Mount Prospect issues 35 layoff notices

The writing on the wall became the writing on layoff notices for about 35 Mount Prospect employees who received the bad news on Friday and Monday.

Village Manager Mike Janonis said the final number of layoffs will depend on how many employees accept an early retirement package offered last month, but so far only one worker has taken the deal.

“The final figure is still a moving target, he said, adding that layoffs could affect almost every village department.

On Sept. 17, 42 employees were given the option of early retirement buyouts, which offered the incentive of two additional years of health insurance for the employee and one dependent.

The employees have until Oct. 28 to decide whether to take yearly retirement.

Among those eligible are police and fire department employees who are 50 years old and have at least 20 years of full-time service with the village. Other eligible village employees must be at least 55 years old, fully vested in the village's pension plan and have eight years of full-time employment.

According to a memo issued last month to village workers, Mount Prospect is facing a $3 million general fund deficit in 2011 and a $4 million deficit in 2012 if nothing is done. Raising property taxes or dipping further into the village's reserve fund are out of the question, Janonis says in his memo.

“We have tapped our revenue sources to the tipping point, Janonis wrote. “People, regardless of how they feel about villages services, will rebel against all but the most modest tax increases.

The problem, according to the memo, is that village expenditures have risen 3.5 to 4.5 percent while revenues have increased only 2 to 3 percent. In 2008, the village's fund balance was $12.5 million. In 2011, that balance is expected to be only $5.8 million, according to Finance Director David Erb's projections.

The $3.1 million deficit resulted from falling sales taxes, real estate transfer taxes, utility taxes and investment income, Erb said.

Some aren't expected to recover anytime soon. Transfer tax receipts are off almost 70 percent from their high point in 2005.

There are 318 full-time employees in Mount Prospect. About 80 percent of the village's budget pays for salaries and benefits.

Mount Prospect trustees will start discussing the 2011 budget this month and are slated to approve it in December.