Remember “Project Hammer,” the big food manufacturing and warehousing project that ended up unmasked as Ferrara Candy? We offered them a lot of incentives to come here. The incentives are flowing because that was the only way Ferrara would choose DeKalb for its new facilities over a city in Wisconsin, city leaders told us. From…
Category: Payment Due?
Snapshot of DeKalb’s pension trends through 2020
The chart below tracks the unfunded liabilities of DeKalb’s Illinois Municipal Retirement Fund (IMRF), police (PD), and fire (FD) pensions. We expect total pension liabilities will go up with raises, cost of living adjustments, etc. However, the unfunded portions of the liabilities should not. Actuarially determined annual pension contributions are supposed to ensure they don’t…
DeKalb might be doing some juggling with fire department budget
Below is the year-to-date expenditure report for fire operations for December 2020. Two things are startling about it. First you see that overtime expenses reached $1.1 million for the year, which exceeds the budget for o.t. by $688,000. Then see how DeKalb failed to make a final pension contribution of $708,000 on time, which was…
How red do the flags have to be?
The DeKalb city council recently received and filed its fiscal 2019 Comprehensive Annual Financial Report (CAFR) along with the auditor’s letters and communications to council and management. Although the audit was problematic, the council did not talk about the issues, so we will do it here. First, to summarize: The auditor detected material misstatements in…
Police & Fire Pensions are only part of DeKalb’s liability story
The Better Government Association has just rolled out a statewide police and fire pension database. It tracks public safety pensions for every municipality, township, and special district (e.g., fire protection district) that have one or both types of pension funds. According to this database, DeKalb’s fire pension showed a net liability of $42.7 million and…
DeKalb playing favorites with the bandit in the castle
Cohen Barnes owns a building in downtown DeKalb under the name “The Bandit’s Castle, LLC.” So he’s a bandit who bought a castle. Is this like the tv shows where the psychos leave little clues of their crimes? The imagination runs wild. The thing with bandits is that, by definition, they belong to gangs. This…
A fresh look at “old” financial advice for DeKalb
At a recent budget meeting, DeKalb city manager Anne Marie Gaura (AMG) stated that she references the “EPI reports” frequently in financial planning. Because the city’s finance advisory committee might likewise like to revisit EPI findings when it (the committee) reconvenes in 2018, I’d like to introduce EPI to our newer readers (and help refresh…
Open letter to NIU’s Board of Trustees regarding Dr. Baker’s severance package
***This letter from DeKalb resident and NIU faculty member Michael Haji-Sheikh references a Washington Post article by Jon Marcus, “Golden parachutes for presidents of public colleges with thin budgets.” ~yinn Dear Board of Trustees, As a citizen of Illinois, I have become aware of another embarrassing news article. Unfortunately, the severance of Dr. Baker (and…
Pie is for Bureaucrats, Not Streets People
A friend of mine asked a couple weeks ago whether there is some way to calculate how much growth there’s been of bureaucrats in city government. Like many locals, I know that the DeKalb city manager has been generally allowed to spin off new departments and hire new administrators without restraint, but we’re somewhat lacking…
Pension Plan Membership as a Factor in Jump of Net Pension Liability
DeKalb’s latest Comprehensive Annual Financial Report (CAFR) is out. It covers Fiscal Year 2016, which ended June 30, 2016. The big news is the net pension liability. Public safety expenses related to the operations of both the Police Department and Fire Department accounted for the largest share of expenses at $33,400,660 or 50.1% of the…