Kankakee Issues More Bonds to Shore-Up Pensions

At its meeting on Monday, July 15, the Kankakee City Council gave authorization to officials to issue up to $64,250,000 in general obligation bonds to help get funding for Kankakee’s police and fire pensions up to state requirements of 90 percent or greater funding.

The new bond issuance follows one two years ago for $32 million Mayor Chris Curtis said raised the funding level for city pensions from about 25 percent to 54 percent. Curtis said this new bond package will result in the ability to fully fund police and fire pensions by the year 2042. The bonds debt service will be paid using Kankakee’s additional 2 percent sales tax during the next 20 years.

During that time period, Curtis said it is estimated the bonds will save Kankakee $11 million in revenue that would otherwise come from the general fund to pay for pensions. Curtis noted Kankakee will be in a group of only 15 percent of communities statewide that have taken necessary action to meet state requirements for police and fire pension funding.

In other action, the Kankakee City Council approved the creation of the new office of City Manager and also approved Mayor Chris Curtis’ appointment of current Kankakee Comptroller Elizabeth Kubal to that position. The change in job title will increase Kubal’s annual salary from $133,000 to $150,000. Mayor Curtis said the city will hire another person as comptroller to replace Kubal, but that person’s starting salary will be lower than what Kubal was receiving.