Mount Prospect cutting expenses, deferring projects to offset revenue losses amid pandemic

Mount Prospect faces a $5.6 million revenue shortfall as a result of the COVID-19 pandemic, but the village has a plan to offset those losses and create an additional financial cushion.

The plan calls for saving $7 million by trimming operating expenses and deferring capital projects, such as sidewalk repairs, work on the Emerson Street bridge and improvements along Busse Road.

It also includes a review of staffing, but Finance Director Amit Thakkar indicated there are no immediate plans for personnel cuts.

"If we need to cut back further, we will try to find more items from our operating budget," he said. "And if it goes beyond that, we will inform the (village) board. The final decision will come from the board at the time."

Thakkar said the village's largest revenue loss will come from funds it shares with the state, including sales tax and motor fuel tax. The impact, he said, is estimated at $2.5 million.

Local taxes, such as the food and beverage and home rule taxes, are projected to dip by $1.2 million, Thakkar said. Property tax revenues are likely to go down by $631,000, he added.

Thakkar outlined a series of operational cuts, including reductions in training and travel expenses, vehicle replacement costs and computer lease payments, as well as the cancellation of village-sponsored events. Those savings are expected to amount to $3.6 million.

Public Works Director Sean Dorsey said the village could save $3.4 million more by deferring a series of capital projects, such as road and sidewalk improvements, fall tree plantings and the planned rehabilitation of two deep wells.

Dorsey said the village also had earmarked $500,000 for streetlight improvements and a possible shared use path for the Busse Road project, which is being undertaken by Cook County.

"It doesn't appear likely that the project is going to move out of phase two, or design phase, this year, so we think we can easily move that down the road," he said.

Dorsey also said plans for pedestrian signal improvements at Route 83 and Algonquin Road can be shelved, since the Illinois Department of Transportation will complete the project.

Thakkar said Mount Prospect entered the pandemic on the heels of one of the village's strongest financial years when its revenues of $156.8 million outpaced projections of $134.9 million. Sales tax revenues were especially healthy, exceeding the original budget by $2.2 million, he said.