Public can comment Monday evening on village’s spending plan with 6% tax hike
By Kellen Olshefski
Staff Writer
Village of Fontana administration is prepared to present the 2014 budget – which would levy $3.2 million from Fontana residents – at a Nov. 11 public hearing.
The tax levy will increase approximately $146,000 from this year, matching the state imposed levy limit.
The budget prepared by administration lists anticipated expenditures for 2014 at $6.7 million and anticipated non-levy revenues at $3.5 million thus arriving at the approximate $3.2 million levy.
According to Village Administrator Kelly Hayden, the estimated tax rate of $2.67 per $1,000 of property value, equates to approximately a six percent increase since last year.
Hayden said the board adopted a new working capital policy a few years to rebuild its working capital, something that should be admired.
“They have made great strides in adhering to the policy and will be adding to it until they’re at the goal they wish to meet,” she said.
“We’re not there just yet, but we’re on a strong course to meet that goal yet this year.”
Major Initiatives
The budget pieced together by Hayden sets forth several key spending initiatives for the upcoming financial year.
To begin with, $51,650 has been designated to capital equipment expenses for highway maintenance. The total amount allocated would cover the cost of a $15,700 asphalt roller and half the cost of a $71,900 plow truck. An additional $36,400 truck was struck from the budget earlier on.
According to Hayden, it is also being suggested an unused $38,000 from the 2013 budget be rolled over into the 2014 budget for highway maintenance to help make up for projects that couldn’t completed this year.
Hayden said the village put a maintenance program into place a couple of years ago of doing crack filling and chip sealing.
“That’s to help prolong the life of our roads so we’re not doing so many reconstructions,” she said.
Hayden said the village missed the timing this year to be able to do some of the chip sealing.
“So, we wanted to roll over the money from 2013 to 2014 so we can double up next year,” she said.
In addition, the village is planning to spend $17,500 to install a new air-conditioning unit in village hall. Of that total, $6,500 will be coming from the general fund. The village originally budgeted for two new units, $22,000 in addition to the $6,500 from the general fund, but decided to strike one from the budget, according to Hayden.
CDA Shortfall
Fontana’s Community Development Authority is passing on a $500,000 shortfall in principal and interest payments to budget this year.
“This is definitely one of their biggest years in their forecasted shortfalls,” Hayden said.
According to Hayden, since the CDA doesn’t have the cash flow to meet its debt payments, its being lumped into the village debt.
“Instead of the CDA funding that debt, right now the village is funding that debt,” she said.
Hayden noted the CDA does fund part of the debt, the village funds the remaining balance, or shortfall of what the CDA is unable to pay.
