Slight improvement seen for next Libertyville budget

The picture could change but there are some signs of economic life for Libertyville's 2011-12 budget.

“Things seem to be a little bit better but we still have a long way to go to build up the general fund balance,” Village Administrator Kevin Bowens said.

The 2010-11 budget was the toughest in decades and the board enacted or raised taxes on natural gas, electricity and telecommunications, while laying off employees and making other cuts.

“It really was about as bad as it could imaginably get and maybe a little worse,” Trustee Rich Moras said during a recent discussion. Moras chairs the village board's finance committee.

Early estimates have the village finishing the 2011-12 budget year about $824,000 in the black, after $350,000 is transferred to the Libertyville Sports Complex fund. The budget year begins May 1.

The Indoor Sports Center, the main part of the complex, makes a profit but not enough to cover debt payments. That's why the sale of the driving range and/or miniature golf portions of the complex is the village's top economic development priority.

Looking ahead, sales tax revenue is expected to grow slightly after dropping more than 25 percent the past five years. But the good old days are not expected to return.

“Many in the governmental sector believe that low growth in revenues along with pressures to reduce expenses will become the new norm for the future,” according to an overview by village staff.

For the current year, revenues are expected to be about $524,000 below budget, mainly because of far fewer than expected red-light camera tickets being issued. Looking to 2011-12, revenues, including sales tax, are expected to increase modestly.

“It looks like sales tax (losses) hopefully has hit bottom,” said Finance Director Pat Wesolowski.

But there are many variables regarding how much the village expects to receive or spend.

A major business leaving town or closing; how the Sports Complex performs or whether it is sold; the state's deteriorating financial situation; and, higher than anticipated increases in pension funding could change the outlook.

While unpaid furlough days for nonunion employees could be dropped, no raises are planned for that group.

Projected salaries include 3 percent cost of living increases for fire union employees. Salaries for police and police sergeants are budgeted at no increase but those contracts are ending and have to be negotiated.

As for local taxes, Wesolowski reported property values are expected to drop about 4 percent, as opposed to the traditional 7 percent increase.

Lowering values mean the tax rate could rise slightly. Those decisions are to be finalized but the village board favors an option that would result in the village's portion of the tax bill increasing by about $39 for the owner of a $300,000 home.

A hearing on the tax levy is scheduled for Nov. 23, with adoption set for Dec. 14. The proposed 2011-12 budget will be distributed to the village board in February.