Rolling Meadows to cut employees, increase taxes in 2009

The Rolling Meadows city council has approved a budget that includes layoffs, a property tax increase and an additional electric tax.

The eight layoffs will come from the city's police, fire, public works, finance and administration departments and go into effect on Jan. 16, said City Manager Tom Melena.

The city will also not hire any additional employees in 2009, he said.

The council also backed adding a 5 percent electricity tax to dig the city out of debt. The extra tax will bring in $1.3 million annually and next year it will be used to pay off a $500,000 debt from 2007 and up to a $1 million debt expected from 2008. Rolling Meadows homeowners typically pay electric bills between $60 and $100 per month. The tax would add another $36 to $60 annually and go into effect Jan. 1.

Rolling Meadows residents will also be paying more property taxes, since the council also approved a 7.4 percent property tax increase, Melena said. The property tax increase will mostly fund police and fire pensions, he said.

Last month, the council decided to postpone building a new fire station until at least 2010. In February, the council had approved spending $1.2 million to build a two-bay station at Algonquin Road, just west of Weber Drive. The the money into a special "future fire station" account to be used in the future.

"We still own the land," Melena said. "There's a sign there now saying it's the future site of a Rolling Meadows fire station. That sign will probably stay."

Other fees and rate increases approved as part of the 2009 budget include a 5 percent trash pickup fee increase and a 5 percent stormwater rate increase. The stormwater fund pays for storm sewers and creek bank improvements to minimize damage floods may cause. The city will also no longer supply trash bags.

Finance officials blame the tough economy for the city's budget problems. This year, Rolling Meadows saw a 43 percent increase in fuel and vehicle costs, a 15 percent increase in the price of buying water from Chicago and a 9 percent increase in garbage pickup fees.

About 79 percent of the city's general fund pays for city employee salaries and benefits.

Rolling Meadows started budget discussions in September. At one meeting, some city council members suggested cutting the $360,000 spent on Police and Neighborhood Resource Center.

"The funding has been modified to about $300,000," Melena said. "There will be discussions this year about the center's funding in the future."

City officials first established the Police Neighborhood Resource Center in the heart of the East Park Apartments in 1991 as a way to reach out to the mostly Spanish-speaking immigrant community.