WEST LAFAYETTE Though the village of West Lafayettes overall financial status was described as stable, Mayor Jack Patterson advised village council to use caution with all financial decisions in 2012.

During the annual State of the Village address which was given by Mayor Patterson Monday night (Jan. 23), it was found that the lower interest rates and local income tax revenue reflected a significant decrease in comparison to the previous past two years. The interest generated from checking and CD investments for 2010 was $6,136 and $3,282 for 2011. The village has projected the interest in 2012 to be at $3,000.

Only a slight decrease was noted for the municipal income tax. In 2010, $269,697 was collected and $261,682 was collected in 2011. The village projects $265,000 to be collected for the year 2012. The amounts for the past two years included the previous one percent income tax which assists in operating the general fund. The income tax is now currently at one and a half percent. The half percent increase in income tax, which was approved by the local voters in November, for the street repair fund should generate approximately $132,500. The additional half percent tax is exclusively reserved for maintenance and repair of the village streets, alley ways, and sidewalks.

In 2010, the general fund had revenue of $560,815 with expenses totaling $566,284. In spite of the expenses being greater than the revenue, the village was able to remain at a financially stable status due to a slight overage of funds from 2009. The villages general fund improved for 2011 with revenue of $597,428 and expenses of $559,459. The projected general funds for 2012 includes revenue of $435.403 and expenses of $433,149.

Mayor Patterson pointed out that the projected revenue and expenses for 2012 are noted to be considerably lower due to the following factors:

The fire departments operating expenses no longer are taken from the general funds. With council and state approval, a new fund of $85,250 has been established through four local townships that are contracted with the village for fire protection.

The local government revenue has gradually decreased the past few years. In 2010, $50,144 was received and $46,676 was received the following year. This year the projected amount from local government will be about $34,000.

In 2011, the village had very little revenue from the local alcohol sales ($660) and golf cart registrations ($450).

When comparing these numbers, we are seeing a decrease in the operating general funds, therefore, I am encouraging all department supervisors to be mindful of our expenses. Our spending will be limited to only what is necessary. Despite the decreased revenue from the state and other sources, I believe the village will continue to remain secure, Mayor Patterson said.