Balanced budget for Lake County forest preserves

Since the economy began to flounder a few years ago, budgeting at the Lake County Forest Preserve District has become more than an annual requirement.

“It has now turned into a year-round process,” Executive Director Tom Hahn said Monday in recapping the proposed 2011-12 budget for a joint meeting of several forest district committees.

The constant evaluation has paid off, he said, in presenting a balanced operating budget of about $60.2 million, which is 5.5 percent below spending for the current year.

“We remain in good financial shape, especially compared to other local governments,” according to Hahn.

The overall budget, which includes capital spending, is proposed at nearly $83 million, much less than the $146 million estimated for the current budget year, which ends June 30.

“The real drop is in land acquisition spending,” Hahn said after the lengthy presentation.

Nearly 1,400 acres were acquired in the past year — one of the most active in district history — but any new purchases will be land-banked to limit operation and maintenance costs.

The district expects to spend $59 million less in the coming year to acquire land, as a good portion of the most recent installment of a taxpayer-approved bond issue has been spent. Another bond issue isn’t anticipated until October 2012.

The district also will scale back or delay projects to restore land, build trails and open new preserves.

District officials have been contending with a rare dip in property values of nearly 7 percent in 2010, with a similar or higher drop expected this year. The total amount of property tax revenue budgeted by the district is proposed at about $53.2 million, compared to about $58.8 million last year.

Spending for day-to-day operations was cut nearly $1.8 million, mainly in salaries and wages and contractual services. Pay for nonunion workers, representing nearly two-thirds of the 180 employees, is not scheduled to increase. Salaries for union workers are expected to grow 1.5 percent.

The 2011-12 budget includes a reduction of about three full-time workers. Another 18 positions will remain unfunded due to voluntary retirements and a hiring freeze.

That means staffing will be down 8 percent from current levels.

“Work functions will be affected,” Hahn said. “Things might not happen as quickly as possible.”

Examples of other reductions include elimination of district vehicles and reduced legal expenses.

“These expense reductions have been across the board in all departments,” Hahn said.

District officials also project balanced budgets the next two fiscal years, despite continued reductions in property value.

As a hedge against further decline in revenue or a stall in the economic recovery, the district expects to end 2011-12 with a $20.6 million “fund balance” in the general fund — nearly twice the 50 percent benchmark dictated by policy.

“We have a higher balance to provide a cushion ... primarily for the next couple of years until this bottoms out,” said Bonnie McLeod, finance director.