Elmhurst Still Faces Tough Budget, More Cuts Pushed

ELMHURST, IL – A year ago, Elmhurst cut spending and raised taxes to address a worsening budget trend. But officials say more work needs to be done.

For five years, the city's budget prospects were bright. It enjoyed an infusion of federal stimulus money during the pandemic. And it turned out the pandemic's effects were less than expected, the city said.

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Now, spending is rising faster than income.

During last year's budget meetings, the City Council was told about the predicament. In response, aldermen cut $3.6 million in spending and raised property taxes by $1 million, working out to $56 for the owner of a $500,000 house.

Since January, the council's finance committee has been working to come up with more budget cuts.

The committee plans to present its recommendations when it completes its work, according to the city.

So far, the city is following its rule to keep enough money in the bank equivalent to a fourth of the annual operating budget, the council was told this week.

"The projected decrease in the fund balance is the reason that the finance committee is doing its work to realign the general fund so that it is financially sustainable moving forward," said Christina Coyle, the city's finance director.

Without further cuts, the city will dip below its required fund balance by 2028, she said.

Coyle told the council that Elmhurst's proposed budget for next year is within its policy.

The city is holding budget hearings this month and next.

Elmhurst's budget situation benefits from at least one significant bright spot.

Relative to other towns, Elmhurst's police and fire pension systems have more assets on hand compared to the total value of benefits it is mandated to pay over time.

According to the annual pension reports, police and fire pensions are 75 percent and 71 percent funded, respectively, in the long term.

Those percentages have been growing, with the city on a 15-year plan to be entirely funded.

Elmhurst's pensions are in far better shape than similarly wealthy towns such as Hinsdale and La Grange, where pensions are about 55 percent funded.