Auditor: Minooka fiscally stable
MINOOKA -- An audit of village records shows the village to be in a stable financial position, said auditor Brian Zabel of Brian Zabel and Associates.
In this economy, stable is a reassuring word, said Village Finance Director John Harrington.
"It's going to be a challenge for the next year or so," Harrington said. "But we've always been very conservative (with village finances)."
Like most everyone else, the village has seen a reduction in revenue. Revenue from building permits is down because construction has slowed. Interest income on village investments has also taken a big hit, Harrington said.
Not long ago village investments were receiving a 5 percent return. The interest rate has now dropped below 1 percent.
On a more positive note, the completion of a large commercial warehouse facility brought in some significant income during fiscal year 2008 -- something the village didn't count on.
"We don't budget for those (commercial construction) because a lot of things can change," Harrington said.
Water and sewer income also decreased this year, partially as a result of a drop in usage from watering lawns of new homes. The wet spring and summer also led to less water usage.
Assets increased from $115 million to $120 million because of some bonds the village issued, Harrington said.
The accumulative tax rate, an average between Will, Grundy and Kendall counties, dropped slightly from .6235 to .6219 for the 2008 levy. Minooka's tax rate is low compared to similar communities, Zabel said.
The village's cash balance dropped from $25 million down to $23.5 million, mostly due to paying off infrastructure and road projects, Harrington said. At the same time, debt increased to $24 million from $22 million.
While Minooka will be tightening its belt over the next year or so, the village has a pretty good size reserve rate, said Harrington.
"We have a little money in the bank in case there is an emergency or issue," Harrington said. "We will have no problem paying our debt service payments. It makes you breathe a little easier."
