Carpentersville trustee warns of fiscal troubles ahead

It took the Carpentersville village board several toilsome months to make up a $2.5 million budget deficit and approve a balanced budget.

Now, less than a month into the new fiscal year, one trustee warns the situation could worsen if the village refuses to make tough decisions.

Trustee Paul Humpfer said the village cannot continue to raise taxes and fees to balance the budget - as it did for the 2010-2011 fiscal year. Humpfer and one other trustee voted against approving the budget.

"I look at other communities and I don't see too many raising taxes," said Humpfer, who noted the village's portion of his own property tax bill spiked about 10 percent this year. "I need to demonstrate to the staff and board that what we did last year is not sustainable. We could get to a $2 million deficit if something doesn't change."

Village Manager Craig Anderson said he could not comment on a projected deficit, but feels Humpfer's concerns are well placed.

"I don't think there is much doubt that unless the economy turns around, the village will face difficult decisions come budget time," Anderson said. "We do need to look at sustainability and how we provide the same high level of services with the same, less or diminished revenues."

Anderson said the conversation about next year's budget needs to start immediately. Generally, staff begins work on the budget in early fall, he said.

"If there are going to be changes made, we would need to get on it sooner rather than later," Anderson said. "We don't know yet if there will be staffing changes that need to be made, or if there are things that we're doing that aren't working or that we need to be doing differently. They are some things to think about, too."

To help balance the current year's budget, the village board voted to keep part of the property taxes the village typically uses to repay bond debts. The non-abated portions bolstered the water and sewer fund. In addition, the board raised water and sewer rates, property taxes and several fees to augment the village's revenues

Humpfer, who also chairs the village's audit and finance commission, said the village needs to find a way to raise revenues without raising taxes, or cut expenses to avoid similar budget difficulties next year.

An expense Humpfer said the board needs to reconsider is the $12 million public works facility planned for the east side.

The village will likely issue about $20 million in bonds to pay for the new facility. The remainder of the money would support the village's ongoing street repair program.

"Everything needs to be on the table," Humpfer said. "I don't like that our equipment sits outside, but we will need to raise taxes to get additional bonds. I don't think our residents can do that."