Chananhon Residents Can Weigh In on Budget

Last year had a total operating budget of $5.8 million. When all funds are considered, the budget was $37.7 million.

The concrete numbers the Channahon officials are considering for fiscal year 2011 have yet to be decided. On March 21, however, Channahon Village Board officials took apart two sections of the budget -- the utility fund and the police pension.

Although village officials have been the only ones to look at the proposed budget details, residents will have a chance to do so soon.

"April 4 will be the next workshop, but it will also be the public hearing," Bob Guess, director of finance said at the meeting.

Utility fund

Guess walked village officials through a PowerPoint presentation that highlighted the utility fund and police pension fund.

"The utility fund is  a separate enterprise account that does not receive any property tax income since revenue is derived solely from the usage of village water, sewer and refuse services," Guess read from the presentation. "It is the reason the fund is classified as a true enterprise fund."

For fiscal year 2011-2012, the water, sewer and refuse operating fund budget is proposed with estimated revenues of $2.96 million and $2.46 in expenses, but the water/sewer capital budget is set at $34,830 and expenditures are at $679,987. When the total is taken into consideration, the utility fund has revenues of $2.99 million and expenses of $3.43 million.

Because of the village's utility ordinance, the rates for sewer and water will be raised 3 percent on May 1, but that might not be enough.

"This past year we had the study on the water rates," Guess said. "The FY '11-'12 is the last year of that contract. We would like to add another 3 percent to make up a little more."

In addition to discussing the utility fund expenses and revenues, Guess updated village officials on utility projects in the village.

"The main capital project for FY '10-'11 was the new water tower that will be completed by April 30, 2011."

Because of that, only $71,400 is budgeted for utility fund capital projects for FY 2011-12.

Police pension fund

In addition to providing an overview of the utility fund, Guess briefed officials on the state of the Channahon police pension fund.

"The police pension fund has three sources of revenue: tax levy, officer contribution and investment income," Guess read.

Although interest rates continue to be very low, the fund is very healthy.

"At the present time, we've only got two retirees and the fund is at $4 million," Guess said.

"We're much better off that many of our neighboring municipalities," said Channahon Village President Joe Cook.