Excerpts from the Chicago Tribune's online edition highlight a series of fiscal challenges faced by the village of Libertyville as it navigates an uncertain financial landscape under Governor Bruce Rauner's administration. In April, trustees postponed multiple financial decisions, anticipating complications in the state budget. Half a year later, despite no significant progress in understanding Springfield's stance, they made some crucial moves to address pressing local needs.
One notable deferral involved the hiring of a new deputy fire chief, a move that would have cost around $150,000 annually in salary and benefits. This position was eliminated a few years ago following a retirement, and filling it again could alleviate some of the heavy workload carried by Fire Chief Rich Carani. Libertyville entered into a two-year contract with Knollwood in February, agreeing to provide fire services for $100,000 annually. However, the actual number of service calls has exceeded expectations, with 102 incidents reported between February and early November. Despite this, the trustees decided to proceed with filling the deputy chief role, acknowledging the potential strain on resources due to unpredictable state funding.
Another delayed decision involved expanding the salt storage silo, funding a survey for downtown buildings aimed at preserving their historical significance, and reducing the electric utility tax. These actions were put on hold partly due to Rauner's proposal for a two-year freeze on property taxes and Illinois retaining half of the municipal income tax. Finance Director Patricia Wesolowski estimated these measures could result in a $1 million annual loss from income taxes and $600,000 in lost property tax increases over two years. Although these specific proposals seem to have lost momentum, a new challenge has emerged: Illinois is currently withholding approximately $660,000 in various taxes owed to Libertyville. This includes $440,000 in 911 fees, $150,000 in gasoline sales tax, and $70,000 from the "use tax," which applies to goods purchased outside the state but used within Illinois.
Illinois was expected to pass a balanced state budget by July 1, but Rauner has refused to sign off on any budget that isn't balanced. Both sides of the political spectrum have struggled to reach a compromise, leading to Illinois halting payments on many bills and suspending the redirection of collected tax revenues to local governments. Libertyville had been counting on these funds, especially since it has maintained robust reserves, with $4.2 million above the recommended rainy-day savings amount since 2009. Trustees initially considered using part of these reserves to pay off construction debts early and bolster police and fire pensions, which have fallen short due to recent legislation increasing benefits and updated studies indicating longer lifespans for retirees. However, this plan was also delayed, and on November 10, trustees decided to hold off further, reasoning that these funds might be necessary to cover potential losses from Illinois' current fiscal standstill.
Village Trustee Todd Gaines emphasized the importance of addressing Chief Carani's workload, stating, "He's stretched pretty thin, and that's not healthy for the organization." While Libertyville remains cautious about future state contributions, the village's prudent financial management has provided a buffer against immediate crises, though trustees remain vigilant in safeguarding their reserves amidst ongoing uncertainty.
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