Roselle approves deficit budget

Roselle will begin the new year with a budget that could allow the village to spend about $137,000 more than it takes in.

Village trustees this week approved a nearly $30 million budget for the fiscal year, which starts Jan. 1.

However, two of the six board members voted against the spending plan because its roughly $15 million general fund, which pays for salaries and operating expenses, is projected to end next year with a deficit of $137,162.

The gap will be covered by dipping into the village's $3.8 million general fund reserve if 2015 revenues don't increase and cover the difference.

"I don't believe we should be dipping into reserves," said Trustee Ronald Baker, who voted no with Trustee Patrick Devitt. "I think it sets a bad precedent.

Mayor Gayle Smolinski pointed out the village has approved deficit budgets in the past only to end those years in the black. She said what's important is to have a spending plan that's good for the village.

"We would rather be a little more aggressive in some of our initiatives that we think will help position our village better financially in the long-term," Smolinski said. "That's why we're willing to put those in the budget now."

The general fund's revenues, which include sales taxes and property taxes, are expected to increase by about $254,000 next year.

But expenditures are proposed to rise because of increased service demand and the need to hire more contract firefighter/paramedics, officials said.

The budget does set aside about $352,000 for several smaller capital projects, including:

• $135,000 for Hill Street stormwater culvert lining;

• $107,390 for emerald ash borer management program;

• $75,000 for public works and fire department facility maintenance

Discussions about other capital projects have been delayed until after the village gets more definitive cost estimates for their share of the Elgin-O'Hare Expressway project, landscaping and sign upgrades. Village officials also are waiting for more information about train horn "quiet zone" measures.

Also this week, trustees approved the property tax levy, which is the share of the budget paid for by property owners. Roselle's tax levy request will be $5.4 million. That total is amost 5.5 percent more than what the village could collect this year.

The owner of a home valued at $205,000 pays $497 a year in property taxes to the village. With the requested levy, that amount is expected to increase by $8 annually.

Because of the increasing cost of Lake Michigan water, the water rate in Roselle is expected to increase by 71 cents for every 1,000 gallons of water used. The average household in Roselle uses 6,000 gallons of water per month, officials said.