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Champaign’s Mayor Seeks Details on Unrestricted Funds

Champaign's Mayor wants to know more about nearly $50-million in unrestricted funds in the city's budget plan before signing off on one for the next fiscal year.

Don Gerard said the budget line item of $47-million is earmarked for specific public works projects, as well as the city's parking and vehicle funds. But in a year where emergency services are among the possible cuts, Gerard said he wants specifics.

"I heard a lot of people say 'I'm not comfortable with borrowing money, or 'I'm not comfortable with refinancing our pension bonds," he said. "Well, I'm not comfortable with having 47-million dollars unaccounted for and us cutting urban renewal programs. Nor am I comfortable as a taxpayer, as a man with children, in cutting any services relating to our first responders, including the front desk at the police station and browning out a fire station."

Gerard said he expects to have the information on what the funds are allocated for by next Tuesday's full council meeting on May 17th.

The Reverend Eugene Barnes was among members of the public concerned about the city's proposal to transfer $250,000 in reserves from Champaign's urban renewal fund. He said that would impact redevelopment in the Bristol Park neighborhood. Urban renewal makes up part of $2.75 million in one-time transfers from reserve funds in the budget proposal.

The lengthy budget presentation at Tuesday night's study session also included more than $600,000 in reductions, brought on largely through city employees taking a voluntary separation package. City Manager Steve Carter said impacted departments include public works and building safety.

A few city council members also suggest implementing a package liquor tax to bring in some revenue. Council member Karen Foster suggests the city needs the revenue from a liquor tax, saying it would 'equal out the playing field' with the local food and beverage tax. Council member Tom Bruno agrees it is worth a look.

"If we can gauge what the impact of it would be," he said. "And also if we can take into consideration whether or not we will be particularly causing harm to Champaign businesses because of the possibility - and maybe it's only a possibility - that consumers will change their buying habits."

City Finance Director Richard Schnuer said the idea would mean a lot of work for his department, but his staff already collects Champaign's food and beverage, and hotel-motel taxes. The city council expects to sign off on a budget plan by June 21st.

Categories: Economics, Government, Politics