Elmhurst In Budget Crunch, But How To Define It?

ELMHURST, IL – Elmhurst's city budget is balanced, but has a deficit. That may seem like a contradiction.

On Tuesday, an alderman referred to the budget as out of balance, to which a colleague took exception.

At the time, they were discussing a proposed $9,000 reduction to the trolley program.

"As we sit here today, we still don't have a balanced budget in the middle of February, even though we knew about the issue back during the budget cycle (in the fall)," Alderman Michael Bram said. "So I think it's legitimate to make any concerted effort, no matter how small, because we're not going to solve this issue in one slice in any one area."

Alderwoman Noel Talluto, who heads the City Council's finance committee, said it was untrue that the budget was out of balance. That's because the city is dipping into its bank accounts to balance the books, she said.

She said the city is looking at how to balance the budget on an operational basis in 2027 and beyond.

The city budget's own definitions for "balanced budget" and "deficit" back up Talluto's assertion. Those definitions reflect accounting generally.

According to the city, a balanced budget is one in which spending is completely offset by income and the use of money in bank accounts.

A deficit occurs when spending exceeds income in a specific period.

In an email to Patch, Bram on Thursday said, "If it is defined as a 'balanced budget,' then I used the incorrect terminology at the City Council meeting. The fact of the matter is we have a systemic issue that needs to be corrected, and if the correct terminology is a 'deficit' and not an unbalanced budget, that is fine. We still have a deficit to correct."

Last fall, staffers told the City Council that the city faced budget difficulties.

As a result, the council unanimously approved hiking the property tax levy by $1 million, which the city estimated would mean $56 more for the owner of a $500,000 house.

Aldermen also cut the budget by $3.6 million. But they agreed that the reductions would not address a projected long-term budget deficit, with income dropping and spending rising.