DANVILLE — After an almost three-hour Community-Wide Finance Committee meeting Wednesday to finalize recommendations to present to Mayor Scott Eisenhauer, there still are no concrete answers to solve the city’s expected $1.5 million deficit for its 2010-2011 budget.

The top two recommendations, with unknown financial gains, remain increasing health care premiums for all employees on a tiered system of 25 to 30 percent of the premiums; and increase rental unit fees from $10 to $25 for landlords living within five miles of the city’s limits and to $250 for those living outside those five miles. The fee would remain $10 for landlords living in the city.

Other recommendations include: charging an ambulance service license fee and requiring the fire department revenue committee to again look at medical call/transfer fees; shifting $80,000 in hotel/motel tax funding from Harrison Park Golf Course; establishing the library as a self-taxing entity; requiring a multi-year financial vision for the city; and planning for Chapter 9 bankruptcy if union cooperation cannot be achieved.

However, it was noted that even in bankruptcy, the city still must pay its $47 million in pension debt, finish paying on contracts until they expire and still pay bonds.

Committee member Wayne Haugen said this should be a “wake-up call” for employees.

“(We) cannot tax our way out of this problem,” added committee member Travis Mains.

But City Comptroller Gayle Brandon said employees have seen the city in trouble before and have seen taxes increases and cuts made to get out of budget difficulties.

Committee members, however, were not willing to support a specific tax increase, with Haugen voicing opposition against a utility tax and other members questioning declining sales tax revenue which shows residents are tightening their belts.

Ward 5 Alderman and committee chairman Mike Puhr predicts the majority of aldermen would rather have cuts than support a fee or tax increase.

But if city officials say they’ll cut police or fire, Puhr said residents will come out in droves to persuade aldermen to increase taxes.

Committee member David McDermott said with previous city cuts, police, fire and garbage services remain operational. Department heads should be forced to find another across the board percentage cut, he said.

“You find it. They know what can be cut,” he said.

Haugen said the current yard waste talks are just an example of residents resistant to change.

About half of Wednesday’s meeting involved the committee listening to landlords Aaron Troglia and Kent Janesky complain about money being taken out of their pockets if the rental registration fee is increased.

Janesky said this money in turn prevents a roof, furnace or other repair.

Danville Public Library Board president Bill Satterwhite also defended the library’s budget reserve, which the committee has looked at for shifting funds.

He said “we worked really hard to build” the surplus, which is needed for replacing carpeting and completing other larger projects for the 15-year-old building.

He also said a referendum for a library taxing district would be expensive, with a small chance for success.

The committee also had previously suggested removing $200,000 from the Palmer Arena in hotel/motel tax money.

But it took that recommendation off the table after hearing from Peter Blackmon, arena general manger, that the arena is receiving $850,000 from the state’s capital bill for a geothermal system, to provide alternative heating and air-conditioning means and save on energy costs.

“I’d like to know if we’re going to turn the lights off before I spend that money,” Blackmon said.

“The arena would not, could not operate,” he said of the $200,000 cut from the arena’s annual $1 million budget.

Many committee members expressed their frustrations with the complex city budget on Wednesday. The final meeting prior to presenting recommendations to Eisenhauer saw several committee members absent.

Mains wondered if they have been wasting their time and if a lot of these recommendations will fall on deaf ears.

The committee also asked why the aldermen approved a clerical union contract in the midst of the finance committee trying to find additional funding solutions.

“With this committee, we were hoping you’d see something we didn’t see,” Brandon said.

She added about salaries, with many employees four to five years away from retirement, they of course want to see their salaries go up so their pensions go up.

The committee also has a list of about 20 other possible long-term budget savings suggestions, such as evaluate the solid waste program and consider regionalization of city/county governments to eliminate redundant functions.

COMING UP

The Community-Wide Finance Committee will meet at 4 p.m. Sept. 30 at the Robert E. Jones Municipal Building, 17 W. Main St.