W. Dundee chips away at deficit, may look at taxes or fees

West Dundee officials are hoping to maintain the positive momentum of the first half of the financial year as the village claws its way out of a six-figure budget deficit.

After the second quarter of the 2008-2009 budget year, the village is expected to make up significant ground in leveling off a $375,000 hole that began the year. As of the end of October, that projected shortfall had closed to about $140,000, said Finance Director David Danielson during a second-quarter finance report to the village board Monday.

"There is still a hole, but that hole is not as deep as it was," Danielson said.

Higher-than-expected revenues and lower-than-anticipated expenditures contributed to the gains in the first six months, he said.

Budgeted revenues for fiscal 2008-2009 totaled about $8.06 million, but those are now anticipated to reach more than $8.13 million - a $66,000 increase.

Meanwhile, expenses were forecast to cost the village $8.43 million. But those budgeted expenses dipped to cost $8.27 million, for a $165,000 savings.

"The staff has taken a cognizant effort to expend only what needs to be expended," Village Administrator Joe Cavallaro said. Still, village officials said more needs to be done, particularly since a real estate transfer tax was rejected in last week's election. The tax, which would have been imposed on new residents purchasing homes in the village, was expected to net the village about $200,000 annually. The transfer tax would have been set at $5 per $1,000 of the purchase price of the home.

Village President Larry Keller asked Danielson and Cavallaro to provide a list of potential revenue sources and programs that could be cut to eliminate the hole. Potential revenue sources include an increased tax levy, a food and beverage tax or an additional fee for trash and refuse collection.

"I am mildly pleased that we have made up as much ground as we have ...," Keller said. "It is not ideal, but it is a step in the right direction."