Du Quoin City Clerk Andrew Croessman Monday walked commissioners through the city’s revenue and expenditures plan for 2017 Monday night, explaining why there is little room for discretionary spending in the proposed budget.
“In general, I can say that no one is enthused about this budget, but all can accept it,” he said.
Croessman said the city departments are squeezed more than ever, since wages, insurance costs and pensions are taking up more of the budget than ever before.
From 2000 to 2015, personnel costs as a percentage of funds ranged from 59.02 percent to 84.57 percent. The last three years (2014, 2015 and 2016 through the third quarter) personnel costs were 84.57 percent, 75.15 percent and 80.16 percent respectively.
“This leaves only 15-20 percent available for fuel, utilities, maintenance, debt servicing and depreciation expense. It simply does not work,” Croessman said.
He added that for 2017 he had to budget $135,532 more than in 2016 just for employees’ health insurance.
“Until the city’s wage and related expenses trend toward 70 percent, the best managers in the industry will not squeeze any kind of a margin out of Du Quoin, Croessman said.
Here is what the 2017 budget looks like:
Governmental Funds
These funds provide for the administration, fire, police, street, park, and emergency management agency and are mostly funded by sales, income, real estate, and utility taxes.
• Budgeted revenues of $5,131,861 vs. expenditures of $5,154,586, or a deficit of ($22,725). Assumptions:
• Fuel and utilities: stable
• Health insurance: 10% increase (renewal effective April 2017)
Capital Outlays
• Administration: Accounting Software - $19,000
• Police: Squad Car - $32,000*
• Street: Dump Truck - $34,000* ($110,000 total cost)
*Purchase is budgeted, but conditional that costs are cut, revenues are met, and cash flow is reasonable.
Proprietary Funds
These funds provide for the water and treatment plant departments.
• Budgeted revenues of $2,795,512 vs. expenditures of $2,597,449, or a surplus of $198,063. Assumptions:
• Same as Governmental Funds
Capital Outlays
• Water: Main Street Water Line payment (two payments) - $61,200
• Treatment Plant: operating system - $15,000
Restricted Funds
These funds provide for specific purposes.
• Budgeted revenues of $867,696 vs. Expenditures of $644,073, or a surplus of $223,623
Capital Outlays
• Restricted Park and Pool Fund: Tennis Court Resurfacing - $12,000
• Drug Fund: Squad Car - $28,000
• Motor Fuel Tax, Revolving Loan and TIF Funds: Division Street Sidewalks - $75,000.
