LEGISLATIVE ALERT!
Budget, budget, budget
Businesses must look good and hard at two pressing issues that will directly
affect their bottom line. The first is a local tax matter. The
proposed Village of Downers Grove
budget currently online discusses a home rule sales tax increase of
a quarter cent and a $500,000 increase in the real estate tax levy to
be used for General Fund operations. It should be noted that all of the
real estate tax levy for General Fund operations including the proposed increase
will be used for the provision of core police, fire and emergency services.
The proposal also indicates a reduction of expenses by $2,000,000 and the use of
$1,000,000 of reserves.
The Village Council will be discussing the 2010 Proposed Budget at a series of
budget meetings, the first of which will be held on Saturday, October 3, 2009 at
8:00a.m. at Village Hall, 801 Burlington Ave., in the Council Chambers. Other
services that may change should this proposal pass include that the FY2009
Heritage Festival modifications be used again in 2010; elimination of the Ice
Sculpture Festival; modification to the Taxi Subsidy Program; suspension of the
Community Grants Program and elimination of the DuPage Senior Citizen Grant. In
summary, we can expect:
1)
Reduction of
General Fund expenses by $727,938 compared to FY09 budgeted
2)
Reduction of
General Fund revenues by $1,728,279 compared to FY09 budgeted
revenues.
3)
Increase in the
real estate tax levy of $1,345,108 comprised of increase in the
corporate levy of $500,000 and an increase in
the police and fire pension levies of
$845,108.
4)
Increase in the
Home Rule Sales Tax rate from .75% to 1.0% to generate an
additional $1.0 million of revenue in a
six-month period (July 1 to December 31).
5)
Elimination of
24.65 FTE positions.
6)
Elimination of
the annual operating deficit in the Transportation Fund
7)
Funding for the
2010 Strategic Plan action agenda items.
8)
Incorporation of the Long Range Financial Plan recommendations.