Macomb is flushing out its financial plans for the next fiscal year, which starts May 1. The city appears to be in good shape financially.
Macomb projects it will receive about $30.1 million in revenue next fiscal year and have about $29.8 million in expenses.
“We are not projecting or asking for any cuts in personnel or programs. We can’t do everything we want to do especially in water and sewer and of course, we live within our budget for street improvements as well, we can only do some much a year. But, I think we are making progress on all those fronts," said City Administrator Dean Torreson.
That’s good news especially considering that some other municipalities in the region are grappling with large budget deficits. Torreson said in Macomb, “Generally expenses are increases every year as are revenues. But, over the past few years, revenues have exceeded expenses putting us in a pretty strong financial position,”
Torreson credits some of Macomb’s financial level footing to how well things are going this budget year.
He said the city is still receiving its state aid payments despite Illinois not having a budget. And with just two months left in the city’s current fiscal year, Torreson said Macomb is on track to bring in more general fund revenue than originally anticipated.
He said the local spending is down and local sales tax revenue is about $36,000 less than what was projected. But he said state sales tax revenue is on track.
Torreson said a major cost savings this year is low gas prices. The city has saved about about $160,000 so far this budget cycle.
The biggest expenses in the next budget are personnel and capital improvement projects. The spending plan includes a 1% wage increase for city employees, although contract negotiations are still underway.
The city has also set aside money to help pay for repairs to Glenwood Pool, to purchase a road salt storage shed, and to purchase new equipment for the public works department. Torreson said there will not be a rate increase for water, sewer, or garbage fees next year.
The city council hopes to give final approval to the spending plan by the end of the month.