Homewood trustees approved the 2015-2016 budget for the village Tuesday and directed staff to prepare ordinances to increase business, tobacco and liquor license fees.
Homewood’s new fiscal year begins May 1.
A public hearing, as required by law, was conducted prior to the regular board meeting Tuesday. There were no comments or questions from the audience.
Finance Director Dennis Bubenik gave an abbreviated budget overview. He provided a more detailed presentation at the board’s March 24 meeting.
While the village avoided a serious hit from state budget cuts this year, Bubenik noted there’s uncertainty about what the state might do next as it tries to dig its way out of a huge financial deficit and what effect state cuts might have on the village.
The fee increases are part of the village’s budget objective of diversifying revenue sources, according to Bubenik.
Business license fees were last addressed in February 2010, Bubenik said in a memo to the board. Fees are currently $75 for a business of less than 5,000 square feet and $150 for a business of more than 5,000 feet. The proposed fees would be $100 and $200 respectively and are expected to bring in about $91,500.
Liquor license fees have not increased since January 2005, Bubenik said. At the current rates, the village receives about $33,000 per year from them. At the new rates, Bubenik estimates revenue will be about $48,000.
The village has 13 liquor license classifications with fees ranging from $220 to $2,000. The new fee structure will range from $800 to $2,200 and will eliminate per-seat fees for restaurants and clubs.
Tobacco license fees have not been changed since they were implemented in February 2002, according to Bubenik. The current fee is $200 per year and would increase to $400 if approved by the board. Tobacco licenses currently bring $3,200 in revenue.