Carpentersville board OKs balanced buget for 2010-11

Fee hikes, tax increases, layoffs and unfilled positions have enabled the Carpentersville village board to approve a 2010-2011 fiscal year budget that is in the black after several arduous months of trying to dig the village out of a $2.5 million deficit.

Trustees on Tuesday voted 5-2 to approve the $57.85 million budget where projected revenues exceed planned expenditures that village staff say is fiscally responsible and allows for unexpected changes. Revenues in the general fund, which pays for a majority of the village's operating expenses, is almost $48,000 in the black, while the water and sewer fund revenues are projected to exceed expenditures by about $122,000.

To produce a budget document with some extra padding, the village board earlier this year approved property tax increases, doubled the trash collection fee and also doubled the village's impound fee to fill part of a $1.5 million hole in the general fund.

In addition, the village reduced several positions to part time and several vacant positions will remain unfilled. Trustees also approved a 7 percent increase in the village's water and sewer rates to compensate for shortfall of about $900,000 in the water and sewer fund.

However, tTustees Paul Humpfer and Patricia Schultz argued the village had not fully considered other revenue options such as reducing staff and management positions.

"We are increasing the costs to residents but decreasing services," Humpfer said, chairman of the village's audit and finance commission. "I am concerned for the future. What do we do next year? What is going to change in the future where we can continue to somehow balance the budget?"

Humpfer said the village's reluctance to factor in a 30 percent reduction in state income tax revenues could prove detrimental if the governor's proposal came to pass. The reduction would cost Carpentersville more than $800,000 in revenue and would likely force further layoffs.

Schultz said the village used a Band-Aid to balance the 2010-2011 budget instead of finding ways to streamline the village's staffing.

Village President Ed Ritter said the village would need to begin exploring options early to prevent a similar scenario during preparations for the 2011-2012 budget but said the village was "not in a position to not pass" the budget that takes affect May 1.