Mt. Prospect not expecting quick recovery

Like many other villages Mount Prospect is getting ready to enter its second year of historically tough times for their local budget.

Village officials will survive 2010, but things will have to change in 2011.

"I don't think furlough days and making temporary changes are the answer," said Trustee Arlene Juracek at a budget workshop on Tuesday. "We are a country club here. There are a lot of things we could cut if we had to."

And they might. Mount Prospect is facing a $3 million general fund deficit in 2011 and a shrinking fund balance. In 2008, the fund balance was $12.5 million. In 2011, that balance is expected to be only $5.8 million, according to Finance Director David Erb's projections.

The $3.1 million deficit is thanks to decreased revenues in home sales tax, real estate transfer tax, utility taxes and investment income, Erb said. Some aren't expected to recover anytime soon. For example transfer tax receipts are off almost 70 percent form their high point in 2005.

"We need to take a look at how we do business," he said. "We have to do things differently."

Trustee Steven Polit said residents understand the dire situation villages like Mount Prospect are in.

"People in this village know we have to make changes," he said. "They are aware."

Once the remodeling of Randhurst is complete, the village can expect an additional $1 million in sales tax revenue, according to Community Development Director Bill Cooney.

The $200-million rebuild project is slated to be complete by the spring 2011. However, the village probably won't see additional sales tax money until 2012, Erb said.

"It's really a big unknown as far as what it will generate," he said.

The board will discuss the 2011 budget in October and November with final approval expected in December.