Proposed City Budget Contains No Tax Increase

A 2012 of $72,237,519 with no tax increases was given to the Thursday by. 

Rather than propose an increase in the property tax levy to fund capital improvements to the Highland Park Public Library, Limardi has proposed using part of the City’s reserve fund balance. 

The budget also includes a reduction in city staff by more than four full time employees. This continues a trend started in 2007. Since then more than 43 full time positions have been eliminated. 

Last December, the to help fund the library rather than use the reserve fund. The tax increase barely passed with then-Councilwoman now-Mayor , Councilman and Councilwoman casting dissenting votes. 

Councilman is in favor of using reserves to fund expenses while Mandel takes a narrower approach. He has been opposed to the use of reserves for a number of years. 

“The only way I would use reserves is for one time capital expenditures or set asides for pensions,” Mandel said. “Revenues have to meet expenditures.” 

Mandel is opposed to any kind of tax increase to meet expenditures. If funds are lacking he will argue for reduced expenditures. 

“We have to spend less,” he said. “We have to cut.” 

Mandel would also like to see the city’s governmental agencies like the school boards and Park District work together to maximize benefits the groups can offer each other. 

“The city has not been efficient working with other governments,” Mandel said. “We should invite the schools, park district and (Moraine) Township to sit down and work together.” 

With the City’s reserve balance sitting at 44 percent according to Frank, he is willing to use part of it to avoid a tax increase as long as the ratio remains at 33 percent. That is the standard the city has set for itself. 

“I would use some of the reserves to do some of the things we want to do with this budget,” Frank said. “The budget we pass will look different,” he added referring to the input Council members will add before December. 

Mandel’s bigger concern is the City’s potential pension liabilities. He wants to see the state allow the city to start using a defined contribution plan rather than the defined benefit plan now in use. 

“When we pay out at the end of the year we want to be done,” he said. 

The proposed operating budget of $52.33 million for such things as personnel, contractual and commodities expenditures is 83 percent of what it was in 2011, according to a news release issued by Limardi in spite of increased costs of things like utilities and motor fuel. 

Though tax rates will remain the same as 2011, water and sewer charges are projected to increase. Citizens will pay five cents more per cubic feet for water and the same for residential sewer service. 

A complete review of the proposed 2012 budget is available on the City’s website.