'No department is sacred': City faces prospect of painful cuts

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BLOOMINGTON -- City leaders have to gird themselves for complaints once they decide how to save money, a move that could include more job cuts, changes in trash service and cuts to kids' sports programs.

"Everything is on the table -- no department is sacred," said Ward 3 Alderman Kevin Huette.

Ward 1 Alderman Bernard Anderson said the council is going to have to be willing to take the heat when favorite programs are eliminated or reduced.

"When we cut little Billy's T-ball program, Billy's mom and dad are going to be very upset with us," Anderson said. "It is going to be tough, but it's going to come down to what services can we do without?"

A target amount has not been set, but Mayor Steve Stockton estimated it could be as much as $8 million.

The city's pocketbook has been ravaged by the poor national economy and several years of unplanned expenses. When the council approved an estimated tax levy of $23.6 million, which covers $1.9 million in state-mandated increases for pension contributions, cuts became an "ultimatum," said Stockton. This year's operating budget is $77 million.

Most council members agree some city services will have to be cut and more workers could be fired. The council already has cut $4 million by eliminating about 71 jobs through layoffs, attrition and early retirement.

The city has about 550 full-time employees.

"If we do make cuts there is a very real possibility that we will have to cut more employees," Stockton said. "People are 60 percent of our expenses."

Ward 6 Alderman Karen Schmidt voted for the levy because the 8.58 percent increase will force the city to hold a public hearing, which is set for Dec. 14. A final vote must come by Dec. 29.

"We need to hear what residents want us to do with our budget," Schmidt said.

One option is to privatize some services. The city spends about $6 million a year for garbage, curbside recycling and bulk waste collection, but receives only about $4 million in garbage fees. The rest of the cost is paid from general fund money.

The council talked about its options during a recent retreat, but Deputy City Manager Barb Adkins said city staff is prioritizing the list. Stockton anticipates more discussion by early December, when the list is ready.

The city has a $4 million deficit in its reserve fund and a list of requests for an extra $8.4 million in spending that includes $1.5 million to help rebuild roads and another $1 million to pay down the deficit.

The city has to have a balanced budget before its fiscal year starts May 1.

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