Nearly everyone has been feeling the stress of the economy, including the city of Sycamore.

“Heading into this year, we’re doing more with less, and that’s been the marching orders for a while here,” said Sycamore Mayor Ken Mundy. “The university, every business, every government, every family budget feels the same thing.”

One big issue in Sycamore is the decrease in sales tax, which is used for the city’s $12 million operating fund. About half of the fund comes from sales tax revenue, Mundy said.

“The majority of our sales tax revenue goes towards general fund operations,” said Brian Gregory, assistant city manager and treasurer for Sycamore. “Anything like goods and services for your police department, fire department, public works, that sort of thing.”

Gregory said compared to last year, revenue from sales tax in 2009 has decreased 15 percent.

“We take the economic situation and look at people who are either unemployed or had hours cut back or they’re not extremely confident with their employment situation,” Gregory said.
“Couple that with people saving more money and not spending it as much. The types of things that you’re seeing nationally affect Sycamore as well.”

Gregory said Sycamore has been tightening its spending and watching its numbers very closely to ensure that the budget is balanced, and to make up for the revenue decrease.

“It’s careful budgeting in capital letters,” Mundy said. “It’s important that we look at that budget and move money around, and we’re making budget transfers and so forth and asking our department heads to really stay within their budgets or below and not spend anything that isn’t absolutely necessary.”

Mundy said the city has cut down on promotional items, memberships and publications that they can do without.

Also, city manager Bill Nicklas instructed department heads to locate 2 percent in their respective budgets that they would not spend.

“We had strong reserves and we’re able to head into this downturn in the economy better than some other businesses and governments.” Mundy said.

The city also saves where it can by doing projects in house with its own employees rather than hiring outside firms.

At the city council meeting on Nov. 2, Fourth Ward Alderwoman Terry Kessler talked about the savings gained by the city because the public works department used its own employees to do several construction projects. The total savings by doing projects in this way amounted to about $71,000. Mundy said the engineering department operates in this same way.

Gregory also spoke about the importance of shopping locally and showing support for establishments in Sycamore.

“I think that’s a focus in good times and in bad, to get out and show support to the businesses,” Gregory said. “When people shop in town, especially when they live in town, they’re actually generating sales tax that goes to the city that helps us provide the services that they receive.”

Mundy agreed, saying that the businesses in Sycamore have not only invested thousands of dollars to be in the city, they also provide jobs, goods and services and a variety of taxes including income, property and sales taxes which help the community.

Mundy said there is a direct relationship between the city and its business, and that the strength of such local establishments is equal to the strength of the community.

“They are our lifeblood and we say that with all sincerity.” Mundy said. “They truly account for over half of our operating income here for our annual budget.”

Everyone is feeling the effects of the economy in certain ways, Mundy said.

“I feel a sense of togetherness on this with businesses and families working through this time because it just isn’t fun and you have to pick and choose and be very careful about how you spend your money.” he said. “We’re trying to weather our way through this the best we can .. others are doing the same thing.”

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