The Mundelein village trustees approved a municipal budget that shows the impact COVID-19 is having on local economies. | Photo Courtesy of Mundelein
The Mundelein village trustees approved a municipal budget that shows the impact COVID-19 is having on local economies. | Photo Courtesy of Mundelein
Mundelein policymakers reduced spending for the 2021 fiscal year budget approximately 10%, as the village grapples with the economic fallout COVID-19 created.
Village board of trustee members OK'd a $63.6-million spending plan in June, which is down $7 million from the $70.4 million budget approved last year, the Daily Herald reported in mid-June.
"The COVID-19 pandemic has dramatically impacted Mundelein's budget and bottom line," Mayor Steve Lentz said in a news release about the budget, the Daily Herald reported. "The loss of tax revenue will make it very challenging for us to accomplish our goals, but we have a plan for a viable path forward."
Projected revenues were also down 38% based on last year's final estimate — from $84.2 million to $52 million, the Daily Herald reported.
The budget included several revenue categories that are expected to significantly decline during the 2021 fiscal year, such as the income tax dropping from $3.4 million to $2.7 million and the train station's earnings declining from $60,000 to $30,000, the Daily Herald reported. Grants are also estimated to sink from $305,000 to $150,000.
"We're making guesstimates now," Trustee Dawn Abernathy said, the Daily Herald reported. "Until we get something on paper, we won't know exactly how COVID has affected us."
Finance Director Doug Haywood also partially linked the revenue drops to the village borrowing $35 million the previous year for several projects, the Daily Herald reported.
Village Administrator John Lobaito said, the Daily Herald reported, decreases in the revenue were slightly offset due to a property tax increase that was approved in November and a 3% local tax on cannabis sales that beings on July 1. He added that sales tax dollars were able to continue to come in because grocery stores and home-improvement stores stayed open amid the pandemic.
The budget includes $23 million for capital improvement projects and sets aside $1 million for construction of a new public works and engineering facility, as well as $5 million for street improvements, the Daily Herald reported.
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