Huntley Village Board to approve balanced budget, flat tax levy during Thursday's meeting

Huntley's Board of Trustees will consider whether to approve a flat property tax levy and a balanced 2021 budget that proposes spending $3.2 million than the year before, a 12.4% hike over 2020's numbers.

Despite the significant increase in expenditures, the village's general operating fund will remain balanced going into the new year with about $12.9 million in both revenues and expenditures, according to a budget summary provided by the Village Manager's Office.

Huntley's property tax levy for this year will total just shy of $4.8 million with no increase over last year's levy, according to a report from the village's finance department included in the agenda packet for Thursday's meeting.

The portion of the levy that the village is obligated to allocate to its police pension fund rose by more than $220,000 over last year's levy to a total of about $1.2 million. In order to keep the levy flat, the village lowered how much will go to its general corporate operations by the same amount, according to the report.

The proposed budget for the 2021 fiscal year, which begins Jan. 1, reports more than $30.2 million in revenue and just over $29.4 million in expenditures, not including transfers between funds which total $3.6 million.

More than 88% of the increase in expenditures and interfund transfers is due to three major improvement projects.

The village plans to use $2.1 million from the Water Capital Improvement and Equipment Fund to replace the water main along portions of Route 47, Mill Street and Dean Street.

Another $1.5 million in downtown tax increment financing, or TIF, funds will be used to make stormwater management improvements to address drainage issues in the area of Mill and Church streets and to improve the conditions for redeveloping the city-owned former Catty Corporation site located just south of village square, according to the budget report.

Huntley created a tax increment financing district for its downtown in 2013 in order to use the property tax growth generated within the district's boundaries to fund redevelopment projects in the area.

In July 2020, the village paid back the debt associated with the TIF district and decided to take out an additional $1.5 million to fund stormwater management infrastructure improvements, according to a draft of the 2021 budget.

Finally, the village will use $1.9 million from its streets and bridges fund and $1 million in motor fuel tax funds for annual road improvement projects.

The village's general fund costs related to the Huntley Police Department increased a bit in the final version of the budget as the village completed contract negotiations with the Metropolitan Alliance of Police, the union that represents the department's patrol officers, detectives, Community Response Team and school resource officer, according to a summary of the finalized budget. It also rolled out a new employee assistance program.

These increases were offset by a $30,000 decrease in senior services transportation costs as the village was informed that it would no longer need to contribute financially to the McHenry County McRide Program.

The Huntley Village Board of Trustees will meet at 7 p.m. Thursday in the village hall building, located at 10987 Main St., to vote on the final 2021 budget and the 2020 tax levy.