Elk Grove OKs a leaner budget

The Elk Grove Village board Tuesday night approved a roughly $89 million budget for 2010-2011 - about $10 million less than the current fiscal year's expenditures.

Village officials were initially anticipating expenditures for the fiscal year starting May 1 would be $83.2 million. But as this fiscal year's actual expenditures went up, so did next year's numbers.

"We spent $4 million of our rainy day fund for (the 2009-2010) budget," Mayor Craig Johnson said. "We expect to use $2 million (in 2010-2011) from the rainy day fund."

The village's reserves, which were $19 million 18 months ago, will be down to $12.5 million by May 1, 2011, or right at four months worth of operating expenses that officials like to maintain as a cushion.

"We're optimistic that some of the ideas we are working on now could reverse that trend," Johnson said, declining to give specifics. "The way of governing in the past has to change. We have become a much more efficient organization. We've been adjusting quicker and redoing the way we provide our services."

Of the $89 million, general fund expenditures make up roughly $42 million, water and sewer fund expenses amount to $15 million, roughly $13 million is earmarked for capital projects, police and fire pension funds costs are at $8 million, library budget is at $5 million and debt service costs are about $3 million.

The village will be borrowing the $13 million for capital projects and infrastructure upgrades by way of general obligation or Build America Bonds. The money will be used for improvements to roadways, streetlights, landscaping, railroad crossings, intrusion bays for trucks, a salt dome and two business park message signs.

Elk Grove has held back on raising the village portion of the property tax levy for three years.

The 2010 budget includes cutbacks such as pay freezes, eliminating seven employee positions through attrition and retirements, deferring hiring for 18 vacancies, and reducing special events spending.

All village employees - including the mayor, village manager, village attorney, department heads, nonunion employees, and police, fire and public works unions - will not receive pay raises in 2010 as salary ranges remain frozen at current levels.

Public works, police and fire union employees voluntarily agreed to forgo 3.25 percent pay raises that would have gone into effect May 1. The three unions jointly amount to roughly 80 percent of the village's 350 employees, including part-time staff and summer help. The pay freeze saves the village $850,000.

While 85 percent to 90 percent of village employees do not get step increases, the remaining employees will still receive 2 percent step increases next year as agreed to contractually.