Libertyville to deal with deficit

Like other towns, Libertyville has faced deficits before. But each time, village officials were able to avoid the red numbers by making adjustments.

The news is more grim this year and next, as steadily dropping sales tax and other sources of revenue will be harder to offset.

"This year, it's going to be a little more difficult. Potentially, we're looking at a reduction in services and a reduction in personnel," said Village Administrator Kevin Bowens.

Figures considered by the village board Tuesday during a work session showed a budget deficit of $634,000 for the remainder of the current fiscal year ending April 30 and a projection of $940,000 in the red for 2009-10.

Sales tax, derived largely from car dealerships, dropped $1 million from 2001 to 2007. Growth in that category is projected at zero next year.

"That's a big number we need to make up somewhere," said Finance Director Pat Wesolowski.

Money derived from building permits also is well below expectations and even with an infusion from pending work at Condell Medical Center will be nearly $100,000 short of budget this year.

Taken as a whole, village officials are facing the toughest financial times in years.

A hiring freeze has been in place and the village board will be considering other cuts, some of which could not only be substantial but noticeable to the general public.

During a previous discussion, cuts such as closing the municipal golf course or doing away with fireworks have been mentioned as possibilities. No board action has been taken.

The board informally decided to proceed with a tax levy estimated at about $8.7 million, which is about 4.4 percent higher than last year's levy. Official action is scheduled for Dec. 9.

Trustees also learned that despite a poor real estate market, property values are still increasing, up about 3 percent.

"Houses are still selling, not as quickly as they have in the past, but they're still selling," Wesolowski said.