JOHN GUZZARDO Mayor — Lincoln

Lincoln Cited As Fiscally Fit In New Study Of City Woes Lincoln Among Financially Soundest Cities In Illinois? By DAN TACKETT, Lincoln Courier Reprinted With Permission of Lincoln Courier

City officials, known to sweat buckets at budget-writing time, are getting a reward for their work.

Lincoln is in the pink of fiscal health. In fact, it is one of the healthiest cities in Illinois, according to a study made by the National League of Cities.

"We're still in the black, so sure, I guess that makes us pretty healthy," city clerk Juanita Josserand said today after hearing about the study's results.

Josserand is a key player in preparing the city's annual budget.

The national study, which was released Monday, noted that general fund spending at Lincoln City Hall has remained fairly constant between 1989 and 1991 —at about $2.2 million.

During the same time, revenue has soared from $2 million to $3 million.

Josserand, who, along with Mayor John Guzzardo, responded to the league's survey, said Lincoln cut its fulltime workforce from 91 to 82 employees and contracted some services out to save money.

In addition, a strong local economy cushioned the city from the soaring costs of worker salaries, health insurance and pensions, she said.

"We've really held the line on spending," said the clerk.

The big boost in revenue, she explained, comes from a variety of sources, one of which is the state income tax surcharge, now at the heart of a marathon legislative battle in Springfield.

The two-year temporary surcharge, which included hefty rebates to local governments, expired in July. Lawmakers and Gov. Jim Edgar are deadlocked on whether the surcharge should be renewed as a permanent or temporary revenue or whether it will continue to share the funds with schools and local governments.

"We've only used the surcharge money for capital expenditures," Josserand said. "But who knows if we'll still be receiving it. It's just something you can't count on."

Heftier sales tax receipts — a reflection of new retail businesses in the community — have also added to the city's revenue side. Josserand said new sewage rates, which took effect about a year ago, will add about $200,000 in revenue for the city.

Lincoln's picture is much rosier than the national trend painted by the organization's survey.

Most American cities — including many in Illinois — suffered their worst economic year in a decade, and taxpayers are paying the price, the league's report said.

The study said that 71 percent of city budgets are in worse shape in 1991 than they were in 1990, and more than half are in worse shape than they were a decade ago.

Moreover, 61 percent will spend more in 1991 than they receive in taxes and other revenue, according to the group's annual survey of 525 cities. •

August 1991 / Illinois Municipal Review / Page 7