As likely is the case in most places, Clarendon Hills has been impacted by the coronavirus pandemic in setting its 2021 budget, which was approved Monday by the Village Board.
However, despite revenue challenges caused by the pandemic, Finance Director Maureen Potempa said there is good news for the village.
She said Clarendon Hills is primarily funded by property taxes, which account for more than 50% of the General Fund revenues and has not been impacted by the pandemic. The General Fund is the main operating budget and includes expenditures for public safety, public works, snow removal, community development and administration.
The village is projected to receive $4.3 million in property taxes in 2021 for the General Fund, a 2.3% increase over the prior year’s estimated collections.
Potempa said the village was greatly aided by an additional $2.5 million from a Metra grant, which is being used for the downtown revitalization project.
“Though some other sources fell short and we had some change orders, the actual positive impact was extraordinary,” she said.
Potempa said the village received its full allotment of about $453,000 from DuPage County through the CARES Act, which made up for most of the COVID-19-related losses. In addition, village staff was able to procure FEMA reimbursements for many direct expenses, $25,000 of which are included in the budget.
She said sales tax receipts are down an estimated 11%, or $100,000; however, that loss was not as severe as the expected decreases in state shared income tax, about $54,000, or 6%; the places for eating tax, $33,000 or 35%; and commuter parking taxes, $62,000 or 77%.
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“Our sales taxes are primarily from two sources – Jewel and Infiniti,” Potempa said. “COVID-19 probably improved grocery store income and seemed to have a limited impact on local car sales.”
Sales taxes represent 10.6% of the village’s overall revenues in the 2021 General Fund. Receipts for the year are estimated at $825,000, an 8.3% reduction from the budgeted amount of $900,000 in 2020.
The village’s total 2021 budget includes net revenues of just over $15.1 million and transfers of about $2.3 million for all funds, totaling just over $17.4 million. Net expenditures are budgeted at about $16.5 million and transfers of about $2.3 million for a total of about $18.7 million.
General Fund revenues are anticipated to be about $7.8 million, with transfers in of about $540,000. Expenditures are budgeted at about $7.6 million along with a $500,000 in transfer to the capital funds.