Machesney Park officials get a look at new budget

By Bob Balgemann

Reporter

MACHESNEY PARK – The 2015-16 fiscal year will end April 30, prompting elected and appointed officials to get going on their new budget, which goes into effect May 1.

With the annual retreat coming up, administrative staff members, Mayor Jerry D. Bolin and the village board recently met for a preliminary look at the new spending plan.

The village’s current budget is $7.054 million and is expected to be about the same for the 2016-17 fiscal year, which also begins May 1.

Village Administrator Tim Savage said the Gross Domestic Product indicates retail spending growth nationally of about 2.4 percent and the same is expected this year.

“The state trend is up to 2 percent for this fiscal year,” he told the mayor and trustees. “(Winnebago) county trend is flat for the same perioid, at a negative 1/2 of 1 percent.”

Machesney Park’s retail sales are up due to the opening last year the the Meijer grocery store at Illiniois 173 and Perryville Road.

“We should remain up due to the completion of the road construction along Route 173,” he said. “Overall, the trend could show growth at a rate of 1-2 percent over this fiscal year.

He recommended budgeting in the new fiscal year of 95-97 percent of estimated sales tax growth results for this fiscal year.

Sales tax is the village’s main source of income.

Reports online show past sales tax revenue at $3.167 million for the 2011-12 fiscal year; a dip to $2.834 million because of road construction during 2012-13; back up to $3.198 million in 2013-14; and $3.193 million for 2014-15. It is projected to finish the current fiscal year at $3.195 million.

Conservative budgeting

“For budgeting purposes, we might project a slight decrease” for 2016-17, human resources and accounting manager Michelle Johannsen said. “We are conservative in our projections in an effort to not go over budget.”

On the expenditure side, the proposed law enforcement budget shows the purchase of three new squad cars and one full year of the sergeant’s salary.

Salary increases generally include cost of living and merit adjustments. She said the Midwest region shows no cost of living increase this year, meaning raises will be based only on merit adjustments.

The village is doing a salary comparison study, which will be completed prior to the new budget being finalized. “We will adjust after that,” she said.

Machesney Park contracts with the Winnebago County Sheriff’s Office for police protection, at a cost of about $3 million a year. A substation is located in village hall, 300 Roosevelt Road.

Major public works projects include:

* Purchase of a back-up generator for village hall in case of a major disaster.

* Upgrading some of the public works department’s vehicles.

* Center median lights down North Second Street. “We anticipate switching to LED” lighting, she said.

* Additional improvements to the boat launch on the Rock River.

Future projects, projected for being two-to-three years out, are:

* Roosevelt to Harlem curbing is in need of upgrading.

* Improvements are needed for sidewalks along North Second Street.

* Mitchell to Price Park path.

* A signal study has shown the intersection of Harlem and Victory warrants a traffic light. However, the county does not have any money for this project.

“They would request the village to make the addition and they will reimburse us in seven years,” Johannsen said.

After two years of the accelerated road improvements program, staff reports the village is $250,000 better than estimated in the planning budget.

Bob Balgemann photo

Machesney Park Village Administrator Tim Savage and Human Resources and Accounting Manager Michelle Johannsen gave Mayor Jerry Bolin and the village board a preliminary look at the new budget following a recent board meeting.