One of the themes of former vice presidential candidate Sarah Palin’s speech Saturday at Five Points Washington was the importance of government living within its means.
The Washington City Council took that advice to heart Monday in its meeting at Five Points, approving a balanced budget of $21.1 million for the 2010-11 fiscal year that begins May 1.
Reflecting the tough economic times, the budget is 3.3 percent, or $716,500, lower than this year’s spending plan.
While most of the decrease is because of a nearly 11 percent drop in capital expenditures, the city will use $2.5 million in cash reserves to fund projects, including nearly $900,000 to expand the police station in the former city hall.
Council members praised City Administrator Bob Morris and other city staff members for putting together the austere budget.
“There are no staff layoffs. It seems like every day you read about a municipality having to lay off employees,” said Mayor Gary Manier. “We’re concerned about the governor’s plan to cut income tax funds to communities, but I think we can ride out that storm even if we do lose the projected $300,000.”
While there are no layoffs in the budget, three vacant positions won’t be filled unless financial conditions improve. The positions are a full-time police officer, full-time public services laborer and part-time administrative assistant.
In a list of budget highlights, Morris pointed out that the city’s annual income tax revenue has decreased about $250,000 since 2007-08, and annual sales tax revenue has declined by about $135,000 since 2008-09.
Morris is projecting no income or sales tax growth next year, so those numbers are unlikely to improve.
Unless revenue grows, Morris said, the city’s capital spending will decrease from $10.8 million next year to $3 million in 2011-12 and $1.4 million in 2012-13.
Morris said rising pension and commodity costs continue to put pressure on the city’s budget.
He said police pension costs have doubled since 2007-08, and the Illinois Municipal Retirement Fund employer rate increased 27.5 percent as of Jan. 1.
Commodity prices tell a similar story.
“While the rate of cost increases for commodities has abated somewhat, costs continue to escalate,” Morris said. “Our energy costs alone have increased by $309,000, or 74 percent, over the last five years. The costs of asphalt, road salt, softener salt, and chemicals have been increasing much faster than general inflation.”
Also Monday, council members:
– Approved 3 percent pay raises for full-time, and year-round part-time, non-union city staff, and 25 cents-per-hour increases for summer non-union public services personnel. The new hourly rates are $8.25 for first-year employees, $8.75 for second-year employees, and $9.25 for third-year and longer employees. The raises are effective with the pay period ending May 12. Union workers recently received a 3 percent pay hike for 2010-11, and a 3 1/2 percent pay increase for 2011-12.
– Learned from Manier that the fifth annual Take Pride in Washington litter clean-up Saturday attracted more than 250 volunteers, a record.
Steve Stein can be reached at 686-3114 or [email protected].
Read the original article from Journal Star.
Distributed via Chicago Press Release Services