Village Trustees to Vote on Budget Monday Night

trustees are set to adopt a $16,797,345 for fiscal year 2012-2013 following a public hearing on the spending plan during the board’s regular meeting Monday night.

The new budget is $633,645 greater than last year’s budget, according to a budget message from Village Administrator Steve Stricker. He said the new spending plan is balanced, but warned that revenue growth is still slow.

“Although I am optimistic for the first time in many years regarding the possibility of sales tax growth, it is still too early to know for sure,” he wrote. “In addition, it should be pointed out that we project that the new 1 percent place-of-eating tax  will generate approximately $200,000 in revenue with 25 percent to be placed in a new special revenue fund to be used by the new restaurant association too promote Burr Ridge as a destination spot for restaurants.”

One part of that promotion includes at I-55 and County Line Road which is expected to cost $1.36 million. The village will receive $1,447,470 in grant money for improvements to the overpass and the interchange, which is projected to cover 80 percent of the total cost of improvements.

According to Stricker’s budget memo the village’s general fund should have a budget surplus at the end of fiscal year 2011-2012 due to higher revenues from “an unusually high sales tax allotment” in October. Other factors helping build the surplus include a decision to not fill a police vacancy, lower legal fees and insurance liability costs and the mild winter.

Because of the surplus Stricker said he increased the equipment replacement fund transfer, originally budgeted at $67,365 back to its original amount of $134,730. With that increase the village still faces a surplus of 437,620.

While Stricker said he was optimistic about sales tax growth, one area that is seeing a decrease is property tax funds used for the police pension plan. The village projects to collect $461,230 in property taxes for the pension plan, a decrease of $103,290, or 18.3 percent from the previous budget. The village police pension fund is 71 percent funded with total pension payments of $656,850.

The budget contains $2,461,085 in capital projects, which include $527,660 for road projects, $176,000 for a traffic signal at Madison Street, $365,000 for , $138,000 for water system improvements and $126,000 for information technology improvements.

While a vacant police officer position was not replaced, the budget plan includes $12,750 to fill a part-time clerical position that went unfilled last year as well as the addition of two at $31,410.

Under the proposed budget village employees will see a 2 percent cost of living adjustment and police union will receive a 2.5 percent cost of living adjustment. Employees in the public works department are still negotiating their contracts and will not see a salary increase until negotiations are settled.

Village health insurance rates will also increase by 6 percent, costing the village $820,950 in life, health and dental insurance.

The proposed spending plan includes $70,000 to fight the Emerald Ash Tree Borer which is plaguing the western suburbs.

Included in the proposed budget outline is a five-year financial plan for the village that includes possible revenue enhancing possibilities such as a referendum to extend debt for the Michigan Water Main Project that could generate $520,000 annually. Another possible revenue enhancement would be to extend the ¼ percent non home rule sales tax, which could generate $275,000-$300,000 or reinstate village vehicle stickers to raise an estimated $200,000-$300,000.