Deadbeat State Owes Huntley $700k

Illinois owes Huntley about $700,000.

CPA Frederick Lantz, the village's auditor, discussed on Thursday how that figure could affect the future of Huntley's finances.

The village—as it stands now—has a healthy financial outlook, Lantz said. He gave village trustees an overview of its 2010 financial report, which auditors rated  in full compliance with accounting practices. Huntley’s clean audit translates to an AA plus bond rating, he said.

But the village might have to rethink its financial practices based on Illinois’ financial instability, Lantz said.

Lantz said the $700,000 figure comes from shared revenues, such as income tax and sales tax. Recently, Gov. Pat Quinn talked about cutting revenues to local governments.

If that were the case, Huntley would lose about $1 million in state revenues, Lantz said.

Relying on state monies has become a risk factor for local governments that needs to be addressed in the near future, he said.

For years, local governments received revenues from the housing market, retail sales and property taxes. That's not the case in the “new economy," he said.

“For the first time in a long time we’ve seen all three stagnate,” Lantz said. “It’s almost the perfect storm.”

And, local governments are seeing equalized assessed evaluations are going down, he said.

“Our last steady streams of revenue is going away,” he said.

Those factors coupled with the possibly of the state taking away local government’s shared funds could push towns and cities into bankruptcy, he said.

Trustee Pam Fender asked if Huntley should reconsider its stand on home rule. Home rule is granted to towns with a population of 25,000 or more and gives local governments more control over its tax base.

Huntley does not qualify, but officials can seek a referendum from voters to become a home rule community. The board has previously chosen not to seek home rule through referendum.  

Lantz said Huntley might have to consider that option as part of a review of its financial policies.