DuPage towns take different paths to plug budget gaps
Naperville is doing it with layoffs and fee hikes.
Bloomingdale is doing it with a telecommunications tax.
Carol Stream is doing it with tax increases and job buyouts.
Warrenville is doing it by cutting programs and dipping into reserves.
Multimillion dollar deficits are the common binds of most DuPage County municipal budgets, but leaders in those communities are implementing a variety of solutions to balance the books. A combined revenue shortfall of more than $31 million faces 13 DuPage municipalities. None are using the exact same method to plug the budget gaps.
"Five years ago we looked ahead and predicted that 2010 and 2011 would be shortfall years," said Warrenville City Administrator John Coakley. "We set aside money because we knew there would be difficult times coming."
While some programs will be taking a hit and some union employees have agreed to pay cuts, the biggest fiscal impact in Warrenville will be felt in its reserves. The city is using $1.46 million of its reserves to cover the majority of its anticipated $1.5 million budget deficit. Coakley said the city currently has about $7.3 million in its reserve fund - an amount equal to 81 percent of its annual general fund expenses. Most municipalities keep about 25 percent in reserve.
Glendale Heights is another town using its substantial reserves to cover its revenue shortage of roughly $1.2 million, but in addition to the $600,000 reserve fund hit, 11 employees received voluntary buyouts and positions are being cut to help cover the remaining shortfall.
"That's the direction we decided to take," said Bill Poling, the village's finance director. "We looked at several options."
Most municipalities are in the midst of determining the coming fiscal year's budget and haven't officially enacted many of the cost-cutting measures yet. Some municipalities don't have the reserves to absorb the revenue shortcomings and leaders there have had to come up with other ways to make ends meet.
"We redid most of our union contracts last year, so we're in better shape than we might have been otherwise," said Villa Park's Village Manager Bob Niemann. "We've cut most of our capital projects or put them on hold, but none of that's as big as the savings we're getting from early retirements."
Niemann said early retirement savings of $300,000 will cover some of an anticipated $1.2 million budget gap. Freezing salaries will save another $200,000. And adding two furlough days a month will save the village another $140,000. The village board also recently approved a 1 percent food and beverage tax, Niemann said. The new tax is anticipated to generate $350,000 a year, but Villa Park will only collect a half year's worth of revenue from the tax this year that goes into effect June 1.
Some communities, such as Aurora, Wood Dale and West Chicago, reported no budget gap this year.
But Naperville has one of the largest budget holes to plug in the county.
The city laid off 22 people and cut 27 other positions in an effort to close a $14.1 million revenue shortfall. In addition, the city will also charge residents $2 a month for garbage collection and is increasing its motor fuel tax. On top of all that, the city council approved transferring a quarter of the city's food and beverage tax revenue from cultural spending to the city's general fund. All that was done in an effort to keep the property taxes flat, officials said.
Many municipal officials also bemoaned a proposal by the state to reduce income tax rebates to municipalities.
"None of our remedies in the current budget factors in the proposed changes in income taxes coming from Springfield," said Glendale Heights' Poling. "If that happens, it's another $700,000 we have to find."
<p class="News"><b>Crunching budgets</b></p>
<p class="factboxtext12col">What some DuPage County municipalities may or are doing to shore up budget deficits.</p>
<p class="factboxtext12col">Addison</p>
<p class="factboxtext12col">Shortfall: $1.5 million</p>
<p class="factboxtext12col">Solutions: Voluntary buyouts; hiring freeze; eliminating Dial-a-Ride, Meals on Wheels, DARE; considering tax increases</p>
<p class="factboxtext12col">Aurora</p>
<p class="factboxtext12col">Shortfall: None</p>
<p class="factboxtext12col">Solutions: No new taxes or fees</p>
<p class="factboxtext12col">Bensenville</p>
<p class="factboxtext12col">Shortfall: n/a</p>
<p class="factboxtext12col">Solutions: 14 percent increase for water/sewer rates</p>
<p class="factboxtext12col">Bloomingdale</p>
<p class="factboxtext12col">Shortfall: $1.7 million</p>
<p class="factboxtext12col">Solutions: 5 percent telecommunications tax; 1 percentage point increase to gas tax; voluntary buyouts; canceled summer festival</p>
<p class="factboxtext12col">Carol Stream</p>
<p class="factboxtext12col">Shortfall: $2.69 million</p>
<p class="factboxtext12col">Solutions: Quarter percentage point increase in sales tax; 15 voluntary buyouts</p>
<p class="factboxtext12col">Glen Ellyn</p>
<p class="factboxtext12col">Shortfall: $1 million</p>
<p class="factboxtext12col">Solutions: Implemented contractor fees; second year of 1 percentage point increase in sales tax; hiring freeze; police towing fee</p>
<p class="factboxtext12col">Glendale Heights</p>
<p class="factboxtext12col">Shortfall: $1.2 million</p>
<p class="factboxtext12col">Solutions: Voluntary buyouts; eliminating positions; reducing reserves; no raises</p>
<p class="factboxtext12col">Itasca</p>
<p class="factboxtext12col">Shortfall: $2 million</p>
<p class="factboxtext12col">Solutions: Salary freezes; instituting furlough days</p>
<p class="factboxtext12col">Lisle</p>
<p class="factboxtext12col">Shortfall: $1.6 million</p>
<p class="factboxtext12col">Solutions: Reducing reserves; program cuts; salary freezes; postponing capital improvement projects</p>
<p class="factboxtext12col">Lombard</p>
<p class="factboxtext12col">Shortfall: $2.8 million</p>
<p class="factboxtext12col">Solutions: Five layoffs; hiring freeze; reduced overtime; reduced part-time hours; 3 percent increase in building permit fees; eliminating out-of-state training</p>
<p class="factboxtext12col">Naperville</p>
<p class="factboxtext12col">Shortfall: $ 14.1 million</p>
<p class="factboxtext12col">Solutions: Hiring freeze; 22 layoffs; 27 position cuts; 2-cent per gallon motor fuel tax increase; $2 monthly garbage fee; transferring quarter of food and beverage tax revenue to general fund</p>
<p class="factboxtext12col">Roselle</p>
<p class="factboxtext12col">Shortfall: $1 million</p>
<p class="factboxtext12col">Solutions: Instituting furlough days; pay cuts; no raises; closing village hall one extra day a month; two police officers laid off; eliminating DARE; eliminating brush pickup service</p>
<p class="factboxtext12col">Villa Park</p>
<p class="factboxtext12col">Shortfall: $1.2 million</p>
<p class="factboxtext12col">Solutions: No raises; instituting furlough days; postponing capital improvement projects; voluntary buyouts; 1 percent food and beverage tax; reducing part-time staff</p>
<p class="factboxtext12col">Warrenville</p>
<p class="factboxtext12col">Shortfall: $1.5 million</p>
<p class="factboxtext12col">Solutions: Reducing reserves; reducing tuition reimbursement program; renegotiated union contracts</p>
<p class="factboxtext12col">West Chicago</p>
<p class="factboxtext12col">Shortfall: None</p>
<p class="factboxtext12col">Solutions: No new taxes or fees</p>
<p class="factboxtext12col">Wheaton</p>
<p class="factboxtext12col">Shortfall: $1.5 million</p>
<p class="factboxtext12col">Solutions: Position eliminations; 1 percentage point increast in electricity tax; 1-cent per therm natural gas increase</p>
<p class="factboxtext12col">Winfield</p>
<p class="factboxtext12col">Shortfall: $500,000</p>
<p class="factboxtext12col">Solutions: Garbage fee increase; police vehicle towing fee increase; 50-cent daily parking rate increase</p>
<p class="factboxtext12col">Wood Dale</p>
<p class="factboxtext12col">Shortfall: None</p>
<p class="factboxtext12col">Solutions: No new taxes or fees</p>
<p class="factboxtext12col">Source: Daily Herald interviews</p>