Local police and fire pension benefits are established by the Illinois State Legislature. Monmouth City Administrator Lew Steinbrecher informs those mandated benefits create challenges when it comes to finalizing the city’s budget:
“The increases that we have experienced in property tax revenues have gone exclusively to support the pensions and that really prevents us from using any additional revenues on a year to year basis for other things like capital improvements or staffing levels. We haven’t created a new position in the city now since I have been here. In fact, I think there has been five or six positions eliminated over the last five years. It has been a very difficult challenge. I would say that is probably the number one mandate, but we consistently get mandates from the Illinois EPA as well that effect our water and our wastewater systems and they are another major concern financially for the city.”
Mayor Rod Davies reports the police and fire pension contributions this year will be over $2 million.