West Cook News

The Cook County Board's Pension Committee will consider a proposed amendment to the taxing district debt-disclosure ordinance during the committee's next meeting 9:15 a.m. Wednesday at Cook County Building Board Room 569, 118 N. Clark St.

The Cook County Board is a legislative body of 17 commissioners who are elected by district to four-year terms. Cook County, which includes the City of Chicago, is the United States' second-largest county, with a population of 5.2 million residents. The county board sets policy and laws for the county regarding property, public health services, public safety and maintenance of county highways.

Below is the agenda for this meeting, as provided by the committee.

Board of Commissioners of Cook County

Pension Committee

Wednesday, June 8, 2016 9:15 AM Cook County Building, Board Room, 569

118 North Clark Street, Chicago, Illinois

NOTICE AND AGENDA

There will be a meeting of the Committee or Subcommittee of the Board of Commissioners of Cook County at the

date, time and location listed above to consider the following:

PUBLIC TESTIMONY

Authorization as a public speaker shall only be granted to those individuals who have submitted in writing, their

name, address, subject matter, and organization (if any) to the Secretary 24 hours in advance of the meeting. Duly

authorized public speakers shall be called upon to deliver testimony at a time specified in the meeting agenda.

Authorized public speakers who are not present during the specified time for public testimony will forfeit their

allotted time to speak at the meeting. Public testimony must be germane to a specific item(s) on the meeting agenda,

and the testimony must not exceed three minutes; the Secretary will keep track of the time and advise when the time

for public testimony has expired. Persons authorized to provide public testimony shall not use vulgar, abusive, or

otherwise inappropriate language when addressing the Board; failure to act appropriately; failure to speak to an

item that is germane to the meeting, or failure to adhere to the time requirements may result in expulsion from the

meeting and/or disqualify the person from providing future testimony.

16-2929

Sponsored by: TONI PRECKWINKLE, President, JOHN P. DALEY and GREGG GOSLIN, County

Commissioners

PROPOSED ORDINANCE AMENDMENT

AMENDMENT TO TAXING DISTRICT DEBT DISCLOSURE ORDINANCE

WHEREAS, the terminology describing the reporting of pensions is updated according to accounting

pronouncements recently issued by the Governmental Accounting Standards Board (GASB); and

WHEREAS, to improve the timeliness of reporting, taxing districts are required to submit financial data to the

Office of the Cook County Treasurer within 30 days of issuance, rather than the previous static deadline of the last

Tuesday in December; and

WHEREAS, to expedite the initial reporting of important pension information, taxing districts are required to

initially electronically provide to the Office of the Cook County Treasurer by July 29, 2016 the most recent actuarial

report(s) prepared for their Pension Plan(s).

NOW, THEREFORE, BE IT ORDAINED, by the Cook County Board of Commissioners, that Chapter 2

Administration, Article IV Officers and Employees, Division 4 Treasurer, Subdivision 1 In General, Section 2-243

of the Cook County Code is hereby amended as follows:

Page 2 of 5

Sec. 2-243. Taxing district debt disclosure.

(a) Definitions.

Actuarial accrued liability (AAL), other postemployment benefits (OPEB), unfunded actuarial accrued liability

(UAAL), total pension liability (TPL), net pension liability (NPL), fiduciary net position (FNP) and healthcare cost

trend rate shall have the same meanings ascribed to such terms under the generally accepted accounting principles

for governmental accounting promulgated from time to time by the Governmental Accounting Standards Board.

Actuarial cost method, amortization method, asset valuation method, investment rate of return, and any other

actuarial terms used and not defined herein shall have the same meanings as defined by Actuarial Standards of

Practice, as promulgated from time to time by the Actuarial Standards Board.

Audited financial statements, current debt, current liabilities, long term debt, long term liabilities and any other

accounting terms used and not defined herein shall have the same meanings as defined by Generally Accepted

Accounting Principles, as promulgated from time to time by the American Institute of Certified Public Accountants,

and shall conform with the accounting principles and auditing standards generally accepted in the United States,

including without limitation those generally accepted accounting principles for governmental accounting as are set

forth in publications of the Governmental Accounting Standards Board.

Taxing District shall have the same meaning as defined by 35 ILCS 200/1-150.

Total Pension Liability shall mean the sum total of all liabilities of a public pension fund established in the

Illinois Pension Code and associated with employees of a Taxing District in respect of the pension and retirement

obligations of such Taxing District. Total Pension Liability includes both AAL the TPL for pension benefits and

AAL for OPEB benefits.

Total Unfunded Pension Liability shall mean the sum total of all unfunded liabilities of a public pension fund

established in the Illinois Pension Code and associated with employees of a Taxing Distrit in respect of the pension

and retirement obligations of such Taxing District. Total Unfunded Pension Liability includes the NPLUAAL for

pension benefits and UAAL for OPEB benefits.

Total OPEB Liability shall mean the sum total of all reported liabilities of a Taxing District in respect to OPEB

obligations as reported for such Taxing District, whether the OPEB is provided by the Retirement Fund associated

with the Taxing District or the Taxing District itself. Total OPEB Liability includes the AAL for OPEB, whether

provided by the Retirement Fund associated with the Taxing District or the Taxing District itself.

Total Unfunded OPEB Liability shall mean the sum total of all reported unfunded liabilities of a Taxing

District in respect to OPEB obligations as reported for such Taxing District, whether the OPEB isprovided by the

Retirement Fund associated with the Taxing District or the Taxing District itself. Total Unfunded OPEB Liability

includes the UAAL for OPEB, whether provided by the Retirement Fund associated with the Taxing District or the

Taxing District itself.

(b) Duty of Taxing Districts to disclose all debt. Each Taxing District shall, on or before thirty days after such

Taxing District’s most recent audited financials have been issued, the last Tuesday in December, provide to the

Office of the Cook County Treasurer, in the electronic format required by Office of the Cook County Treasurer, a

full, complete, unabridged and unedited copy of such Taxing District's most recent audited financial statement

(along with any and all auditor's reports notes and comments on such audited financial statements), accompanied

by such Taxing District's written disclosure of the following information:

(1) Sum total of all debts and liabilities from such financial statement(s);

(2) The portion of the total amount reported in Subsection (b)(1) above that represents the total NPL for

all pension benefits;

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(32) Sum total of gross tax levy for the most recent tax year;

(43) Gross operating budget revenue for the most recent fiscal year;

(54) Total Pension Liability;

(65) Total Unfunded Pension Liability, which shall be denoted as a separate line item below Total Pension

Liability;

(7) Total OPEB Liability as reported;

(8) Total Unfunded OPEB Liability as reported, which shall be denoted as a separate line item below Total

OPEB Liability;

(96) Actuarial cost method utilized by the Taxing District in its calculations of Total Pension Liability and

Total Unfunded Pension Liability;

(107) Asset valuation method utilized by the Taxing District in its calculation of Total Unfunded Pension

Liability;

(118) Each of the following actuarial assumptions underlying the Taxing District's calculations of Total

Pension Liability, and Total Unfunded Pension Liability, Total OPEB Liability and Total Unfunded

OPEB Liability as applicable:

a. Investment rate of return;

b. Annual rate of salary increases;

c. Participant mortality rate; and

d. Healthcare cost trend rate for OPEB benefits;

(129) Total agency employees or full time equivalents (FTE), as of the most recent fiscal year;

(13) An electronic copy of the most recent actuarial valuation(s) prepared in accordance with the

provisions of GASB 67/68 for all taxing district Pension Liabilities;

(1410) Total pension fund retirees and the beneficiaries of said retirees receiving pension benefits, as of the

most recent fiscal year;

(1511) Name and contact information (including telephone number, fax number, and email address, if

available) for the chief elected official of the Taxing District and for the chief finance official of the

Taxing District; and

(1612) If the Taxing District is a county, city, village, or incorporated town, the current total population of

such Taxing District.

(c) In the event that a Taxing District does not have an audited financial statement for the most recent fiscal

year, such Taxing District shall in lieu thereof provide to the Office of the Cook County Treasurer the most recent

unaudited financial statement of such Taxing District, provided in all events that such unaudited financial statement

shall include disclosures of the subject Taxing District's actual or contingent current debt, current liabilities, long

term debt and long term liabilities. A Taxing District, whose financial statements are included or consolidated in

the financial statements of another Taxing District, is not required to separately provide the required financial

statements in the event said other Taxing District is in compliance with the requirements of this Ordinance.

(d) Independent of the duty of Taxing Districts to make annual disclosures pursuant to Subsection (b) above,

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within 60 days following notification by the Office of the Cook County Treasurer, via United States Postal Service

first class prepaid mail, each Taxing District shall initially provide to the Office of the Cook County Treasurer, in

the electronic format required by the Office of the Cook County Treasurer, a written disclosure containing the

information required under Subsections (b)(139) and (b)(10) above by July 29, 2016.

(e) Duty of Treasurer to make available disclosure of debt. The Office of the Cook County Treasurer shall:

(1) Create an electronic repository for the storage of all financial disclosures made by such Taxing Districts;

and

(2) Cause to be published on each regularly issued real estate tax bill the website address which provides, to

taxpayers and other interested parties, electronic access to such financial disclosures by such Taxing

Districts.

(f) Publication of disclosures. The Office of the Cook County Treasurer may, in the sole discretion of the

Cook County Treasurer:

(1) Publish on the Cook County Treasurer's official website the names of any Taxing Districts that have failed

to comply fully with the requirements of this Ordinance; and,

(2) Publish from time to time (but in no event more frequently than twice per calendar year) in one or more

newspapers having a circulation within Cook County (i) any disclosures provided by Taxing Districts

pursuant to this Ordinance or otherwise and/or (ii) the names of any Taxing Districts that have failed to

comply fully with the requirements of this Ordinance.

(g) Duty of Taxing District to provide and maintain contact information. In the event of any change to the

contact information provided by a Taxing District pursuant to Subsection (b)(151), the Taxing District shall forthwith

provide revised and up-to-date contact information to the Office of the Cook County Treasurer.

Effective Date: This Ordinance shall take effect immediately upon its passage and approval.

Legislative History : 5/11/16 Board of Commissioners referred to the Pension Committee

16-3195

Sponsored by: BRIDGET GAINER, County Commissioner

PROPOSED RESOLUTION

CALLING A PENSION COMMITTEE MEETING TO DISCUSS THE FISCAL YEAR 2015

ACTUARIAL VALUATION REPORTS FOR THE COOK COUNTY AND FOREST PRESERVE

EMPLOYEES’ AND OFFICERS’ ANNUITY AND BENEFIT FUNDS; AN UPDATE ON THE IMPACT

OF RECENT SUPREME COURT DECISIONS ON PENSION REFORM AND TO DISCUSS THE

ESTIMATED PAYMENT FROM THE COOK COUNTY SALES TAX REVENUE IN 2017 TO THE

COOK COUNTY PENSION FUND.

WHEREAS, actuarial reports for the Cook County Employees’ Annuity and Benefit Fund and the Forest

Preserve District Employees’ Annuity and Benefit Fund of Cook County as of December 31, 2015 are expected to

be released Summer 2016; and

WHEREAS, these reports will highlight the funded status and total unfunded pension liability of the Cook County

Pension Fund and Forest Preserve Pension Fund as of December 31, 2015; and

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WHEREAS, in 2015 the Cook County Board passed an increase in the Cook County Sales Tax with the intent to

devote “90% of the funding to paying down the pension and the remaining 10% to debt service and infrastructure

investments,” based on an alternative proposed pension funding schedule drafted by the Chief Financial Officer;

and

WHEREAS, the Illinois Supreme Court issued opinions regarding pension reform legislation in Illinois that may

impact the Cook County Employees’ Annuity and Benefit Fund and the Forest Preserve District Employees’

Annuity and Benefit Fund of Cook County; and

THEREFORE, BE IT RESOVLED, upon their release the Cook County Pension Committee shall meet for the

purpose of discussing the actuarial valuation reports for the Cook County Employees’ Annuity and Benefit Fund

and the Forest Preserve District Employees’ Annuity and Benefit Fund of Cook County as of December 31, 2015;

and

BE IT FURTHER RESOLVED, the Cook County Pension Committee shall call a meeting to hear a report from

the Chief Financial Officer on the expected payment based on the proposed alternative pension funding schedule

for 2017; and

BE IT FURTHER RESOLVED, the Cook County Pension Committee shall call a meeting to discuss the impact

of recent Illinois Supreme Court decisions and its impact on Cook County Employees’ Annuity and Benefit Fund

and the Forest Preserve District Employees’ Annuity and Benefit Fund of Cook County.

Legislative History : 5/11/16 Board of Commissioners referred to the Pension Committee

______________________________________

Secretary

Chairman: Gainer

Vice-Chairman: Goslin

Members: Murphy, Schneider, Steele, Suffredin, Tobolski