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No tax hike, fewer jobs in Des Plaines

The Des Plaines city council Monday night approved a $96 million budget for the 2011 calendar year with no tax increase and four fewer administrative positions.

At the council's direction, city administrators eliminated an earlier proposed 1.95 percent tax increase that was expected to generate $450,000 to cover the city's obligations toward the rising costs of police and fire pensions, which by state statute must be fully funded by 2033.

The 2011 budget includes a reduction in the current 8 percent actuarial rate an estimate of the expected value of future earnings on the invested funds for police and fire pension funding to 7.75 percent saving the city $365,000 next year in police and fire pension funding costs.

In 2010, the city funded police pensions at $3.1 million and fire pensions at $3.2 million.

The pension savings combined with a $155,000 reduction in the corporate levy and personnel changes in next year's budget saving $535,000 eliminated the need for a tax increase, officials said.

The council Monday approved on first reading the 2010 property tax levy with a zero percent increase over the 2009 levy. The estimated 2010 tax levy totaling $29.6 million includes the general fund, police and fire pension funds, public library fund, and debt service fund.

It's the third year of staff cuts in Des Plaines, though considerably fewer jobs have been eliminated in 2011. The city cut 38 employee positions through layoffs, attrition and early retirement incentives this year, and laid off 12 employees in 2009.

The four administrative positions being eliminated in 2011 are: director of building and code, economic development coordinator, a deputy fire chief, and assistant to the public works and engineering director.

The council also authorized reducing funding for the vacant city manager's position to $20,000, saving $162,126. The idea is to keep the position with limited funding. Yet, it is unlikely that a city manager will be hired next year, Acting City Manager Jason Slowinski said.

With the elimination of a deputy fire chief position by year end, a new civilian post of project analyst will be added within the fire department for $99,525 in salary and benefits to absorb some of the administrative tasks the deputy chief would have done.

Losing the deputy chief position will cause a trickle-down effect prompting demotions down the line resulting in the elimination of a firefighter with the least seniority, saving the city roughly $91,000, Fire Chief Alan Wax said.

The personnel changes could potentially increase the fire department's overtime costs, he added.

City officials want to avoid laying off a firefighter, and may not have to if another fire department employee retires early next year, Wax said.

Other cost savings in the 2011 budget include a 10 percent reduction in overtime costs for fire department personnel and public works and engineering staff.