Palatine officials adopt slightly rosier budget
Though Palatine officials caution the road to economic recovery will be long, residents are bound to be slightly happier with next year’s budget compared to 2011.
Whereas the current year included a property tax increase, the implementation of an electricity utility tax and other fee hikes, next year calls only for a minor water rate increase.
In fact, the village is levying $38,967 less overall compared to the previous year, marking the first decrease since 1987. Officials say the reduction is the result of the decisions and cost containment efforts over the past four years.
“This is a true decrease in how many dollars we’re collecting from the residents of Palatine,” Councilman Scott Lamerand said.
The overall 2012 budget is $105.87 million, or a 3.4 percent increase from the previous year. The operating budget will grow 2.3 percent to $63.8 million.
Officials expect several sources of revenue to begin to tick up. They’ve included a 10 percent increase in sales tax receipts, pointing to businesses that have either recently opened or will soon open such as the City Limits Harley-Davidson dealership and Mariano’s Fresh Market.
The water rate will increase from $3 to $3.15 per 1,000 gallons, still placing Palatine’s among the five lowest communities in the Chicago region.
The village also budgeted for increases in the electricity tax and in the state income tax, though the $5 million budgeted is still $1.25 million below 2008 figures.
Similar to the past couple of years, the budget does call for a reduction in personnel. Seven full-time and two part-time positions are being cut, generally from attrition and reorganization, Village Manager Reid Ottesen said. Remaining staff members across the board will receive up to a 1 percent raise in salary.
In addition, certain programs that were deferred from 2009 to the upcoming year are now being eliminated, including pedestrian intersection and community entrance improvements. The long-awaited bike plan will be funded, however.
The budget “continues to reflect the impact of the economic climate confronting the nation and world,” Ottesen said in his annual budget message, adding that there are “indicators that the worst may be past, but there are very few signs that improvement will be anything but a lengthy process.”
Due to the success of its tax increment financing districts, the village will abate $3.5 million to area taxing bodies.
While Palatine doesn’t have to dip into its reserve funds this time around, Ottesen again pointed to the need for significant pension reform so that the village can continue to meet its growing obligation.
“Despite some recent legislative reforms, the present system is simply not sustainable and will ultimately impact major life safety funding decisions without additional reform,” he said.