DIXON – The City Council finalized the last step needed before boosting its fire pension fund by $3 million.
The council agreed last month to go forward with the cash injection – which the group has discussed for the last few years – to put the fire pension fund above the $10 million mark, giving more investment flexibility that could lead to higher returns.
The $3 million will be made up of $1.5 million in Rita Crundwell recovery funds, $1 million from capital reserves, $430,000 from the emergency vehicle fund, and $70,000 from a special fire fund.
Spending the recover fund money requires an extra step: The council approve a resolution authorizing the expense, which it did last week. When to invest the money will be up to the fire pension board.
In additional to possibly higher returns, the move will lower the city’s required annual pension contributions, alleviating pressure of pension increases eating up money that normally would go toward capital improvement projects.
Mayor Li Arellano Jr. said the move was a “sizable commitment to our financial future.”
The City Council next meets at 5:30 p.m. Monday at City Hall, 121 W. Second St.
Go to discoverdixon.org or call City Hall at 815-288-1485 for an agenda or more information.