EP considering options to balance budget

Online Poll: What is the first step Evergreen Park officials should take to try and balance the village's 2009-10 budget? Offer early retirement to eligible employees Layoffs Reducing or eliminating some civil services Raise property tax rate Raise sales tax rate Other View Results

Drop in tax dollars leaves revenues down nearly $700K

By William Jones

Evergreen Park officials, in an effort to reduce spending and balance the 2010 budget, are considering offering as many as 20 village employees the option of retiring early.

Evergreen Park Mayor James J. Sexton initially revealed the information last month at his annual State of the Village Address, but on Tuesday said he's not sure such action would be financially worthwhile.

"If the numbers make sense, we'll make that offer," Sexton said in a phone interview Tuesday.

Sexton said 20 non-union employees, some of who are in administrative positions, are eligible for early retirement, which would potentially help alleviate budget woes. To offer the option, however, the village would have to buy out a portion of those employees' salaries, he added. As he and his staff add up the numbers, Sexton said it is unclear whether the village would save much money.

"We are looking at that, at multiple ways of trimming back the budget," Sexton said.

The village is working so hard to reduce spending because revenues have been $600,000 and $700,000 less than projected, the mayor said. Revenues are down primarily due to losses in sales and property taxes, he added.

"As much as the economy is down, we've added some really good retail," Sexton said.

Sexton noted how successful an addition Wal-Mart has been to the village. Pete's Fresh Market, 95th Street and Ridgeway Avenue, is also scheduled to open in January after more than a year of delays. The grocery store is a promising development, but the village will not see any sales tax revenues from the business until April or May, he added.

The economic successes, however, are being offset by a high quantity of both small and large businesses like Webb Ford, that have either collapsed or are struggling, contributing to the loss in sales tax, he said. Retail developments at the northwest and southeast corners of 95th Street and Kedzie Avenue have progressed but are not yet finished, while a property at 96th Street and Pulaski Road remains vacant.

The Evergreen Park Village Board voted last month to increase its fuel tax from 3 cents to 6 cents per gallon in an effort to raise additional funds, and also put three village-owned properties up for sale in an attempt to turn a profit on the land. Officials have also discussed reducing the hours of operation of various village services, but want to make sure none of those changes would be detrimental to residents, Sexton said.

"We don't want to affect, in any way, public safety," he said.

Layoffs have also been discussed, but Sexton would not say they are either probable or unlikely at this point.

"It's still up in the air," he commented.

Residents can help the village by shopping locally and by bringing ideas to the table regarding what business may help fill the vacancies, Sexton said. The village is also looking at services including its fall leaf pickup project, and is considering asking residents to use their green scavenger containers to relieve the village employees of that duty, he added.

This is part of the December 3, 2009 online edition of The Reporter.

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