[Peace] last minute information for Township meeting tonight at 7PM

[Randall Cotton]

It's not like Champaign is hurting for money (see article below). It seems to me
that township (i.e. council) members should be encouraged to vote for
transferring city funds to the township to preserve General Assistance to the
poor.

R

City has an extra $5 million to spend in '06-'07
Published Online Apr 26, 2006

By Mike Monson

CHAMPAIGN - This is the kind of problem city officials could get used to.

Top Champaign officials laid out the outlines of the proposed fiscal 2006-07
budget Tuesday afternoon, and the big surprise is that the city has an extra $5
million to spend for the budget year beginning July 1.

"It's a lot different from the last few years," said Champaign Mayor Jerry
Schweighart. "For seven years, we were just barely able to balance the budget."

"It's kind of a new phenomenon," said Champaign City Manager Steve Carter.

Healthy sales tax receipts, which increased 5.8 percent, and property tax
growth, which will increase 15.4 percent, are fueling the growth in city income.
State income tax receipts also increased 6.6 percent after years of stagnation.

The proposed city budget projects overall income of $89.6 million and spending
of $91.3 million. The deficit was planned for, city officials said, and will be
funded through savings, reserves and debt financing.

In the general corporate fund, spending is estimated at $59.3 million and income
at $60.9 million.

Carter and city Finance Director Richard Schnuer said economic growth during the
past year has been exceptional.

Carter noted the construction this past year of the Hilton Gardens project at
the former Chancellor Hotel site, the Illini Media building, Noodles and
Chipotle Grill in Campustown and the Taylor Thomas and Douglass Square projects
in northeast Champaign.

On the city's northern fringe, there has been the construction of a new Wal-Mart
Supercenter, Panera, a new lifestyle wing at Market Place Mall, new apartments
and a new residential subdivision.

On the west side, the city last year annexed 800 homes, and, to the south, the
University of Illinois Research Park continued its growth with plans for a new
hotel and conference center. Plus the city issued 585 permits to construct new
single- and two-family houses last year.

"The nice thing is the commercial developments have been balanced throughout the
community, with in-fill and on the edge," said Carter. "And it was probably the
biggest year in the city's history in terms of residential development."

City staff made some general recommendations about how the city council might
want to spend the additional $5 million. The city council will discuss the
budget over the next several weeks, with adoption expected on June 6.

With the extra $5 million, Carter said the city is recommending spending $2.6
million in additional capital improvements beyond the $28.8 million already
budgeted.

He said two road projects are being suggested:

- Improving Bradley Avenue between Mattis Avenue and Duncan Road. "The road is
failing," Carter said.

- Improving the Kirby Avenue and State Street intersection, which is inadequate
to handle traffic volume and where the pavement is also failing.

Schweighart said the city council hasn't begun deliberations about how to spend
the extra money. But road improvements would be his likely spending choice, he
said.

"We improved the streets in Garden Hills and Holiday Park, but a lot of these
streets are still in pretty bad shape," he said.

Schweighart also said he would raise the issue of whether the extra money should
be used to reduce property taxes, adding, "I don't think it will get much
support."

"We discussed one time bringing the (city property) tax rate to $1.29 per $100
of assessed valuation (the current rate is $1.31) and it would amount to just a
pittance in savings and cost the city a lot of money," Schweighart said.

Other city spending recommendations for the extra $5 million:

- $299,000 annually to upgrade city facilities.

- A one-time expenditure of $860,000 to replace radios for police and
firefighters. New radios are needed due to the METCAD radio system replacement
project under way.

- $619,000 in recurring spending, including three new firefighters who would be
assigned to the ladder truck at Fire Station 4. An accountant for finance and an
office worker for police would also be added.

- $540,000 in one-time spending, including hiring contractual employees and
contracting for services, including consulting services to conduct a land-use
study for the Curtis Road interchange area.