DIXON – The city recently wrapped up its $3 million payment to the fire pension fund after needing to find a different source for about $20,000 of the cost.
The City Council decided to commit the money in April and signed off on the expense in its fiscal year 2020 budget in May with the goal of putting the fire pension fund above the $10 million mark, giving more investment flexibility that could lead to higher returns.
The cost originally was split up with $1.5 million in Rita Crundwell recovery funds, $1 million from capital reserves, $430,000 from the emergency vehicle fund, and $70,000 from the foreign fire fund.
The foreign fire board decided to contribute $50,000 rather than $70,000, so the city needed to up the emergency vehicle portion to $450,000 to make up for the deficit, city Finance Director Becky Fredericks told the council earlier this week.
Foreign fire funds come from insurance taxes the state collects from companies outside of Illinois, which are distributed by the Illinois Municipal League. The funds are distributed to fire departments across the state to provide for the needs not provided by municipalities.
The $3 million injection also lower the city’s required annual pension contributions, alleviating pressure of pension increases eating up money that normally would go toward capital improvement projects.
The City Council next meets at 5:30 p.m. July 1 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.