BY JENNIFER BAILEY
DANVILLE — Aldermen discussed the city’s budget challenges at Tuesday night’s tax levy/budget study session, and the potential for another significant property tax rate increase of $1.87 to $2.08 per $100 assessed valuation for the city’s 2009 tax levy.
The challenges include rising expenditures, escalating pensions, increasing unfunded mandates, declining state and local revenue and no general fund reserve.
But when asked by Mayor Scott Eisenhauer what services aldermen are willing to eliminate if more budget cuts are made instead of revenues raised, aldermen didn’t rally behind anything in particular.
Ward 5 Alderman Jerry Askren and others listed instead: health care cost increases by having employees/unions step up to the table to pay more; the city, township and county working together regionally and possibly combining duties such as police and having a fire district; and other cuts before aldermen consider any sales tax increase or a utility tax on electricity, natural gas and water.
“We just can’t put more fees and taxes on the people. They just can’t come up with any more (money),” Ward 6 Alderman Steve Nichols said of residents. “A small percent of the taxpayers pay a large percent of the (property) tax.”
Ward 7 Alderman Ron Candido provided a list of more positions he’d like to see cut (saving maybe $200,000, according to Eisenhauer), and other possible fee increases such as an amusement tax on satellite dish companies and a real estate transfer tax.
He said instead of cutting services, residents tell him property taxes are too high, employees receive too big of raises and the city needs to cut more employees and wages.
“I’m repeating what people tell me,” he said. “Perception is reality.”
As in year’s past, aldermen Tuesday heard history behind the city’s tax levy, with the city not fully paying fire and police pensions in years past and having to play catch up. Expenditures also continue to rise at a rate of 7-9 percent annually while revenues only rise 0-3 percent annually.
After cutting about $1.2 million in city budget expenses earlier this year (about 58 positions since 2003), another $1.5 million must be cut to balance the fiscal year 2009-10 budget.
Even as the city has cut personnel, benefits and other costs continue to increase with 80 percent of the city budget personnel costs, Eisenhauer said.
Tax levy discussions will continue. The tax levy must be adopted by Dec. 15.
