Carol Stream plans to dip into reserves

Carol Stream will likely have a balanced budget next year, but that will come at the cost of dipping into some reserves.

The village board was given another overview of the village's finances Monday. The latest update took into account the most recent sales and income tax numbers.

In February, for example, the real estate transfer tax was $3,405, compared to the $65,000 in the current budget.

For now, Carol Stream Finance Director Stan Helgerson said there will be a $1.3 million deficit in 2010, compared to about $740,000 that the village had expected earlier in the year.

Helgerson said that whole deficit comes from the revenue side; the village hasn't increased any of its expenses. The plus side, he said, is that if the economy turns, much of the money will start coming back in.

"The potential of it coming back is there," he said.

Helgerson said the village has been anticipating a budget shortfall and the turn in the economy for 18 months now. The village has kept many positions open, including four police officers and two spots in the community development department.

The village staff also froze several items, up to $1.2 million, that were supposed to be part of the 2009 budget. For next year, the village is also eliminating travel to conferences, keeping several jobs open and not buying GPS systems for snow plows and street sweepers.

"It's kept us off layoff positions," Helgerson said of the cuts made so far this year.

Village Manager Joe Breinig stressed that the budget is only including items that are necessary; no big, new projects will be taken on.

"The budget is a maintenance budget," he said. "This isn't a year of innovation and breakthrough."

Carol Stream likely will have to use its reserves for two years to keep a balanced budget. Helgerson said if the economy doesn't turn around by then, other tactics will have to employed.

"The reserves are there for this type of purpose," he said.