Whispering Pines residents will pay more in property taxes in the new fiscal year.

The Village Council on Monday adopted a scaled-back budget that includes a $150,000 reduction in expenses from the fiscal year that just ended June 30. The new fiscal year began Thursday.

The property tax rate will increase from 32 cents to 37 cents per $100 valuation.

The 2010-2011 budget includes a $1.1 million general fund.

In a budget message issued earlier this year, Village Manager Steve DeBolt indicated that key personnel positions would not be filled or would be delayed because of reduced revenues. Administrators and staff in all departments, he wrote, have taken steps to cut costs and seek other revenue sources.

DeBolt said the tax hike is expected to generate about $200,000 per year, which will go into a capital improvements account and be used for infrastructure repairs.

"Basically the reason for this increase is the impending need for infrastructure improvements, especially dam repair," he said.

Currently, the village is preparing to begin repairs to Cardinal Lake Dam. That work, which is expected to be completed by the end of the year, has depleted village funds, necessitating the need for a tax increase.

A large crowd attended the public hearing, and a number of residents expressed concerns, DeBolt said.

"We were able to answer their questions in a way that the tax increase will be generally supported by the populace " DeBolt said.

Contact Tom Embrey by e-mail at tembrey@thepilot.com.