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Bloomington-Normal, Illinois
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| NewsTuesday, September 11, 2007 2:50 PM CDT |
Bloomington Council: Budget cuts likely shortfall remedy
$2 million gap anticicipated between revenue, expenses
BLOOMINGTON — The debate among Bloomington’s aldermen over how they will pay for an additional $1.2 million in pension costs next year quieted a bit during a work session Monday night. After the nearly 1½-hour session ended, the City Council gave a more clear direction to the city’s staff on preparing the budget for the 2008-09 fiscal year, beginning May 1, 2008. In addition to the sharp increase in the police and fire pensions mandated by state law, expenses relating to covering the terms of union contracts and the inflationary cost of doing business will leave an anticipated $2 million gap between revenues and expenses the city needs to bridge. Aldermen are at an impasse about whether to raise the city’s sales tax a quarter of one percent to generate revenue, so a decision on the issue could be delayed. And because of planned referendums by Heartland Community College and the Normal-based Unit 5 school district that will add to property taxes, the City Council declined to increase its request for more property tax revenue. That leaves cutting the budget. “Not only will we have to cut to cover the pension costs, but we will have to cut further than that to cover inflationary costs,” said City Manager Tom Hamilton. “Staff is not above tightening our belts, but we need some direction on where you folks want us to do that.” Among the suggestions from aldermen included looking at the use of city vehicles and travel costs. Aldermen are looking at scheduling another work session in November to review the budgets submitted by city departments. Typically, drafting the city budget begins in the late summer and continues through the winter before it is ready for council approval in April. Mayor Steve Stockton questioned the need to have a work session about initiatives and special projects aldermen wanted to see added to the budget because the money either will not be available or would have to be cut from other projects. Projects in the current fiscal budget also may be cut. Among the examples was the $170,000 in the budget this year to build a skatepark at O’Neil Park. The city has received bids for the project but the City Council has not approved any contracts. Stockton said that is an example of what could be cut. Fire station bid Meanwhile, in action taken at its regular session, the City Council approved negotiating with P.J. Hoerr of Normal on a construction bid for the city’s Fire Station No. 6 on the city’s southwest side. Hoerr was the lowest bidder on the project, but was $400,000 over the estimate. By negotiating with Hoerr, Hamilton said the city will save about $80,000 in architect fees to rebid the project and another $80,000 in construction costs by limiting the delay of the project. The City Council still has final approval on the contract with Hoerr, once negotiations are completed. |
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