Carbondale Reporter

The Carbondale City Council tentatively agreed to shift some tax revenue and construction project funds and hold off on employee raises to make almost $3.4 million available for essential services.

City Manager Gary Williams and his staff worked to adjust the fiscal year 2021 budget they had been preparing when the COVID-19 pandemic shut down the state. Gov. J.B. Pritzker’s order to close all nonessential businesses and ask residents to stay home has had a direct impact on city finances. Williams presented these suggestions first in a letter to Council on April 9, and then in Carbondale’s second remote City Council meeting, The Southern Illinoisan reported.

Council members generally agreed with the measures in a straw poll taken during the remote meeting.

“This has got to be the most challenging year to create a budget,” Councilman Lee Fronabarger told the newspaper.

Williams proposed the City Council reallocate the 4% package liquor tax, the 2% food and beverage tax, the 0.125% home rule tax earmarked for the local improvement fund and part of the municipal motor fuel tax earmarked for the local improvement fund. Doing this for one fiscal year will shift over $1.9 million to the general fund.

By pushing back construction of many city projects – including construction, studies and infrastructure improvements – the city could save more than $1 million. Williams said that as none of these projects are under contract, the city wouldn’t have to deal with termination agreements.

The city manager listed 14 projects for deferral, including Greenway Path safety improvements; street maintenance and condition survey/study; storm sewer and culvert work; emergency warning sirens; Chautaqua Bridge replacement; and East College Street reconstruction.

Possibly the toughest savings to gain would be eliminating raises for employees in the budget year when 2.5% is currently budgeted. Williams told The Southern Illinoisan negotiations with each bargaining group would be necessary. The city would extend the current contracts for one year in hopes that an agreement could be reached to mitigate layoffs.

Eliminating raises would cut costs by $290,877 in the general fund and by $378,608 overall.

The budget must be presented to Council at its April 28 meeting.

Williams said Wednesday the first two recommendations won’t be a problem to implement and the third will be contingent on bargaining with the four unions representing city workers. 

Councilman Jeff Doherty wants a finance update as a regular fixture in City Council meetings to help them prepare for the budget amendments he expects will be coming, The Southern Illinoisan reported.

The Carbondale City Council rejected a request made by petition to suspend the city’s upcoming food and beverage and package liquor tax payments. Petitioners wanted this done to help small businesses struggling with COVID-19 restrictions.