Libertyville not so quick to spend

Funds were available, but the delay of a $14,000 renovation at the Adler Park ice rink is a sign of the times in Libertyville.

"I think we should let this go and see if we can budget it some other time," Trustee Bob Peron said during discussion of the project last week. "We need to start saving some money."

In rejecting the improvement, Peron and other trustees acknowledged a financial scenario in which sales tax receipts, particularly in the automotive category, have plunged.

Park improvements are funded separately and don't rely on sales taxes. Still, the decision not to pursue that improvement, as well as a $30,000 sewer lining project and other nonessential items, are indications the village board is in full belt-tightening mode.

"You can't apply the philosophy, 'It's in our budget, we've got to spend it,' " Trustee Luke Lukens said. "The more prudent thing is to hold off."

Budget concerns and potential cuts are expected to surface today during a village board planning retreat to discuss goals for the 2009-10 fiscal year, which begins May 1.

The sales tax drop has been precipitous enough that five vacant full-time positions won't be filled as part of a villagewide hiring freeze. The village projects that sales taxes, which pay for about one-third of day-to-day expenses, could be as much as $500,000 less than expected.

In 2007, total sales tax revenue was reported at about $7 million, with $4.3 million or 61 percent coming from auto related sales. The village has been scaling back expectations in recent years and had budgeted $6.2 million in the 2008-09 fiscal year budget for sales tax revenues.

Figures from the Illinois Department of Revenue showed the village portion revenue in the automotive and filling station category dropped from about $1.2 million in the second quarter last year to just more than $1 million in April, May and June this year. Revenue from building permits also is lower than expected because of economic conditions, and the village likely is facing spending cuts.

"There's going to be some hard decisions made here," Mayor Jeff Harger said. "We'll have to probably cut back some services we wouldn't like to."

Auto sales aren't the only concern, as some visible vacancies have arisen in the downtown shopping district.

"Obviously we want the sales tax revenue, but we (also) want those people to survive," Harger said.