A two-week delay in approving Waukegan’s budget and salary ordinance may impact $60 million worth of capital improvements and cost high school and college students two weeks of pay at their summer jobs, but some members of the City Council are not yet comfortable with the numbers.
Though the passage of the budget is not dependent on the approval of the salary ordinance setting forth the pay for city employees, Ald. Jose A. Guzman, 2nd Ward, felt that delaying both was necessary. He successfully delayed a vote on the salary ordinance before it was time to vote on the budget.
“With us tabling the salary ordinance, I think we ought to table this also because we can’t do this without the other,” Guzman said.
Mayor Sam Cunningham disagreed, and Michael Castaldo Jr., an attorney with corporation counsel Ottosen DiNolfo Hasenbalg & Castaldo, confirmed the mayor’s opinion.
“The salary ordinance will dictate your salaries,” Castaldo said. The budget is just your forecast.”
The City Council voted 6-3 to table the city’s first budget to show a surplus in at least 33 years, Monday at City Hall, to get a closer look at the $281.7 million spending plan they first saw in mid-May.
Though the budget was presented to the council’s Finance and Purchasing Committee on May 18, and again at a public hearing in front of the committee prior to the council meeting, council members got their first look at the salary ordinance on Monday.
The size of some of the pay increases concerned both Guzman and Ald. Keith Turner, 6th Ward. The vote on the salary legislation was considered and tabled by the council with an 8-1 vote before the budget was discussed.
“These wages are way too high,” Guzman said. “We need more clarity about these huge percentages. I get the same answer every year. They need to get on this step and then that step. These are really big.”
Finance Director Juan Garcia said nonunion and salaried employees of the city are entitled to a 2% cost of living adjustment and a 2% step increase based on the number of years worked. There are 16 steps in the city’s pay structure.
“The step schedules you see are based on initial hiring salaries for these positions, and then they go 16 steps,” he said. “So, the people will fall in that range. Some will get the 4%, and some will get less based on when they fall in their anniversary year.”
With the budget delayed, Garcia said he is worried because it can impact plans to spend $62.8 million for capital improvements. The city cannot solicit or approve bids until the budget is approved.
“Two weeks can make a difference in the construction year,” he said. “If it goes too late and the weather gets cold, there could be a problem finishing.”
Garcia said he is also concerned about the summer youth employment program. Until the budget is approved, the high school and college students cannot be hired. It means they will likely work two weeks less because the time to return to school is already set.
Ald Thomas Hayes, 9th Ward, said after the meeting he needs answers on some of the pay increases as well as other budget items. He believes more time to study the spending plan will allow a more reasoned decision.
“For me, this is an opportunity to ask questions,” Hayes said. “There are a number of increases, and now the aldermen will have the opportunity to ask questions. We will pass the budget, and everybody will have their say.”
Cunningham said the council members will get their answers and the spending plan will be approved. Though there is no budget a month into the new fiscal year, the city is operating within its means and can legally continue to do so for another 30 days.
“I am confident the aldermen will get their questions answered so we can move forward on our $62 million capital improvements to rebuild Waukegan,” he said.
Planning to spend $11 million less than a year ago, the city is projecting expenses of $281.7 million with anticipated revenue from all sources, including property taxes of $282.3 million, yielding a $600,000 surplus.
Joining Hayes in voting to table the budget and salary ordinances were Guzman, Turner, and Ald. Victor Feliz, 4th Ward, Ald. Michael Donnenwirth, 7th Ward and Ald. Lynn Florian, 8th Ward. Voting against the postponement were Ald. Sylvia Sims Bolton, 1st Ward, Ald. Juan Martinez, 3rd Ward and Ald. Edith Newsome, 5th Ward.
The council is scheduled to consider the salary ordinance and the budget at 7 p.m. on June 15 at City Hall.
