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The Landmark.com recently published an opinion piece discussing a controversial proposal in North Riverside regarding the potential privatization of the local fire department.
Pardon the residents of North Riverside if they feel a bit embarrassed these days. Known for their strong work ethic and commitment to fairness, the people of North Riverside have consistently paid their taxes with the expectation that their elected officials would manage village affairs responsibly. Unfortunately, the truth is far different. Elected leaders have been misusing public funds, diverting money meant for police and firefighter pensions into other areas. This isn’t just poor management—it’s a clear misuse of taxpayer dollars.
In five of the last ten fiscal years, the village board failed to contribute even a single dollar to the firefighters’ pension fund. Now, Mayor Hubert Hermanek Jr. is pushing for the privatization of the fire department—not because the current team is ineffective, but to free up more money that should be used for public safety. The firefighters of North Riverside are among the most professional in the Midwest. So why is the mayor considering privatization? Because his own board hasn’t been honest about paying its bills like the residents do.
This isn’t a new issue. On July 5, 2011, The Landmark reported warnings from Trustee Rocco DeSantis about potential lawsuits due to the village’s failure to meet its legal obligations for police and firefighter pensions. He also pointed out the hypocrisy of the board, which maintained healthy pensions for its own members through the Illinois Municipal Retirement Fund.
Privatizing a public fire department raises serious concerns about political integrity. After all, public service isn’t meant to be a profit-driven business. More importantly, this move by Mayor Hermanek poses a real threat to the safety of all residents. Communities maintain public fire and police departments for one reason: to protect families and ensure security at every level of government.
The actions of the mayor and the village board aren’t just embarrassing—they’re unacceptable.
Pat Devaney, President
Associated Fire Fighters of Illinois
Thanks, Dan.
From the Chicago Sun-Times:
The union representing North Riverside firefighters has vowed to sue if the village proceeds with its plan to hand over control of the fire department to a private company. The mayor claims the move is aimed at addressing a pension crisis, but the company set to take over the contract is a major donor to his political party. This could lead to a costly legal battle, despite the initial hope that privatization would reduce costs.
Rick Urbinati, president of the North Riverside Firefighters Union-Local 2714, argues that the move would violate multiple state labor laws. Since 2008, the village has underfunded or skipped payments to both police and fire pension funds, leaving them only about 40% funded. A recent law now allows the state to garnish tax revenues from towns that fail to meet their obligations.
Mayor Hermanek, who took office after serving as a trustee, warns that if the pension funds aren’t fully funded by 2016, the state will start intercepting sales tax revenue. He says the village faces a $1.9 million deficit and relies heavily on sales tax, which has been low since the recession began.
With a population of 6,700, North Riverside isn't large enough to qualify for “home rule†status, making it impossible to increase the sales tax. Raising property taxes to cover the $700,000 annual pension shortfall would be a significant burden.
To avoid these issues, Hermanek plans to award a $9 million, five-year contract to Paramedic Services of Illinois—a company that has donated $3,800 to the “Voter’s Improvement Party,†which includes Hermanek and most of the trustees. In fact, the company has contributed 26% of the party’s total fundraising since 2005.
Under the proposal, the 16 unionized firefighters would be offered jobs with Paramedic Services of Illinois. They would keep their base pay but lose benefits and be required to switch from a pension to a 401(k) plan. The plan is scheduled for a final vote on July 14.
Union leaders say they’ll refuse to work for the private company and are open to negotiating an alternative that costs the same as the proposed deal. Trustee H. Bob Demopoulos, the sole critic of the plan, calls it a bad decision. “We’ve subsidized water and garbage before. We never bid contracts until recently. Now we’re asking our firefighters to sacrifice,†he said.