MATTOON — The city of Mattoon is facing a projected revenue shortfall of $660,000, according to city officials.
The decrease is estimated in the city’s share of taxes assessed on sales, income, usage, personal property replacement and utilities.
The city’s share of income tax receipts from the state is down $240,000, while a recent projection has sales taxes declining by $200,000, Treasurer Preston Owen said.
“Our revenues are down across the board. The figure for sales tax revenues might be adjusted, but it all depends on the economy,” Owen said. The city is awaiting sales tax revenue figures for December and the Christmas shopping season.
The city’s budget totals about $15 million.
While a downturn in sales is reducing a major source of city revenues, city hall is considering a land sale to help shore up the budget.
New Mattoon City Administrator Sue McLaughlin confirmed the city is looking at selling property at Lake Paradise. This involves about 100 acres west of the Mattoon Water Treatment Plant, which was once
considered for a golf course, Owen said.
The city now has a farm rental agreement on that property.
A sale of that land could raise $600,000 or more, based on some farmland prices paid in Coles County.
That could get the city through April 30, the last day of the 2009-10 fiscal year, but the revenue shortage could continue to drain city coffers.
McLaughlin said proposals for saving money include reducing energy, paper and fuel expenditures and increasing permit fees.
If the deficit worsens, staff reductions will be studied.
“The employees have to realize to resolve this problem we all have to work together,” said Tim Gover, Mattoon finance commissioner.
“We’re trying to be realistic about the situation. We’re not trying to sugarcoat it.”
Union contracts, for police, firefighters, public works and finance department, are up for renewal this year.
“We’re willing to work with them, short of getting layoffs,” said Jeff Ratliff, president of AFSCME Local 3821, which represents public works and finance department employees.
“We’re to the bare bones now. We are doing maintenance, but routine work for preventing some problems ahead is not getting done like it was before.”
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