East Dundee budget changes include reduced staff, garbage pickup fee

A reduction in workforce, a new garbage collection fee and elimination of facade improvement programs are among the changes made by East Dundee officials to balance their 2017-18 budget.

The village board in April approved a budget that appeared balanced but contained about $900,000 in revenues that would not be realized, Village Administrator Jennifer Johnsen said. And with several ongoing tax incentives and debt service obligations to fund redevelopment projects, officials were anticipating a pattern of revenues not meeting expenses in the future, she said.

"Although we are excited and thrilled about the success, there's a real cost to it," Johnsen said. "We were able to project that we needed to make a net change this year that we could carry through in following years in order to balance our budget."

Rather than take on additional debt, the village board decided last month to add some revenue sources and make several spending cuts, resulting in a $1.4 million net change. East Dundee now has a balanced budget of just over $17 million for all funds, including general, capital, tax increment financing, business development district, water and sewer.

Between layoffs, resignations and open positions that have been left vacant, the village has lost five part-time and four full-time employees, including its marketing staff, Johnsen said. Contracted positions, such as the economic development and public works directors, have also been eliminated.

In addition to reducing legal, engineering and insurance costs, the village cut its commercial and residential facade programs, she said. Those programs offered matching grants for home or business improvement projects.

"We took a really hard look at our budget and saw where we could cut," Johnsen said.

The village has been recovering from the loss of roughly $850,000 in annual sales tax revenue when Walmart relocated from East Dundee to Carpentersville last summer, she said. Officials had previously raised the village's home rule sales tax, and water and sewer rates in anticipation of the store's departure.

"The village has done some planning, but that was definitely a contributing factor," Johnsen said.

To bring in more revenue, East Dundee is anticipating charging residents for garbage pickup services starting this year - a move that would put about $180,000 in the village's coffers this fiscal year, according to the amended budget. The village board is expected to vote on the measure this month.

During the next few years, the village also expects to recoup some incremental tax revenue from various redevelopment projects, Johnsen said. A new Speedway gas station and convenience store, for example, will likely bring in about $240,000 starting next year, she said, and new downtown developments, such as the multiuse building at 311 Barrington Ave., will soon begin generating tax revenue.