Village Budget Faces $600k Budget Gap

An expected $600,000 budget gap in next year's spending plan is forcing village officials to take a closer look at the 2013-2014 budget.

Village Treasurer Don Pearce reported on Monday night that assessment values – which were released on Monday – will result in a loss of nearly $150,000. The drop in assessment, coupled with drops in mortgage tax revenue and building permit fees have made a modest 3.5 percent spending increase seem unattainable.

Pearce said that due to the void of funds next year, the originally-proposed 3.5 percent spending increase would result in a tax levy increase of 10.8 percent – a possibility trustees don't see happening.

"We're going to cut the budget more," Mayor Margot Garant said on Tuesday morning, noting that capital expenses for the remainder of the current fiscal year are being closely monitored, to see if any funds could be rolled over into next year.

Even a "hard freeze," offering a $0 spending increase year-over-year (which would still require cuts due to mandated insurance and pension increases) would result in a 5.8 percent tax levy boost.

Particularly, after last year's storms, the village is planning on purchasing a generator that could cost up to $100,000 – or nearly a third of cost increases year-over-year. Garant said about $50,000 remains in a capital reserve account held for upgrading a village emergency command center, and if more can be found by delaying other projects, the one-time cost could be eased.

Pointing to a "severe revenue problem," Pearce reported last month that mortgage tax revenues have dried up in a short span: five years ago, he said, the funds brought in $1 million, whereas this year about $250,000 is expected. Another $52,000 in recurring revenue is also being lost as Sprint/Nextel will not renew a lease for a cell tower with the village.

Trustee Larry LaPointe said on Tuesday that it's one-time costs that may have to be pushed back, calling personnel in the village "down to the bone."

"So then you start saying, 'Can I make this car last another year?' or 'Do I really need to fix this roof right now?'" he said. "And that's tough."

A public hearing on the budget is scheduled for April 15.