Palatine 2022 budget funds roads, keeps property tax levy flat

The Palatine Village Council approved a $125 million budget for next year that calls for no increase in the property tax levy and one of the more robust streets programs in years.

The document accounts for an $80.3 million operations budget, plus about $44.7 million for the capital budget, tax-increment financing district expenses, debt repayment, transfers, insurance and pension obligations. The council discussed the budget at a special meeting Nov. 6, with a brief follow-up discussion Nov. 8. No residents spoke during a Nov. 15 public hearing about the budget.

The budget includes nearly $13.5 million in capital investments, including $4 million for street resurfacing and rehabilitation. The village plans to use just over $2.9 million in motor fuel tax revenues to fund street projects next year.

The 2022 budget, approved unanimously by the village council Monday, represents a 5.8% increase over this year's $118.1 million spending plan, which was leaner than normal due to the financial effects of the COVID-19 pandemic.

The village will fill three firefighter and two police officer positions that were kept vacant this year and are funded in the 2022 budget. The plan for the police positions is to hire one full-time officer and three part-time assistants.

By the end of 2022, village officials expect to have $20.7 million in reserves in the general fund, which pays for day-to-day operations. That represents close to four months' expenses.

The village council on Monday also approved 2.5% raises for nonunion and nonmanagement employees as part of next year's expenses.

Management employees get merit increases based on performance.

The police union is in the third year of a three-year agreement with the village, under which officers will receive an increase of 2.25% in 2022. The firefighter union is in the second year of a four-year agreement, under which firefighters also will receive an increase of 2.25%.

Publics works employees have a union agreement with the village that expires this year. Meetings will be scheduled to discuss new contract terms, village officials said.