No deal yet on Rolling Meadows budget

Budget talks in Rolling Meadows stalled Tuesday after some aldermen criticized the latest 2009 plan presented by City Manager Tom Melena.

"I'm not feeling like staff is being upfront with us," Alderman James Larsen said to Melena. "I asked how much the city would save with a wage freeze, and you told me to do the math myself."

Aldermen need to cut $2 million from the 2009 budget. But that's not their only problem. The city also is facing a $500,000 debt from 2007 and a projected debt of up to $1 million in 2008. Two weeks ago, aldermen backed the idea of tacking on a 5 percent electricity tax to bring in an additional $1.3 million annually. About $500,000 of that could pay off debt from 2007. The rest could minimize eight layoffs projected for 2009.

The plan would ignore the potential $1 million 2008 shortfall for now, said Melena at the meeting. On Tuesday, Melena suggested spending the remaining $800,000 on salaries, making some full-time positions part time and only laying off four people. Some aldermen said that wasn't a good idea. They also suggested not giving city employees their 3.75 percent cost-of-living pay raise this year or only giving employees a 2 percent increase.

"The staff would rather see layoffs than pay freezes," Melena said. "If you force the issue, you're inviting labor representatives into the process."

That's fine with Alderman John Pitzaferro.

"They'd rather see their peers fired than take a pay freeze?" Pitzaferro said. "The word hostile comes to mind here. I don't feel like we're working together."

Several residents also addressed the council Tuesday, and most disagreed with the electricity tax increase. Some backed the idea of laying off employees.

"A lot of people are retired and can't afford it," said Donald Pagels, who has lived in Rolling Meadows for 49 years.

"Layoffs are a thing of life these days," added Steve Rybarczyk. "What about laying people off and freezing pay? Can't you do both? It happens all the time."

About 74 percent of the city's operating budget pays for city employee salaries and benefits.

Rolling Meadows started talking about the 2009 budget in September. Since then, officials have talked about postponing building a fire station at Algonquin Road just west of Weber Drive until 2010 to save money.

The council will meet at 5:30 p.m. Tuesday to resume budget discussions. The budget, which goes into effect Jan. 1, must be approved in December.