DANVILLE — Mayor Scott Eisenhauer told aldermen at Tuesday’s tax levy/budget study session that the city is “far past” cutting expenditures out of the budget without having to eliminate services.

The recession has impacted the city’s general fund because of the city’s few stable revenue sources.

Property and utility taxes are more constant revenue sources since they aren’t dependent on purchasing power, Eisenhauer said.

No money from the property tax goes to the city’s general fund for day-to-day operations, and the city doesn’t have any utility taxes.

Eisenhauer also reminded aldermen that since 2003, the city has increased or created revenue sources to try to reduce property taxes and diversify the revenue portfolio.

Those steps included increased sales tax, implemented liquor tax and food and beverage tax and implemented other fees.

Eisenhauer said residents can thank rising pension costs for the next property tax increase, or as a property owner share the burden with others who do not pay property tax in a more equitable revenue source. The city’s community-wide finance subcommittee has estimated that 1,700 properties pay nothing.

So that is why Eisenhauer asked aldermen what services they are willing to do without because he claims the city can no longer benefit from service-level reductions.

Ward 7 Alderman Ron Candido listed more than $200,000 worth of savings including eliminating a legal secretary, deputy city clerk, financial administrative assistant, one environmental inspector, two assistant fire chiefs, the Motor Vehicle Parking division, the municipal pool and combining the superintendent of recreation and the superintendent of downtown services positions.

Ward 7 Alderman Steve Foster said the city can lease out its parking garages and privatize solid waste. Residents don’t really need recycling or yard waste, he said.

“I don’t think we can afford to keep providing (yard waste collection),” Foster said.

But Ward 2 Alderman Rick Strebing said residents would be paying double or triple the solid waste collection costs through a private hauler.

One of his revenue suggestions is to allow Harrison Park to sell liquor.

Goals

At the start of the study session, Eisenhauer asked aldermen: What do we want to accomplish? What goals do we want to achieve? Where do we as a city want to be in five years?

Alderman answers included — only Ward 3 Alderman Dale Brandenburg was absent — no taxpayer money to be used for demolitions; lower crime rate, maintain high quality of life/services and be family friendly; reduce number of aldermen; continue code enforcement and stabilize neighborhoods; combine city/county police and other services where regionalization can benefit the area; stewardship of city resources; continue to support roads; city and city employees partnership on health care costs; work with Tilton and others to promote economic growth and development; and be leaders and face realities.

Some of those realities relating to revenues, Eisenhauer said is that sales tax, corporate replacement tax and other revenue projections are down and are returning to 2007 or earlier numbers.

The city’s $1 million reserve two years ago also suffered from legal expenses associated with an accidental death in one of the city’s parking garages, he said.

Committee suggestions

Eisenhauer also briefly discussed recommendations from the community-wide finance subcommittee to save money.

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, which Eisenhauer said is not legal; increase employee health care contributions to 20 percent; reduce funding to the library and Harrison Park Golf Course, which Eisenhauer doesn’t believe is in the city’s best interest; and a 5.3 percent across-the-board cut of all discretionary general fund money, which Eisenhauer said would mean elimination of services.

Eisenhauer voiced concerns about the proposed ambulance service license fee of $10,000, which could encourage Medix to leave town.

He said the council “can nitpick” and find $1.5 million in cuts, but the aldermen likely will be in the same situation next year.

Aldermen also mentioned further studying charging fees for medical calls to which the fire department responds.

Aldermen favor budget cuts first, but Ward 6 Alderman Jon Cooper said if the city must implement a fee, the cheapest seems to be the utility tax. While residents might not be impacted much, maybe $25 a year or so, businesses would take the biggest hit.

In an Illinois city comparison spread sheet aldermen also received Tuesday, several have utility taxes.