W. Dundee eyes options to save, raise funds

After several board discussions regarding a $373,000 projected shortfall in the general fund, West Dundee trustees this week exercised fiscal restraint in approving its 2008-2009 budget.

The village board on Monday rejected all bids for capital improvement projects and the downtown streetscape program, which officials say would save the village more than $1 million.

"It is a tight year, so we need to pull back our horns," Village President Larry Keller said. "We are doing some financial belt tightening."

However, since the million dollar savings fall under the capital projects fund, Village Manager Joe Cavallaro said the monies will not dissolve the general fund deficit.

Keller said cash balance reserve funds would cover the hole in the short-term.

In the long run, trustees plan to include a referendum question on the November ballot, asking residents whether the village should impose a real-estate transfer tax to fill the financial gap.

The tax, imposed on buyers of residential and commercial property in the village, would be set at a rate of $5 per $1,000 of the property's value.

It is estimated the tax would generate more than $200,000 annually.

Cavallaro called the figure conservative since it does not include the purchase of commercial properties.

General revenues for the fiscal year, which begins May 1 and ends April 30 of next year, are expected to total just over $8 million.

Expenses during that period are projected at $8.4 million, Cavallaro said.

Compared to the current fiscal year, revenues dropped $8.3 million, while expenses increased about $90,000, Cavallaro said.

"The village board is grappling with figuring out how to maintain the quality of services that the residents have come to expect and demand with tightening economic conditions," Cavallaro said.

Should the referendum fail, officials said the village would seek alternative revenue makers.

Those include increasing property or food and beverage taxes, and introducing a separate refuse collection fee, which residents currently pay for through property taxes.

A trash collection fee would potentially net the village an additional $475,000 per year.

Meanwhile, raising the food and beverage tax from 1 percent to 5 percent would raise about $300,000 per year.