First Look at Village Budget for 2012

The Village Board got its first look at the proposed 2012 budget Wednesday night, a plan that would see the village spend just under $8.8 million—an increase of about $780,000 over 2011.

And while this was the first of many budget discussions to come before the fiscal year begins on May 1, trustees hashed out several proposed expenses, including the most controversial—an SUV for the , estimated to cost $60,000.

It’s been a lean few years for Montgomery. According to Village Manager Anne Marie Gaura, the village was among the first communities to cut staff when the economy started to go south in 2009. Six employees lost their jobs, and three others had their hours cut, she said, and the budgets for the past few years have been pared down to the bone.

“Because we made these cuts so quickly,” she said, “we have been able to rebound faster than other communities.”

Finance Manager Jeff Zoephel’s presentation Wednesday night backed up Gaura’s statement. Revenues for 2012 are projected to rise about $374,000 over 2011, including the big sources of income for the village: sales tax, property tax and income tax. And the village has managed to keep a general fund balance of about $2.3 million, much more than has been possible in past years.

But village officials have also seen a marked increase in health and liability insurance costs, as well as the village’s contribution to police pension costs. Together, Zoephel said, those three expenses rose a combined $217,000 over 2011.

Village officials expect to take in roughly $8.6 million, and spend about the same amount on general fund expenses. But that's not all village leaders are looking to spend.

On Wednesday, Zoephel proposed using about $145,000 of the general fund balance to pay for some one-time expenses that incoming revenues just won’t cover. (He also suggested waiting until the final audit of 2011’s revenues and expenses, just to make certain the money is there to spend.)

Those expenses include: $34,000 to update the community development department’s computer system; $28,000 to replace 14 computers that are between five and seven years old; $10,000 for “governance training” for elected officials; $2,000 to redesign the village’s website; and $1,500 to replace an old cash register at Village Hall.

SUV needed for snow

Also in Zoephel's list was that SUV, requested by Police Chief Daniel Meyers after last week’s blizzard. The new vehicle would be the third SUV in the police fleet, and Meyers wants it because his squad cars, he said, were “incapable of handling the snow."

During the storm, Meyers said, the department only had one SUV available, since the second was damaged when the wind whipped one of the doors back on its hinges.

But some trustees balked at the notion of spending $60,000 to prepare for future blizzards. “You might not have another storm for another 15 years,” said Trustee Pete Heinz.

Trustee Rob Watermann, who serves as chief of the Aurora Township Fire Department, said residents expect their public safety officials to be there for them, and not having the proper equipment is no excuse.

Meyers said he would get a firm price on an SUV and come back to the board for further consideration.

Pay raises included

The 2012 budget includes pay raises for all non-union employees, and for those in the Public Works union. Negotiations are ongoing with the police union, Gaura said. Additionally, it includes money for an assistant to the village manager, which Gaura did not discuss at Wednesday’s meeting, despite questioning from Heinz.

Gaura said she will talk personnel requests at Monday’s meeting of the village board.

Every village elected official will also get a $100-a-month raise in May. State law prohibits sitting trustees from raising or lowering their own pay, so the increase, approved in 2008, is locked in. But Trustee Denny Lee said he would likely donate his raise to the village or another organization.

“We don’t do this for the money,” Lee said. Other trustees did not reveal their plans for the raises. Any new changes to elected official pay increases would not take effect until May 1, 2013, Zoephel said.

The village also hopes to spend $10,000 removing trees infested with the emerald ash borer, provided a state grant for that amount comes through. Director Mike Pubentz said roughly 100 trees are known to be infested, mainly clustered on the village’s west side.

The budget also includes a hike in the impounded vehicle tow fee, from $300 to $500, which would put Montgomery in line with neighboring communities, Gaura said.

Village trustees will continue discussing the 2012 budget on Monday at 7 p.m. at the .