Algonquin converts to 'savings mode'

Don't think that Algonquin's village coffers are immune to the declining housing market.

With construction slowing down, the village has received significantly less money from developers this fiscal year than it has in the past.

As a result, the proposed capital budget for the upcoming fiscal year that begins May 1 is $6 million, a figure that's $5 million lower than it was in 2007.

"We are in a savings mode right now," Village Administrator Bill Ganek told trustees this week.

The village mostly will move forward with wrapping up existing projects, such as expansion of the water treatment plant.

And because the village is getting fewer dollars from developers, it's being more selective about the number of new projects it's taking on.

Next fiscal year, Algonquin will focus on extensive road, drainage and curb repairs to the Arrowhead subdivision that carry a price tag of $1.6 million, Ganek said.

Roadwork that includes pedestrian walkways, curbs and rebuilt streets could be in store for the south end of Hanson Road in the upcoming fiscal year, he said.

Since the McHenry County Council of Mayors is picking up 80 percent of the tab for the Hanson Road project, the village is only responsible for covering $300,000, Ganek said.

A portion of the expenses for both projects will extend into the 2009-10 fiscal year, when the village turns its attention to sprucing up the northern end of Hanson Road, Ganek said.

Another major project involves repainting the Hanson Road water tower, something that costs $280,000 and hasn't been done since the late 1980s.

Ganek also proposes spending $150,000 to fix sewer pipe linings at High Hill Park.

Impact fees from developers and money generated from the village's home rule tax will help pay for all of these projects.

When developer checks began shrinking more than two years ago, Ganek said he saw the writing on the wall in terms of which projects the village could undertake.

"This has not just popped up on us," he said. "This is a trend that development has been slow."