THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, MARCH 8, 2006
City Prepares To Tackle $900,000 Deficit
By DWIGHT ESAU
Journal Reporter
This is budget week in Park Ridge.
Residents may not care much about that right now, but city officials do. And they have two unpleasant tasks to begin performing this week regarding city finances:
Cut expenses, and probably some services, and/or try to increase revenues.
Tonight (Wednesday), at 7 p.m. in city hall, the city council's Finance and Budget Committee will meet to discuss the current proposed 2006-07 city budget, which has a proposed deficit of $900,000 to $1 million in the general fund.
Saturday, Mar. 11, at 9 a.m., the entire city council will meet in a budget workshop session to go over the budget, which is in draft form.
The 2006-07 fiscal year begins May 1, and the city plans to have its budget approved and in place by that date.
"Our deficit of $900,000 is primarily due to flat revenues, which has been true for the city for several years now and is likely to continue in the short term," City Mgr. Tim Schuenke said. "We see improvement on the revenue side, but that is 4-5 years out."
A balanced budget, while desirable, is not considered by the city to be absolute. In one recent memo to aldermen, Schuenke said that a deficit in the $500,000 range is "manageable."
While he and other officials usually project future revenues very conservatively, they also say that sales, food and beverage, and utility tax revenues should start to show increases in future years, particularly after Trader Joe's grocery store and other new businesses come online in the Uptown redevelopment.
After the Finance and Budget Committee asked staff to suggest alternative budget cuts and revenue increases, the staff came up with the following possibilities for 2006-07:
* New revenue sources - A new housing teardown fee of $10,000 a shot, producing $950,000; increasing the garbage and refuse fee by $5 per resident, producing $862,000; a new sewer user fee set at 15% of the wate charge, producing $1 million; an increase in the home rule sales tax of 25 cents, producing $400,000; increasing the vehicle sticker fee by $5, producing $142,000; and/or an increase in the ambulance fee.
* Regarding budget cuts, the staff suggested the following possibilities - the Uptown facade expense-sharing program, $150,000; a $27,500 taxi subsidy, not contributing $10,000 to the Historical Society, $75,000 less for community events such as Taste of Park Ridge, July 3 fireworks, and seasonal decorations; six staff reductions in the fire, police and public works departments, by attrition, saving $420,000; $140,000 in library cuts; $9,000 in city employee bonuses, and $10,000 less for grounds maintenance materials.
The total of those cuts is about $941,000.
Then there's the matter of a new police facility. There is $500,000 in the 2006-07 capital budget for a study and initial design work. Officials are currently combing the community, seeking a site for a new facility to replace the space now occupied by the police department in the basement of city hall. The city intends to purchase a residential lot next to city hall, on Courtland Street, which could accommodate a new police station. But other sites, such as the former public works center as 1200 Elm Street, now rented out by Nicor Corp., are being considered.
Schuenke recommended that the $500,000 come out of a bond issue, not the general fund.
Right now, the city projects a deficit of $3.3 million in the general fund in 2007-08 if none of these cuts or enhancements is done. "That is clearly unacceptable," Schuenke said.
To make the budget preparation process a more interactive one, and to meet the requests of some aldermen, the staff is submitting an early budget draft to the Finance and Budget Committee first this year, instead of sending it directly to the entire city council, as in years past.
Thus, we have the committee meeting tonight, and the council workshop on Saturday.
Both of these meetings are open to the public, although residents will be asked to observe, not comment or ask questions. Residents will have a chance for input when the budget comes up before the entire city council for approval in late March or April.