Des Plaines to scale back services, shrink work force

Des Plaines city officials say they are scaling back services and shrinking the work force to reduce a more than $2 million projected shortfall in the city's operating fund for 2010.

The proposed 2010 budget shows projected general fund expenditures of $56 million with revenues at $54 million.

Layoffs and property tax increases may be needed to bridge that gap. Yet, City Manager Jason Bajor is optimistic it won't come to that.

"If we had fund reserves, that may be an option. However, we're not in that position," Bajor said. "So we're squarely focused on our expenditures, our level of government, our size of government, and we're going to reduce that wherever and whenever possible. I give our staff high marks in terms of their fiscal austerity through the 2008 and 2009 budget."

For next year, Des Plaines is projecting significant revenue shortfalls in the areas of sales tax, building permits and other related fees, and possibly in income and property taxes, as well.

Meanwhile, the city's police and fire pension funding requirements increased by 28 percent and 45 percent respectively from 2009 as it seeks to meet a state mandate to fully fund pensions by 2033.

The city's overall budget for 2009 is about $120 million. Its estimated revenue for 2010 is $102 million for all funds, while estimated expenditures are at $108 million, City Finance Director Dorothy Wisniewski said.

Des Plaines may have to raise its property tax levy to make police and fire pension fund contributions of $6.2 million next year.

"(It) would generate a 6 percent property tax increase, which is why we are looking at the general fund to decrease that levy, so we can balance it out," Wisniewski said. "The other option is to not fully fund the pensions, but that's just pushing off the problem to future years."

Bajor said officials will try to maintain the city's core services such as police and fire protection and public works so residents don't feel the impact of cuts.

Des Plaines employs roughly 350 people.

In 2008, the city laid off 12 employees. This time around, officials are encouraging early retirement, offering incentives for employees to leave voluntarily, and hiring selectively to fill vacancies.

The city council will review an early draft of the 2010 budget by September's end.