Pingree Grove looks to trim deficit
Pingree Grove village employees will not get raises for the second year in a row in order to contain a predicted $98,000 budget hole for the next year.
The village’s proposed 2011-12 general fund budget calls for a 6-percent cut in expenses plus furlough days for the police chief, fewer hours worked by the public works director and more.
At a committee of the whole meeting Monday, the village board told Administrator Bill Barlow to look for more ways to balance the budget. “We’re tightening up a very tight budget,” Barlow said.
Barlow said he is trying to trim another $30,000. The deficit could be pared further with $10,000 to $15,000 from the water and sewer fund, and from general fund reserves, whose year-end balance is projected at about $500,000, he said.
Expenses for next fiscal year, which begins May 1, are projected at just under $1.4 million, with revenues just under $1.3 million.
Sales taxes are projected to increase by about $13,000 from new businesses, such as Butler’s Restaurant, but total revenues are expected to drop by $121,000 from this year, because of the elimination of impact fees paid by Cambridge Homes, Barlow said.
The budget doesn’t plan for Fourth of July fireworks, a savings of about $12,000.
The village will end up $92,000 in the hole, largely due to less building permit revenue and a discount in permit fees for Cambridge.
The board agreed with Barlow’s recommendation not to hire a village manager and finance director and, instead, keep Barlow’s position part time and hire an accountant, for a total savings of $53,000.
Barlow had proposed increasing the village’s telecommunication tax to 6 from 1 percent, but the board delayed discussion “in typical political fashion,” said Trustee Greg Marston, the sole candidate for mayor.
“We’re waiting for new board to be elected. Once we have that, we can start some serious discussions,” he said. “The decisions might not be tax increases; it might be further budget cuts. We can’t continue operating at a deficit.”