Mundelein set to trim its budget

Fearing a prolonged recession, Mundelein officials plan to trim their annual budget for the next fiscal year.

The $43.2 million proposed spending plan is more than $1.1 million leaner than the budget for the current fiscal year, which ends April 30. That's a decrease of about 2.5 percent.

The village's financial outlook was rosier a year ago. The current fiscal year's budget actually was about $3 million greater than the previous year's.

Decreasing revenues, rising gasoline costs and other factors have prompted officials to tighten their belts for the year ahead, however.

"This is a year I think all of us are concerned about our revenue," said Trustee Ed Sullivan, who leads the board's finance committee.

The village board discussed the proposed budget in a committee of the whole meeting last week. Two similar sessions are scheduled for later this month.

Officials expect to collect about $39.2 million from taxes, fines, building fees and other revenues over the next year. That's about $1.1 million less than the expected total for the current fiscal year.

Budget planners were particularly concerned about the village's anticipated sales tax revenue stream, which would be impacted by a recession and already seems to be slowing.

Additionally, officials expect a general slowdown in development to reduce impact fees and other revenue for the village.

They're also anxious about rising gasoline costs, which resulted in more than $90,000 worth of unexpected costs for the current year's budget, officials said. The gasoline budget for the proposed budget is 36 percent higher than the current year's, according to a village report.

The budget includes more than $1.2 million that's marked as "on hold" and hasn't yet been authorized, officials said. If revenues fall short of projects, these items -- including supplies and proposed computer purchases, officials said -- may be cut from the budget.

Other local government agencies, including the Lake County Forest Preserve District, have adjusted upcoming spending plans because of growing recession fears.

"You'd have to be living under a rock not to notice what's happening to our neighbors," Village Administrator John Lobaito said. "We feel that same pressure."

The next budget talks are set for 6 p.m. today and 6 p.m. April 28. The village board likely will approve the budget following the April 28 discussion.