Algonquin proposes balanced operating budget

Algonquin officials expect to maintain a balanced operating budget next year despite an anticipated dip in property and income tax revenue.

The village board is expected to vote April 4 on a $19.6 million general fund budget proposed for 2017-18, which projects a roughly 2 percent decline from last year's budget in both revenues and expenditures, documents show.

Though sales tax revenues will likely increase about 1.3 percent because of economic growth, income tax revenue distributed to the village by the state is expected to drop 13 percent, Village Manager Tim Schloneger said in a memo. The proposed budget also factors in a 2.3 percent property tax levy decrease approved late last year.

Because of the dip in projected revenues, the village needs to be conservative in budgeting for its day-to-day expenses, Schloneger said.

"It is the overriding principle of the budget to deliver outstanding service to our citizens at a reasonable price without drawing down the village's working capital, assuming no additional tax burden on our residents," he said.

The new budget calls for no new debt or the hiring of additional personnel - the village's largest expense, Assistant Village Manager Mike Kumbera said. In fact, he said, four vacant staff positions are not being filled as part of Algonquin's long-term attrition strategy.

"We're re-evaluating our operation to see if there are ways to restructure and reorganize to absorb those duties with existing staff," he said.

The village's community development department is budgeting $50,000 to help downtown businesses become more established, Kumbera said. Another $50,000 is expected to go toward an outside firm that can help market vacant storefronts and commercial corridors in the village, such as the corporate campus off Randall Road.

"We're looking to get a little more aggressive and fill in vacant spaces," he said.

Trustees are also considering a $17.2 million capital fund budget, which includes $6.3 million worth of downtown improvements as part of the downtown streetscape plan.