NORMAL - Property and sales taxes would increase and the parks and recreation preschool program would be eliminated under a scenario most favored by the City Council during discussions Monday night on how to shore up the town's reserves.
In addition, the town would eliminate its electronic recycling program and suspend the Harmon Arts Grant program, which helps pay for about 13 arts-related activities in the Twin Cities, and the City Vision television program, which highlights town programs.
The town needs to come up with about $3.5 million to keep it reserves at 8 percent of its $48.7 million general fund, which finances day-to-day operations. With revenue plummeting because of the recession, the town staff developed four scenarios of program cuts and revenue increases to reach the financial goal.
"We're going to have some hard decisions," Mayor Chris Koos said at the beginning of the discussion.
The council adjourned to executive session to discuss the ramifications of possibly eliminating nine employees - a move that would save $484,700 in the first full year. Those job cuts are not part of the favored scenario.
Under that scenario, the town's newsletter, Newsline, and the parks and recreation brochures would no longer be mailed to residents but would be available electronically on the town's Web site. A few paper copies might be available at City Hall.
Some public rights of way would not be mowed as often, eliminating some seasonal employees, and the tree planting program would be cut in half.
Some employee programs, such as holiday events and lunches, would be pared back by $15,000 annually.
Other savings would come from: splitting the cost of the lease for the Orlando Avenue police substation with Illinois State Police, who also use the facility; eliminating the fund used to help pay the cost of converting non-conforming rooming houses to single-family homes; and reducing the town's contingency fund for unexpected expenses.
Still under consideration is whether to fund crossing guards. While City Manager Mark Peterson suggested eliminating that $35,000 annual expense, Councilman Chuck Scott suggested seeing if the Unit 5 school district would share the cost with the town.
The failing economy has hit town revenue. State income tax revenue could fall 21 percent below projections this year, and local and state sales taxes are expected to be a total of 15 percent below projections.
One scenario would depend only on cuts. It would include all the above mentioned cuts plus eliminate brush, leaf and bulky waste collection, the police department proactive unit, and more than 25 employees.
"Our motto is service excellence," said Councilman Jeff Fritzen. "The only way we can do that is with a good group of employees."
While several council members have adamantly opposed increasing property taxes, Councilman Adam Nielsen said it's that or getting rid of brush collection and bulky waste pickup, the police proactive unit or the fire prevention coordinator.
But, he added, "I want it (property taxes) to be the first place we look to reduce when things bounce back."
Listed are the new revenue sources supported by the Normal City Council. Estimated revenue to be produced is for the first full year of implementation.
Proposal ... Details ... Revenue
Revised towing ordinance ... $500 for vehicles in crime ... $60,000
Increase local sales tax ... ΒΌ percent increase ... $990,027
Increase property tax ... 4 cents per $100 valuation or ... $356,000
... $28.80 for a $200,000 home
Increase day camp fees ... from $130/session to $145/session ... $22,000
Increase parking tickets ... from $10 to $20 ... $10,000
Create auto extrication fee ... $500 auto extrication fee ... $5,000
Create technical rescue fee ... N/A ... $10,000