As a city budget is formulated for the coming fiscal year that begins May 1, Geneva officials are managing the economic recession with a recovery period that includes spending cuts as well as revenue enhancements.
Meeting as the Committee of the Whole on Monday night, aldermen heard presentations from city staff, asked questions and discussed the matter for nearly three hours.
City Administrator Mary McKittrick, citing a reporting from the National League of Cities, said “fiscal conditions will remain weak for the fifth straight year.”
That is due, she said, “to the recession, struggling real estate markets, cuts in state aid and grants, slow consumer spending, health care liabilities, underfunded state pensions, high levels of unemployment and the slow pace of distributed funds coming back to us.”
As a result, Geneva has reduced its operating budget from $18 million to $14 million over the past three years.
McKittrick said: “It’s the equivalent of running government like a business, with a philosophy of ‘wants versus needs.’”
Although Geneva historically has employed fewer full-time workers than its business model permits, the actual number of employees has decreased in the past four years.
“In ’04-05 we had 156 authorized positions, with 153 full-time people on the payroll that year,” Assistant City Administrator Stephanie Dawkins said. “For the coming fiscal year, we have 157 authorized full-time positions, but we’re budgeting for 146. That doesn’t include interns, crossing guards, paid on-call firefighters and part-time employees who don’t get benefits.”
To increase revenue, Geneva has hiked certain fees like the fine for underage drinking and the telecommunications tax, for example, which in 2009 went from 4.5 percent to 6 percent.
Officials also discussed instituting a refuse fee for leaf and brush pickup. Specifics would be considered at a later date because some residents live in townhome developments or in newer areas with no significant trees.
McKittrick asked council members for direction as the administration looks to return a draft budget for their consideration in March. Aldermen will vote on the spending plan in April.
One area of discussion centered on a disparity concerning a taxing district, or special service area, that covers many downtown businesses and provides extra funding for sidewalk snow removal, landscaping and parking spaces.
Geneva’s general fund has augmented the budget for Special Service Area 1 since its 1979 inception an average of $139,000 per year.
Another issue was whether the city should contribute 50 percent of the cost of installing sprinkler systems in historic buildings that, by design, would incur more damage in case of a fire. Some building owners have already added sprinklers at their own cost.
“This is not an insignificant issue,” said Geneva Fire Chief Steve Olson. “Fifty percent of businesses that have a serious fire do not reopen.”
The economic climate has affected plans to extend electric and water service for more development on Geneva’s southeast quadrant. While officials say it could cost up to $20 million to prepare infrastructure there, the neighboring DuPage Airport Authority earlier this month announced it is seeking FAA approval to market for other purposes some of the 800 acres of the failed DuPage National Technology Park.
“It puts us right behind the eight ball, with the airport authority putting tax money into making their area available,” said Ald. Sam Hill.
To save money, Geneva already has refinanced some of its debt to recapture over $1 million.
“We’re now looking at Prairie Green and revenue bonds for water and wastewater,” McKittrick said. “We could refinance Prairie Green for a $260,000 savings and $400,000 for water. It would not increase our debt or lengthen the term of the bonds, but just be a savings because of the lower interest rates.”
To provide more revenue, officials may consider in the future a parking fee increase, a food and beverage tax, vehicle stickers, a tow impoundment fee, the sale of some unused public property, establishing a business district and licenses for dogs, cats, taxi cabs, cigarette vendors and commercial scavengers, among other possibilities.
Geneva has taken other steps such as reducing its snow and ice control program, eliminating its summer employee picnic and annual appreciation dinner, designing public works projects in-house and implementing a shared adjudication program with North Aurora and Batavia, among many other measures.
“I think we’ve done a pretty good job at spending cuts and reductions,” McKittrick said. “It’s a balancing act. It’s living within our means.”
