Streamwood adopts 2011 budget, escapes layoffs
While the economy forced many surrounding communities to lay off employees and make deep cuts in services, Streamwood avoided doing either under the 2011 budget approved by village trustees Thursday.
Village Manager Gary O'Rourke said the budget, which calls for $48.8 million in revenues and $40.7 million in spending, ensures residents won't see any service cuts.
“The board has positioned us well through their financial policies and pay-as-you-go philosophy to continue to meet the challenges of the economy as we move forward,” O'Rourke said.
That's not to say Streamwood will be hiring, either. Over the last two years, retirement, attrition and in some cases buyouts have led to overall staffing in the village declining from 199 to 182. Officials have no immediate plans to fill those jobs and have frozen salaries for workers who've remained.
The village board also approved a small tax hike Thursday to pay for increasing contributions to police and fire pensions. The $287,500 increase to that village levy will cost the average homeowner about $12 more per year, O'Rourke said.
The majority of municipal spending is devoted to personnel, and the list of towns which have laid off workers is growing. Aurora announced layoffs last month. Naperville officials said they'll cut their police force, including laying off six officers. Mount Prospect could layoff 34 workers next year. Hoffman Estates laid off four police officers at the start of the year.
Streamwood had to be flexible to avoid cuts, said its Finance Director David Richardson. This year the board diverted $1.1 million from the street improvement fund toward its general fund.
“It provides the revenue infusion to the general fund to really allow us to operate without personnel cuts,” Richardson said.
Streamwood has also saved by avoiding borrowing, as O'Rourke said the only significant village debt is for paying off the construction of the police station completed in 2007.
Richardson said the village has a different philosophy than some other communities when it comes to debt.
“We've always been conservative, the board has a cash-and-carry mentality,” he said.
Streamwood benefits from the presence of businesses like Walmart and Super Target, which perform steady even if the economy on a whole struggles, Richardson added.
The board will continue to adjust in hopes of avoiding layoffs, but even though the economy has improved, don't expect sunnier skies soon, officials said.
“It's been a challenge, and the challenge for local government is going to continue for several more years,” Richardson said. “We may have a Japanese economy, going stagnant for the decade.”