Story posted Thursday, March 18, 2010
Spending Cuts To Top $10 Million
By TOM ROBB Journal & Topics Reporter
Elk Grove Village's proposed 2010-2011 fiscal year budget includes $10.1 million in spending cuts from this year's budget including renegotiation of two employee union contracts.
Village trustees met with finance staffers and department heads in a public meeting to discuss next year's proposed budget last Tuesday.
Overall, village spending in the 2010-2011 budget is expected to drop by 11% from $93.3 million to $83.2 million. General operating fund spending is expected to drop by about 7.6% from $44.4 million to $41.8 million.
Even with those spending cuts, spending will still outpace $39.1 million in expected revenues by several hundred thousand dollars per month that will cause the village to draw about $2 million from reserve funds to cover the shortfall. The village accumulated a $14 million general fund surplus for 2009-2010 that will be spent in 2010-2011.
For now, tax increases will likely be avoided in FY 2010-2011 for items within the village's control. A small increase is expected in separate property tax line items for pensions that are mandated by the state.
Mayor Craig Johnson said if the economy does not turn around larger tax increases to fund village operations might be unavoidable next year (2011-2012).
Even with the spending reductions, Johnson fears that as much as $800,000 in state revenue to the village could be eliminated to balance an $11.6 billion state budget deficit.
"That's depressing," said Johnson. "We balance our budget but then the state can't balance theirs so they pick our pockets."
The Elk Grove Village budget year runs from May 1 to April 30. This year revenues have been coming into the village a half a million dollars less per month than projected.
Village employees from the mayor and village manager to cleaning staff will have no pay increases in FY 2010-2011.
Johnson said he would sign amended agreements with firefighters and public works employee unions that rescind 3.25% guaranteed increases set to take effect next month in both contracts to a 0% pay freeze at next Tuesday's village board meeting. The renegotiated contracts will save the village $850,000 for the year, said Johnson.
Johnson said he is "very optimistic" representatives of the police union would join the village next Tuesday to sign their contract that expires next month. Johnson would not discuss specifics of the police agreement as it was still in negotiations but said, "What we do with one we do with all," indicating he is likely requesting a 0% pay freeze for police as well.
The public works contract expires in 2011 and the firefighters contract expires in 2012. The two contracts were reopened because of the difficult financial situation the village found itself in.
Johnson said both fire and public works union members voted to approve the one-year pay freeze unanimously.
Additional cost saving measures include the elimination or deferred hiring of 38 village positions through attrition. Johnson said no employees were laid off.
Six of those positions will come from the police department with the elimination or differed hiring of two sworn police officers, two public safety officers, one clerk and one traffic enforcement officer.
Johnson said those cuts would not threaten public safety, as they were only a small fraction of a force that has about 90 sworn officers.
Additionally the village will differ replacement of police squad cars from 75,000 to 100,000 miles, defer replacement of ambulances from once a year and reduce spending on special events such as the Tour of Elk Grove, summer concert series, Christmas tree lighting and village parade by $180,000 or 35%.
One large "quint" ladder fire truck that can act as a pumper engine and ladder will be placed in reserve because it is about twice as expensive as other fire apparatus to operate and maintain. The vehicle will be available for use at a moments notice, said Fire Chief David Miller, but would not be a "front line" vehicle.
Johnson will forego a $2,000 raise in his mayoral pay that was to go into effect next May.
The village saved $300,000 on the purchase of road salt through competitive bidding and saved $30,000 in AT&T telecommunications fees by switching automated fire alarm systems from wired to wireless.
The village will also renegotiate or eliminate contracts with outside vendors.
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