Danville City Council members are back in familiar territory…trying to figure out how to fill a projected budget shortfall.
City Council members began discussions last night (Tuesday) on their 2017-2018 fiscal year budget. They were told by Mayor Scott Eisenhauer that $1.6 million dollars in new revenues or budget reductions are needed as of Tuesday’s meeting. The Mayor says a big part of the problem is being caused by rising police and fire pension costs. ‘’These are expenses that are rapidly rising on an annual basis. And we’ve got to figure out a way to try to address them. And if that’s an increase in revenues – so be it. Let’s make it a long term plan to do that,’’ said the Mayor. ‘’If it’s (a) decrease in expenditures – then that’s fine, too, but then tell me what services we’re willing to do without. Because what I hear everybody tell me is ‘don’t raise revenue but certainly don’t reduce any services that the City is providing.’ Well that is mathematically impossible for us to do,’’ said Mayor Eisenhauer.
The Mayor emphasized that budget discussions for the fiscal year that begins May 1st are just beginning. And he adds there are a number of unknowns. ‘’We’re still waiting on the arbitrators decision as it relates to minimum manning for (the) fire (department). We’re still waiting to see the Governor’s budget address next week and whether or not that will include any impairment to Local Government Distributive Funds. We’re waiting to see whether or not the Senate has any success of passing their version of a budget, and whether or not that will be heard in the House,’’ said Eisenhauer.
It is projected that Danville is going to lose some $850-thousand dollars in revenues. The loss has long-time Alderman Steve Foster wondering about the future. ‘’Some of these things are like large doses of Castor Oil. Sooner or later we’ve got to open our mouth and take several table spoons. So what I’m worried about now is what’s to say that our decrease in incomes won’t happen again next year if we pass the tax to pay 100-percent of the shortages this year? What’s it going to be like next year? Are we going to have to pass another tax for $1.9 million dollars? That’s going to be like a whole bottle of Castor Oil.’’
One idea being considered is to levy a utility tax, but Alderman Steve Nichols cautioned council members. ‘’We already have a state where we’re down revenue because we run people out of Dodge. So I would be very cautious,’’ said Nichols.
Areas where the city expects substantial reductions in revenues include the State Sales Tax, State Income Tax, Corporate Replacement Tax, and Home Rule Sales Tax. Areas where revenues are expected to be up for the City of Danville include the Liquor Tax, Video Gaming revenues, Food and Beverage Tax, and State Use Tax.
The Mayor says city council members will continue to discuss the budget every week until a final vote is taken.
