Rolling Meadows faces tough budget year

The Rolling Meadows city council will start figuring out a way to close a $1 million budget gap next month, said Finance Director Jim Egeberg.

"Basically the council will get a budget that's the same dollar amount as this year," he said. "But with inflation, that budget isn't nearly as much as 2008. For example road salt and fuel in 2009 will cost much more. Service levels are going to be affected."

Whether that means paving fewer roads, increasing some fees, or inspecting buildings fewer times, Egeberg isn't saying.

"There's a wide gamut," he said. "Out of respect to the council, I'm going to wait until the budget becomes public."

It becomes public on Sept. 9. That gives council members a week to look it over before discussing it at a Sept. 16 committee meeting. The council will then hold public hearings in November and early December before approving the 2009 budget later in December. Rolling Meadows operates on a calendar year budget.

The 2008 operating budget was about $37.5 million and the proposed 2009 budget is about $35.6 million. The 2008 budget included some capital projects not included in the proposed 2009 budget, Egeberg said

The cuts won't effect police or fire services, he said.

"If you call 911, there will be an ambulance dispatched," Egeberg said. "But other services will be affected. There is a pecking order."

Egeberg blames the tough economy for his city's budget problems. This year, Rolling Meadows saw a 43 percent increase in fuel and vehicle costs, a 15 percent increase in the price of buying water from Chicago and a 9 percent increase in garbage pickup fees.

"Prices exploded and revenues aren't coming in the way we expected," he said. "People are buying less which affects sales tax. They're not buying homes which affects the (real estate) transfer tax."

Last year, the council increased liquor and business license fees. Increasing the city's portion of the sales tax won't work as a way to bring in more money, Egeberg said.

"We'd have portions of Rolling Meadows who'd want to disconnect from the city," he said. "That is not an option."

The biggest chunk - or about 74 percent - of the city's operating budget pays for city employee salaries and benefits.

In July, the city implemented a hiring freeze and stopped filling positions when employees retired. That move will save about $500,000 this year and a projected $1 million in 2009.

Layoffs haven't been formally discussed, but are an option the city council could consider, Egeberg said.

Other proposed elements of the 2009 budget include a 7.4 percent increase in the property tax levy to fund police and fire pensions and a 5 percent increase in the city's stormwater fund.