Wauconda officials optimistic about new budget

Wauconda officials say new funds available for capital projects reflect the village’s improving financial standing.

Village board trustees voted 6-0 Tuesday in favor of a budget with projected expenses of roughly $14.1 million and revenues of $13.1 million.

That $1 million deficit will be covered with unspent capital funds that had been saved in recent years. Officials said some capital funds budgeted in the past were diverted to cover operating expenses in those years.

In the new budget, the village was able to set aside about $1 million for its general fund balance, an increase of more than 70 percent from last year’s budget.

Almost half of that is expected to go toward a new capital project fund put in place to pay for emergency repairs, facilities improvement, telephone system replacement and other issues that may arise.

Various capital funds in the budget will pay for improvement projects expected to start this summer. Roughly $450,000 is set aside for residential road resurfacing projects, while $200,000 is slated for water system projects, including leak detection, meter repairs and tower cleaning. About $80,000 is earmarked for a project to provide more downtown parking.

It’s the first year since the economic downturn that the village has been able to increase capital investments, something Mayor Mark Knigge said was cause for optimism.

“We haven’t been able to build up reserves for quite some time,” Knigge said. “I think we’re seeing some glimmers of better things to come in a difficult economic situation.”

Overall, anticipated expenses increased about 4 percent and revenues are up 2.5 percent over last year’s budget. Salary increases of 2 percent for most of Wauconda’s 66 full-time employees accounted for most of the higher expenses, while a jump in permit sales helped boost revenues, according to Village Administrator David Geary.

“We’re seeing some more building around town. Development is slowly picking up,” Geary said.

Officials said the village would continue looking for new revenue sources and ways to cut costs without significant service cuts.

“Financially, things are slightly healthier, but we’ve got plenty of work cut out for us in the future. We’re looking for things to continue improving,” Geary said.