The Commercial-News, Danville, IL

Local News

October 25, 2009

Session to study budget, tax levy

DANVILLE — Community-wide finance committee members were disappointed that few aldermen attended their final presentation meeting before Mayor Scott Eisenhauer.

Those in attendance were Sharon McMahon, Rickey Williams Jr., Lois Cooper and, serving on the committee, Mike Puhr.

Committee member Wayne Haugen said he hopes there is a lot more interest from aldermen in the tax levy and budget process with the start of Tuesday’s tax levy study session.

“To me this is a learning experience with the aldermen, too,” Haugen said.

He said aldermen can’t just put their head in the sands with escalating city costs.

He pointed out that Williams was the only alderman recently to ask more about the impact of adding more police officers with the COPS grant.

“The whole budget needs major revamping,” Haugen said. “They’re going to have to look at more head cuts and really rein in their department budgets. This health care issue is a huge issue.”

Haugen said by not looking at entire city budgets — like Eisenhauer wanted them to do by not analyzing enterprise funds such as solid waste that pays for itself — is like not looking at all of your savings and checking accounts.

“I don’t subscribe to putting blinders on and not looking at everything,” he said.

He hopes there will be more education for people to know where their tax dollars go. He also hopes the finance committee suggestions aren’t just swept under the rug. The finance committee worked to identify $1.5 million in spending cuts to balance the FY 2009-10 budget.

The short-term recommendations included: increase rental unit registration fees from $10 to $250 for absentee landlords who live more than 25 miles from city limits; increase employee health care contributions to 20 percent; reduce funding to the library and Harrison Park Golf Course; create a license fee for ambulance service; and a 5.3 percent across-the-board cut of all discre-tionary general fund money.

Long-term recommendations included: reduce personnel budget and miscellaneous expenses; consider merging city and county services to eliminate redundant functions, equipment and increase purchasing power; establish one pension system for all city employees; evaluate reducing number of personal/sick days above and beyond vacation time already provided; eliminate the city pool and eliminate electric bill payments to the private tennis club.

Session’s agenda

Eisenhauer pushed back tax levy discussions this month so he could further review the finance committee recommendations. He said the recommendations will just be a part of Tuesday’s study session.

He’s been criticized in the past for not allowing for more aldermen input at the beginning of tax levy and budget discussions, so that’s what this night is set aside for. His goals for the night include instead of forming only a one-year budget, to set in place a three-year budget that is revised as needed.

“I think we’ve got to do something long-term,” Eisenhauer said of looking at the impact of annual increasing expenditures.

Usually city officials look at worst-case scenarios and if things turn around, then the budget is adjusted accordingly.

He also will ask the aldermen to pass a reserve resolution. The Governmental Accounting Standards Board advises local governments to have at least three months of operations expenses in reserve. Six months would be more ideal.

“Right now we have no months,” Eisenhauer said.

If aldermen support the reserve resolution, they will have to decide how to build up the reserve and keep it at a certain level.

The tax levy must be adopted by Dec. 15.

The city council approved an almost 8 percent increase in last year’s tax levy.

COMING UP

The city’s tax levy/budget study session will be at 6 p.m. Tuesday in the community room (adjacent to the council chambers) at city hall, 17 W. Main St.

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