Palatine passes 2015 balanced budget with lower levy

The calm and anti-climactic manner in which the Palatine 2015 village budget was approved this week shows just how much of a difference four years can make.

In 2010, the spiraling economy and mounting expenses forced village officials to take drastic action, cutting several jobs and services, creating new taxes and increasing old ones.

"Four years ago we made many significant changes that have led to ongoing cost savings," Village Manager Reid Ottesen said this week after the budget was passed by the village council.

Ottesen said those changes are part of the reason why the 2015 budget, like every one since 2011, contains no new taxes and a reduction in the amount the village collects through property taxes.

According to the budget, the 2014 property tax levy is $100,412 lower than the 2013 levy. The cumulative reduction has been $653,284 over the past four years.

The village accounts for about 12 percent of residents' property tax bills, Ottesen said.

The 2015 budget, which is balanced, comes in at about $117.7 million, with $67.7 million funding village operations and the remaining roughly $50 million paying for capital projects.

Ottesen said that while other municipalities made similar cuts several years ago, the village has done a better job making those changes permanent than others who have reverted back to pre-recession levels of spending.

"We decided we are not going back to the way things were," he said. "This is the new reality now. This is the way we do business."

Ottesen said local stores and businesses have bounced back in recent years, leading to an increase in sales tax revenue. The village has benefited from the success of new businesses like Patrick Hyundai and the new Mariano's grocery store, he added.

The budget was approved unanimously by the village council Monday. It can be viewed on the village's website, palatine.il.us.