November Slips Away

Yikes, this month went fast. It seems like all we hear is bad news on the national front and it filters down to the daily operations of the City eventually. You may have seen the article in the Gazette that discussed some of the challenges that lie ahead for the City, similar to those that lie ahead for a lot of people in the community.

The City has pension obligations to pay for. The State mandates the benefits and mandates minimum contributions to the fund, the City is then left to figure out how to pay for it. As you might suspect, the pension funds have lost significant value this year, but we still have to meet our obligations. This means the contribution the City must make to the pension funds goes up significantly, nearly an 18% increase to the fire pension fund and a 34% increase to the police pension fund. In order to make those funding commitments, the City has to cut elsewhere. The City of Sterling has typically chosen to fund the pension funds slightly higher than the State mandated minimum, which is a good thing, otherwise we'd have lost more and we'd have to come up with even more this year.

Of course on the revenue side, we anticipate a decrease as well. The only consolation is nearly every city in Illinois is in the same boat. This is not a Sterling issue or Sauk Valley issue. For instance, the State collects all the income tax receipts, then sets aside 11% for distribution to cities based on census counts. If the State collects fewer income tax receipts because fewer people are working and businesses are making less, every city in Illinois is going to get a decrease in the amount distributed. The same principle applies to Motor Fuel Tax. The State collects the tax and then distributes a portion of that tax to local governments based on population counts. So far, Motor Fuel Tax is down this year, which means less money to the City for roads, salt, patching, potholes, street lights, traffic lights, etc.

Without dragging this out too much farther, the City is going to have some very weighty decisions before it to determine what is of the highest priority and what's closest to to the cutting table. The unfortunate part is City government delivers those services that are such an important part of our daily lives, and worse, the General Fund is what suffers most. The majority of the expenditures in the City's General Fund are for police, fire and public works. No one is usually too eager to start cutting at those services, but unfortunately, that appears the direction we're heading. Hopefully we can get through this down cycle by delaying capital and equipment purchases, but no matter what we delay now, it will catch up with us later, whether we delay new squad cars or delay sewer projects or delay fire equipment replacements, it will catch back up to us. Whew, that's some grim reading....

The good news is we're still doing what we can to maximize what we're getting for the dollar and trying to find creative ways to both enhance the community and find efficiencies in our operations. And the good news is that believe it or not, we're not taking the lumps as badly as a lot of communities out there. As I always say, if you want to make a difference in the economy locally, make that extra effort to shop local. Keeping dollars in our area keeps your neigbors employed, keeps stores in business (and can attract new stores!), keeps money coming to the City for police, fire and roads, and allows local employees and local businesses to give back. We have a lot of local businesses that do a lot in the community to support a wide range of projects ranging from United Way to fund raising support. A lot of them do it fairly quietly, but it makes a big difference. Please keep those little intangibles in mind when you're out shopping and give the local stores a shot, and if you find a better deal elsewhere, see if they can at least match it for you. The little things go a long way and yes, you can make a difference.

Veterans Day

Thank you to all the veterans out there in our community. You'll never get enough recognition for what you've contributed to society.

World War I – known at the time as “The Great War” - officially ended when the Treaty of Versailles was signed on June 28, 1919, in the Palace of Versailles outside the town of Versailles, France. However, fighting ceased seven months earlier when an armistice, or temporary cessation of hostilities, between the Allied nations and Germany went into effect on the eleventh hour of the eleventh day of the eleventh month. For that reason, November 11, 1918, is generally regarded as the end of “the war to end all wars.”

In November 1919, President Wilson proclaimed November 11 as the first commemoration of Armistice Day with the following words: "To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those

who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations…"

Learn about Veterans Day at the Dept of Veterans Affairs website.