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After months of staff study, staff reports and investigation of what expense and revenue tools were available, tonight the 2010 budget began to come into focus.  There’s still a way to go, but for the first time publicly and in detail council put some skin into the budget process tonight, outlining what their thoughts were about what should stay, what should go, what taxes should be increased, and what larger task they have before them.  You can listen to the audio recording here for the word for word, but what follows is the bottom line for 2010.

Community Events will face deep cuts, deeper than previously reported here on DGreport (search “budget” for other budget posts).  Depending on the future, this entire department could radically change to a mostly volunteer driven effort.  Heritage Fest will get a haircut, as Neustadt said and others echoed, right-sized for what they can do.  Waldack voiced a common sentiment that the volunteer boards and commissions will have to step up to the plate and get more involved in a more community-oriented, perhaps shorter summer festival.

The Senior Taxi Program goes to 50/50. Waldack laid out a set of statistics on usage that drilled down to less than 500 users, and questioned the need for expiration dates.  Several commissioners and Mayor Sandack noted that Peace and Immanual do not have a van like Fairview Village does, and that maybe they should begin to look into alternatives.  Community activist Laurel Bowen at the last Saturday listening meeting offered that there are local volunteer groups that will help with rides, but that’s not a 24/7 deal, it’s good-hearted volunteers.

Community Grants is de-funded.  Choral Society, Senior Orchestra, Midwest Ballet, all zeroed out.  There will probably be assistance in tutoring these groups to find other sources of funding like corporate contributions and subscription-based funding, but those groups that want to survive will have to adapt quickly, reduce overhead to the bone, or maybe even go dormant.

DuPage Senior Grant: Meals on Wheels won’t get DG funding.  The program here in DG runs over $300,000, with the village contributing $36,000 last year, so the program itself is not de-funded, just DG’s contribution to it.  This amount has changed up and down over several years.

The village will use reserve funds.  The rainy day is officially here.  Durkin and Barnett were dead set against it, but it would be a 5-2 moot point if it came to it.

The DARE Program, and the two police officers, are de-funded to zero.  This budget item along with the senior taxis got the most public comment in prior council listening sessions.  Chief Porter has the job of finding how to cut either two policemen, or about $135,000 from somewhere else.  Paul (didn’t catch last name) from the Police local Fraternal Order said his union stands firm to keep the same number of police on the streets.  There were several off-duty officers attending, some in uniform.  This could escalate if heads don’t stay cool.  Durkin pressed the point that council was talking about eliminating two police officer positions, which he does not favor, but he was in the minority along with Neustadt.  It’s possible $135K of cuts can be found elsewhere.  Chief Porter has his work cut out for him.

The Home Rule Sales Tax will go up.  Staff recommended ¼%, but it has not been locked there.

Property Taxes will be going up.  How much is still open for discussion.  Police/Fire/ Public Works and other fundamental services run $27 million give or take, and property taxes pull in about $9 million.  Sandack and Barnett are talking making that a designated core service funding mechanism, and raising it maybe more than originally thought.  As staff proposed, $1 million in revenue would mean roughly a $58 tax hike on a $300,000 market value home.

Off of the plate this year but probably back on for next year are a Vehicle Sticker Tax, Red Light Cameras, increased monthly parking rates, moving vehicle service to an outside contractor, and a Liquor Tax.

Barnett was the first to acknowledge the 800 pound gorilla in the budget- payroll and pensions.  Readers here know pensions are out of our control, so payroll has to be brought into play.  Barnett suggested what appears to be zero baseline budgeting for departments, where the funding is not automatically started at the previous year’s level.  This has worked for other governments in the past, but comes with a heavy dose of strife and angst.  He pointed out that everything that had been discussed was not enough — not enough cuts and not enough tax increases — and if they don’t make fundamental changes the problems will resurface a couple years from now. The 2012 and 2015 (union contract renewal years) are critical.

Sandack picked up the theme in his wrap-up comments that DG’s government has to get sized right to provide sustainable services at an affordable level.  Health plans, payroll, and pensions are outstripping their efforts to find revenues to keep up.  Again, existing pensions are out of local control, but payroll and health care are not.  Currently 75 percent of the budget goes to personnel costs, not directly to core services for residents.

Sandack quoted Martin Tully: “’We have finite resources and infinite needs.”

He continued, “Here’s our next challenge; to right-size this organization.  I believe we can do it.  It will not be without pain. It will be with significant pain.  But in the long run this organization will be far more sustainable–  predictable –  in that we’ll know what’s paying for what and what we’re getting.”

There are two more budget meetings before the levy ceiling is decided.  The budget is scheduled to be finalized and approved December 15.