firefighters' pension fund. In response, the fire district's recent audit insists they bear no responsibility for these funds.
The lawsuit claims that when the fire district separated from the village-operated fire department on December 31, 2013, the pension fund was already short by $1.9 million. Village officials assert that back in 2005, the fire district's leadership had agreed to cover 64.25% of "fire services costs," which includes pension obligations. This commitment would have totaled over $1.2 million at the time of the split. Additionally, the village is pursuing over $800,000 from the district for long-term disability insurance costs.
The actual amount owed could even exceed $2 million. The lawsuit argues that fire district officials requested the village to recalculate the pension liabilities using a state-mandated formula, which bumped the costs up significantly. A judge will need to decide not only if the fire district owes the village anything but also whether it’s the initial $1.2 million figure or the recalculated $2 million.
Jeff Lawler, the village manager, stated, "This is unfortunate, but it's their doing... For 19 years before the split, they paid less than this formula required." Village officials mentioned that they've sent multiple invoices to the district post-split, yet the district has consistently refused to honor the full amount claimed by the village. Last June, the village returned a $14,000 payment the district had attempted to make.
Prior to the separation, the district had been paying the village for fire protection services. However, in the years leading up to the split, the district's board grew increasingly dissatisfied with the village's management of the fire department. When the renewal of the intergovernmental agreement came around, both parties decided to go their separate ways, dividing equipment and other physical assets.
Lawler added that the separation agreement explicitly mentioned that the district would receive a bill for all unfunded pension obligations, likely amounting to "seven figures."
The lawsuit also requests compensation for the village's legal expenses incurred while trying to recover retirement and disability benefits from the district.
According to the fire protection district's latest audit, they hold over $2.5 million in reserves. Their primary source of income in 2014 was property taxes, totaling $5.6 million out of a $5.9 million revenue stream. However, their expenditures reached over $6.2 million last year, as per the audit.
The audit recognizes the invoices from the village but maintains that the district's own calculations suggest no liability for the pension fund. It provides no solutions to resolve this conflict.
Regarding the long-term disability debt, the district argued in its audit that payments should be made only when the village processes claims, rather than assuming a total lifetime cost that might ultimately prove lower.
Thank you, Dan.
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