Created: Monday, June 22, 2009 11:54 p.m. CST
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DeKalb makes cuts; budget passed

By ELENA GRIMM egrimm@daily-chronicle.com
A sign protesting the possible layoffs of DeKalb firefightrers sits next to a car at the house of Fred Fletcher in DeKalb.

DeKALB – The DeKalb City Council took action Monday night to lay off three firefighters in order to balance the 2010 budget.

In a 6-1 vote, the council directed the layoff of the department's three newest workers, with 6th Ward Alderman Dave Baker voting against the action.

The layoffs were made because an agreement has not yet been reached between the city and the International Association of Fire Fighters Local 1236 on a wage freeze for the 2010 fiscal year, which begins July 1. Two other unions – the American Federation of State, County and Municipal Employees and the Fraternal Order of Police – have "tentatively" agreed to freeze salaries, though a contract renewal for the police union and a side letter that will amend the AFSCME contract are still pending council approval.

AFSCME representatives and city leaders met earlier Monday afternoon to work out an agreement with wage concessions to avoid the layoffs of three workers in that union group, Mayor Kris Povlsen said.

About 300 people attended Monday's meeting, which was held at the high school auditorium in anticipation of a large crowd. Hundreds of union workers, many from neighboring communities, rallied support for the local employee groups before the meeting, holding signs outside the school opposing potential layoffs.

The city is anticipating collecting $29.7 million in revenue and spending $29.4 million over the next fiscal year. The budget passed unanimously, with two amendments.

One change removed a line item to purchase cameras at landscape waste sites.

The other amendment had two parts: It removed any further cuts to human services funding from the city's five-year plan and it referred the issue to the Citizens' Finance Advisory Committee for more discussion. Under the five-year plan, the funding would be phased out altogether after four years.

Public comment on the budget continued Monday, with about a dozen people pleading the city to avoid making $62,000 in cuts to 13 area social-service agencies. Aldermen approved those cuts when they passed the budget.

Several agency directors noted that, although the city's contribution is a small portion of their overall budgets, that local contribution is often needed to get matching funds from state and federal grant programs.

Others praised the city's support for social services over the last quarter century, and that taking it away was disappointing.

"We're asking you not to take this community backwards tonight," said Micki Chulick, executive director of 4-C – Community Coordinated Child Care, an agency that advocates for quality child care.

Povlsen explained that the surplus is needed to shore up potentially large deficits the city could face in the next few years.

The surplus is there "because of sound fiscal management," Povlsen said, "but if we continue spending as we have, we will end up bankrupt within the next two to three years. We have to take this $800,000 and move it into next year."

Aldermen justified the budget they passed by acknowledging past faults and pointing out that the budget calls for no new taxes.

"We have probably in the last few years lived beyond our means," 5th Ward Alderman Ronald Naylor said. "Unfortunately, what we are being confronted with now is some of the realities of life and some of the realities of financing."

Naylor added that about 85 percent of the budget is dedicated to personnel expenses, and that cuts would have to be made there with a revenue stream that is dry.

"If we don't get a handle on this and several things in the future, there's not going to be a DeKalb," 1st Ward Alderman Bertrand Simpson said.

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