Naperville plugs $11.1 million budget hole

Naperville has managed to plug its $11.1 million budget hole while still handing out raises and adding a new program.

The proposed budget for the upcoming fiscal year also includes a $1 million cushion in case of additional downturn in the economy while keeping the property tax rate flat.

"The hurdle that was identified early on of an $11 million target ... when it first came up I didn't know if we'd be able to get there," City Manager Doug Krieger said. "The way the employees pitched in, pitched together and identified cost savings ideas and opportunities was critical to the success and filling the $11 million gap."

The city council held the first of three workshops Monday to discuss the proposed budget for the upcoming fiscal year that begins May 1.

During budget discussion in the fall, the city identified an $11.1 million shortfall due in large part to lower than expected sales tax and real estate transfer tax revenues. The real estate transfer tax is down more than 50 percent over the previous year.

While income tax revenue is tapering off, a special census will add about 6,000 residents and more than $600,000 in state funds, according to Chris Smith, acting director of finance.

The proposed budget includes about $115 million in general fund expenditures but Smith said 87 percent of the items have either gone down or stayed the same.

The city will save $3.2 million from its recent reduction of 43 jobs citywide. Twenty-three of those were vacant and 20 employees lost their jobs. No new personnel are recommended for the upcoming fiscal year.

The city still plans to open its 10th fire station in the fall as scheduled, but will staff it with existing personnel.

Other cost savings will come from delaying the replacement of vehicles and reduction in overtime and training programs. The city will also reduce some of its services including contract grass mowing, cul-de-sac salting and street sweeping.

The city's finance staff is recommending 2.25 percent salary increases for nonunion employees, the lowest in 15 years, according to Smith.

However, Councilman Grant Wehrli pointed out, "In the private sector, that is 2.25 percent higher than what's currently going on."

The council will have additional discussion about the proposed salary increases at its March 23 workshop.

Only one new program is scheduled to begin in the upcoming year, providing matching grants to private property and business owners along Ogden Avenue for sign, landscaping, building facade and access improvements. It is estimated to cost $200,000.

Smith said the proposed budget will allow the city to keep its property tax rate flat at 71.66 cents per $100 of equalized assessed value.

The council will hold additional budget workshops at 3:30 p.m. March 9 and 23. There will be a public hearing April 8 followed by a vote by city council April 21.