INCLUDES:
1. Cell Phone Policy (Calumet City)
2. Investment Program (Antioch)
3. Response to Utility Customer Late Notice (Creal Springs)
4. Water Service Termination Act (SB 2127)
5. Response to Division of Insurance Filing (Yorkville)
6. Response to IMRF Rates (East Dundee)
7. Amendment Needed for Public Safety Employee Benefits Act (PSEBA) SB-2332
8. Short Term Debt options
9. Worker's Comp for Police Officers (Oswego)

Just FYI, as of today we have 235 IMTA members receiving IMTA E-Help.

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1. CELL PHONE POLICY
I am working on the city's cell phone use policy for employees and elected officials. I am interested in knowing how other city's handle this issue and would like to get a copy of their policy. I would appreciate any assistance any member can offer me.
Thanks,
Mike Zimmerman
mzimmerman@calumetcity.org
708-891-8130.

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2. INVESTMENT PROGRAM

Can anyone help with "investment procedures" for an investment program?
Thanks,
Joy McCarthy
jmccarthy@antioch.il.org

Joy,
Do you have an "investment policy" in place?  I have a "Request For Proposal" (RFP) for investment services, would you like a copy?  First Midwest Bank invests $10 million of capital funds, which frees up my time.

Also I believe Sharon Rusteberg, Highland purchases T-bills and T-notes direct which saves on broker fees.
Michael

Michael,
The Investment Policy is almost ready to go. An RFP was done, however, the direction at this time is to invest with local banks, therefore, I have to do this myself.

Thanks
Joy McCarthy

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3. UTILITY CUSTOMER LATE NOTICES

I am looking for copies of the letters you send out to your utility customers once they have not paid their bill. Our process is to send bills on the 1st and they are due on the 10th, on the 11th a 10% penalty is addedto their account, around the 15th a final notice prior to shut off is sent out, on the 25th a hearing is held for people to plead their case if you will, but no one ever shows up, but if they call or come in before the 26th and make some sort of payment arrangements they are not shut off, then on the 26th shut offs are done and there is a $25 per service (water and / or gas) reconnection fee added to their account. If the customer is on the shut off list for the day and the public works guys have not yet shut them off I still charge the customers the reconnection fee and that has caused much controversy. Any thoughts and sample letters would be greatly appreciated.

Thanks,
Kristien Hamilton
City of Creal Springs
CityofCskhamilto@aol.com

RESPONSE:

TUSCOLA
Our procedure is similar to yours, except we bill around the 22nd, due on the 10th next month, add 10% penalty and send shut

off notices, then shut off on 20th. We have no hearings. We send a postcard shut off notice that looks like our postcard bill only it is red instead of blue. We also charge the reconnect fee once the shutoff work orders are released, whether or not the water has actually been shut off..

I'm thinking of renaming it to just service fee instead of reconnect fee to avoid that controversy.ON this subject, I saw in the legislative bulletin (see item #4 below) that someone introduced a bill that would not allow public utilities to shut off someone's water service (including home rule municipalities)! Please let IML know we are opposed to that bill!
Alta Long
along@tuscola.org

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4. WATER SERVICE TERMINATION ACT (SB 2127)  Note: This only applies during certain warm weather temperatures.

Prohibits the termination for nonpayment of water or sewer service furnished by any public utility, any utility owned or operated by any unit of local government, or any other entity to residential users, including all tenants of mastermetered buildings. Preempts home rule powers. Amends the State Mandates Act to require implementation without reimbursement by the State.

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5. DOI FILING

In reference to Police Pensions I would like to know if any Treasurers use a contractor to prepare the IDOI annual filing rather than prepared within the city staff...

If so who do you use, what are the fees and who is the contact person...

Thanks, Bill Powell
wpnkp81@sbcglobal.net

RESPONSE

To Bill Powell,
I have asked our auditors, MillerCooper, about the DOI filing. They quoted me $5,000. That number is now 2 years old.
Stan Roelker
Lincolnshire

The Village of Libertyville uses Lauterbach and Amen to prepare the IDOI reports. I don't have a cost since it is part of our annual audit fee. I know they do many pension funds. Their phone # 630-393-1483.
Pat Wesolowski
Village of Libertyville

Grayslake Police Pension Fund pays $3,600 for auditing services to Crowe, Chizek which includes the DOI filing. I prefer to complete the membership section myself, but it is part of their duties.

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6. IMRF EMPLOYER RATE SURVEY
I am curious to see if other municipalities would share their IMRF employer rate - ours is now at 11.10
Also, does anyone pay over time to part time police officers if they work more than 40 hours in a work week?

Thanks,
Nikki Giles
Village of East Dundee
ngiles@eastdundee.net

LINCOLNSHIRE is 10.83%. Its been going up the last few years due to the stock market losses experienced.
Stan Roelker
Lincolnshire

GRAYSLAKE's IMRF rate (no ERI)
2006 - 9.15%
2005- 8.45%

HIGHLAND
Our IMRF employer rate has been high for the last several years because we were paying off the ERI incentive (over 3%) offered in 98-99. Our rate for 2006 has dropped because our ERI obligation is paid.
2004 - 11.99
2005 - 12.73
2006 - 9.64
Sharon Rusteberg

TUSCOLA
Ours is 8.92- but you really can't compare rates town to town due to the vast differences in each town's individual situation. Many things make up the rate, check out www.imrf.org to see what affects your rates. Also, we pay overtime to all employees who work over 8 hours per day or 40 hours per week
Alta Long
along@tuscola.org

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7. SB-2332 Amendment Needed for Public Safety Employee Benefits Act (PSEBA)

Senate Bill 2332 has been introduced in the Senate and referred to its Rules Committee. This is a "corrective" bill which amends the PSEBA program and would require that a "catastrophically disabled" police officer or firefighter be unable to seek gainful employment, or if they do obtain full time employment, pay the municipality for insurance benefits. Several communities have experienced severe financial exposure from the PSEBA program as currently drafted.

The following is intended to provide you with an overview of the PSEBA. This is taken from an ICMA action alert that is circulating around the State seeking support.

The PSEBA requires municipalities to provide free health insurance benefits to public safety employees (police and fire) and their spouses and eligible dependents for life if the public safety officer suffers a "catastrophic injury" or is killed in the line of duty. Although the reasonable prudent person would certainly conclude that an injury would be catastrophic in nature when it results in the employee being unable to work in any capacity or only able to work in a very limited capacity and as a result unable to support their family, the Illinois Supreme Court has adopted a far more liberal definition.

On March 20, 2003, the Illinois Supreme Court in Krohe v. City of Bloomington, 204 Ill.2d 392 (2003) defined "catastrophic injury" to include any injury that results in a "line-of-duty disability pension". A line-of-duty disability pension is awarded to a police officer or firefighter if an injury on the job has resulted in the officer or firefighter no longer being able to perform the duties of a firefighter or police officer.

As you know, not all injuries that result in a line-of-duty disability for a police officer or firefighter are catastrophic in nature. While the employee may no longer be able to work as a police officer or firefighter, the employee is still able to work in other fields or occupations and may have the potential to earn more and have access to health care coverage with a new employer. Also, along with the opportunity for alternative employment, the employee is receiving a tax free 65% disability pension. An employee is eligible for PSEBA benefits on the first day of employment. As a point of reference, a police officer or firefighter must work 26 years to qualify for a federally taxed 65% regular retirement pension.

One municipality reports that their patrol officer had 12 years and 5 months of credible service at the time his line-of-duty disability pension was awarded. Based on this, he earned a 30.00% of final salary "regular" pension benefit (2.5% X 12 full years of creditable service) or $21,668.46 per year. At the time of separation, his net salary, after all mandatory deductions, but exclusive of overtime, was approximately $58,027.68 per year. His annual net line-of-duty disability pension benefit is $46,948.32.

At the time his line-of-duty disability pension was awarded, the firefighter had 13 years and 3 months of creditable service. Based on this, he earned a 23.40% of final salary "regular" pension benefit or $15,849.29 per year. At the time of separation, his net annual salary, after all mandatory deductions, but exclusive of overtime, is estimated to have been $51,229.47. His annual net line-of-duty disability pension benefit is $44,025.80.

The pension benefit continues to grow because disabled firefighters and police officers receive a COLA raise of 3.0% for each year on disability at age 60, and an additional 3.0%, in January, compounded each year thereafter.

In this situation, even though the employee is able to continue to earn a living (and in some situations at a better wage or salary) and support themselves and their family they are determined to be catastrophically injured and, the municipal employer is responsible for the payment of their health care coverage for the rest of the employee's life. This is an extensive cost to an already financially "challenged" municipality.

It is important to note that there is a limitation on recovery under the PSEBA. In addition to receiving a line of duty disability pension, the public safety officer must demonstrate that "the injury or death must have occurred as a result of the officer's response to fresh pursuit, the officer or firefighter's response to what is reasonably believed to be an emergency, an unlawful act perpetuated by another, or during the investigation of a criminal act." (820 ILCS 320/10(b)) After the line-of-duty disability pension is awarded by the pension board, the Village must determine whether the injury or death occurred under one of these circumstances. Nothing in the PSEBA defines these circumstances. Clearly, not all line-of-duty disability pensioners will necessarily qualify for this benefit, as is the case of a fire department employee injured during a training exercise.

Another problem that arises is what type of health insurance must be provided. Under the PSEBA, the Village must provide the basic group health insurance plan (820 ILCS 10(a)) to eligible pensioners. For the purposes of the PSEBA, the Village's least expensive option (PPO-B) is considered the basic group health insurance plan. If the employee elects the Village's premium coverage(s) (e.g., PPO-A coverage), the applicant may do so by paying the difference in cost between the basic (PPO-B) plan and premium plan(s). Coverage under the PSEBA does not include any supplemental coverage, such as dental or life insurance coverage. If such supplemental coverage(s) are available to the pensioner, it is at their cost. As you know the Village is currently contemplating expanding its health plan offerings to include a third PPO plan. This third offering (PPO-C) will constitute the "new" basic group health insurance plan effective January 1, 2006.

It should be noted that Section 10(a)(1) of the PSEBA provides that, "Health insurance benefits payable from any other source shall reduce benefits payable under this section." Any other health insurance benefits received by the employee or the employee's family from another source offset the amount received under this benefit. Therefore, the amount the employer is required to pay under the PSEBA is reduced by the amount received from other insurance sources. Therefore we must determine what other sources of health insurance are available to affected employees and their family at the time of initial coverage under the PSEBA, as well as in the future.

The Village presently has three firefighters and two police officers receiving line- of-duty disability pensions and one additional firefighter who is currently seeking administrative review, in the Circuit Court of Cook County, of the not in the line-of-duty (federally taxed 50%) disability pension he was awarded in August 2002. As was mentioned previously the patrol officer and firefighter are currently receiving 65% disability pensions and have recently requested PSEBA benefits from the Village.

Although forecasting health insurance premiums thirty or more years into the future is difficult, using the best data available I have estimated that if each of these petitioners is awarded PSEBA benefits, it will cost the Village $1,389,916.32 and $2,588,391.96 respectively to cover them and their eligible family members through age seventy-five (average life expectancy per the CDC). This is an enormous unfunded liability placed upon the Village.

Currently the disabled firefighter is operating his accounting and real-estate practice. With in three months of being awarded his line of duty disability pension, the patrol officer began working as a full-time civilian employee for an area county sheriff's department and voluntarily waived his rights to employer provided insurance with that agency.

Something needs to be done.

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8. SHORT TERM DEBT

What short term debt vehicles are available for municipalities that are not subject to referendum?
Do debt certificates fall into this category?
Can the village simply go to a bank and get a five to 10 year note?
If yes, what are any limitations on this process and what official actions are needed.

RESPONSE
In response to your question as to the authority of the Village to borrow money without being subject to referendum (whether of the front door or back door variety), the short answer is that while there are vehicles that might allow this, they are very limited and will likely depend upon the use of the borrowed money.   There are a variety of statutes authorizing the issuance of debt certificates or certificates of indebtedness. For example, 65 ILCS 5/11-76.1 authorizes the issuance of debt certificates or "certificates of indebtedness" for the purchase or lease of real or personal property for public use. There is a publication requirement for issuing such certificates, after which, upon collection of signatures of 10% of eligible voters, a referendum could potentially trigger (back door referendum). Certificates of indebtedness" are almost always discussed in the context of raising funds for specific projects, subject to referendum, to be re-paid from the proceeds of such projects, including: purchases of public utilities and related property (65 ILCS 11-117-1 et. seq.), and purchases to construct a water system. (65 ILCS 5/11-129-2).

In an isolated instance, certificates issued to defray the costs of subways may be issued without referendum pursuant to 65 ILCS 5/11-121-4.  In short, I found no statutory authority suggesting that "debt certificates" are an available short-term, non-referendum option for the Village.

The Village cannot go to a bank for a five or ten year note, but may do so for a one year note. Under 65 ILCS 5/8-1-3.1, the Village may "borrow money from any bank or other financial institution provided such money shall be repaid within one year from the time the money is borrowed." "Financial institution" means any bank subject to the Illinois Banking Act, any saving and loan association subject to the Illinois Savings and Loan Act of 1985, and any federally chartered commercial bank or savings and loan association organized and operated in Illinois under US law. There is no referendum requirement for one year notes nor any procedural requirements for executing the note.  There are also tax anticipation notes that would allow the Village to borrow up to 75% of anticipated taxes to be collected in future years.  These notes must mature within 2 years.  It is also important to note that many of the statutory provisions on borrowing are specifically tied to the use of the money (i.e., purchase of real estate, utilities, etc.).

Good Luck!!!

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9. WORKER'S COMP FOR POLICE OFFICERS

Do municipalities have to pay police officers 100% of their salary while the officer is on worker's comp? If so, where can I find the legal determination.
Billie Robinson
brobinson@oswegoil.org

GRAYSLAKE
Billie,
In short, under the Public Employee Disability Act you must pay 100% to police officers and firefighters who suffer injuries in the line of duty.

See the "blue font" information below.
Good Luck
Michael

(5 ILCS 345/) Public Employee Disability Act.

(5 ILCS 345/0.01) (from Ch. 70, par. 90.9) Sec. 0.01. Short title. This Act may be cited as the Public Employee Disability Act. (Source: P.A. 86-1324.)

(5 ILCS 345/1) (from Ch. 70, par. 91) Sec. 1. Disability benefit.

(a) For the purposes of this Section, "eligible employee" means any part-time or full-time State correctional officer or any other full or part-time employee of the Department of Corrections, any full or part-time employee of the Prisoner Review Board, any full or part-time employee of the Department of Human Services working within a penal institution or a State mental health or developmental disabilities facility operated by the Department of Human Services, and any full-time law enforcement officer or full-time firefighter who is employed by the State of Illinois, any unit of local government (including any home rule unit), any State supported college or university, or any other public entity granted the power to employ persons for such purposes by law.

(b) Whenever an eligible employee suffers any injury in the line of duty which causes him to be unable to perform his duties, he shall continue to be paid by the employing public entity on the same basis as he was paid before the injury, with no deduction from his sick leave credits, compensatory time for overtime accumulations or vacation, or service credits in a public employee pension fund during the time he is unable to perform his duties due to the result of the injury, but not longer than one year in relation to the same injury.

(c) At any time during the period for which continuing compensation is required by this Act, the employing public entity may order at the expense of that entity physical or medical examinations of the injured person to determine the degree of disability.

(d) During this period of disability, the injured person shall not be employed in any other manner, with or without monetary compensation. Any person who is employed in violation of this paragraph forfeits the continuing compensation provided by this Act from the time such employment begins. Any salary compensation due the injured person from workers' compensation or any salary due him from any type of insurance which may be carried by the employing public entity shall revert to that entity during the time for which continuing compensation is paid to him under this Act. Any disabled person receiving compensation under the provisions of this Act shall not be entitled to any benefits for which he would qualify because of his disability under the provisions of the Illinois Pension Code.

(e) Any employee of the State of Illinois, as defined in Section 14-103.05 of the Illinois Pension Code, who becomes permanently unable to perform the duties of such employment due to an injury received in the active performance of his duties as a State employee as a result of a willful act of violence by another employee of the State of Illinois, as so defined, committed during such other employee's course of employment and after January 1, 1988, shall be eligible for benefits pursuant to the provisions of this Section. For purposes of this Section, permanently disabled is defined as a diagnosis or prognosis of an inability to return to current job duties by a physician licensed to practice medicine in all of its branches.

(f) The compensation and other benefits provided to part-time employees covered by this Section shall be calculated based on the percentage of time the part-time employee was scheduled to work pursuant to his or her status as a part-time employee.

(g) Pursuant to paragraphs (h) and (i) of Section 6 of Article VII of the Illinois Constitution, this Act specifically denies and limits the exercise by home rule units of any power which is inconsistent herewith, and all existing laws and ordinances which are inconsistent herewith are hereby superseded. This Act does not preempt the concurrent exercise by home rule units of powers consistent herewith. This Act does not apply to any home rule unit with a population of over 1,000,000. (Source: P.A. 88-45; 89-507, eff. 7-1-97.)