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More spending cuts for Huntley as sales tax revenue drops again

As revenues from businesses and new homes slumped in 2009, Huntley cut spending by almost 20 percent.

It will be more of the same in 2010 as the village continues to cope with declining sales tax revenue and a weak housing market.

The village will realize about $540,000 in savings in 2010, roughly the same amount it saved in 2009, Village Manager Dave Johnson said Thursday.

More than half of that savings will come from not filling vacant positions; the village will also save on outside consultants, janitorial services, landscaping and road salt, Johnson said.

Officials said they did not intend to balance the budget with higher taxes, although the village gained additional taxing powers when its population surpassed 25,000.

The tentative outline of next year's cost-saving proposals came during Thursday's budget workshop, the start of the annual budget process.

Johnson said the village's conservative approach has already paid off.

"If you look at our overall financial position, we are certainly in a positive place right now but a cautious place given the state of the economy," Johnson said.

Huntley officials hope they can offset some of the shrinking revenue streams with incentives for new businesses.

The village board approved a policy Thursday that formalizes the process for applying for financial incentives.

The policy requires each business seeking help to submit a formal application that includes a business plan, evidence of its financial health and proposed improvements to surrounding infrastructure.

Village staff are now required to evaluate each application based on the potential for the development to generate sales tax, create jobs and spur additional growth.

The village in August agreed to provide $75,000 in sales tax and fee rebates to persuade Walgreen's to open a store in Huntley.

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