In a recent development reported by DailyHerald.com, the village of Barrington has filed a lawsuit against the Barrington Countryside Fire Protection District, accusing it of failing to honor a financial obligation worth over $1.2 million to a jointly managed firefighters' pension fund. The fire district, however, disputes these claims, asserting in its audit that it bears no responsibility for such liabilities.
According to the lawsuit, when the fire district separated from the village-operated fire department on December 31, 2013, the pension fund was reportedly underfunded by approximately $1.9 million. Village authorities maintain that the fire district's leadership had committed to covering 64.25% of "fire services costs," which encompasses pension obligations. At the time of the split, this commitment equated to more than $1.2 million. Additionally, the village is seeking over $800,000 from the fire district for long-term disability insurance costs. The lawsuit further suggests that using a revised state pension-funding formula could increase the district's liability to over $2 million. A judge will need to decide not only if the fire district owes the village anything, but also whether the amount should remain at $1.2 million or adjust to the higher figure.
Jeff Lawler, the village manager, commented, "This is unfortunate, but it’s a result of their actions. For nearly 19 years before the split, they consistently underpaid according to this formula." Village officials mentioned that they have issued multiple invoices to the fire district following the separation, yet the district has consistently declined to fully meet the village's demands. Last June, the village even returned a $14,000 payment the district had attempted to make.
Prior to the separation, the district paid the village for fire protection services. However, as tensions grew regarding the village’s management of the fire department, the two entities mutually decided to dissolve their partnership and divide shared assets like equipment. Lawler pointed out that the separation agreement explicitly stated the district would receive a bill for any unfunded pension obligations, which was anticipated to reach into the millions.
The lawsuit also requests compensation for the village’s legal expenses incurred while attempting to recover retirement and disability benefit funds from the fire district. The fire district's latest audit reveals it holds over $2.5 million in reserves, with property taxes contributing significantly to its $5.9 million revenue in 2014, amounting to $5.6 million. Nevertheless, the district's expenditures surpassed $6.2 million in the previous year, as per the audit.
The audit acknowledges the invoices from the village but maintains that the district’s internal computations indicate no liability for the pension fund. It offers no resolution to the ongoing disagreement. Regarding the long-term disability debt, the fire district argues in its audit that payments should be made as claims are settled rather than assuming a total lifetime cost that may ultimately prove lower.
This situation highlights a complex financial dispute between two local entities, with significant implications for both parties involved.
*Thanks, Dan.*
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