Palatine's 2012 Budget Picture Less Bleak

EDITOR'S NOTE: This story originally stated that the 2012 operating budget was only $19,701 higher than it was in 2007. This comparison, which came from village officials, has been removed. The village's self-insurance program is a separate line item in the 2012 budget and therefore the comparison was misleading. The difference in the operating budget between 2007 and 2012 is about $8 million.

Palatine's proposed budget for 2012 is balanced and includes a slight reduction in its property tax levy.

Under the proposed budget, the village's property tax levy would fall by about $38,967. Although the budget does not include substantial cuts, budget cuts made in prior years means the village's operating budget has remained flat for several years.

, the 2012 budget for Palatine does not include new taxes, increased fees or an increase in the property tax rate. "Last year was miserable," District 2 Council Member Scott Lamerand said. "We've seen some of our revenue come back and our expenses have remained flat."

Several factors helped improve Palatine's budget outlook. The state has rectified an error that sent hundreds of thousands of dollars in sales tax revenue meant for Palatine to Buffalo Grove.

After Arlington Toyota relocated to Palatine, the state still sent sales tax revenue it collected to Buffalo Grove. Lamerand said Buffalo Grove will pay Palatine the tax money that is owed from 2011 in payments.

Also, the village expects a boost in sales tax revenue from Arlington Toyota for 2012 now that the mistake has been corrected.

Another factor in the budget was Palatine's decision to use some of the money from a land sale to pay down pension obligations.

Last year, Palatine . The developer is bringing a Mariano's Fresh Market to the village. About $500,000 of the $3.05 million the village received went toward state mandated pension costs.

Lamerand said that by paying down some of the pension obligation, the village will see reduced pension costs in 2012.

Village officials expect to see an increase in state income tax revenue for the first time in four years. The budget project an increase of $283,800 to $5.023 million.