Trustees adopted Garden City's proposed 2007-08 $53,703,458 village budget - an increase of 2.29 percent over that of last year's - during a hearing April 2 at village hall. Applying surplus funds and revenues, a $36.98 tax rate is required to balance the budget; however, this results in "no tax increases" for residents, a "goal" Trustee and Finance Commissioner John Watras, members of the Citizen's Budget Review Committee and the board sought and achieved. Residents may examine the budget at village hall, 351 Stewart Avenue, Monday through Friday - excepting legal holidays - between 9 a.m. and 4 p.m.

This budget includes a five-year capital plan. As a result of extensive meetings between the executive staff and the village board of trustees, purchases of equipment and a number of projects were modified or deferred. In addition to appropriations for motorized equipment replacement, there are a number of scheduled projects, which relate to the maintenance of the village's infrastructure, including sidewalk and curb restoration, tree planting and road repairs.

Capital projects financed by debt issuance will enable the village to meet the necessary maintenance of "aging" facilities at community park and the Garden City Library, where improvements to existing structures and renovation of facilities are under way. Timing of the financing will be arranged so as to defer the first principal payment to the 2009 fiscal year, thereby minimizing the tax impact as the new debt will be replacing retired debt.

The operating budget contains the annual pay down of bonds and notes. The expense in this year's budget for debt service of $1,878,248 is due to payment requirements on outstanding bonds. The village has taken advantage of low interest financing from an energy conservation program to replace the windows and boilers at village hall.

The village's operating departments show an increase of 1.26 percent over fiscal 2006-07. Contractual agreements are being negotiated for the CSEA, whose agreement expired May 31, 2006, the PBA, through May 31, 2007 and PFFA through May 31, 2008. All required contractual increases have been included in each departmental budget, and funds have been provided for anticipated settlements with those expiring union contracts. Employee benefits have increased by 5.40 percent. This is attributable to increases in village payments for health insurance premiums and is reflective of national trends, village officials note.

The village has experienced a net decrease in the assessed valuation of $1,077,111. This decrease is attributable to reductions in assessments for special franchises increases in tax exempt buildings and tax certiorari actions on several properties. The vast majority of these cases involve commercial properties and are very sensitive to economic conditions, village officials further stated. Settlements of these cases created a shift in the mix of property values over the past several years, resulting in a diminution of taxes paid by commercial owners and a corresponding increase in the proportion of taxes paid by single family residential properties.

The budget anticipates that revenues will increase $640,955 due primarily to a significant increase in interest earnings and inclusion of the first installment of the benefit assessment for Parking Field 11. General state aid has been anticipated at approximately the same level as the actual current year.