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Pensions make up most of Elgin's new day-to-day expenses

Elgin's day-to-day expenses projected to go up by $9.5 million

The majority of the $9.5 million increase projected for the city of Elgin's general fund budget stems from pensions, along with salaries for new employees and increases in benefits.

The 2015 proposed general fund budget - which is used for the city's day-to-day operations - is $114.9 million. Elgin's fiscal year starts Jan. 1; the city council is expected to approve the overall $290.5 million budget Dec. 17.

The police department is the largest component of the general fund, with $39.4 million in expenses projected for 2015, compared to $38 million budgeted this year.

The second-largest is the fire department, whose expenses are projected at $26 million in 2015 compared to this year's $24.8 million.

More than half of the overall $2.6 million increase for police and fire, about $1.5 million, stems from an increase in the city's pension costs, Elgin Senior Management Analyst Aaron Cosentino said.

Also part of the general fund is $5 million in supplemental public safety pension contributions, plus $500,000 in post-employment benefits, all to be funded by reserves.

Police union employees are getting 2.5 percent raises in 2015 as per their contract, while other union wages are currently in negotiations, Cosentino said.

Raises in Elgin are typically uniform across departments, or have minimal variations.

Elgin Police Chief Jeff Swoboda said investments in technology have allowed his department to stay at 180 officers, down from a high of 196 a few years ago.

"We're making up with less bodies by being much more efficient," Swoboda said.

Fire Chief John Fahy said the majority of his department's increase stems from salaries and benefits, with the rest coming from slight increases in the cost of items ranging from fuel to toilet paper.

"It's everything you have to run seven stations," he said. "It's a pretty simple budget for the fire department this year."

There's also an additional $432,000 in workers' compensation budgeted for the fire department, a figure calculated by an external agency based on assessed risk, Cosentino said.

For the first time in years, the city is budgeting new positions, including $280,000 for two 911 emergency operators and a public safety systems specialist.

Hiring a new geographic information system specialist for the IT department is expected to cost about $98,000 including medical insurance, Cosentino said.

The general fund also includes an increase of $481,000 in public services, primarily due to Elgin's pending solid waste contract with Waste Management, which is paid by residents' refuse fees.

The budget for the city manager's office - which includes $160,000 for salary and benefits for a yet-to-be-hired communications director - increased from $1.7 million this year to $1.8 million in 2015.

The finance department is budgeting a decrease of about $360,000 compared to 2014, but that's due to customer service representatives transferring to the 311 Contact Center, which will show a corresponding increase.

The planning and neighborhood services division of the community development department shows an increase of $195,000, mostly because of the internal transfer of an engineering position expected to be offset by permit revenues.

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