Homewood trustees learned Tuesday that the village budget will be less of an adventure than it could have been, but there still could be a few fee increases coming.
Village Finance Director Dennis Bubenik, in a budget summary presentation at the board meeting, noted that the cuts to the Local Government Distributive Fund proposed by Gov. Bruce Rauner were not likely to be enacted this year.
The State Journal-Register reported Wednesday that budget legislation passed by the Illinois House of Representatives Tuesday did not include the 50 percent cut to LGDF proposed earlier by Rauner.
The cuts would have cost Homewood more than $900,000.
Although Homewood’s budget will be more routine as a result, Bubenik reported a few changes for the next two years in the budget cycle.
He noted a recent spike in the cost of road salt and an increase in the village’s share of E-Com 9-1-1 Dispatch Center as expense increases. Salt prices jumped this year from $48 per ton to $133 per ton. The money comes from the motor fuel tax fund.
The budget also continues the process of rebuilding reserves to pre-recession levels.
To compensate for a 4 percent increase in expenses, the budget includes recommendations for cost savings and revenue increases.
For the 2015-2016 budget, staff recommended increases to ambulance billing fees and going with a higher deductible for the village’s insurance coverage with the Intergovernmental Risk Management Agency pool.
Increasing the IRMA deductible could save the village $50,000 over the next five years, Bubenik said.
“When we take on a higher deductible we do take on more risk, but the data shows that it should be a good move for us,” he said.
For the 2016-2017 budget, staff recommended increasing tobacco license, liquor license, business license and vehicle stickers fees, and establishing a storm water utility that would increase water bills about $5 per quarter.
“Those recommendations are to keep service levels consistent with what we’ve provided in the past,” he said.
Mayor Richard Hofeld said he agreed with most of the fee increases and cost-saving measures.
“I think it’s a good idea to increase our deductible with IRMA,” he said. “As far as tobacco license fees, let’s do it now. Same thing with liquor license fees. I wouldn’t like to touch the vehicle stickers fee.”
In an informal poll of the board, there seemed to be consensus on supporting the fee increases with the exception of the vehicle sticker fee hike.
Finance Department staff will bring a final budget ordinance to the board at its next regular meeting Tuesday, April 14.