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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
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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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Reader comments on this story - 41 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Did you know wrote on Sep 14, 2007 10:59 AM:

" The city council members and the mayor are also paid a salary and you pay a portion of their contribution to the IMRF fund just like any other worker of the city. So when looking for budget cuts maybe their salary should be cut also. They talk about removing ineffecincies and cutting cost but they never make a clear cut recommendation or expose what they think the inefficenies are, why? It's also time everone got over the arena, good or bad it is here to stay. Everyone needs to work together to make it work. Also remember, Tom Hamilton did not make the decission to build the area, the recommendation was made to that council, that council chose to build the area, not Tom Hamilton. Some on this site need to read about our form of government, recommedation is made to the mayor and city council, they are the ones that make the final decission, they are the ones that should be asking the hard questions before they approve anything, so who's fault is it where the city finances are today? "

umm.. wrote on Sep 11, 2007 11:34 PM:

" if you wouldn't have wasted money on a dispatch center that's not any better than the first one was maybe you would have a little more money. Don't believe me, ask the officers on the road, I'm pretty sure that they have the same opinion "

Cook County Judy wrote on Sep 11, 2007 7:38 PM:

" Judy Stearns will straighten this mess out. "

To : Yeah wrote on Sep 11, 2007 5:39 PM:

" You do realize that you are advocating violence and commiting a felony, right? "

Around the Town wrote on Sep 11, 2007 5:35 PM:

" Bloomington is fast putting in unneeded street lights on the far east side...AND THEN PAYING ELECTRIC BILLS. The rest of us turn off our lights so we can control our costs but the city not only puts in more and more streetlights, flooding the area with so much light we can't even see the stars anymore. Also, all the utilities that seem to be heading across Towanda Barnes...who pays for that? Isn't there something called leapfrogging...putting utilities out in subdivisions that build way out and then expect city amenities like water and sewer? Get rid of so many streetlights and cut the electric bill. If we used human scale lights, much softer and not so many, that would work just FINE! "

No sales tax increase wrote on Sep 11, 2007 5:06 PM:

" To the Bloomington City Council...Please do not consider increasing the sales tax to offset the City's debt problem. It is not fair to those living outside your limits (I live in Normal) to pay for debt not really aouthorized by the majority of your citizens. My concerns are great becuase as a Builder who purchases approx. $500K a year at your local building suppliers, this increase would affect my buisness greatly. I will have no choice but to move my business to other companies outside of Bloomington. I have great relationships with many suppliers in Bloomington, but many of us are concerned with the debt structure Bloomington has racked up. Please consider this as many of my fellow builders and friends feel the same way. Raise your own property taxes, increase fees to the users of the Colliseum, but please don't raise the sales tax any further!! "

you know wrote on Sep 11, 2007 4:51 PM:

" it only takes five alderman to get tom hamilton out of office..contact yours today "

To: Yeah wrote on Sep 11, 2007 4:12 PM:

" You are the biggest message board talker I have ever read. See you on your picket line. "

yeah wrote on Sep 11, 2007 3:42 PM:

" If they try to raise local taxes or add fees to try and recover losses from the smallaseum, I'm going to organize a group of civil disobedience protesters - and if that doesn't work, then we'll take control by force. "

Take a ride around~~ wrote on Sep 11, 2007 3:06 PM:

" and look at the city workers. They send 5 guys to do a 1 man job and the rest stand around watching and chatting while one man does the work. What's wrong with that picture? They need money for the "hillbilly dome" and now they want money for pensions! Ok, whose pensions are these? Could it be for the city commissioner's? Oh I'll bet it's to cover Judy's butt for the rest of her life. She could be a door greeter at Wally world and supplement her SS. That's what everyone else does, even if they are 70 they have to work to keep eating and surviving. "

you know wrote on Sep 11, 2007 1:55 PM:

" ever since i tried to take my billygoat to a game and they wouldnt let me.... i swear that place will never turn a profit...thanks again judy "

hummmm wrote on Sep 11, 2007 1:51 PM:

" 170k for a skate park?? let them skate in the big judy and charge a fee.. wow that might even recoup some of the money spent for equipment. "

Still asking.... wrote on Sep 11, 2007 1:41 PM:

" Try to get a job with the City/ no matter how well qualified you are - they hire friends and buddies first AT OUR EXPENSE. There are way too many employees in the City. We all know that. Let's vote in a council and Mayor that will trim the fat. We are tired of their hiring system and of their disrepect for the Bloomington population. Look at the streets. As much $ as comes thru the City of Blm's treasury - and look at what we get in return for the ridiculous amt of taxes everybody pays especially if you own real estate but even for those who don't - the sales taxs stinks (when u get bad roads in return). "

How Long wrote on Sep 11, 2007 1:20 PM:

" Has Tom Hamilton been employeed here? What experience does he have outside of Bloomington as a city manager? What are his qualifications? "

A few thoughts: wrote on Sep 11, 2007 12:40 PM:

" The mayor (who doesn't even get to vote) has talked about a arena ticket tax, a hotel room tax, and other ideas so maybe we could avoid a property tax or sales tax increase. I like those as part of the solution, but they aren't likely to raise enough money by themselves. If there is fat in the budget (and what organization doesn't have fat!) some cuts may help too. Somehow the aldermen need to get behind one of those ideas or something and just do it. But please be gentle on services because I like what we have now. Oh, and thank you for not raising property taxes (I just paid my second installment). And, how can the state government tell cities what their pension costs will be and then make the cities pay it? The legislators will always give the unions what they want, and pass the bill on to us. No wonder pension costs are out of control. "

Cost Cutter wrote on Sep 11, 2007 12:23 PM:

" If Bloomington wasn't still paying Jeff Pelo's $81k per year while he's sitting in jail they would reduce the deficit by 4%. Anyone employed in the private world would have been taken off the payroll long ago. "

BMI Citizen wrote on Sep 11, 2007 12:23 PM:

" TO: this is the best hamilton can come up with Connecting the dots leads all problems to our City MisManager Tom Hamilton. He allowed Lawanda Giles (Water Dept credit card theft) to get away with her scam "under the radar". And, word on the streeet indicates there are other scams perpetrated by City employees involving pocketing rebate money from City purchases... again, the Mismanager told the persons reporting this to disregard the allegations. "

Overpaid wrote on Sep 11, 2007 11:51 AM:

" It is evident that all City employees are overpaid. Let's trim the fat. "

Diddy wrote on Sep 11, 2007 11:37 AM:

" I think we should ask Bill Gates for some free money. And an anti-gravity car with purple headlights and a 4 ft tall tailfin. And some mag wheels! "

Pensions for all wrote on Sep 11, 2007 11:25 AM:

" Enough with all this negativity. The city just needs another business, another profit center. Let's see...sports and entertainment, no, that's covered...cultural, no, done...education, parks, recreation...covered. What could it be? Some sure make a bundle deal should be the focus. With all our government brains and deep pockets shouldn't we be trying to get involved in more and more areas so as to expand the delivery of services in the most cost effective way while making tons of money? More govt employees spend more and get taxed more. Why not make the entire population employees of the govt with assigned duties? Come on MAKE it happen, you have the POWER. Expand Hamilton's staff and get on with it. Look how far we've come, onward and upward comrades. "

Mr. Mayor wrote on Sep 11, 2007 10:17 AM:

" What about it Mr. Mayor you know well how review salaries and contol head count from your former job. Really what is holding you and the Council back from these types of reviews. I can just about guess. But as long as the good old boys are in charge you don't have a chance and you and us know it. "

Councils Help Needed wrote on Sep 11, 2007 10:01 AM:

" Is there someone on the Council that can help me and my family cut expenses within my household income.?Here is my prolbem, on fixed income, unit 5 taxes are going out of control, arena tax is coming, electric rates are going up again etc. "

hmmmmmmm wrote on Sep 11, 2007 9:45 AM:

" I would like to take this time to say THANK YOU Tom for this mess. As I believe that this is the only one left that built something that is sitting behind Xander Cruse on that Street corner. Thanks again "

Have you forgotten?.... wrote on Sep 11, 2007 9:44 AM:

" No one is mentioning the City attorney or assistant city attorney. Wanta guess what they make and what their benefits are? The City taxpayers pay their salaries but who do they represent? They represent the City against the Taxpayers. Hmmmm, what is wrong with this picture? Also, to elevate this a bit - think of the State and Federal Govt and how much they depend on Social Security for their pensions? Why don't people bind together and do something about all of this? "

Bloomington Resident wrote on Sep 11, 2007 9:39 AM:

" Also take a look at the outrageous salaries that are being paid to city employees, and I don't mean just police and fire. Clerks and secretaries (although they don't use those titles, something much grander) making $50,000 on up. Plus benefits that are generous beyond belief. Any discussion of cutting staff? Everyone else is. "

stupid me wrote on Sep 11, 2007 9:25 AM:

" Sell the arena to the highest bidder, or add names to the sponsorship of the arena...it could be called the US Cellular-State Farm-Country Companies-Hyatt-Harrahs-Holiday Inn-Bridgestone-Leman Colesium....Make all public golf courses semi-private and charge more than they do for a round of golf go from the $40 a round to the more market price of $80 a round...just look north of interstate 80 and see how much they pay for a round of golf....open up smoking shops that sell alcohol and charge a 15% surcharge for startup and then tax them at a higher rate than existing bars...tax Unit 5 for all the Bloomington residents that attend Unit 5 schools at 10% rate per student......or just merge the two towns into Simi Valley Illinois "

To Xander Cruse wrote on Sep 11, 2007 9:14 AM:

" You beat me to it. There is some level of irony in that they're now projecting a budget deficit that parallels the cost of subsidizing the Judy. Boy, the Bloomington city government operates like a Switch watch, doesn't it? I doubt these people could light a stick of dynamite if you gave them a roadmap to the fuse. "

Xander Cruse wrote on Sep 11, 2007 8:46 AM:

" What could be costing the city of Bloomington over $2 million a year? What could it be? Hmm...I can't think of anything... I'll go stand at the corner of Madison and Front while I ponder this... "

Take a Look wrote on Sep 11, 2007 8:26 AM:

" If Bloomington and Normal taxpayers looked are what they are paying for police and fire pensions and the levels of benefit, they would be enraged. All mandated by the state legislature. If you want to save some money, ask your legislator about this one. "

Taxes wrote on Sep 11, 2007 8:04 AM:

" Mark my this post because when funding is arrived at through sales tax or what ever there will be NO incentive for the arena to make money because it will in the system. Then all loses will not be news anymore because it will be taken care of by taxes. We then may never know how much this place is costing us to operate and don't forget the managements pay increases because this will happen. The lack of events durning the summer shows how much drive this management team has. Why did the City Manager tell the people of Bloomington this project would not raise taxes. Is it time for a change City Hall, you bet!! "

Frisky Dingo wrote on Sep 11, 2007 8:03 AM:

" Here is some direction : Eliminate the City Manager and change Bloomington to the elected Mayor-Council model of government. It will save ALOT of money and provide more direct accountability of those in office to the citizens. "

T wrote on Sep 11, 2007 8:01 AM:

" Tax and spend Sound like lieral Dem But in this case its Republicans "

BN Republican wrote on Sep 11, 2007 7:47 AM:

" Unions? Pensions? Finally, an easy problem. Replace those greedy workers with illegal immigrants. "

Here's some direction wrote on Sep 11, 2007 7:37 AM:

" City employees driving city vehicles to and from work, 3 golf courses, travel by city employees, $$ to fund outside attorneys for litigation, lack of bidding on contracts, two assistant city managers, 20 city departments as compared to Normal's 13 city departments. The list goes on and on. Hire an outside firm to review the city budget. I'll bet there's lots of money. "

a reader wrote on Sep 11, 2007 7:14 AM:

" some possible cuts... no cleaning of roads or salting in the winter... garbage pick up only twice a year (store it in your closets until pickup)... plow up the parks and plant crops to sell.... "

overtaxed wrote on Sep 11, 2007 6:29 AM:

" This state needs to address pensions in the public sector. Its about time to switch over to 401(k)s "

Harv wrote on Sep 11, 2007 4:23 AM:

" A lot of people are 'cutting costs' in their business and homes there is nothing wrong with doing that. Just do it. "

this is the best hamilton can come up with wrote on Sep 11, 2007 2:32 AM:

" spend quick and spend now or it will cost more later on down the road. It is this type of mentality that creates shortages in the first plac.e. A real city manager would not ask the council where do you want us to cut. A real manager would say to the council this is where we can and can not cut. It is no wonder this city is in such poor shape with an indecisive, spend happy mis manager such as hamilton running the show. It is time for this man to GO and I mean NOW. "

BILLY BOB wrote on Sep 11, 2007 1:42 AM:

" how did you go from 400K to 2 million in 1 week? "

Fyi wrote on Sep 11, 2007 1:38 AM:

" Saving 80 grand on the total architect fees...was the fee 80 grand or more than that? Anything over 20k to design a 1-3 story building is absurd...firestations are mostly big garages, but even with modest living/office space, it's not going to take but 1-2 guys less than a week to draw it up from scratch. "

The new fire station... wrote on Sep 11, 2007 12:47 AM:

" ....don't forget to add a 25% cost over run plus the Bloomington factor before you get all giddy about saving money. "

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