Huntley begins budget talks

The weak economic conditions that have forced the village of Huntley to trim about $1.2 million from its already lean budget over the last three years will likely persist and present further challenges in the 2011 fiscal year, village officials say.

The village board on Thursday held a preliminary budget workshop for the 2011 fiscal year that begins January 1. The presentation included a series of cost saving proposals, as well as anticipated expenses from the village's general fund.

Unfortunately, this document is presented under the same, if not worse, economic conditions that existed in formulating the 2010 budget,” Village Manager David Johnson said, “But we are showing a $165,000 cost-savings right off the bat.”

Part of the savings come from reducing the use of consultants and reallocating the costs of the village's tree replacement program. Staff also proposed a water system inspection program that could save the village about $80,000. Currently, the village covers the costs of inspecting backflow systems annually for those in the village who require it. Private contractors charge between $50 and $100 per inspection. Under the proposed program, village staff would conduct the inspection at a charge of $45.

Revenues are anticipated to remain flat, or decrease in some cases, Johnson said. The village's sales tax revenue is estimated at $1.4 million on par with expected sales tax revenues from the 2010 fiscal year. Village staff had budgeted to receive about $1.6 million in the current year.

In addition, Johnson said the village will likely collect less from the state's use tax, while income tax revenues are expected to remain flat.

“The village is in a sound financial position after three of the most turbulent years in recent memory,” Johnson said. “Those three years we ended with a general fund surplus.”

Johnson said additional cuts to services and staff layoffs are not a part of the equation at this point.

“We're already pretty lean as it is,” Johnson said.