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SUPPLEMENTAL APPROPRIATION ORDINANCE OF THE CHICAGO PARK DISTRICT FOR ADDITIONAL 2021 REVENUES AND EXPENDITURES
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To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
Pursuant to Ch. XII, Sect. C. 11, of the code of the Chicago Park District it is recommended that the Board of Commissioners approve the attached supplemental ordinance to allocate additional revenues from Long Term Liability Reserve to the Supplemental Contribution to the Pension Fund for 2021. This ordinance will result in an increase in the Pension Fund by $30,000,000. The total 2021 operating appropriation, including this supplemental appropriation will increase 6.2% from $481,765,864 to $511,765,864.
II. Explanation
In 2021, the Illinois General Assembly passed House Bill 417 that puts the Park Employees Annuity and Benefit Fund on a path to full funding. This legislation is in keeping with the Park District's obligation to provide retirement security to all retirees and current employees that has been earned through hard work and the commitment that has helped make the Park District the best in the nation.
The new law has several components that impact employer funding, including the requirement that the Park District contribute an additional $40 million from any revenue source by November 1, 2021. At the time the 2021 budget was approved in the Fall of 2020, the legislation requiring this payment had not yet been enacted and therefore the required payment was not shown in the 2021 budget. Since then and as required, the $40 million payment was made to the pension fund by November 1, 2021.
In anticipation of the eventual need for larger pension contributions, funds were accumulated from various sources and built up from 2014 to 2021. As a result, funds were available to meet the new November 1, 2021 payment obligation. The District transferred $30 million from the General Fund's Long Term Liability Reserve. In addition, $10 million from the ...
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