Hanover Park approves slightly smaller budget

Hanover Park officials Thursday approved the village's fiscal year 2013 budget with a minimal decrease and zero objection.

The general fund's operating budget will shrink by $86,380, or 0.3 percent, to $26.8 million. The overall budget including debt service, capital expenditures and other funds will be about $50.5 million.

“The financial condition of the village is relatively healthy,” Village Manager Ron Moser said in his budget message. “However, the village must be cognizant of the negative effects the overall U.S. economy could have on our local budget and revenues.”

Moser said the village's economy is emerging from the recession and appears to be stabilizing. The budget, which he called optimistic but conservative, doesn't include any layoffs, and general sales tax receipts are expected to grow 3.5 percent.

The upcoming budget, which begins May 1, also calls for $5.9 million in capital projects. That's a 79 percent decrease from last year when the new $15 million police station was constructed.

The budget does reflect a $350,000 increase, or 3.8 percent hike, in the property tax levy of $9.6 million. Officials said the bigger levy was needed to capture the incremental revenue generated after the village's TIF district No. 2 expired at the end of December.

Hanover Park residents will also have to deal with 22 percent higher water rates, a move officials called drastic but necessary after the city of Chicago raised its rates.

Based on input from the village board and staff, the budget lays out “vital” priorities for the village in the upcoming year. The focus will be to develop and improve the Hanover Square Shopping Center, complete a full disconnection from the Bloomingdale Fire Protection District and begin planning for a new joint village facility located in the south end of Hanover Park that will incorporate the needs of fire, police and public works.