Politics & Government

EDC Cuts Hot Topic at Public Hearing

Village board plans for staff to handle more economic development duties.

The proposed village budget was up for discussion Monday night, but only the cut to the Economic Development Corporation garnered public attention.

The Glen Ellyn Village Board held a public hearing at their regular meeting Monday on the proposed budget for upcoming fiscal year that runs from May 1, 2011, to April 30, 2012. Village officials expect to take in $39,851,000 in revenue and pay out $39,767,700, which translates into an $83,300 surplus.

Total expenditures in the budget total $45,788,700 but, according to the breakdown, the village’s real total will be about $6 million less after inter-fund transfers are accounted for.

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The budget proposal will be workshopped at the April 18 meeting and acted on at the April 25 meeting.

The coming year’s surplus is in contrast with last year’s budget deficit, which according to interim finance director Larry Noller, was a $1.9 million shortfall. The turnaround came with costs, most notably the funding to the EDC. Board President Mark Pfefferman made clear that the village is not cutting funding to economic development overall—$376,000 is set aside for it in the proposed budget—but re-allocating it away from the EDC and handling more of its duties in house.

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According to agenda documents, the EDC would receive $70,000 in funding next year. That’s down from this year’s $191,000, which includes $31,000 in grants. An April 4 letter by EDC President Neil Dishman confirmed the EDC requested the same amount in the coming budget.

“I write today to emphasize how crippling this proposed budget would be to the EDC’s mission and programs, and to Glen Ellyn’s economic development overall,” Dishman wrote.

Dishman’s letter said a $70,000 EDC budget would mean the organization would scale back or altogether cut numerous marketing functions as well as cut the full-time director position currently held by Janie Patch.

“A huge portion of the EDC’s work is accomplished by our executive director’s sweat and expertise, rather than by specific programming dollars,” Dishman wrote.  

Jill Foucre owns Marcel’s kitchen store, which she hopes to open this fall in downtown. The Glen Ellyn resident said she looked at locating her store in Downers Grove and Elmhurst.

“In Glen Ellyn,” Foucre said, “[business owners get] the opportunity to have the dedicated economic development organization, to have a dedicated, old-time professional leader of the organization, and an organization that was extremely helpful to me in the process—responsive, knowledgeable, resourceful, and able to really assist me with things I needed assistance with.”

Interim Village Manager Terry Burghard said the village staff can handle many of the EDC’s responsibilities, considering the Downtown Alliance is in place and the self-monitoring Roosevelt Road business community that has a vested interest in keeping its corridor full.   

“This community has spent a substantial amount of money in this general area of economic development over the past several years,” Burghard said. “I question seriously whether or not there has been a return on the investment that is positive to the village.”

But Sue Cleary, who owns Paisley on Main, 494 N. Main St., cited what Noller said was a 13 percent cut in village staffers over the last three years as justification for maintaining the EDC budget.

“I don’t see how the village could possibly think that they could take on running the whole [EDC] to the way that it has been run with [24.45] less people,” Cleary said.

Trustee-elect Diane McGinley, and a contributor to Glen Ellyn Patch, supported the reallocation of economic development dollars. She said a re-thinking of economic development and the roles of bodies like the Chamber of Commerce, EDC, and Downtown Alliance needs to happen.

“All of the organizations claimed credit for the same exact responsibilities,” McGinley said.

Trustees James Comerford, Peter Cooper, and Michelle Thorsell all supported the overall budget, but at least questioned the EDC funding. Thorsell said she would not vote for the budget as is. A non-binding straw-poll vote was tabled until April 18, when motions from trustees offering alternatives are expected.

There are revenue surpluses for six of the 13 listed village funds and deficits for another six. The General Fund—which covers police, fire, and public works, among other services—does not have a surplus or a deficit. It will both take in and pay out $16,109,000 throughout the year, making up nearly 41 percent of all budgeted expenditures.

The fund with the largest surplus is the Equipment Services Fund, which will take in $1,695,200 and pay out $1,219,300 in expenditures (a $475,999 difference). The Police Pension Fund will have a have a nearly $400,000 surplus ($1,836,000 coming in, $1,454,800 going out); the Water and Sewer Fund will have a $248,600 surplus ($10,860,000 coming in, $10,611,400 going out); and the Corporate Reserve Fund will be up $160,100 ($180,100 coming in, $20,000 going out). 

The Capital Projects Fund has the largest deficit. The village anticipates $5,805,000 in expenditures from the fund after it receives $4,737,000 in revenue.

The Motor Tax Fuel Fund is another that has higher expenditures than revenue ($756,000 to $705,600, respectively). The Facilities and Maintenance Reserve Fund has a similar breakdown ($30,000 going out, $2,500 coming in).


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