LINDSAY FIORI lindsay.fiori@journaltimes.com | Posted: Tuesday, January 26, 2010 6:00 am

CALEDONIA - After facing a large budget deficit early last year, the Village of Caledonia ended 2009 with a budget surplus and is on track for a balanced budget this year.

In March, the village had a 2009 budget deficit around $400,000. Mostly through negotiated wage cuts and added revenue from fines and fees, the village turned that deficit into a $5,000 surplus for fiscal year 2009, said Larry Borchert, village finance and budget manager.

"It was through the help of all the unions and the managers watching each and very one of their budgets," he said. "They made no unnecessary expenditures."

To achieve the budget surplus, the village negotiated with unions to have employee groups forgo 2.5 percent of their wages beginning May 1, 2009. That move alone saved $200,000, Borchert said.

"I have to compliment the whole village," said Village Board President Ron Coutts. "We negotiated seven contracts. Everybody took benefits cuts."

The village also took in more revenue than expected: $130,000 more than planned in ambulance fees and $96,000 more in fines and penalties for things like speeding.

"Basically police officers are just out there doing their job," Borchert said. "They did a heck of a job collecting fines."

The village also spent less than expected when it came to gas and diesel. Because gas prices went down from the $4 per gallon they were when the budget was set, the village saved $119,000, Borchert said.

All this savings and extra revenue left the village with a $130,000 total budget surplus for 2009. So they bought $125,000 worth of road salt in 2009 instead of in 2010, allowing them to maintain a $5,000 surplus for 2009 while balancing the 2010 budget, Borchert said.

He gave a presentation on the village's finances Monday at the Village Board's regular Finance Committee meeting at the East Side Community Center, 6156 Douglas Ave. At the meeting, committee members discussed a possible referendum. But Coutts said a referendum would likely no longer be needed given the balanced 2010 budget.

"And we're in pretty good shape for 2011," he said.