More layoffs 'inevitable' in Mundelein

More municipal layoffs are "inevitable" in Mundelein as the village's finances continue to sink, officials said Monday.

Lower-than-anticipated sales tax revenue and decreased tax revenue from the state are the leading factors contributing to a predicted $4.7 million budget shortfall in the 2011 budget, which officials are finalizing this month, said Trustee Ed Sullivan, who leads the village board's finance committee.

To reduce that gap, officials will have to let employees go, Sullivan said.

"(Layoffs) are not just possible, they're inevitable," he said.

About 10 employees could be laid off, Trustee Ray Semple said. Specific employees haven't been targeted yet, he added.

Last year, two police officers were laid off as part of cost-saving measures. Village officials had tried to persuade the labor union representing the town's officers to reduce planned raises, but the union balked.

The village board is expected to approve a budget April 26. The next fiscal year begins May 1.

The current version of the annual spending plan calls for about $41.5 million in expenditures, the bulk of which are staff salaries. Village leaders predict they'll collect about $36.8 million in taxes, fees and other revenue.

The current fiscal year's budget called for about $42.6 million in spending.

The anticipated layoffs will result in service cuts, Sullivan said. For example, snow removal may take longer than usual, he said.

Administrative furlough days, pay freezes and other cuts also will be implemented, officials said.

Some village events, such as the National Night Out gathering, could be eliminated, Semple said. The annual fireworks show could be scaled back, too, he added.

The summertime Community Days festival will continue, but exhibitors and participating restaurants could face higher fees, Semple said.

No department will be spared, Sullivan said. "Top to bottom, people will take some cuts," he said.

The budget talks come about four months after a split village board declined to increase the town's property tax rate, a move proposed to increase revenue. That decision helped bring the trustees to where they are today, Semple said.

Mundelein isn't the only Lake County community struggling with economic pressures. Antioch, Lincolnshire, Wauconda, Hawthorn Woods, Fox Lake and other towns have fired workers in recent years because of the recession.

Long regarded as the village board's leading fiscal watchdog, Sullivan said the area's financial struggles are instilling an important lesson for municipal leaders.

"We're learning to function more efficiently," he said. "It's something I hope will stay with us."