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Buffalo Grove budget expected to drop in 2011

Buffalo Grove has unveiled a proposed 2011 budget that is 4.6 percent smaller than the 2010 one.

This week, Village Manager Dane Bragg presented the village board with a leaner budget the village hopes will make taxpayers happy but still provide adequate services.

The $59.75 million budget represents a 4.6 percent reduction from 2010.

“This is a very challenging time in the village of Buffalo Grove, much like most communities in Illinois and throughout the Midwest,” Bragg said. “We have worked diligently to put together a budget proposal that, I think, will meet our needs for the upcoming fiscal year.”

He warned, however, that it is very much a “maintenance budget” that doesn't address some long-term issues.

Bragg said that 80 percent of the village's operating costs are personnel not only salaries, but also health care and retirement costs.

The village will offer a “voluntary separation initiative” as yet not detailed to save about $150,000 a year. At present, there are 233 full-time employees and 38 part-time employees, and the incentive will be offered to both groups.

Bragg said capital expenses for the entire budget should amount to $7.4 million.

Despite the drop in the overall budget, the property tax levy funding it is expected to be $14.2 million, a 5.15 percent increase with the increase expected to offset declining property values.

Revenue from income and sales taxes is expected to rise a modest 2 percent.

The corporate fund, which finances day-to-day operations, is expected to be balanced, with $33.3 million in revenues and expenses.

The village will draw down its reserves, including $3.4 million from the water fund, to make improvements to its deep wells, its water mains on Arlington Heights Road and the village's phone system.

This week's board meeting was also an opportunity for departments to list accomplishment and state goals.

• The village manager's office touted the village's AAA bond rating from both Standard & Poor's and Moody's. Its 2011 goals will include completing the update of the village's sign code. The office's proposed $1.7 million 2011 budget is less than 2009's actual total of $1.8 million.

• The Finance Department wants to update its electronic capabilities to provide more payment options for residents, including online transactions. Based on the bond rating upgrade, the department estimates in 10 years it will save $550,000 in interest costs by refinancing debt.

• The Human Resources budget climbs from $768,000 to $882,000. Negotiations on a new firefighters contract and reviewing the village's insurance programs are on tap.

• The fire department is proud to have maintained its ISO 2 certification, and says one of the challenges next year will be replacing retiring personnel. The proposed 2011 budget is $8 million, up from this year's estimated budget of $7.8 million.

• The police department won state awards this year and saw an 18 percent drop in traffic crashes. Police Chief Steve Balinski's budget has been virtually flat the past couple of years, with a 2009 actual budget of $9.5 million, a 2010 estimated budget of $9.6 million and a proposed 2011 budget of $9.7 million.

• The Building and Zoning/Health budgets propose an increase to $1 million from $966,000. Its goals include streamlining the permit process.

• It was a big year for Public Works, with renovations to Main Street and Old Checker Road, drainage improvements and the Indian Creek Stream bank stabilization. Plans for 2011 call for a construction project at Well #7, improvements to the Dundee Road bikeway/pedestrian path and a Lift Station Renovation Program all on a budget of $5.8 million, up about $400,000 from the 2009 actual.