WOODSTOCK – Police pension costs will rise 22 percent in the upcoming year, and city officials are concerned about financial sustainability.
The city of Woodstock met recently to discuss the annual funding request from the police pension board, which is at roughly $1.4 million – a 22 percent increase from last year.
The discussion is one of the beginning steps toward building a budget and determining a levy amount. The request is based on actuarial reports, and funding levels are mandated by the state.
“This rate of growth is unsustainable in the long term,” City Manager Roscoe Stelford said. “Ultimately, there has to be some change, and it has to be done at a state level.”
Pension payments are included in the city’s tax levy, last set at $9.1 million. The increased cost will be absorbed by the city and likely won’t impact the overall tax levy, said Paul Christensen, assistant city manager and finance director.
“We haven’t determined what the levy will be, but City Council is 100 percent committed to not increase taxes beyond new growth,” he said. “This will likely go beyond new growth, and we will have to absorb it out of existing revenue.”
The issue is politically heated, but a conversation has to be had about potential change, said council member Mike Turner.
“The politics of this is, if you speak out against it you are speaking out against cops, and that is a false premise,” he said. “The reality is that our residents and businesses are paying the $9.1 million we ask, and now we are up to a substantial amount going toward this. It’s not sustainable.”
City officials have little control over state mandates, and many other communities will face similar problems as time goes on, Mayor Brian Sager said.
“We are going to find many communities, including the city of Woodstock, that are going to be faced with increasing [debt] in regards to this fund,” Sager said. “It’s going to be a challenge for us. We have to think about this. We have to plan, and frankly we have to work with our state legislators to effect change.”