Treasurer Acanzo presents revised financial reports for fire and police pension funds

The Regular City Council Meeting held on June 2, 2025, in Lincoln, Illinois, focused primarily on the city treasurer's financial reports, revealing significant insights into the city's fiscal health and pension fund management.

The meeting commenced with a discussion on the revised city treasurer's report for May 2025. Treasurer Acanzo presented updated financial totals, noting a decrease in the general fund balance by approximately $600,000 compared to the previous year. This decline was attributed to substantial expenditures, including around $250,000 for the demolition of a building on Sangamon Street. The treasurer emphasized that while the fund balance remains healthy, the city aims to reverse the downward trend in finances.

Acanzo also highlighted that the report did not include all revenue received in the last month, focusing instead on expenditures recorded before April 30. This approach aims to provide a clearer picture of the city's financial status as it closes the fiscal year.

The council then reviewed the annual reports for the fire and police pension funds for fiscal year 2024-2025. Acanzo explained that both pension funds have been consolidated into larger investment pools, which include contributions from property taxes and payroll deductions from city employees. The fire pension fund reported a transfer of $195,000 from the general fund, reflecting the city's ongoing commitment to support its pension obligations.

However, both pension funds are currently underfunded, with expenditures exceeding revenues. The treasurer noted that recent retirements among firefighters have increased pension payments, contributing to the financial strain. Despite these challenges, Acanzo expressed optimism about potential improvements in the funds' positions, particularly as market conditions stabilize.

The meeting concluded without any immediate resolutions to the financial challenges discussed, leaving the council to consider future strategies for enhancing the city's fiscal health and ensuring the sustainability of its pension funds. As the city navigates these financial complexities, the implications for public services and employee benefits remain a critical concern for Lincoln's residents.