Libertyville budget picture improves

Furlough days for Libertyville employees will end and nonunion workers will see a slight pay increase as the village budget picture improves for next year.

Projections also show the village will end the 2011-12 year with a $1.4 million surplus, as one of toughest financial stretches in village history eases.

While those are favorable signs, village leaders remain cautious.

“The key point is, we’re not out of the woods yet,” said Trustee Rich Moras, who chairs the village board finance committee. “Things are starting to improve.” A public hearing on the proposed $42.6 million budget will be held during the board’s regular meeting Tuesday beginning at 8 p.m. at village hall, 118 West Cook Ave. The budget is scheduled to be approved by the board April 26 and will take effect May 1.

Trustees held budget sessions on March 12 and 15. The overall budget is balanced and shows a projected revenue increase of nearly $2 million, mostly from the sewer and water fees.

Sales tax revenue did edge up slightly and is expected to be about $5.6 million by May 1 — about $145,000 above what was expected, but well below the watershed $7.8 million collected in 2001.

Overall revenues are up about 4.7 percent compared to last year, while spending will increase by about 1.7 percent.

“It’s still very challenging. Revenues are still down from previous years,” Village Administrator Kevin Bowens said.

To close the gap, the village imposed gas and electric taxes and increased the telecommunications tax.

“We had to do things we didn’t want to do but we had to do,” Moras said, and added that those measures should be considered temporary. They all are set to expire April 30, 2012 but can be adjusted twice a year, in January or July.

“The goal is to reduce them,” Moras said. “We’ll have to see where we are in the budget when the time comes.”

Aside from the elimination of 12 furlough days, nonunion employees will get a 1 percent pay increase. Both police and fire union contracts are due to be renegotiated May 1.

Salaries and benefits account for nearly half the village budget, although the number of full-time workers has dropped to 163 from 180 in 2009-10.

Other highlights include about $1.1 million for road improvements, mainly the reconstruction of Dymond Road, and about $1 million to for parking improvements on the west side of Milwaukee Avenue.

“There are still a lot of capital needs that have been deferred and need to be addressed,” Bowens said.