Algonquin predicts balanced general fund for next year
Algonquin residents can expect to receive the same levels of services and not be hit with any village tax increases during the next fiscal year, which begins May 1.
The 2011-12 general fund budget, which at $18.2 million is the largest component of the village’s $32 million annual budget, is projected to be balanced, Village Manager Bill Ganek told the village board at a committee of the whole meeting this week.
The general fund accounts for the administration, police, community development and public works departments. The village is not planning to hire any new personnel or incur in any new debt next year, Ganek said.
“We feel it’s a very sound budget,” Ganek said. “We have a conservative expenditure history that has weathered us through these tough times.”
The village has at least four months worth of cash reserves, said village management assistant Michael Kumbera.
The village is projected to benefit from its first increase in general fund revenues since a downward trend started in 2008-09, Ganek said.
Next year’s revenues are projected at $17.9 million plus $256,000 from the village’s insurance account, which had excess money thanks to fewer insurance claims in the last few years. It is that overfunding that will allow the village to maintain its current level of taxation, Ganek said.
The budget accounts for 1.5 to 2 percent salary increases on average for both union and nonunion staff, Kumbera said.
The village’s portion of sales taxes, which makes up more than a third of revenues, is expected to near 2008-09 levels at $6.5 million, Ganek said. Sales tax revenues for the current fiscal year are estimated at $6 million, with a total general fund budget of almost $17.7 million.
The $8.5 million police department budget represents nearly 50 percent of general fund expenditures for 2011-12. Police overtime costs are expected to decrease next year, Ganek said.
At $1.9 million, the public works, parks and forestry budget calls for a 16-percent increase in expenditures over last year, the largest percentage increase among all general fund departments. Much of that is caused by the emerald ash borer infestation, which requires new equipment and tree planting, Ganek said. Also, new exercise equipment will be installed to replaced the old one at Presidential Park.
The administration budget will see a 4-percent reduction in expenses, Ganek said. The village will get a new Internet-based telephone system that costs $52,000, but will begin yielding savings in about 18 months, he said.
The budget also calls for an iPad pilot study, which Ganek called “food for thought.”
Instead of using laptops and electronic board packets, each village board member could be equipped with an iPad. The initiative would start with one iPad to be used by one board member, likely Village President John Schmitt, Ganek said.
Finance Director Jack Walde said the village’s police pension fund is in good shape. “Since the 2008 fiasco, the markets have been kinder to us,” Walde said.
Police pension fund revenues are at $1.9 million, mostly from personnel contributions, and expenses are at $343,000, of which $260,000 is set aside for pension benefits for five officers plus a potential $30,000 pension payment for an active officer who might leave the force next year to work somewhere else, he said.
A public hearing about the 2011-12 budget will be held at 7:15 p.m. at village hall, 2200 Harnish Drive, Algonquin. The village board is expected to approve the budget at its April 5 meeting.