If things go as planned for the coming fiscal year, Burr Ridge would put an extra $100,000 into its fund for roads and other capital improvements.
Through expected savings in personnel costs, lower gas prices and other factors in the municipality’s general fund, the village looks to end the 2016-17 fiscal year with a six-figure surplus. The village would put almost all of the expected surplus into its capital projects funds for roads, sidewalk replacement and equipment replacement.
“The general fund appears to be in good shape,” village administrator Steve Stricker told trustees in a budget workshop Monday. “For the sixth year in a row, we anticipate a surplus in the general fund at the end of FY 15-16 due to better than expected building department revenues, lower than expected personnel costs in the Police Department, lower fuel costs and lower legal costs among other things.”
In light of those savings, Stricker is recommending an additional $100,000 be transferred from the general fund to the capital projects fund prior to the end of the fiscal year.
More Top Picks Dji Phantom 4 Pro Plus
If the village continues to fund its road improvements to the tune of $750,000 annually, the extra $100,000 would help, but be far short of the need. The village will run deficit budgets of $425,260 to $605,650 over the three fiscal years following 2015-16, according to village officials. That is because one-time revenues have been used over the last few years for the road program and have now been spent. The village would have to spend down its reserves to cover the deficit budgets.
To keep its road program at its current level, the village is considering a referendum on the November ballot that would establish an infrastructure tax levy to replace the debt service levy that was created to bring Lake Michigan water to Burr Ridge. Because that debt service levy retires at the end of this year, village officials note that the infrastructure levy could be enacted as the debt service levy expires and residents would not pay a higher tax rate than they do now.
The debt service levy costs the owner of a $600,000 home in the DuPage County portion of the village about $100 per year. The owner of a $600,000 home in the Cook County portion of the village pays about $130 per year for the debt service levy.
Potential wording for the referendum is expected to be discussed at the Village Board’s March 28 meeting. Although referendums seeking money are normally a tougher sell in general elections because of the larger voter turnouts, Stricker said having the referendum this fall “is the one time we can say we are not raising taxes,”
“It is going to come down to information,” Stricker said of the need to tell residents just what would be transpiring with the swapping of levies. “It will not be more in taxes. We will need to educate people on that. It will be a tough sell.”
As planned, the village would use the $520,000 the debt service levy generates for a newly created infrastructure levy.
The village’s 2016 road program totals $663,500 and includes Oak Hill Subdivision resurfacing ($251,200), Chasemoor Drive resurfacing ($123,400) and Woodview Subdivision partial resurfacing ($100,500). Village officials note to keep up the existing road program, additional revenues, such as the infrastructure referendum, need to be found
Stricker noted that more than 70 percent of the village’s budget is personnel costs, saying if the village loses $500,000 in state funding, which has been rumored, cut will be needed.
Kevin Beese is a freelance reporter for Pioneer Press.