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Guide to Village Budget

A Resident's Guide to the Village Budget

developmentprocessimage1Annual Budget Development Overview
The Village adopts a new budget annually, with a fiscal year calendar spanning from March 1 to the end of February. The development of the Village’s annual budget is a very deliberate process, as the budget is easily the single most important policy and practice document reviewed, considered and approved by the Village Board. With this in mind, the budget process begins months before the Village Board approves the final budget prior to the start of the fiscal year on March 1.

Work on the annual budget begins with staff’s review of capital and infrastructure needs, circulation and evaluation of a fee survey, development of a long-range financial forecast and creation of a tax levy structure for the coming year. Staff summarizes findings into reports, which are reviewed by the Finance Committee and considered alongside financial policies and other critical documents as the Village’s annual spending plan is drafted. Additionally, since establishing them formally in 2014, the six strategic priorities – Financial Sustainability, Commercial Vitality, Infrastructure Replacement, Operational Effectiveness, Organizational Development and Community Engagement – have served to underscore the values inherent in the Village Board’s vision and stewardship of the community’s resources. Recently, the concept of Environmental Sustainability has been further identified as a value inherent throughout the existing strategic priorities and therefore has been integrated into the budget development process.

With the Finance Committee’s feedback and direction, the Village Manager leads staff in incorporating an initial spending plan into a preliminary budget document which is then presented to the Finance Committee in December, with a recommended budget presentation taking place in January. 

Fiscal Year 2019 Budget Overview

The Fiscal Year 2019 Preliminary Budget was presented to the Finance Committee at the December 19 meeting. View the Preliminary Fiscal Year 2019 Budget here. Incorporating feedback from the December 18 Finance Committee meeting, the Proposed Fiscal Year 2019 Budget was presented at the January 18 Village Board meeting for consideration, after which the Board voted unanimously to approve the document as proposed. View the Adopted Fiscal Year 2019 Budget here.

Key Take-Aways from the Adopted Budget:

  • The Fiscal Year 2019 Budget provides for $25,018,611 in total spending across all funds, including over $3.4 million in critical infrastructure and equipment, as detailed in the Community Improvement Program (CIP). The largest component of the Village’s budget on an annual basis is the General Fund, from which nearly all day-to-day operations are funded including personnel costs, commodities (consumable materials, like office supplies or motor fuel) and services.
  • The budget-to-budget comparison from Fiscal Year 2018 to Fiscal Year 2019 recommends a decrease in operating expenditures of approximately 0.79% and an overall budget-to-budget decrease across all funds of approximately 17.8%, primarily due to a decrease in infrastructure projects and capital purchases.
  • The General Fund projects a Fiscal Year 2019 planned deficit of $1,366,408 for one-time expenses (primarily capital purchases). As in past years, and in compliance with approved financial policies of the Village, staff recommends the use of General Fund Balance reserves (revenues in excess of budget projections, carried over from year-to-year) to pay for these capital or one-time expenses. 
  • The structure of the budget has changed, as two funds (Garbage and Enhanced 911) have been removed and all remaining balances have been rolled into the General Fund. This has caused an increase in the General Fund request from Fiscal Year 2018, primarily due to the transfer of four Public Works Department employees from the Garbage Fund into the General Fund (with the remaining Garbage Fund employee transferred to the Water Fund).
  • The budget includes adjustment of certain fees for service, including a 2.5% increase in the Village’s sanitary sewer charge. The increase in the sewer charge will help to off-set the cost of sanitary sewer linings which extend the useful life of the system.
  • Following a comprehensive water rate analysis, staff recommended a water rate structure change and increasing the volumetric rate significantly in Fiscal Year 2019. As part of an ongoing review of the Water Fund’s operating and infrastructure investment needs, a comprehensive rate analysis was conducted in Fiscal Year 2018. Following extensive discussion by the Village Board, a new fixed charge (based on water meter size) and an increased volumetric rate were approved and have been integrated into the budget. Based on the table below, the average user with a 1 inch meter size (consuming 3,000 of cubic feet of water a quarter—approximately 22,440 gallons) will be charged $154.51 quarterly. 

 

Current

Fiscal Year 2019

Meter Size

Fixed Charge[1]

Volumetric Rate[2]

Fixed Charge[1]

Volumetric Rate[3]

5/8 inch

$0.00

$3.567

$14.55

$4.500

3/4 inch

$0.00

$3.567

$19.50

$4.500

1 inch

$0.00

$3.567

$19.50

$4.500

1-1/2 inch

$0.00

$3.567

$24.50

$4.500

2 inch

$0.00

$3.567

$38.00

$4.500

3 inch

$0.00

$3.567

$138.00

$4.500

4 inch

$0.00

$3.567

$175.00

$4.500

[1] Fixed charge is applied quarterly
[2] Per 100 cubic feet, minimum charge of $35.67 applies
[3] Per 100 cubic feet, no minimum charge