Budget Proposal Recap: Yorkville Hopes to Build Savings Next Year

Yorkville’s proposed budget projects a $765,882 surplus in its general fund next year while predicting the fiscal year ending April 30 will be peppered with deficit spending and negative fund balances.

As aldermen reviewed the Fiscal Year 2012 proposed budget Saturday, some challenged the city’s community relations spending, the and professional memberships.

Mayor Valerie Burd said she plans to bring a proposal for an appraisal of the REC Center building to aldermen within the next month as part of her efforts to renegotiate the lease. Ward 1 Alderman George Gilson Jr.’s proposal to cut all the funding to the city’s community relations department was voted down.

The proposed spending plan projects Yorkville will receive $11.5 million and spend $10.7 million in its general fund, with $260,636 remaining in the fund on April 30, 2012. The same document projects the general fund will have a negative fund balance of $505,246 on April 30, 2011, rather than the $1.3 million originally projected in the budget aldermen approved for Fiscal Year 2011.

The proposed budget also predicts a $2.5 million fund balance in the sewer fund on April 30, 2012. The city expects to spend $2.9 million and receive $3.1 million for a fund surplus of $185,501 in Fiscal Year 2012, which starts May 1.

City leaders expect to raise $1.75 million in property taxes in this fund after voting not to abate property taxes associated with several bonds in this fund. The property tax increase was necessary, despite the projected fund balance, because the city would not otherwise have enough money on hand in December to make the payments, City Administrator Bart Olson said. Several other city funds are ending this fiscal year with negative fund balances.

City leaders are projecting the sewer debt payments will increase from $1.25 million in Fiscal Year 2011, to $2.82 million in Fiscal Year 2013 and $2.9 million in Fiscal Year 2014. Accordingly, they are predicting a $156,340 surplus in Fiscal Year 2013 and a $89,358 deficit in Fiscal Year 2014, with an overall sewer fund balance of $2.55 million projected for April 30, 2014.

This budget document doesn’t include sales tax revenue that would start rolling if the April 5 referendum is successful. If voters approve a 1 percentage point increase, city leaders plan to put that revenue toward the sewer debt payments in Fiscal Year 2013.

Meanwhile, City Administrator Bart Olson said the proposed sewer fee aldermen defeated in January is not needed in the next two fiscal years.

In the water fund, city leaders are projecting at $560,284 balance on April 30, 2011. They are proposing spending $2.57 million next year and project receiving $2.69 million, for a surplus of $123,121.

Olson is recommending that the $13.47 water infrastructure improvement and maintenance fee implemented last year remain through the end of Fiscal Year 2014 unless development picks up, according to his Feb. 18 memo to City Council. That fee would allow the city to fund about $2.5 million in sewer and water upgrades when the state revamps Route 47 in town without depleting the water fund’s fund balance, Olson said.

Aldermen tentatively planned to discuss the budget at their March 8, March 22 and April 12 before approving a budget proposal April 26.