Des Plaines plans to spend more, but not raise taxes

Des Plaines officials are planning to spend millions next year on infrastructure upgrades and other expenses, but they won't increase taxes to do it.

The proposed $153 million city budget for fiscal year 2015 was presented to the city council Monday night by City Manager Mike Bartholomew. It includes spending $22.4 million on capital projects — from road and sewer improvements to flood control upgrades.

For the fourth consecutive year, officials are proposing no increase to the city's tax levy. They're anticipating slightly higher revenues due to additional sales and hotel tax revenues.

“That's a good indication, because the economy is slowly ticking back,” Bartholomew said.

Thanks to $12.3 million in gaming tax proceeds from Rivers Casino, Des Plaines officials plan to spend $5.5 million on design, engineering and construction of a pipe connecting to the Northwest Water Commission's tank — an alternative water source officials have pursued in an attempt to combat Chicago's rising water rates; $2.5 million to replace a water main underneath River Road, being done in conjunction with a state-funded project to rebuild the thoroughfare; and $4.3 million on other street and drainage improvements.

When the casino opened, aldermen decided to use gaming tax proceeds only to pay for capital infrastructure or pay down debt.

With a projected $126 million in total revenues expected, the $153 million budget is technically in the red, but Bartholomew said the city plans to pay for projects in 2015, such as the River Road work, with money it received this year.

“It's not that we're spending more money than we're taking in, we're just taking it in in a different fiscal year,” Bartholomew told aldermen.

Overall, the city is planning to spend $711,000 more than last year, due to a $300,000 increase in police and fire pension funding, $100,000 more for Northwest Highway landscaping, $200,000 for city hall building upgrades, and $100,000 for a city business assistance program.

Aldermen on Monday began their review of the budget fund by fund and will continue their discussion Oct. 14 and Oct. 29.

They will vote on the budget Nov. 17.