Higher fees, water rates shore up Palatine budget

Palatine residents can expect to pay a bit more to help offset parched revenue streams.

Citing increases in the cost of metal, brass, petroleum, asphalt and other raw materials, the village council voted Monday to raise 2009 water and sewer rates by 8.1 percent to $2.67 per 1,000 gallons of water.

The average residential customer would see a total increase of $10.50 over the year, according to Village Manager Reid Ottesen.

He added that Palatine's rates are low compared with surrounding communities'. A family of four using 6,000 gallons of water monthly will pay $17.77 in Palatine, while residents in Barrington, Mount Prospect, Rolling Meadows and Schaumburg pay more than $40.

The village is also targeting procrastinators.

Vehicle sticker late fees will double to $20, contributing an estimated $50,000 in additional revenue for the village's street maintenance program. Vehicle sticker fees contribute about $1 million each year.

"It's become a cash flow problem, and we hope this will encourage on-time payments without affecting law-abiding residents," said Ottesen.

The changes will help offset notable declines in other revenue sources. The simplified telecommunications tax, which funds the capital equipment and improvement program, is projected to bring in $174,000 less than in 2008. And, not surprising given the current economic climate, revenue from building permits and inspection fees is expected to drop 41 percent, or $376,000. Ottesen said there is still construction activity in Palatine, just on smaller projects than in past years.

Officials did give residents a reprieve in one area. According to the Municipal Cost Index, the village is required to raise hundreds of fees covering fence installations to dog licenses by a collective 8.1 percent. Instead, the council approved an ordinance cutting back the increase to 3.5 percent.

"There's just no way we could put residents through that given the current state of the economy," said Ottesen.

The 2009 budget, approved Monday by the council, already reflects the changes. Palatine's budget next year is $121.9 million, up 7 percent from $113.7 million in 2008.