Geneva may cut spending

Geneva city officials, expecting a steep drop in income, are proposing spending 20 percent less next year in its general funds budget.

The general funds budget covers much of the city's administration, police and fire departments, parts of public works, and capital projects. It does not include the water/sewer and electrical utility division budgets, as well as almost 20 small specialized budgets, such as the cemetery fund.

If the city council approves the plan that was presented Monday night:

• City employees no longer will receive reimbursement for tuition paid for furthering their education. There will be no attending national conferences or seminars that require overnight stays, unless the employee is in the middle of a multiyear certification process or the training is required for their job.

• Managers will receive no raises.

• Nonunion employees will receive merit raises of no more than 2 percent.

• Instead of replacing 100 parkway trees lost to emerald ash borer, only 50 will be replaced.

• The annual employee and volunteer appreciation dinner ($10,000 for about 240 people) will be canceled.

• Replacement of a 20-year-old fire engine will be put off for the fifth year in a row.

• The city will continue to use 45 percent less road salt than it used to, as it did this winter.

Furthermore, unionized workers in the electrical and fire departments are being asked to consider smaller pay raises. Both unions signed contracts in 2008. About 12 employees in the Electric Department are due for raises of 4 percent in the 2009-10 fiscal year and 3.5 percent the next two years. Eighteen full-time firefighters work under a four-year contract, adopted in 2008, that calls for a 4 percent increase in base pay during fiscal year 2009-10 and 3.75 percent the next two years.

The city still intends to build its cash reserves up from 41 days' worth of expenses to three months' worth under a new policy, City Administrator Mary McKittrick said.

She noted that with a hiring freeze already under way, plus possible furloughs and reductions in staff hours, some customer service may be affected. For example, the city will take more estimated readings of utility use, because it already has lost a meter reader.

"If we have fewer people answering phones or responding to calls, then it may take longer to get to our customers," she said.

Sales tax supplies the biggest chunk of the general funds budget, at 28 percent. The city expects to take in 15 percent less in sales tax - about $800,000 - than it did in fiscal year 2008-09, which is down to a level not seen since 2004. And since it is dipping into reserves to balance the current year's budget and interest rates are low, it expects to earn 27 percent less on cash it does have in reserve.

The budget is scheduled to be adopted in April. The new fiscal year begins May 1.

The budget presentation is available on the city's Web site at geneva.il.us/budget/BUDGET2008-09.pdf.