Huntley proposes spending less in 2016

Huntley officials plan to spend $5 million less next year in a $23.7 million spending plan for operations and capital expenses.

The proposed expenditures include a one-time transfer of about $2.2 million from the general fund reserve to fund future operations. It represents 9.6 percent of the total proposed expenditures for fiscal year 2016, which begins Jan. 1.

Expenses in the 2016 budget have declined by 18 percent largely due to the village allocating roughly $7 million in this year's budget for downtown revitalization work and an Amtrak passenger rail project in downtown, Huntley Village Manager Dave Johnson said in a memo to the village board.

While the village borrowed $4 million to complete downtown streetscape improvements, the Amtrak project never materialized.

The $223 million plan to resume Amtrak passenger rail service from Chicago to Rockford - using tracks owned by Metra and the Union Pacific Railroad - was expected to be operating from Huntley's downtown by this month.

Huntley is obligated to provide a platform for riders under the terms of a $3.55 million intergovernmental agreement with the Illinois Department of Transportation. The village had planned on spending roughly $2.9 million toward construction of the station, including the platform, station building and parking lot improvements, to be later reimbursed by the state. The village already has spent $50,000 on engineering plans.

The project was put on hold in early January and "there is still no word from the state as to whether the project will take place," Johnson wrote.

Officials are anticipating a more than $700,000 surplus at the end of this fiscal year, largely because revenues came in higher than anticipated due to fees collected from new residential housing development.

Revenues from residential, commercial and industrial projects are expected to remain steady in 2016, but may decline significantly by 2017 because fewer residential lots are available for construction.

Johnson said the village's financial outlook for 2016 remains uncertain with the state's budget impasse, poor credit rating, lack of resolution on the pension crisis, and its withholding of payments to local governments. The village might have to suspend its annual street improvement program, if the state does not release gasoline tax money owed to municipalities, he said.

"Despite these external challenges, Huntley's local economy continues to grow," he said. "From January through October 2015, the private sector has invested more than $31 million in new commercial and residential construction in Huntley."

A public hearing to review the draft 2016 budget is scheduled for 7 p.m. Thursday, Dec. 10 in the board room of Huntley Village Hall, 10987 Main St.

To view the draft 2016 budget, visit huntley.il.us. A copy of the budget also is available for viewing at village hall during regular business hours.