Revenues, salaries up in Urbana, despite downturn
Despite the recession, Urbana city officials project a 2.3 percent increase in revenues this year and plan to spend $3 million more on salaries in the 2009-2010 budget year.
Revenues are up from $42.1 million last year to $43 million this fiscal year, thanks to extra sales tax from new businesses including Meijer, more income taxes for local coffers from the state and stable property tax receipts.
“We are fortunate that during this economic slowdown the value of property in Urbana has continued to increase, although at a slower rate than in the past few years,” wrote Mayor Laurel Prussing in this year’s budget message.
Sales and property taxes are the city’s largest sources of income, accounting for more than $16.4 million of the city’s revenues.
The revenue picture is good news for city employees. Over half of the city budget — $21 million – will go to salaries. That’s up from $18 million in 2008-2009.
The cost of constructing and maintaining streets, sewers, lights and signals will again be the biggest sector of the budget, accounting for 36 percent of the total, Prussing wrote in the budget. Public safety, including police and fire, represents 33 percent of spending with all other departments combined receiving the last 31 percent.
The budget, which began July 1, 2009, includes total spending of $48 million, an increase of 3.7 percent over last year. Approximately $5 million in accumulated reserves from the Capital Improvements Fund will go toward this year’s spending as well.