Harvey Fire Department news
2025-07-10 10:34:59
Excerpts from the *cookcounntyrecord.com*:
While leaving it to the elected leaders of the City of Harvey to determine how much tax to collect from property taxpayers, a state appeals court has ruled that the city’s firefighter pension fund is on the verge of default. This means the pension board has a valid legal claim to force the city to pay nearly $11 million in unpaid and underpaid contributions.
On August 4, a panel of three justices from the Illinois First District Appellate Court in Chicago concluded that the city’s mayor and council had misused their discretion under state law for years, failing to properly fund the pension system. This led to the fund being at risk of insolvency.
The court found that previous legal precedents, which generally prevented courts from ordering cities to fund pensions, did not apply in this case. The judge was right to require the city to cover the shortfall, even if it claimed it couldn’t afford to do so.
“The testimony shows a long-term disregard for the Pension Fund, and its assets are rapidly shrinking,†the justices wrote. “This creates a constitutional right to funding, as the fund is now on the brink of collapse.â€
The case began in 2010 when the Firefighters’ Pension Fund Board sued the city, claiming chronic underfunding had left the fund near insolvency. Actuaries estimated that the city had failed to contribute $8 million in actual payments and another $2 million in investment gains between 2005 and 2013, depleting the fund’s assets to about $11 million—$23 million short of what was needed.
In a concurring opinion in 2014, Judge Lampkin highlighted that while active firefighters contributed only $25,000 a month, the fund paid out $157,000 monthly to retirees. She noted that these contributions were being used to pay current beneficiaries rather than being invested for future retirees.
“This isn’t just an underfunded plan—it’s a systemic failure,†she said. “The fund is collapsing, and the city is unable to meet its obligations.â€
Cook County Circuit Judge Mary Mikva, who later became an appellate justice, ruled that the city violated the Illinois Pension Code by failing to make required payments. She ordered the city to pay $11 million in damages but stopped short of telling them how to raise the money.
Harvey appealed, arguing that courts shouldn’t force cities to fund pensions to specific levels and that the ruling violated the separation of powers. But the appeals court rejected this, stating that while the city has some discretion, it must follow the law and ensure proper funding.
The court also criticized Harvey for years of financial mismanagement, including diverting hotel development funds to cover other expenses and allowing unregulated spending on relatives of officials.
“Harvey has provided no evidence it can manage its finances responsibly,†the justices wrote.
Despite this, the court did not dictate how the city should raise taxes, emphasizing that the final decision rests with the mayor and city council.
“Harvey has the authority to set tax rates, but it must do so in a way that meets its pension obligations,†they added. “As long as the city levies enough to meet actuarial requirements, it fulfills its legal duty.â€
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