US - The City of Evanston, Illinois, will have to go back to the drawing board to find ways to plug unfunded liabilities of US$140m in its police and fire pension funds, after residents voted against raising real estate transfer taxes.
Julia Carroll, city manager for the City of Evanston, previously told Global Pensions the council wanted to avoid large property tax rises, and increasing real estate transfer taxes, levied on the sale of a property, was one way of doing this.
At the start of March 2007, the Police Pension Fund was 44.3% funded and the Fire Pension Fund 41.1% funded. The liability for both funds must be 100% funded by the end of the 40-year amortisation period in 2033.
In its proposed budget for 2008-09, the City of Evanston mooted a property tax rise of 15.5%, but a number of other options were suggested to avoid such a large rise.
Last month, Carroll said the council was also considering other options as pension obligation bonds or some other form of funding.
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