W. Dundee officials look at ways to boost bottom line
West Dundee officials are considering some resourceful revenue makers as an ailing economy -- combined with a decline in new housing and retail developments -- threatens to drive the village's budget hundreds of thousands of dollars into the red.
Preliminary review sessions for the 2008-09 budget suggest that next year, the village's spending could outpace its revenues by as much as $300,000.
The village board has yet to approve the budget.
"We are forecasting that there will be a deficit in the financial system if we don't find ways to fill the void," Village President Larry Keller said.
"We need ways to improve the revenue stream. So, the village board needs to decide if it is going to increase revenue, decrease spending or do something in between," Keller said.
The village did not include revenue from new developments in its budget, which would boost the village's bottom line, Keller said.
"This is really a short-term cash flow problem," Keller said. "From a financial viewpoint, we don't want to plan to use money that doesn't have a track record yet."
Some of the new revenue streams, however, could include raising property taxes, adding a garbage collection fee and introducing a food and beverage tax or a telecommunication tax.
A separate fee for trash collection, which is currently paid for through property taxes, would net the village an additional $475,000 per year.
Meanwhile, raising the food and beverage tax from 1 percent to 5 percent would raise about $300,000 per year.
The village, Keller said, has experienced an economic slowdown in recent years.
Next year's revenues are expected to reach about $2.86 million -- down from a high of $3.5 million in 2001.
"We are seeing more pressure from the Randall Road corridor," Keller said. "When you don't grow that many new residences and there are more places for them to spend their money, then our market share goes down."
The village board will discuss revenue options at its March 31 board meeting.