With a $5.3 million budget deficit looming for 2017, Kane County, Ill., officials are on the verge of making a pension move some government finance experts believe has more risk than value, the Chicago Daily Herald reported yesterday. The plan involves issuing $52 million in pension obligation bonds. The proceeds from the bonds would pay off the county's current unfunded IMRF pension obligation. The county pays about 7 percent interest to IMRF on the unpaid balance. The county finance committee unanimously approved the plan on Wednesday. It will go to executive committee, then the full county board for a final vote. Based on the advice of Robert W. Baird, the firm that would issue the bonds for the county, officials say they believe the bond loan would carry a 3.5 percent interest rate. The savings from the lower interest rate would free up about $15 million for the county during the next 28 years.
