From AP - News Headlines -

Champaign City Council Endorses Six Million Dollar Budget Patch

The Champaign City Council voted Tuesday night to endorse a plan to fill a projected six-million dollar budget shortfall, created by a drop in city tax revenues.

The study session vote gives Champaign city staff the go-ahead to develop a budget plan that cuts spending, moves more money into the general fund from other areas, and increases some city fees while creating new ones. Council members had questions about the fees, as well as proposed cuts in staff postions --- all of them currently vacant, or expected to become vacant soon.

Council member Marci Dodds says despite her misgivings, she thinks the overall proposal will fill a budget hole without doing lasting harm to city services. "The whole goal", says Dodds, "was not to have tremendous impact on the public, or to just do a slice-and-dice, across-the-board cut; but really, to do this so we would preserve core city services".

Council members paid particular attention to the changes in city fees. Champaign Finance Director Richard Schnuer says the fee changes make up only about 20 percent of the overall proposal, and that the details are subject to change. The fee proposals include a more than 13-thousand percent jump in the license fee for ambulance services, an expansion of the natural gas tax to cover non-AmerenIP customers and a hike in the city franchise fee for cable TV customers.

Schnuer says they'll present a complete budget proposal to the city council in six weeks. Council members will review in study sessions in May, before taking a final vote in June.

The city of Urbana does NOT plan a similar cut to its budget. Mayor Laurel Prussing says she's been told by city comptroller Ron Eldridge that sales tax dollars from new retail developments puts Urbana on a firmer financial footing that some other local communities.

Categories: Government, Politics