Johnson to give state of village address

Following a year of belt-tightening measures, Elk Grove Village Mayor Craig Johnson says the village’s financial outlook is promising, though he doesn’t believe the village is entirely out of the woods.

That’s the essence of the message Johnson will give during his annual State of the Village address to business leaders at noon Thursday, May 5, at Belvedere Banquets, 1170 W. Devon Ave., Elk Grove Village.

In the 2010-2011 budget year, the village reduced 38 positions through attrition, by not filling vacancies and consolidating departments. The village also reduced its special events spending and froze salaries of all employees. The village recently granted raises to all employees, including nonunion workers, and police, fire and public works unions, effective May 1.

The village also approved a roughly $40 million operating budget for the 2011-2012 fiscal year that includes $723,000 for employee raises.

“We are still spending $1.8 million out of our rainy day fund in 2011-2012,” Johnson said.

That still leaves the fund in good shape with about $200,000 above the desired benchmark of four months worth of operating expenses, or $12 million, that he said officials like to maintain as a cushion.

Yet, Johnson said he does not know how long the village can go before raising property taxes, which it hasn’t done in four years.

While the village’s business park occupancy rate dropped a quarter percent in the second quarter compared to the beginning of the year, its sales tax revenue and building permits are up.

During his address, Johnson will unveil the village’s 10-year revitalization plan for the business park and update residents on what’s happening with construction projects that are part of $13 million worth of road, sewer and infrastructure improvements funded through federal Build America Bonds that carry very low interest rates.