Libertyville explores gas, electric service fees

With cash reserves dwindling and limited options for budget cuts, the Libertyville village board appears ready to impose fees on gas and electric service.

An increase in the fee already charged on cell phones and land lines likely will be another source of income the village says it needs to maintain services and counter an expected $1.2 million revenue shortfall by early next year.

Without discussion, resigned village trustees on Tuesday accepted the recommendations from the board's finance committee. Ordinances making the moves official are expected to be ready for a vote on Sept. 8, although it is possible a sunset provision will be included.

The three measures would generate about $2.7 million per year. The gas and electric taxes would each amount to about 5 percent of a typical bill. The telecommunications rate would increase from 3.5 percent to 6 percent.

Trustee Richard Moras, who chairs the committee, gave a brief overview, saying the village has been cutting in various areas for several years. Thirteen staff positions, for example, have been eliminated since 2002, he said.

But none of it has been enough to shore up the village's general fund, which pays for day-to-day services. Sales tax income continues to drop, even below lowered expectations.

Also, an annual $1.8 million debt on the Libertyville Sports Complex has eroded cash reserves that at one time had been $10 million. The village originally expected to end the fiscal year April 30, 2010, with about $810,000 in reserve but now expects them to be depleted as early as February.

"We're rapidly approaching a critical point in this fund," Moras said. "We recognize this has a real impact on the citizens of our village and we have not come to the decision casually."

Well-known activist Jack Martin provided the only public input, asking if furloughs or otherwise cutting staff hours had been considered.

"Time is expensive and I suggest that's where you start," he told the board.

He added that the fee hikes wouldn't go over with the public.

"You'll be history," he told the board.

Mayor Terry Weppler said parks staff has been cut in half and many full-time positions have been eliminated. Most of the remaining employees are police and firefighters and they have to be available.

Because it is self-insured, cutting employees doesn't result in that much savings because the village is on the hook for unemployment payments, Moras said.

"That was the last thing anyone on this board wants to do," Weppler said of the pending fees. "It's not prudent for us to allow the village to go broke."