Glencoe Trustees Approve $22.8 Million Annual Budget

The Glencoe Board of Trustees adopted a $22.8 million budget for fiscal year 2012 on Thursday night, approving the village staff recommendation without amendment and without dissent.

The budget increases village fees and property taxes across the board by 2.7 percent, a figure tied to the consumer price index. The total expenditure budget is 4.4 percent higher than the 2011 budget, and brings village expenses back up to pre-recession levels. Glencoe's budget had fallen 6 percent between 2009 and 2010.

“I don't think there are big changes from 2011,” said Village President Scott Feldman. “Our village is a mature village, and it doesn't have any major developments.”

The village will be able to hold the line on staffing levels without adding any new personnel.

One area that will see a large increase in funding are capital expenses, which almost double from $628,000 to $1.2 million. “There's a number of capital expenditures that we deferred last year that we're taking care of this year,” said Trustee Larry Levin. These items could include a new four-wheel drive SUV for the Public Safety Department, as well as repairs to streets, water and sewer pipes.

“Last year, we cut back a lot because we were expecting a shortfall on the revenue side,” Feldman said. Sales and income tax revenues remain down, but do appear to have bottomed-out.

Fees on water, sewer, garbage and recycling are all going up 2.7 percent to keep with inflation. This is the second increase in as many years. “Historically, fees are held flat and all of a sudden you have a big jump,” Feldman said. He said the board decided that gradual increases would be easier for ratepayers to stomach than a sudden spike, such as the 16 percent increase in 2010.

Levin said that he prefers to raise taxes to fees when revenue is needed, since homeowners can deduct property taxes but not fees from their federal income taxes. In years where the consumer price index is high, Levin said sufficient revenue can be gained through property tax increases. But with property taxes capped by law this year to 2.7 percent, fees needed to be raised a little to keep up with expenses.

The monthly water rate for the average homeowner in Glencoe will go up just $1 to $42. But at $3.35 for 100 cubic feet, Glencoe's water rate is still among the highest on the North Shore, dwarfing rates in Winnetka and Highland Park. The average Winnetka water user pays $32 a month, and in Highland Park, water sells for $25 a month on average.

Feldman explained that Highland Park and Winnetka are able to charge much cheaper rates because they sell water to other communities. Glencoe's rate is still lower than villages like Northfield and Deerfield, which do not have direct access to Lake Michigan.