Under my leadership, the City of Waukegan has achieved unprecedented financial stability. Unlike Sam Cunningham, I had four balanced budgets without:
Any tax increases.
Taking out loans.
All while:
Paying down the record debt inherited from Cunningham’s failed administration.
Increasing the City’s cash reserves.
Funding $90 million in capital projects.
As a result, Moody’s removed the negative outlook from our credit rating, which they had assigned under Sam Cunningham’s failed leadership.
BALANCED BUDGETS WITHOUT TAX INCREASES AND LOANS
When I came into office, I inherited an unmitigated mess. The Finance Director had resigned and left, and the budget year had already started without an approved budget. The draft budget had a $8 million deficit. I offered early retirement and cut budgets. In two months, my administration put together our first balanced budget, which was approved on June 28, 2021. Since then, I have put together three more balanced budgets.
During Cunningham’s term as Mayor, he helped supplement his annual budgets by increasing property and sales taxes and taking out loans. Property taxes alone increased by $4.4 million, a 13.5% increase (AnnTaylorForWaukegan.com/Taxes). He also took out $123.47 million in loans (bonds) (AnnTaylorForWaukegan.com/Debt). His 2019-2020 budget had a deficit of $19 million offset by loans. My balanced budgets never include tax increases or loans.
FINANCIAL HEALTH – BUILDING RESERVES AND PAYING DOWN DEBT
The budget serves as a plan, and its successful execution is crucial. A key indicator of financial health is the unassigned reserve, which reflects the amount of money available, similar to having savings in the bank. During my administration, the unassigned reserves increased from $18 million to $41 million. I took in $23 million more than I spent. In contrast, under Cunningham’s leadership, unassigned reserves fell from $26 million to $18 million. Cunningham spent $8 million more than he took in, plus $123.47 million in loans.
Another key measure is debt levels. I reduced our debt by $37 million after Cunningham’s record increases:
A record level of debt - $146 million
A record increase in debt - $69 million
ON THE RIGHT TRACK
Despite all the reckless spending and taxing we inherited from Sam Cunningham, we are trending in the right direction. I was still able to do $90 million in capital improvements paid for in cash. Imagine what might have been done without paying down debt and building reserves. My staff has been fully consumed with creating an Engineering Department, expanding the emergency Dispatch Center, moving departments around so all our customer interfacing operations are on the first floor, and much more. We are on the right track, but there is still much to do. The initial steps have been taken, but it takes more than four years to right Waukegan.
For further information, go to AnnTaylorForWaukegan/Finances.