The most basic question about a pension fund is whether its assets are sufficient to cover total liabilities incurred. In this blog post, we examine the aggregate pension liabilities and Other Post Employment Benefit (OPEB) liabilities of ten large local government pension funds in the Chicago area and their collective assets.[1] Liabilities are calculated using actuarial assumptions about the value of all future pension payments for both current and retired employees, as well as any…
The difference between a pension fund’s assets and accrued liabilities is known as the unfunded liability. The unfunded actuarial accrued liability (UAAL) is calculated by subtracting the actuarial value of the assets from the actuarial accrued liability (AAL) of each fund. One of the functions of this indicator is to measure a fund’s ability to bring assets in line with liabilities. Healthy funds are ones that are able to reduce their unfunded liabilities over time while substantial and…
Unincorporated areas lie outside municipal boundaries. The residents and businesses located in these areas are usually provided municipal services such as police protection and building code enforcement by county government or special districts. Because unincorporated areas may be scattered throughout a county’s territory, the provision of these services by counties has been inefficient and costly. Annexation of unincorporated areas to neighboring municipalities is often proposed as a solution…
The Civic Federation today released its annual estimate of the full value of real estate in Chicago and the Cook County suburbs. After the rate of decline in estimated property values slowed for the County as a whole in 2011, the rate of decline increased again in 2012. Tax year 2012 is the most recent year for which data are available. The 2012 estimate of the full value of property in Cook County was $414.4 billion, a decline of $28.4 billion or 6.4% from the 2011 estimated full value. The…
This report provides estimates of the total market value of real property in Cook County from 2003-2012 and shows how property value is spread among the City of Chicago, the northern and the southern suburbs. The full market value of real estate in Cook County was approximately $414.4 billion in tax assessment year 2012. This represents a decline of $28.4 billion or 6.4% from the 2011 estimated full value. The 2012 estimates represent the sixth consecutive year of decline for real estate…
Second installment property tax bills for Cook County residents were mailed out this month, the third year in a row that they have been sent out on time. Between tax year 1977 and tax year 2011, second installment bills were sent out late every year according to the elected officials associated with the Cook County property tax process. Cook County Clerk David Orr’s office released the 2013 Cook County Tax Rates Report on June 19, 2014. The report lists property tax rates for all taxing…
On June 26, 2014, Cook County Board President Toni Preckwinkle issued a preliminary budget forecast for fiscal year 2015, which begins on December 1, 2014. The report also provides estimated year-end results for FY2014. A public hearing on the preliminary FY2015 budget will be held on July 16, 2014. Board President Preckwinkle plans to present her final budget proposal for FY2015 in October 2014. Preliminary FY2015 Budget Forecast The preliminary FY2015 budget forecast for the…
Last week Cook County Clerk David Orr announced upcoming changes to property tax bills that will allow residential and business taxpayers with properties located inside tax increment financing (TIF) districts to see how much of their payments are going to TIF funds. For the first time, Cook County second installment property tax bills mailed this summer will show the tax amount and percentage of the total tax bill used for TIF. Previously, tax bills identified properties within a TIF and then…
Cook County is a home rule government with three primary responsibilities: collecting tax and fee revenue, protecting public health through the administration of a public health and hospital system and ensuring public safety and justice through the operation of a jail and court system. The main divisions of the public safety system in Cook County include the Chief Judge, Clerk of the Circuit Court, Public Defender, Sheriff, State’s Attorney, Public Administrator, Department of Facilities…
On May 28, 2014, The Civic Federation sent this letter to Representitive Elaine Nekritz and the members of the House Personnel and Pensions Committee in advance of a 4 p.m. hearing on House Bill 1154. The Civic Federation commends Cook County Board President Toni Preckwinkle, Cook County Commissioner Bridget Gainer and Cook County Chief Financial Officer Ivan Samstein for their work to assemble a comprehensive reform framework to address Cook County and the Forest Preserve District’s pension…
