Expenses exceed revenue by nearly $2 million in Berwyn city budget

The Berwyn City Council recently approved the city’s 2021 budget in which expenses exceed revenue by nearly $2 million.

The 2021 spending plan puts expenses at $124 million and revenue at $122.2 million. Total 2021 expenses reflect an increase of more than $6 million over 2020 budgeted expenses of just over $117.9 million.

The council voted 6-2 to approve the budget March 9. Second Ward Alderman Jose Ramirez and 3rd Ward Alderwoman Jeannine Reardon voted against the budget.

Berwyn begins the year more than a quarter of a billion in the red.

The city’s 2019 annual comprehensive financial report puts the city’s overall debt at $317.6 million. Berwyn will pay $11.6 million in debt service fees in 2021, according to the report.

Domingo Rodriguez, a 19-year resident, addressed the debt during the public comment portion of the council meeting.

“If I can’t live beyond my means, why is Berwyn living beyond its means on the taxpayers’ back? You talk about a $1.3 million loss like it’s Monopoly money. That’s unacceptable,” Rodriguez said.

According to the 2021 budget, Berwyn’s revenue was down $3.5 million in 2020 because of the COVID-19 pandemic.

The city’s primary revenue stream is taxes, which are budgeted to come in at about $61.8 million. The second-largest revenue stream is listed as “other financing sources” and is pegged at slightly more than $18.8 million for 2021.

The biggest department in terms of funding is the Berwyn Police Department, which gets almost $26.6 million, 2% more than last year. The fire department, with a budget of $12.9 million, is getting 1% more than 2020.

Salaries make up the biggest chunk of the city’s expenses at just below $32 million – a 7% increase over 2020.

The biggest budget cuts came from one of the tiniest departments.

The human resources department saw its budget slashed 38% from 2020, down to just over $23,000.

Other notable cuts came in the city clerk’s office, which lists 2021 expenses at $185,161, down 24% from 2020.

The biggest increase came in the fire and police commission budget, which jumped 11% from $70,555 in 2020 to $78,555 this year.

Berwyn’s fiscal year started Jan. 1. The city operates without an official budget for the first quarter of the year, although the City Council decides in December how much it needs to levy in taxes to make the next year’s budget. The council in December voted 6-2 to enact a levy of $34,242,560.

Finance Director Benjamin Daish’s Nov. 5 memo to the council said the levy represents about a $46 increase in Berwyn property taxes to the owner of home worth $180,500. That estimate does not take into account the impact of property tax exemptions such as those allowed for seniors, veterans and non-profits.