City prepares contingency budget

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March 15, 2010

BY JENNIFER BAILEY The Commercial-News Mon Mar 15, 2010, 07:18 PM CDT

DANVILLE — City officials started meeting Monday to talk about the possible impact a 30 percent cut in the state income tax revenue proposed by Gov. Quinn will mean for all city departments.

Mayor Scott Eisenhauer said the cut would mean $850,000 less revenue to the city.

“It means personnel reductions,” he said. “We’re not going to raise revenue.”

Because about 20 persons could be affected, the revenue cut also means the city must budget about $150,000 to $200,000 in unemployment costs and benefits, Eisenhauer added.

“We’re looking at about $1 million …,” he said. “We’ve cut just about everything we can cut last year.”

City council members will continue budget discussions tonight at city hall.

Eisenhauer said the city will continue with its current proposed budget, but a contingency budget also will be put in place in case the cut comes to fruition with the state legislature.

Eisenhauer wouldn’t comment on city services that could be impacted.

“It’s just too early,” he said.

The city cut about 25 positions last year. The council also approved sales and property tax increases late last year to cover about a $1.8 million 2010-2011 budget deficit and build up general fund and infrastructure fund reserves with about $1.6 million.

Instead of additional layoffs this year, health insurance increases, voluntary furlough days, wage freezes, emergency medical service fees by the fire department and other changes have been proposed.

The city’s approximately 250 full-time employees account for about 80 percent of the city’s $43 million annual budget.

Increased personnel costs for the 2010-2011 budget to take effect May 1 are largely due to contractual salary increases, salary increases by ordinance for elected officials, money set aside for merit-based raises of non-union employees and in the public works department and interns who might be hired.

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