Buffalo Grove's projected deficit fails to materialize
A $1.6 million shortfall projected in Buffalo Grove's budget heading into 2014 has failed to materialize as village leaders begin to work on next year's spending plan, officials said this week.
Officials credited efficiency measures for the improved financial outlook and projections calling for a balanced budget next year. One such measure discussed was the decision to eliminate the village's information technology department and outsource its work.
Village Manager Dane Bragg and Finance Director Scott Anderson painted a healthy financial picture during a presentation to elected officials Monday, saying Buffalo Grove will maintain its AAA bond rating from Moody's Investors Service and a fund balance of a little more than 31 percent.
The result for residents who look at the village's share of their property tax bill - which is about 11 percent of the total - is a proposed $14.7 million tax levy, an increase of just .7 percent.
The anticipated budget for 2015 is $78 million, including $39 million for general operations. Bragg said the village's workforce will decrease from 297 to 294 employees. There has been an 11 percent decrease in staffing over the past four years, he said.
The long-term outlook is not completely rosy, however. Down the road, Bragg said, the village will need to find additional revenues to avoid a structural deficit of nearly $1 million annually by 2019.
Of particular concern, he said, will be the need to fund street maintenance and repairs.
"We have to increase the size of the pie, unless we want to increase the revenues that come from our local taxpayers," he said.
Village President Jeffrey Braiman and Trustee Beverly Sussman questioned Anderson about eliminating the information technology department and whether it resulted in savings.
Anderson said the village has saved in the neighborhood of $250,000 gross as a result, adding that some of those dollars paid for much-needed infrastructure, including hardware improvements.
During a discussion of revenues at the two village golf courses, Geoff Tollefson, the head golf professional, warned that the irrigation systems at both the Buffalo Grove and Arboretum courses are nearing the end of their useful lives. Their replacement, along with other improvements such as new carpeting at the Arboretum banquet facility, could carry a price tag of $2 million to $3 million.
The budget calls for the two courses to receive a combined subsidy of $340,000 from the village.
Braiman suggested the prospect of rate increases at the golf courses.
"I think we have to look at ... what the rates are and whether or not we need to raise those rates to be more efficient, more profitable," he said.