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LaSalle finance committee reviews draft appropriations; general fund reserve shortfall highlighted
Summary
Finance director John Duncan presented a draft appropriations ordinance, warning the general fund lacks recommended reserves, some funds are temporarily negative, and certain revenues (notably TIF and replacement-tax details) remain incomplete ahead of a July final vote.
Finance Director John Duncan told the LaSalle Finance Committee on Monday that the city's appropriations ordinance remains a draft because several revenues are still pending and some funds show shortfalls.
"Just tonight is, a night where we're going to go through the, a draft review of the appropriations ordinance. This is in draft form," Duncan said as he opened the committee review.
Duncan said the city's combined cash balance was about $15,173,796.22 and that the general fund carried $924,938.30. He recommended the city hold six months of operating reserves (roughly $5 million to $6 million for the general fund) but said the city is well short of that benchmark.
The draft shows several timing-driven negatives: the park and recreation pool liner expense left the park fund in the red, Fund 21 (the library allocation) dipped because the city paid library bills and awaited reimbursement, and the Rotary Park fund ran a deficit the city expects to offset with OSLAD grant proceeds and a transfer from a TIF fund pending administrator approval.
Duncan also flagged statewide changes to how online sales taxes and replacement taxes are distributed. "There was a change in the law in, personal property replacement tax and sales tax, so how they collect," he said, explaining that shifts in destination-based sales tax have moved some receipts between replacement tax and local sales tax. He estimated a roughly $100,000 net gain to LaSalle because some local businesses' sales are again taxed to the city rather than being distributed as replacement tax by population.
Other notable budget items: the police pension contribution is budgeted at $2,100,000 (a levy-approved figure), and the city projects about $11 million in general fund revenue for the coming fiscal year. Duncan said investment income from laddered certificates of deposit bolstered revenue in recent years, generating about $524,000 actual in the last reporting period.
Duncan repeatedly reminded aldermen that the draft lacks some figures from the TIF administrator and county for property-tax-related reimbursements and that the EPA loan-and-forgiveness figures tied to water/sewer capital work are still being finalized.
Committee members and staff discussed options to prioritize projects so reserves are not exhausted. Duncan urged aldermen to identify priorities before the first July meeting; the appropriation ordinance must be finalized in advance of the statutory deadline.
Ending: The committee did not vote on the ordinance; Duncan asked aldermen to provide direction at the next finance meeting so a final appropriation ordinance can be prepared for the council's July meeting.
