On Tuesday, December 1, 2009 the Village Council adopted the 2010 Municipal Budget (FY10 Budget), including the Community Investment Program. The FY10 Budget features a variety of expense reductions and certain revenue enhancements to address the challenging economic conditions exacerbated by the recession. The deliberate and open process used for budget discussions occurred over the course of seven meetings with unprecedented levels of public input. The budget calls for changes in the Village’s business model and in many cases, is far from business-as-usual; a fact underscored by $2.5 million in expense reductions in the General Fund, the Village’s main operating fund.
Prior to the proposed budget being discussed, the Village Council and staff participated in a series of six publicly held sessions to forge a Long Range Financial Plan (LRFP). The thorough analysis of the Village’s financial condition conducted during these sessions revealed a $4.5 million structural gap in the General Fund due to declining revenues and increasing operational and capital expenses. Ultimately, the following strategies as identified in the LRFP played a key role in addressing the financial challenges facing the Village:
The FY10 Budget reflects the strategies outlined in the LRFP in the following manner:
Expense reduction efforts play a significant role in the FY10 Budget and include a series of cost saving measures and operating efficiencies across all departments. Consistent with the LRFP , the following reductions are sustainable over the long term and although many are the result of operating efficiencies with no direct service impact, there are those that will reduce service levels. The table below outlines these changes.
| Action | LRFP Strategy | Cost Savings |
|---|---|---|
| Improvements to Vehicle Fleet Management | Operating Efficiencies | $400,000 |
| Changes to the Health Insurance Plan | Reduce Personnel Expenses | $450,000 |
| Elimination of Full and Part Time Positions (25.65 Full Time Equivalent) | Operating Efficiencies, Reduce Personnel Expenses & Reduce/Eliminate Services, Programs and Events | $1,023,000 |
| Suspend 2010 Heritage Festival | Reduce/Eliminate Services, Programs and Events | $494,000 |
| Eliminate Pro Criterion Bike Race | Reduce/Eliminate Services, Programs and Events | $37,000 |
| Elimination of the Ice Sculpture Festival | Reduce/Eliminate Services, Programs and Events | $23,000 |
| Modification of the Taxi Subsidy Program | Reduce/Eliminate Services, Programs and Events | $50,000 |
| Suspension of the Community Grants Program | Reduce/Eliminate Services, Programs and Events | $72,000 |
| Elimination of the DuPage Senior Citizen Grant | Reduce/Eliminate Services, Programs and Events | $39,000 |
| Total Cost Savings | . | $2,595,000 |
As recommended in the LRFP , the adopted budget includes an increase in the Real Estate Tax Levy that will be used for the provision of services ($500,000) and the cost of pensions ($845,000). The $1.3 million increase in the Real Estate Tax Levy for core services would add approximately $48 to the annual property tax bill for a property with a market value of $300,000 and a resulting taxable value (Equalized Assessed Valuation) of $100,000. The Village Tax rate for FY10 will be .4898.
Additional elements of interest in the adopted FY10 Budget include:
More details regarding the budget are available in FY 2010 ADOPTED Budget Message - FINAL
Copies of the full 2010 Municipal Budget are expected to be published within the next several weeks. Additional information about the budget and the process to date can be found on the 2010 Budget: Documents/Meeting Schedule page.
Last edited by Public Relations Specialist, 237 days ago