2Q Treasurer's Report Mirrors Rising Cost of Doing Business

</element><element id="paragraph-1" type="body"><![CDATA[ Du Quoin Treasurer Jacqueline Williams' second quarter report to the city council wasn't what anyone wanted to hear, but it mirrored the sobering reality of trying to operate a small city in mid-America.

Because of $172,000 in increased labor costs from new contracts with city employees, the city's $79,000 match for sewer sleeving, a $10,000 water loss from leaks at the city's swimming pool, work at the city-owned Pepsi Cola building and rising material, health care and pension costs, Du Quoin ends the first half of 2008 with a $258,000 deficit, covered only by the monies invested in CDs and the Illinois Municipal Investment Pool.

In the next 60 days that deficit will grow to over a half million dollars. Williams pointed to the cushions of a $364,685 water department certificate of deposit and $91,782 in the Illinois Investment Pool. But, the clerk's office has had to tap $166,086 from these funds to take care of payments on the city's new wastewater treatment plant and other costs.

Williams urged caution as commissioners head into the last five months of the year. The council is exploring options, but Mayor John Rednour said he continues to resist bringing back the city's share of real estate taxes.

The city has started to capture proceeds from a half-cent sales tax that was originally levied as the local match for a new Du Quoin High School. The city recently released all of the money captured so far to Du Quoin Community Unit District 300, but will keep any future revenue from the tax until the State of Illinois reaches agreement on how to fund a new capital construction program, that would include Du Quoin's new school.