Poplar Grove to Use More Borrowed Money

The following is taken form the Boone County Journal:  http://boonecountyjournal.com/news/2010/Boone-County-News-04-09-10.pdf#page=3

Poplar Grove to Use More Borrowed Money
By Bob Balgemann
Poplar Grove officials thought the soon-to-be-imposed
telecommunications and utility taxes would generate enough
additional money to produce a $100,000 budget surplus by
April 30, 2011, which is the end of the 2010-11 Fiscal Year.
But that won’t happen.
The village was forced to borrow more than $200,000 to
make ends meet during the final weeks of the current fiscal
year, which ends April 30. Officials wanted to increase the
$500,000 line of credit they had with Poplar Grove State
Bank to $650,000.
That won’t happen, either.
So the village now faces getting a tax anticipation loan
of $150,000 that, joined with the $150,000 left in the line
of credit, should tide them over for the next three weeks.
Village Treasurer Maria Forrest said the loan must be paid
off by October 2011, which will consume the $100,000
budget surplus officials hoped to have at the end of 2010-11,
plus a little more.
All of that forced members of the Finance Committee
to make more cuts in expenses Monday night, paramount
among them scrapping plans to paint the water tower, to save
$37,000, and only buying one back-up generator, heading
for the Oak Lawn lift station, a savings of $32,500.
While Public Works Director Jeff Strate would like to
have two new generators, he said one at the Prairie Green lift
station is needed more than at Oak Lawn. Poplar Grove has
no alternate sources of electricity at most of its lift stations,
raising concern about sewage backups into residents’
basements during power failures.
“We have returned to a balanced budget,’’ committee
Chairman Bob Fry announced after the cuts were
recommended for approval. They will be considered by the
full village board at Monday night’s meeting.
No Break for Low-Income Families
The committee also learned the village cannot provide
low-income families that qualify with a break on the
telecommunications and utility taxes, which will be imposed
this summer.
Poplar Grove is using the Machesney Park ordinance
as a model, which does have a rebate but it’s for those 65
years of age and older who qualify, not younger families.
“We misinterpreted the Machesney Park ordinance,’’ Fry
explained.
Community Unit School District #200 also qualifies
for a rebate, but the committee recommended against that
for the time being. Though no one had a figure, village
President Bradley Rightnowar and others were concerned
that loss of income might throw the 2010-11 Budget into
another deficit.
“Right now the new budget will have a surplus of about
$1,000 following the cuts we made tonight,’’ he said,
referring to April 30, 2011. Of the rebate for the school
district, he said, “We can always change that later.’’
While they’re having financial difficulties, committee
members still agreed to recommend paying $3,000 to
be members of Growth Dimensions for another year.
Rightnowar is hoping to work with that organization, the
economic development arm of Boone County, in bringing
commercial growth to the village.
“It’s time for their annual pitch (for money) to Poplar
Grove,’’ committee member Cliff Stetter said.
But the committee agreed they want one of the
organization’s board members, such as the president,
Richard Van Evera, to provide the annual update, not
someone on staff.