Finance Chair: Filed Village Budget is Tax Cap Compliant

At a special board of trustees meeting this month regarding tax cap compliancy, newly installed trustee Richard Silver, who Mayor John Watras appointed finance chair, said the budget filed March 20 is tax cap compliant.

Trustees, along with village administrator Robert Schoelle, village auditor Jim Olivo and village counsel Gary Fishberg, reviewed budget restorations and reductions during the approximate 35 minute meeting before moving into an executive session regarding labor negotiations.

The initial budget proposal in early February called for an almost 23 percent increase in the tax levy, well in excess of the 3.66 percent tax cap. After numerous budget sessions, "considerable dialogue" with village trustees and staff, substantial reductions were made. "However, when we sat here on March 19 the working draft of the budget still called for about a 9 percent tax levy increase," Silver said.

In response, department heads were asked to make additional cuts to personnel, in addition to the 3 percent cuts they already made across the board. "The tentative budget we filed March 20 is cap compliant," Silver said.

Schoelle was asked to come back to the board with his views on how the village could achieve the same level of savings without having as "onerous an impact" on village services.

With that in mind, officials are taking into consideration Mike Filippon's suggestion to increase the building department's fee structure by one-third. The increase from 1.5 percent (of the estimated cost of work) to 2 percent could raise approximately $190,000 in revenue and make the department "fully funded."

The village could also expect to see $598,204 in mortgage tax. "It's going up a little," Olivo said, though he advised the board not to raise the tax. "I would be conservative ... I don't think raising it is a great idea until you start seeing it get exceeded," he said. Last year's mortgage tax totaled $539,000. In 2007, it peaked at $1.8 million.

Officials are also considering additional reimbursements for curb and sidewalk repairs totaling approximately $80,000, the potential sale of a small piece of property near Franklin Court estimated at $100,000 and a change in how the village funds fire department apparatus purchases, which could allow for a recapture of reserves totaling $460,000 and could also avoid an appropriation in this year's budget of $200,000 for future purchases. Department heads have also reduced overtime costs significantly, according to Silver, which could save approximately $160,000.

At the suggestion of Schoelle and Olivo, Silver said trustees are also considering an approximate 2.5 percent year-over-year reduction in the village's contribution to the Garden City Public Library, which Silver said is "in line" with other reductions being considered throughout the village.

The Public Works and Recreation and Parks departments saw a "significant" amount of part-time workers cut. "The building department is the best example of 'bring the revenue in and save the people,'" Olivo said.

Silver noted that some of the 4 percent reductions have been restored.

Four members of the eight-member Citizens Budget Review Advisory Committee (CBRAC) were also in attendance. Some appeared peeved they didn't receive copies of the working document. "It's kind of a working copy because the numbers are in flux at the moment," Silver said. "It's very much a work in progress."

Judy Courtney, who lives on Tremont Street, asked officials when committee members would receive a copy since, after all, they are charged with providing input during the process.

Silver cited ongoing labor negotiations as a main reason why the working draft hasn't been distributed. "I think one of the sensitivities to what we're doing is that it does implicate some of the personnel and collective bargaining negotiations," he said.

Courtney was also worried about possible service cuts. Mayor Watras, however, assured her that "at the end of the day, when we aggregate the whole thing out, there's not going to be any service cuts. We're trying to be more efficient. So that's the mandate."

Trustee Andrew Cavanaugh, former finance chair, said it's important to recognize that things will be different. "You will not deliver the same services you do right now. You may deliver an equivalent product, at the end of the day, a fully equivalent level of service but it will be done differently," he said. "I think we have to say that aloud. You just can't say we're going to cut staff and we're going to have the same service."

Schoelle added, "There's certainly going to be a greater burden on the department heads and supervisors ... We've accepted the challenge. We're going to make it work. So much of what we do is so labor intensive ... It's just a matter of deploying differently."

The final budget is expected April 18. Trustees are working toward approving the budget at Thursday's village board meeting at 8 p.m. in village hall.