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Proposed Island Lake budget includes repayments to pension fund

Published: Wednesday, May 7, 2014 3:10 p.m. CDT • Updated: Wednesday, May 7, 2014 11:24 p.m. CDT

ISLAND LAKE – An additional $100,000 of missing police pension fund dollars will be repaid under a proposed budget.

The Island Lake Village Board is set to vote on the balanced $7.6 million budget for the 2014-15 fiscal year at its meeting Thursday evening.

The budget includes a total of $150,000 for the police pension fund, including the $50,000 in developer impact fees that the Village Board approved in February.

The allocation made the first dent in the nearly $400,000 owed to the pension fund.

Instead of going into the police pension fund as required by state law, the nearly $400,000 had been used to pay village bills over several years.

The finance director who authorized the payments was fired by the board earlier this year in a 4-3 vote.

The salary for his position, which has not been filled, makes up most of the additional $100,000 headed to repay the fund, village treasurer Ed McGinty said. The salary of another administrative position was reduced when an older employee retired and was replaced by a new, cheaper employee.

"It's been a shave here and a shave there as they say," McGinty said. "There are no real cuts at all in the budget as far as services are concerned. There are no layoffs. None at all. It's basically last year's budget added to it and taken away."

The Island Lake Police Pension Fund Board has not formally signed off on the $150,000 payment being adequate, and the president of the five-member board did not return a call for comment Wednesday afternoon.

The pension fund board has the ability to go to the state and file a complaint, which would divert some of the state funds headed to the village to the pension fund instead.

The Village Board and the pension fund board have been in talks to establish a payment plan that worked for both sides instead of going that route.

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