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Actuary recommends $782,817 police pension contribution; preliminary tax-levy estimate triggers Truth in Taxation notice
Summary
An actuarial report recommended a $782,817 village contribution to the police pension (funded status about 73%); finance staff presented a preliminary 2025 estimated levy that exceeded the 105% threshold, producing an increase of $219,651 (12.11%) and triggering truth-in-taxation procedures with a hearing before the Dec. 9 board meeting.
An actuarial firm presented the Village of Chatham’s police pension funding results and recommended a 2025 employer contribution of $782,817 to address the plan’s funding needs, while village finance staff announced a preliminary tax-levy estimate that triggers truth-in-taxation procedures.
The actuary, Anthony, told the board the funding results are drawn from the April 30, 2025 fiscal year-end. He reported the plan’s funded ratio is about 73% and plan assets are roughly $13.1 million. The presentation noted a strong investment year with an approximate 9.4% return and discussed an actuarial experience study that prompted assumption updates on inflation, pay increases and demographic factors. Anthony said the recommended contribution reflects normal cost plus an amortization of the unfunded liability.
On the levy, finance staff presented a preliminary estimated 2025 tax levy and said the estimate represents an increase in the total levy dollars of $219,651, or about 12.11% over the prior year’s extended levy. Staff advised that because the estimated levy exceeds 105% of the previous year’s extended levy, the village must follow truth-in-taxation procedures: the hearing notice will be published Nov. 26 and the truth-in-taxation hearing will be held prior to the board meeting on Dec. 9, when the tax-levy ordinance is scheduled to be passed.
Board members and staff emphasized that the notice’s percentage increase references total levy dollars and not the village tax rate applied to every homeowner’s bill; staff said the village’s projected tax rate is expected to be essentially the same as the prior year after county calculations and assessment of new growth.
The presentation concluded with an outline of how the actuarial recommended contribution and the alternative contribution (calculated to meet a statutory 90% funding target by 2040) differ and why the village’s recommended contribution is higher to reach a 100% funding target under the actuary’s assumptions.
