Urbana’s Proposed Budget Includes No Cuts, but Holds Line on Spending

Sales tax money from new retail development has helped the city of Urbana avoid any cuts to services or staff in a proposed $48 million budget.

Revenues from the new Meijer store are part of the reason city leaders expect income to exceed expenses for the current fiscal year by $750,000.

But because of the economic downturn, city comptroller Ron Eldridge expects them to break even in the year ahead, meaning the city will hold the line on expenses. But Eldridge admits the city could be face problems within another fiscal year if the economy doesn't bounce back. "It makes no sense to add on a bunch of expenditures if you really, truly think you maybe you've going have to be cutting those expenditures the following year," says Eldridge. "Now nobody really knows, and so it certainly it is cautioned, but I think that's the reasons we try to do those long-term projections - to give people an idea of where we're heading in the future." At the end of the next fiscal year, Urbana will have to negotiate new contracts with its police, fire, and AFSCME unions. And Eldridge says pensions continue to be a problem, as the city can expect to pay 6-million dollars or more in fiscal 2009-10.

The assessed value of property is expected to increase by nearly 6%, largely due to new construction. Mayor Laurel Prussing says Urbana is getting another boost through federal stimulus money. More than a million dollars will cover highway projects on Windsor Road and Goodwin Avenue, freeing up local funds for other repairs.

The city council will hold two study sessions on the proposed budget this month, and will vote to approve the budget at a June 1st public hearing.