Des Plaines' FY 2010 budget screams deficit

Forget the record-setting flood of 1986, Des Plaines does not have enough money in its coffers to provide emergency relief for a lesser flood event, city officials declared Tuesday.

It was perhaps the most disturbing revelation of the night for residents listening to the first round of budget discussions Tuesday.

Administrators painted a bleak picture of the city's financial outlook for 2010 with expenses exceeding revenues by $5.2 million. The deficit is projected in the city's general fund for operations, short $3.6 million, and water and sewer fund, short $1.6 million.

Of the proposed $102 million total city budget for 2010, $56 million is earmarked for operating expenses through the general fund. The general fund balance, not counting those monies already reserved for various expenses, is projected to be at $2.4 million or roughly four percent of operating expenses in 2010.

"Our unreserved fund balance is at a level where we would not be able to handle a flood," Des Plaines Finance Director Dorothy Wisniewski said.

Wisniewski said the city would have to take out a short-term loan in the event of a flooding emergency, which could cost the city millions.

Des Plaines is a far cry from achieving a healthy fund balance recommended for municipalities, which is 25 percent of their annual expenditures. The city has not been even close to reaching that threshold in the past five years.

It's to build that general fund balance, city administrators are recommending a 3 percent property tax increase next year, which would generate an additional $660,000 in revenue, and increasing the natural gas use tax that would generate an additional $650,000.

Officials also propose eliminating seven vacant positions - six in the police department and one in community and economic development - to save $650,000.

City Manager Jason Bajor said officials tried to go "back to basics" with this budget and focus on core city services.

"Residents are telling us that they want us to invest in the infrastructure of this city," Bajor said.

To that end, the city proposes accelerating infrastructure projects identified in its Storm Water Master Plan with $800,000 budgeted next year toward those programs. That will speed up the current eight-year timeline to four years for all projects to be completed, Bajor said.

The proposed 2010 budget also includes $300,000 each for the city's rear yard drainage and street drainage programs.

Budget discussions continue Thursday when the city council will focus on expenditures for police, fire, public works and engineering departments.

Two more budget sessions are planned for Oct. 13 and Oct. 22 with final review and approval expected Oct. 29. All budget meetings begin at 6:30 p.m. at city hall, 1420 Miner St.

The city council will not approve the 2010 tax levy until November/December.