$10 million budget surplus for DuPage County

DuPage County's revenues outpaced spending by almost $10 million in 2009.

The surplus comes despite weaker than anticipated sales tax receipts. And it may come in handy as state reimbursements are months behind and rumors swirl about the state withholding millions of dollars in income tax payments to counties.

Fred Backfield, the county's chief financial officer, reported the surplus during his budget update at Tuesday's county board meeting. The 2009 fiscal year ended in November.

"It's definitely contrary to prevailing government trends," he said. "This had a favorable impact on the county's general fund cash balance."

The county board had initially anticipated spending down some of the county's $44.7 million in reserves in 2009, but now the reserve fund is up to $46.9 million as a result of the surplus. The county normally keeps its reserve funds between 20 percent and 25 percent of the annual general fund. The reserves would now be 27.5 percent of the projected 2010 general fund revenues.

Some board members remain worried about Backfield's 2010 sales tax revenue projections that call for a 9 percent increase over 2009 levels. In fact, sales tax revenues are off $300,000 through the first two months of the 2010 fiscal year, Backfield said.

"February sales tax numbers, while incomplete, appear to be close to projected levels and higher than January levels," he said.

Backfield contends there are signs the economy is rebounding. He also noted that the county's additional quarter percent sales tax enacted in 2008 as part of the Regional Transit Authority bailout collects more revenue each month than the county's other quarter percent sales tax. That's because the newer tax is levied on food and drugs, he said. That amounted to roughly $3 million extra in 2009, according to Backfield.

March will be a bellwether month for sales tax revenues as Backfield forecasts the county's largest monthly payout of the fiscal year for that time frame. March sales tax receipts are typically higher than any other month because Christmas sales are reported then.

The 2010 budget does not call for employee raises or additional personnel, but does anticipate an additional $17.5 million in spending over the last fiscal year. The 2010 budget anticipates an additional $7.6 million in contractual services as well as more capital improvement spending over the previous year.

But Backfield continued to warn the board about state payments, saying the very little anticipated revenue from the state has been received.

Board member Dirk Enger asked about the potential of property tax payment delinquencies affecting county revenues, but Backfield insisted that recouping those dollars would be easier than collecting delinquent state dollars.