New Des Plaines budget shows 0% levy increase
Des Plaines may spend $50,000 on home generator rebates, $200,000 to replace hot water pipes at City Hall, hire a new business development coordinator, allow city staff to attend conferences, and pay out $12.7 million in casino revenues to meet its obligations in 2012.
City leaders began dissecting a nearly $114.8 million proposed total budget for 2012 Tuesday night. That includes roughly $57 million in general fund expenditures.
Among the budget highlights are a 0 percent increase to the property tax levy over the previous year’s levy for the second year in a row, no layoffs, a reduction in the city’s debt load — down from $70 million to $63.5 million — and a projected general fund balance of 34 percent of operating expenses at the end of the 2012 fiscal year.
Despite the proposed 0 percent increase to the tax levy, many residents’ property taxes may still go up, Acting City Manager Jason Slowinski said.
That’s because overall property values in the city have declined, and with foreclosures and successful property tax appeals granted by the Cook County Board of Review, individual taxpayers are having to pay more, he added.
Officials touted a dramatic improvement in the city’s cash reserve, which went up from slightly more than 2 percent in 2008 to 34 percent in 2012.
That took some drastic measures such as shrinking the city’s workforce by roughly 10 percent, consolidating several departments and deferring spending on big-ticket items over the last three years.
The city laid off 12 employees in 2009, cut 38 employee positions through layoffs, attrition and early retirement incentives in 2010, and eliminated four administrative positions this year while making other cuts to save $535,000 in a $96 million budget.
The city has maintained roughly $23 million to $25 million in its unreserved fund balance over the last two years.
“A healthy reserve fund will help insulate and protect our city against further decline in the economy,” Slowinski said.
Des Plaines 6th Ward Alderman Mark Walsten pointed out the city’s $63.5 million debt load is still something to be concerned about.
“That’s something that we need to keep an eye on,” he said.
New to the budget next year is a casino gaming tax fund, which will account for all revenues and expenditures associated with the gambling tax, Slowinski said.
City revenues are up more than 17 percent over 2011 because of gambling tax revenues that have just started coming in. By the end of this year, officials are expecting roughly $10 million in gambling tax revenues.
Officials estimate having $14 million in the gaming tax fund at the end of 2012.
“In future, money will be transferred out of this fund as needed,” Slowinski said.
Officials are projecting a slight deficit next year of $190,721 due to required debt service payments on some special taxing districts that did not generate enough revenue.
Among the projects proposed for next year is a communitywide survey to get feedback from residents about city services, a complete rewrite of the city code, and a remodel of the downtown Metra train station at a cost not to exceed $500,000.
Budget discussions continued Wednesday night with officials reviewing the city’s five special taxing districts and expenditures in all other funds. The city council is expected to do a final review and adopt the 2012 budget on Oct. 20.