West Dundee approves balanced operational budget for 2016-2017

While continuing to pay off debts and fund infrastructure projects, West Dundee is expected to maintain a nearly balanced operational budget next fiscal year.

Trustees this week approved the 2016-2017 budget, which goes into effect May 1 and anticipates roughly 1 percent increases in general fund expenditures and revenues.

The budget calls for operational expenses of about $9.6 million - up $103,164 from last year's budget to account for salary raises and other personnel costs, Village Manager Joe Cavallaro said.

Revenues in the general fund are also up $95,426, about $40,000 of which comes from the 1.1 percent property tax levy increase approved last year, Cavallaro said.

West Dundee is expected to close out the fiscal year with a general fund surplus of roughly $2,800.

"Basically, we're continuing to minimally fund quality service delivery to the community without any significant increase in user fees or costs," Cavallaro said.

The budget anticipates a nearly 8 percent decline in sales taxes - one of the village's largest revenue sources - largely due to the relocation of stores and construction at Spring Hill Mall, according to budget documents. That drop is expected to continue until new tenants open and construction ceases in and around the mall.

The capital project fund relies largely on home rule sales tax revenue, Cavallaro said in a memo to trustees. Starting with a balance of $2.9 million, the fund is expected to drop to less than $900,000 by the end of 2016-2017, according to village documents.

Revenues budgeted for the capital fund include the recently adopted downtown business development tax, which is expected to generate $65,000. Those funds, in addition to $120,000 in tax increment financing money, will help pay off the $2 million annual debt service payment slated for 2016-2017, according to budget documents.

The Huntley Road reconstruction project is also budgeted for the upcoming fiscal year, and about $500,000 will be set aside for reserves.

Though the village's recent capital projects have provided the community with stronger infrastructure, Cavallaro said, the fund's projected balance is not sustainable. He said the village board should seriously consider "how to go about providing for the necessary funding for future capital improvements, including street and infrastructure programs."