Mount Prospect ends year with surplus, but expects lean times ahead

Despite warnings of a nearly $900,000 deficit, Mount Prospect finished the 2011 fiscal year with a surplus of $400,000, village trustees and other officials learned Tuesday.

Village Finance Director David Erb said the village finished the year $386,000 in the black, a pleasant surprise given the $881,000 shortfall that was projected. He attributed the good news to the village’s efforts to trim expenses, which resulted in more than $1.2 million in savings.

Erb warned, however, that part of the surplus is already spoken for. About $186,000 is earmarked for capital projects carried over from the previous year, while $95,000 is targeted for the Community Connections Center, he said.

Trustee Steve Polit questioned whether the village should instead use leftover funds to restore some of the jobs eliminated in previous budget cuts, particularly in public safety.

Village Manager Michael Janonis said that would be a policy decision reflecting the priorities of the board.

“You can do whatever you want, as long as you can pay for it,” he said.

But Trustee Paul Hoefert said he worries unforeseen expenses could arise that would force the village to again make job cuts.

“I understand what Trustee Polit is saying,” he said. “I don’t necessarily disagree. But to put it in to take it out, kind of gives you false hope.”

Erb said current forecasts call for a $223,000 budget deficit in the 2012 fiscal year and a $804,000 shortfall in 2013.

He said he expects the village later this year to seek a $16.4 million levy for general operations, a 3.95 percent.

Officials said the village faces several challenges that could affect projections, including the need to play catch-up on its street resurfacing program. Each year, the village aims to resurface 6.8 miles of streets. But because of shortfalls in motor fuel tax and street construction funds, the village only resurfaced 5 miles in 2010, 4.9 miles in 2011 and expects to resurface only 4.7 miles this year.

Other challenges include the need to spend as much as $14.4 million to improve the village’s stormwater system, the removal and replacement of trees infested with the emerald ash borer and the installation of an automatic meter reading system for both residential and commercial properties.