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A collection of articles discussing the financial crisis in North Riverside, where village officials have underfunded firefighter pensions and are considering privatizing the fire department. These stories highlight the tension between local government finances, pension obligations, and the push for innovative solutions.
One article from the *Chicago Tribune* details a recent hearing where the Illinois Department of Insurance questioned whether North Riverside violated state laws by underfunding its police and fire pensions. The village had failed to contribute nearly $5 million to these funds between 2008 and 2012, and officials were summoned to explain their actions. While the village focused on future plans—like contracting with a private company for firefighting services—the state attorney, Amanda Kimble, criticized the lack of explanation for past shortfalls. A hearing officer will make a recommendation on whether the village violated the law, but it could take weeks before a decision is made.
North Riverside faces a $1.9 million budget deficit, mostly due to pension obligations. Privatizing the fire department is expected to save around $745,000 annually, but the firefighters’ union has threatened legal action, arguing that such a move violates existing contracts. The union also expressed frustration with the state’s focus on past underpayments rather than future solutions. Village officials claimed they couldn’t afford pension payments during the economic downturn, though the state pointed out that they still paid into other pension funds.
An editorial from the *Chicago Tribune* praised North Riverside’s decision to contract with a private fire service as a bold and necessary step. It noted that many municipalities across Illinois are struggling with similar pension crises, and this approach could become more common. The village estimates it could save up to $4 million over five years, helping to stabilize its finances. However, the state law requiring increased pension contributions by 2016 puts pressure on local governments, and Moody’s recently downgraded North Riverside’s credit rating, adding to the urgency of the situation.
The *Washington Times (IL)* reported that North Riverside is not alone in facing pension challenges. The village’s mayor estimated annual savings of $700,000 if the fire department is privatized, a move seen as a last resort due to limited options. While some experts suggest this model may spread, firefighter unions warn that privatization could lead to lower service quality. The village’s proposal to contract with Paramedic Services of Illinois includes keeping all current firefighters employed, but the union remains skeptical.
From *Landmark.com*, we learn that the firefighters' union is preparing to challenge the privatization plan in court. The union argues that state law prevents hiring untested personnel for public safety roles. Meanwhile, North Riverside is planning a property tax increase and cutting services to address its financial shortfall. A Moody’s downgrade has further complicated the situation, highlighting the risks of relying on sales taxes for revenue. Despite these challenges, the village continues to seek creative ways to balance its budget and ensure essential services remain intact.