More cuts needed to keep Hampshire in the black

If you need a building permit or want to pay your water bill in Hampshire, don't wait until Friday afternoon to make the trip to village hall: no one will be there to help you.

Village trustees last week approved a half-day furlough for village employees, as well as additional cost-saving measures, as the village looks to make up an anticipated $213,000 general fund shortfall.

Despite some resourceful moves to trim the budget before the fiscal year began in May, worse than expected revenue numbers are forcing the village to make further cuts, Village Administrator Eric Palm said.

Beginning Friday, Dec. 4, the public works department will close at 11 a.m., while village hall will close for business at noon, Palm said. The earlier closing times will remain through the fiscal year that ends April 30, and are expected to save the village $12,721 in the general fund and another $10,600 in the water and sewer fund, Palm said.

"At the end of the day, the impact on residents will not change," Palm said. "It might take a little longer to get a hold of somebody. We will continue to adjust cutbacks where we feel it is appropriate, and I don't think residents expect anything less."

Jeff Magnussen makes $9,500 per year as village president. He agreed to forgo his village salary for the rest of the fiscal year, in line with the half-day furlough for village hall employees.

"Everyone is in the same boat here and it is just a matter of being part of the team," Magnussen said. "I am no different from village employees."

Trustees Martin Ebert, Jerry Shepardson and Ed Szydlowski also volunteered to give up their trustee stipends until the new year. Village board members are paid $75 per board meeting and $25 for committee meetings.

"We will continue to monitor everything and we are keeping our expenses in line," Palm said. "There have been cutbacks - line item by line item - but from what we are seeing, that's not enough."

Some of the cost-cutting practices the village employed before the fiscal year began in May included leaving vacant positions like police chief and finance director unfilled, freezing salaries and having employees clean their own office space. The village also saved about $88,000 by holding off the transfer of funds to a debt service that has a significant balance, Palm said.

Although the village's spending has remained on par with projections, the village's income from sales tax and income tax revenue is lagging behind expectations, Palm said. In May, Palm projected sales tax revenue of $740,000, but that figure was tweaked last week to $620,000. Meanwhile, the village's share of state income tax revenue shrunk from about $350,000 to $300,000.

"We are doing well with expenses," Palm said. "But from what we are seeing and what the state is advising, we will be $213,000 in the red at the end of the year if we don't make adjustments."

The board gave preliminary approval for an increase in the village's telecommunications tax from 5 percent to 6 percent. Palm said based on deadlines, that increase will not take affect until July 2010.