'Storm clouds' for Batavia 2011 budget?

Batavia's proposed budget for next year projects a smaller deficit than it is running in 2010.

City finance Director Peggy Colby wrote in its summary that she sees “storm clouds” approaching. The two biggest are the effect of new contracts for unionized personnel, and whether the state government will keep more of income tax collections for itself. Gov. Pat Quinn has floated the idea of cutting towns' share of income tax receipts by 30 percent.

You can view the budget at http://cityofbatavia.net/Content/templates/?a=2919.

The government services committee will discuss it at 7 p.m. Wednesday. A city council hearing on the budget is set for 7:35 p.m. Nov. 15, and the tentative date of adoption is Dec. 6. All meetings are at the Batavia Government Center, 100 N. Island Ave. The fiscal year begins Jan. 1.

The budget proposes $87.1 million in expenses and $86 million in income. That includes expenditures and income for funds for water, sewer and electricity, which are designed to be self-sustaining entities, charging user fees to cover their costs.

The budget projects a deficit between income and expenses of $1.1 million, compared to a projected deficit in 2010 of $2.2 million. It calls for $7.3 million in property taxes, about $200,000 more than in 2010.

The budget was made with the assumption that the city would be contributing to the building of a parking garage on Wilson Street, and renovating the downtown “streetscape.” Both projects would be paid for with money out of a tax-increment financing fund, not property taxes charged to all properties. The city was told last week that the state will provide $1.5 million for the streetscape project. The parking garage's status is unsettled since it was part of a proposed complex that was to have included a Batavia Park District recreation center. District voters Tuesday rejected borrowing $20 million to build the rec center and contribute to the parking garage.

Questions about the draft budget can be directed to Colby at (630) 454-2030 or pcolby@cityofbatavia.net.