Du Quoin eyes cutting budget, freezing wages, raising taxes to survive pandemic

A wage freeze for nonunion employees, budget cuts of 5-10% in all city departments and the likelihood of a property tax increase - all of these measures are on the table as the city of Du Quoin anticipates $500,000 in lost revenue by the end of the year.

Mayor Guy Alongi said early Monday that he would be asking the city council Monday night for a wage freeze across the board for all nonunion city employees. (The council meeting happened too late for the Call's deadline, so look for a follow-up story in Friday's paper).

As well, Alongi said the city's labor attorney is currently having "conversations" with the city's unionized workforce, but he would not reveal what the nature of those talks are.

Alongi said the city has been hit with a double blow: A roughly $400,000 drop in sales taxes in 2020, due to the COVID-19 pandemic and the effect it has had on local business; and an unexpected $90,000 shortfall in the pension obligations that will be due in 2021.

"We're not the only municipality in this situation; others are the same way," Alongi said Monday. In fact, without the consistent sales taxes from Walmart and the Prysmian Group (formerly General Cable) to prop up the city's finances, Du Quoin would be in much worse shape, he said.

Back in March, when the pandemic first shut down schools and local businesses, Alongi warned that the city could face a $500,000 to $750,000 shortfall by the end of the year. Better-than-expected sales tax receipts for April and May gave hope, but receipts plummeted throughout the summer and fall.

And Alongi doesn't anticipate things will look better after the first of the year, and says, "who knows what Christmas is going to be like."

The mayor said Du Quoin's best chance for keeping the city services running lies in a combination of three proposals: A wage freeze for nonunion employees; budget cuts of 5 to 10% in all city departments and a property tax increase in the fund that pays for pensions.

"We are trying to work the numbers now. but we have to leave a property tax increase on the table," Alongi said. He expects the smallest property tax hike would be 4.9%, and it could go up from there, depending on how effective the other cutback measures are.

"As a city, we have to be cognizant that the taxpayers pay our bills," Alongi said. "We as a city have to share in that pain. We have to step up do the right thing to protect our citizens from higher taxes, but we have to maintain our services."

"Municipalities and governments need to understand that people are hurting, and they don't have the extra money," he added.

Alongi said he's not sure he has "the stomach" for a big property tax increase, but warned that if the other measures aren't approved by the council, the increase could be as much as 15%.

Meanwhile, a firefighter who recently retired will not be replaced at this time, he added.

The city's 2021 budget must be passed by the end of December.