Gurnee feeling recession's hit

Gurnee village board members took a final peek Monday night at the new proposed $45.4 million budget, which now anticipates sales tax will be lower than initially projected because of the recession.

Trustees and Mayor Kristina Kovarik began the first of five public budget discussions March 2. The elected officials heard about different spending plans from Gurnee department heads and asked them questions along the way.

Village board members are to vote on the final budget document April 20. Gurnee's budget year runs from May 1 through April 30, 2010.

Sales tax revenue - Gurnee's biggest cash source - at first was projected to drop by $1.3 million. However, Village Administrator James Hayner said Monday that revised numbers show sales tax may be off another $400,000 for a total decline of $1.7 million.

Hayner said Gurnee projects $15.3 million in sales tax revenue. The budget also shows Gurnee's flat 3 percent amusement tax, mostly generated from Six Flags Great America, is expected to drop slightly to just under $2 million.

Mayor Kristina Kovarik said the village has initiated a number of belt-tightening measures for the new budget. Those moves include dropping a Fourth of July fireworks show and shifting the village newsletter from every two months to quarterly.

"It's those things or people," Kovarik said. "And we'd rather hang on to people."

Meanwhile, Gurnee's deal with Midwest Operating Engineers Local 150 calls for 3.5 percent cost-of-living increases and an extra 4 percent for employees not at the top scale on their anniversary date. The Operating Engineers' contract, which expires April 30, 2010, includes fire inspectors, public works, most of the community development staff and half of the administration office.

Under the Fraternal Order of Police union contract, most of Gurnee's sworn officers are in line for a 4 percent pay boost and another 5 percent if they have topped out on salary. The firefighters' union contract calls for the same raises.