Excerpts from the ChicagoTribune.com:
In anticipation of a complicated first state budget under Gov. Bruce Rauner, Libertyville trustees in April postponed several financial decisions. Six months later, they are no closer to understanding Springfield but chose to finally act on a few needs.
Libertyville deferred hiring a new deputy fire chief, expanding its salt storage silo, paying for a survey of downtown buildings for its historic preservation commission and reducing the electric utility tax, among others.
At the time, Rauner was proposing a two-year freeze on property taxes and Illinois permanently keeping half of the municipal income tax. Finance Director Patricia Wesolowski, at the time, calculated the loss of income tax at $1 million per year and a combined $600,000 in lost property taxes increases over two years.
Both proposals appear to have lost traction, but a new dilemma has arisen. As of a Nov. 10, according to Wesolowski, Illinois is withholding about $660,000 in other taxes. Broken down, Wesolowski said the total consists of $440,000 in 911 fees, $150,000 in gasoline sales tax and $70,000 in Libertyville’s portion of the “use tax,” (paid on items, most notably cars, bought elsewhere for use inside Illinois).
Illinois was supposed to pass a state budget by July 1, but Rauner refuses to approve an unbalanced budget and resolving the proposed deficit has seen equally little comprise by all sides. As a result, Illinois has stopped paying a lot of its bills and stopped redirecting tax money it collects on behalf of other governments.
Libertyville in February signed a two-year contract to provide fire services to the unincorporated area of Knollwood, located along Route 176 just east of Interstate 94. Libertyville’s fire department eliminated a deputy chief job a few years ago after a retirement. Filling that job would cost about $150,000 in salary and benefits, and the person would do work for both Knollwood and Libertyville.
The contract to cover Knollwood cites $100,000 annual payments, meaning Libertyville would pay $50,000. The contract anticipated 100 calls for service per year, although Libertyville Fire Chief Rich Carani said they’ve gotten 102 between February and early November.
Trustees agreed to fill the position even though they’re still uneasy regarding what revenue will and won’t being come to Libertyville via Springfield.
“Chief Carani is stretched pretty thin, and that’s not healthy for an organization,” Village Trustee Todd Gaines said.
Since 2009, Libertyville replenished its reserve through new taxes and a return of sales tax revenue and now has $4.2 million above the recommended rainy day savings amount. Trustees in April considered using part of that $4.2 million to repay construction debt early and putting another portion toward police and fire pensions, which are significantly underfunded after new laws increased benefits and new studies indicated retirees are living longer.
That decision was also postponed, and on Nov. 10 trustees agreed to continue waiting because the money might be needed to cover funds Illinois garnishes or indefinitely stops redirecting.
