Mount Prospect is in good financial shape today, but faces a structural deficit in the years ahead as projected expenses will slightly outpace revenues, the village's finance director told elected officials this week.
Finance Director David Erb said the village emerged from 2013 with a budget surplus of $517,000. Even with about $200,000 in carry-over expenses from the 2013 being addressed in the 2014 budget, the village was left with about $300,000 in new money in reserve, he said.
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Revenue categories where results differed significantly from the prior year included sales tax revenue, which was more than $12 million, up about $900,000, Erb said. Real estate transfer taxes -- more than $800,000 -- were $400,000 higher than the prior year, and the village's share of state income taxes, $5.1 million, was more than $400,000 higher than projected. The telecommunications tax, however, dropped almost $800,000, to about $2.1 million.
"It was a good year, bottom line," Erb said.
Erb sounded a similarly positive note for 2014, with revenues currently tracking at $290,000 over projections.
"We're in a good place moving forward," he said.
Assistant Village Manager David Strahl raised the prospect of the village raising fees for the community development department, which handles such areas as permits, to help deal with possible structural deficits in the years ahead. The board will be discussing fees at a future committee of the whole meeting.
Erb projected the 2014 tax levy, to be collected in 2015, at about $18 million, an increase of about 4.5 percent. The 2013 levy, collected in 2014, was up 5 percent over the previous year.