1991-750
RESOLUTION NO. 91- 75
A RESOLUTION CONCERNING FUNDING FOR THE VILLAGE OF BUFFALO GROVE
ILLINOIS MUNICIPAL RETIREMENT FUND ACCOUNT
WHEREAS, the Village of Buffalo Grove is a home rule unit pursuant to
the State of Illinois Constitution of 1970; and
WHEREAS, the Village is a participant in the Illinois Municipal
Retirement Fund and has established a separate internal operating fund to
account for both employer and employee obligations for IMRF, FICA and
Medicare payments; and
WHEREAS, while employee obligations are satisfied from payroll
deductions, employer obligations are satisfied from operating transfers,
interest income and to the greatest extent, property taxes; and
WHEREAS, while operating transfers reimburse employer expenditures from
the Village's Golf, Water and Food Service Funds based on actual outlay,
other revenue sources, forecast as long as 18 months prior to final calendar
year expenditure, generally fall short of ultimate employer obligation; and
WHEREAS, due to forecasting difficulties, the fund balance in the
Illinois Municipal Retirement Fund generally runs in a deficit position as of
December 31 of any benefits year on a cash basis; and
WHEREAS, since the only way to eliminate any deficit is to increase a
subsequent years property tax levy which may run contrary to local tax
policies; and
WHEREAS, since forecasting /reimbursement errors will only impact those
employer obligations for employees hired in Corporate Fund departments, the
corporate authorities desire to establish an advisory policy that would
permit any deficit in the IRMF Fund to be cleared on an annual basis as part
of a fund transfer from the Corporate Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS that:
SECTION 1. The corporate authorities of the Village of Buffalo Grove
authorize staff to prepare an analysis upon the completion of each calendar
year of the funding position of the Village's IMRF Fund in order to determine
if a funding deficit exists on a cash basis. If this deficit exists, an
operating equity transfer shall be permitted to clear the deficit from the
Village's Corporate Fund. An appropriation shall be established annually to
provide for the estimated transfer.
SECTION 2. This resolution shall be retroactive to deficits identified
for calendar years 1989 and 1990 which total $14,163.25 and $11,826.76,
respectively.
SECTION 3. The corporate authorities shall be furnished with a report
prepared on a calendar annual basis detailing the final accounting for the
IMRF Fund, noting any deficit to be cleared by transfer.
AYES: 6 - Marienthal Reid Kahn Rubin Braiman Hendricks
NAYES: 0 - None
ABSENT: 0 - None
PASSED: October 7 , 1991.
APPROVED: October 7 , 1991.
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ATTEST:
Villa e Clerk