Oak Park's Finance Committee reviews the village's $158 million pension shortfall Thursday, Oct. 1, as officials begin building the fiscal year 2027 property tax levy.
Todd A. Schroeder, a partner at the actuarial and accounting firm Lauterbach & Amen, is scheduled to present findings and contribution recommendations for both the firefighters' and police pension funds at the committee's 6:30 p.m. meeting in Council Chambers (Room 201) at 123 Madison St., according to the village meeting agenda. The pension discussion is the sole substantive item.
The presentation follows a Sept. 3 Finance Committee session where village staff outlined the scope of the problem. The police pension plan was roughly 60% funded, with about $125 million in assets against $209 million in liabilities. The firefighters' plan was about 49.81% funded, up slightly from 47.90%, with an unfunded liability of approximately $74 million. Those figures come from the village's most recent actuarial valuations, dated Jan. 1, 2025.
State law requires the village to reach 90% funding by 2040.
Oak Park has set a more aggressive target of 100% by that deadline.
A new funding strategy takes shape
At the Sept. 3 meeting, all three trustees present (Brian Straw, James Taglia and Derek Eder) backed a plan called "Scenario Five." It would redirect roughly $5 million in home rule sales tax revenue toward pension contributions and cap annual pension levy growth at 2%. Capital projects such as roads, alleys and sidewalks normally paid with that sales tax money would instead be financed through tax-exempt bonds.
The approach projects gross savings of more than $9 million over the current structure and could achieve full funding by 2039, one year ahead of the village's goal, the Wednesday Journal reported Sept. 17.
The strategy addresses what officials have called a "timing mismatch" between when actuarial reports arrive and when the village must set its pension levy. The 2025 actuarial report was not received until August 2026, months after the pension levy was set in December 2025. That gap has left the pensions slightly underfunded and is expected to require $5.41 million in additional contributions through 2053 under the current structure.
"I think it is a strategic, holistic view of the pension and making sure that we maintain the board's commitment to 100% funded by 2040," Chief Financial Officer Kevin Bueso told the Wednesday Journal on Sept. 17.
What it means for tax bills
Fire and police pensions account for about 6.7% of an Oak Park property owner's total tax bill, according to the village's January 2026 newsletter. The village's overall share is about 15.2%, with property taxes funding 36% of the FY2026 general fund.
Both pension funds are now professionally managed through the state's consolidated downstate police and fire pension investment funds. Projections assume a 6.75% investment rate of return, while tax-exempt borrowing is available at roughly 3.75% to 4%.
What's next
According to the agenda, the Oct. 1 actuarial presentation will inform FY2027 budget and property tax levy planning. No date for the full Village Board levy vote has been announced.
Residents can attend in person or submit public comment virtually by contacting the Village Clerk's Office before 5 p.m. Oct. 1 at 708-358-5670 or [email protected].
