Though projections show that the village will conclude the current fiscal year with a slight deficit, it expects to rebound in the 2007 fiscal year with a slight surplus, according to a presentation given to the Village Council by Village Administrator Michael Sturino on Monday.
The village expects to spend $19,846,506 out of total revenues of $19,902,966 next year, marking a projected 6.8 percent increase in total expenditures and 7.8 percent increase in revenues over last year.
The village, according to Sturino, will close out fiscal year 2006 with a deficit of just under $154,000. When last year’s budget was created, the village had expected to finish the year with a surplus of about $200,000.
Sturino noted several “downsides” to the village’s financial health in FY2006, including the lack of major new revenue sources and spending on unbudgeted water system improvements and legal fees related to the termination hearing for Sgt. Dan Harder.
The village increased its projections for legal spending by about $100,000 this year according to Commissioner Patrick Doolin, who suggested that the village begin paying its attorneys a set rate rather than hourly fees to offset the increase.
Sturino noted that overtime payments were also higher than expected over the past year, while the village received relatively little grant funding.
Sturino also called attention to the positive elements of the village’s performance in FY2006, noting that spending by department was in line with expectations, while the village had been able to retain its services without major fee increases. The Village Improvement Program, a $10 million series of alley and road resurfacings which began in FY2006, has come in under budget so far, according to Sturino.
Though the village is currently expected to close out 2007 with a surplus of just over $50,500, Sturino noted that some potential revenue sources, including the possible sale of the village-owned Altenheim property to the West Cook YMCA, were not included in the projections presented on Monday. Increased building permit revenues that would result from a development at the Roos property also were not included this year.
He also noted that increases in the village’s health and liability insurance rates had come in significantly lower than expected.
Sturino said that the village does not expect to have to endure any service cuts in the next year. “We’ve really turned the corner in town,” he said.
The village expects to receive property tax revenues of $3,912,000 in FY2007, up from a projected $3,667,576 in FY2006. Revenues from state taxes are expected to jump by over 20 percent, from $4,006,755 in FY2006 to $4,845,500 next year. The only significant projected drop in revenues is in the category of licenses, permits and fees, where the village expects to collect $1,152,075 next year, down about 16 percent from the current fiscal year. Sturino said this was largely due to the lack of development at the Roos property, where a large scale residential development had been expected.
Expenditures will increase across the board in FY2007, according to projections. Public Affairs spending will increase 8.5 percent from $5,089,986 to $5,608,953, much of which is accounted for by a 10 percent increase in spending by the police department, which is projected to spend about $3.85 million.
Spending in the Accounts and Finance category is expected to increase by 7.1 percent to about $6.6 million, while Public Health and Safety spending will increase by 8.1 percent to $486,630. Public Works spending is expected to increase 13 percent to about $3.28 million.
The village’s water department is expected to experience a 5.6 decrease in expenditures to $3.28 million and a 6.3 percent increase in revenues to about $3.26 million, though Sturino noted that the deficits experienced in the water fund over the last couple years will be offset by recently approved water-rate hikes.