From AP - News Headlines -

Urbana City Budget Could Face Numerous Cuts, Increases

The city of Urbana could be looking at a mix of increased fees and cuts next year to meet a deficit of at least $1 million. The current deficit stands at $1.3 million. City Comptroller Ron Eldridge says the city is beginning to see the impact of decreased revenues that cities like Champaign and Decatur faced earlier this year. He says those revenues are down more than 800-thousand dollars, despite getting a sales tax boost from the new Meijer store and state dollars from conducting a special census.

And Eldridge notes next year's estimated million-dollar deficit comes at a time when contracts are expiring with city employees. "All three of the union contracts are up for renegotiation," says Eldridge. "So I know the mayor probably suggests that there should be no salary increases on any of those contracts, and I think that's a good suggestion. As to whether the unions will go along with that or not, I don't know." Eldridge says the city could be forced to cut some non-essential services. While he's not suggesting it, he says the city's free leaf collection may have to be eliminated and passed on to waste haulers.

In a presentation at Monday night's city council study session, Eldridge was expected to run through possible fee hikes, including those for vehicle impoundment, towing, and natural gas, as well as an increase in parking meter rates. Budget discussions are expected to go on for a several months.

Categories: Economics, Government, Politics