PEORIA, Ill. — Peoria property owners this week are receiving the first of three annual bills for the city’s Public Safety Pension Fee.
City Manager Patrick Urich told WMBD’s Greg and Dan, the fee includes nonprofits, residences, and commercial and industrial properties within Peoria city limits.
“It’s based on the size of the structure on the property. So, the fee ranges from $10 up to $200,” Urich said.
Urich said the fee will help shore up Peoria’s contributions for police and fire pensions as required by the state.
The Public Safety Pension Fee, approved in the fall of 2018, spreads out Peoria’s obligations for police and fire departments over three years.
In 2019, the city owed the state $21 million. Urich said by 2023, Peoria will have to pay in as much as $30.7 million for pensions.
“This is a state issue. The benefits that are conferred, the way the system is designed, the city cannot change any of that. It is designed by the State of Illinois,” Urich said.
Gov. J.B. Pritzker has signed a measure consolidating hundreds of Illinois’ police and fire pension funds into two statewide funds. Urich said in the long run that will save Peoria money, but right now it will actually end up costing the city more.
Peoria’s Public Safety Pension Fee is expected to raise $1.2 million this year, $1.6 million next year, and $2 million in the third and final year.
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