West Dundee slowly but surely digging out of budget hole

The proverbial hole in West Dundee's current budget is shrinking, but a large gap still remains.

The village started the year with a $375,000 budget deficit, thanks to a shrinking sales tax base and increasing costs. But after the first half of the 2008-2009 budget year, village staff told the board last week that the shortfall could come down to $140,000 by the end of the year. That's a pretty sizable chunk of change that the village has recouped.

That $235,000 difference was attributed to department directors and other staff members tightening their fiscal belts and only spending money where absolutely necessary.

There were also better-than-expected revenues and lower-than expected expenses in the first six months. Those revenue totals will likely improve as the jam-packed holiday season quickly approaches. But, as long as its efforts stay on track, village officials expect the deficit to shrink even further by the end of the fiscal year.

Village staff is combing over every budget line item, identifying other possible cuts that could save the village further.

In a memo to the village board, finance director David Danielson identified a list of those items:

Part-salaries: $20,000

Travel and Dining: $4,000

Dues and memberships: $3,000

Subscriptions and publications: $1,800

Office supplies: $3,000

Operating supplies: $1,500

Medical supplies: $3,000

Donations: $5,000

Small equipment, tools, hardware: $1,000

Curbs/sidewalks: $5,000

Computer equipment/replacement: $5,000

Total savings: $52,300

Since the village has already cut a significant list from its operating expenditures, village officials say it is difficult to keep trimming from the general fund. Any additional cost savings in the general fund would likely come from the reduction of services or employee expenses, Danielson wrote in the memo.

It remains to be seen how the village plans to make up the rest of the deficit in the next six months, though village officials are mulling a number of options.

Since voters rejected a real estate transfer tax at the polls on November 4, trustees and staff have bandied around alternatives including a property tax levy increase, an additional waste management fee or a food and beverage tax.

The real estate transfer tax, which would have been set at $5 per $1,000 of the residential property's sale price, was expected to generate about $200,000 annually. Home buyers purchasing their first home in West Dundee would have been responsible for the tax. Those selling one home and buying another in West Dundee would have been exempt.

There's not much fat to trim in West Dundee's budget. The village board will discuss options of raising revenue or cutting services at its next board meeting, 7:30 p.m., Monday, Nov. 18 at village hall, 102 S. Second Street.