Revenue Gap Partly Filled in Next Year's Budget

After reporting to the Village Board that Village Treasurer Don Pearce reported last week that at least part of the problem seems to be fixed.

Pearce reported at the March 11 board meeting that $140,000 in state reimbursement for highway project funding, better known as CHIPS (Consolidated Highway Improvement Program), would not be available to the village as part of its $9.65 million spending plan, a proposed 3.5 percent increase in expenses over the current fiscal year.

While the lack of CHIPS funding itself projected to be one drop in revenue over next year, additional areas include a loss of over $50,000 in a cell tower lease agreement, as well as continual slides in mortgage tax revenues and building fees.

Pearce mentioned at last week's meeting that the CHIPS budget hole, at least, will be filled after the initial forecast seemed to indicate otherwise.

In order to fill an estimated shortfall in revenue, about $150,000 in reserves will be used to offset any tax increase, Pearce said. Close to $440,000 in total is projected to come from the village's fund balance, however the majority will be used on projects such as the East Beach reconstruction, which is in its final year of work.

The treasurer noted that complete revenue predictions will not be able to be calculated until assessments for next year's tax rolls come in on April 1. 

A public hearing on next year's budget is set for April 15.