Quincy City Council to consider budget cuts because of PPRT revenue decline of $2 million

QUINCY — The Quincy City Council is expected to vote at its Jan. 13 meeting to approve an ordinance to amend the 2024-25 Fiscal Year budget that includes a proposal to decrease personal property replacement tax (PPRT) revenues by $2 million and decrease General Fund expenditures by $2 million.

Comptroller Sheri Ray sent an email to aldermen on Monday explaining the need for the budget amendment and a list of proposed reductions that include transfers to capital projects fund and other subsidy transfers, health insurance, IMRF pension contributions, capital outlay and other miscellaneous expenditure reductions

The General Fund revenues from PPRT money were budgeted at $7.586 million, and Ray said the Illinois Department of Revenue recently published budget reductions that suggest the city’s PPRT revenues will be closer to $5.586 million. 

The city has collected $4.411 million in PPRT revenues through January, with two more payments expected in March and April. The city had collected $5.121 million in PPRT revenues through January last year. PPRT revenues are down 24 percent from year to year.

The Quincy City Council approved an $8.44 million tax levy on Dec. 30 that included a resolution to spend $2 million (up from $1.65 million as originally proposed) from its year-end fund balance, which is projected to be $2.6 million on April 30, 2025. Now that $2 million General Fund balance is gone, thanks to the loss in PPRT revenues.

Ray said decreased health insurance premiums will eliminate approximately $440,000 of the deficit, with an extra $50,000 coming from a slight dip in the city’s Illinois Municipal Retirement Fund contributions.

Ray said the proposed city-wide cuts, which were given a first reading Monday by aldermen, would affect any General Fund department and any department or fund subsidized by the General Fund.

The budget reduction ordinance figures proposed by Ray are listed below. 

“We have to make cuts,” she said after Monday’s City Council meeting. “If you budgeted for something but you didn’t buy yet, good luck. You’ll have to try to get it reappropriated next year if there’s money.

“We knew PPRT was probably never going to hit (its) mark back in June or July, and we just kept saying, ‘Let’s wait ‘til we get to mid-year.’ Well, that was in October, and then it was, ‘Let’s wait ‘til we get through the tax levy.’ The fact that (the City Council) committed the $2 million of General Fund balance to buy down the property tax rate, well, we just have to reduce the budget now.”

The proposed General Fund reductions also would be coupled with what Ray called a “hiring freeze.”

“For example, in my office, we had an open position,” she said. “We interviewed, and we offered (the job to) the person who we chose. It wasn’t the right salary, so we just paused. We didn’t fill it. We’re going to probably try again, but I mean, we’ll see what next year’s budget looks like.”

Ray told aldermen the cuts will be discussed at the Jan. 13 meeting of the Finance Committee.

“The intent would be for you guys to pass it at its second reading next week just so we could get going with our Fiscal 26 budget,” she said during the meeting. “It doesn’t make sense to start your budget process with a budget that’s overstated by $2 million.”

In other action, aldermen:

• Appointed Olivia Rueter to the Quincy Preservation Commission for a three-year term.
• Heard a presentation from Jenna Hull and Natalie Cornwell with the United Way of Adams County about a recently completed Community Needs Assessment.
• Approved a bid from Garvey’s Office Products of Niles for $6,533.19 for a one-year contract from Feb. 1, 2025, through Jan. 31, 2026, with 30 percent off catalog pricing.
• Approved a proposal from Gem City Ford $308,134 to buy six light and medium-duty vehicles for water and sewer operations. The city is buying two 2025 Ford Ranger 4×4 trucks at $37,455 each, two 2025 Ford F-350 trucks at $75,186 each and two 2025 Ford F-150 trucks at $41,426 each. The proposal passed by a 9-4 vote, with no votes from Jeff Bergman (R-2), Tony Sassen (R-4), Mike Rein (R-5) and Jake Reed (R-6).
• Approved a proposal from Klingner and Associates for an amount not exceeding $60,000 to develop a maintenance plan for all electrical equipment at the sewage pumping stations and treatment plants.
• Approved paying an invoice for $11,218.50 from Rees Construction Company for the required replacement of 120 feet of 24-inch clay storm sewer pipe in Woodland Cemetery, which was found to be collapsed and disjointed. 
• Approved paying an invoice for $9,634.59 from Vinson and Sill of Lima to make the emergency repairs to a sewer lateral that collapsed near the connection to a manhole at 615 N. 27th.
• Approved paying an invoice for $14,786.66 from Rees Construction Company for emergency repairs to a sewer lateral at 621 S. 12th.
• Approved paying an invoice for $12,043.47 from Republic Services of Quincy for the disposal of dewatered biosolids generated during the startup and testing of new dewatering equipment at the wastewater treatment plant.
• Approved the annual premium payment of $260,589 to Willis Towers Watson Midwest, Inc., of Chicago for comprehensive insurance on property and equipment associated with the Department of Utilities, including the wastewater treatment plant and water treatment plant.
• Approved paying an invoice of $8,843.31 from Shannon Chemical Corporation of Malvern, Pa., to buy 2,550 pounds of sodium permanganate.
• Approved a quote of $8,333 from Power Factor Electrical Solutions in Quincy for materials and installation of an electrical service at the Harrison Hy-Vee recycling site.