Huntley to cut costs as revenue declines in 2009

The slumping housing market and weak retail sector will hit Huntley hard next year, prompting the village to cut spending by almost 20 percent.

Village officials don't anticipate layoffs or reductions in service but will reduce costs by deferring large capital projects and moving some operations in house.

"We're not looking to cut any programs or services," Village Manager Dave Johnson said. "We're certainly not in any position to add any significant programs."

Huntley's 2009 budget of about $22.6 million is about $5.5 million lighter than this year's budget of about $28.1 million.

The village will save about $5 million by holding off on expanding water and sewer infrastructure for undeveloped areas of the village south of Interstate 90.

Another $200,000 in savings will come from not filling five vacant positions: assistant village manager, Johnson's former post; three police officers and a water department position.

Having village employees complete certain tasks that were previously done by contractors will save about $200,000. And with the village losing its battle with ComEd, Huntley will save about $120,000 in legal fees.

Johnson confirmed this week that the village will not appeal a state panel's ruling in favor of ComEd's plans to erect new transmission lines through the village.

"We have at this point decided to move on and won't be fighting that battle anymore," Johnson said.

Village officials hope the cost reductions will enable Huntley to stay in the black even with revenue from building permits expected to decline next year and sales tax revenue projected to stay flat.

"We're trying to be extremely conservative as we move forward in 2009," Johnson said.

Even with a tight budget, the village will set aside almost $2 million next year toward the widening of Route 47 and will spend about $760,000 to design a full interchange at Route 47 and the tollway. Both projects await a state capital bill, which hasn't passed since 1999.

Huntley will also spend about $1 million to resurface streets in the village as part of its ongoing street improvement plan.

The village has asked for almost $4 million in local property taxes this year, a 23-percent increase over last year's property tax haul of about $3.2 million.

But officials estimate the village will only collect about $3.4 million, or 6 percent more than last year, because the law limits tax increases to the rate of inflation plus new construction.

Village officials overestimate how much tax revenue the village will receive to maximize the village's tax collections.

The tax rate is expected to drop from 41 cents to 37 cents per $100 of equalized assessed value, but tax bills still could rise if assessments go up.