Naperville council looks for ways to save money

Naperville city councilmen are discussing reductions in city staff, freezing wages and even cutting their own pay in order to fill a revenue shortfall that could reach $11 million next year.

Councilmen and city staff held a workshop Tuesday to look for ways to address the budget hole, which is up to $5.1 million this year due to lower than expected sales and real estate transfer taxes.

"This is an opportunity to take a hard look at the government to make sure we are operating in the most efficient manner while providing a high level of service," City Manager Pro Tem Robert Marshall said. City staff believe they can fill part of the budget shortfall by not replacing some vehicles and using money from departments that come in under budget and a balance in the self-insurance fund.

The city is under a hiring freeze to keep a lid on personnel costs, which make up more than 70 percent of the budget. Finance Director Doug Krieger said other measures under consideration include freezing wages, layoffs, reduction in workforce, mandatory unpaid time off, eliminating overtime and reduction in work hours.

Councilman John Rosanova said councilmen should lead by example and cut their own pay, which is about $11,200 a year.

Fellow councilmen pointed out Rosanova's term expires in April and he has not yet decided if he will run again. But no one voiced objection and Councilman Richard Furstenau said he would go a step further and give up his whole salary if the others did.

No final decisions were made Tuesday.

The workshop also included a discussion of compensation for non-union employees who make up about 49 percent of the city's workforce.

Based on data from comparable communities and the private industry, the city's recommendations are to increase the main pool of money available for base salary increases by 3.8 percent in the next fiscal year, down just slightly from 3.85 percent this year. Two smaller pools used for increases would go up 0.5 percent and 0.25 percent respectively.

However, Don Carlsen, director of the management services business group, said those figures are based only on comparable data and are flexible based on the city's financial situation.

Several councilmen expressed concern with the proposed increases, including their effect on the size of the workforce the city can afford as well as ensuring they are in line with union employees while keeping the tax rate low.

"I wish everybody could get a raise. It's just not going to happen," Councilman Grant Wehrli said. We cannot rely on taxes to continue to feed this machine."

The city council will likely hold another workshop in early October to continue their discussion before they talk about the tax levy at a workshop later that month.