Budget - 2021
2021 Budget Document
Village's 2021 Budget Reflects COVID-19 Pandemic Challenges
The 2021 budget includes the necessary funding to provide the residents and business owners of our community continued cost effective and efficient administrative, public safety, and public works services. Also included in this budget are expanded capital improvement and equipment replacement programs. Most of these improvements to our municipal building, street, stormwater, wastewater, and water infrastructure and replacement of public safety emergency response and public works vehicles were deferred until FY 2021 as a result of the COVID-19 pandemic.
The COVID-19 pandemic has presented the organization with several significant challenges not experienced since the Great Recession of 2008 and 2009. While the Village Board and staff spent a great deal of time responding to this unprecedented health and economic crisis by focusing efforts on the health and safety of the community and our employees, the Village’s COVID-19 Budget Response Plan approved last April provided a proactive plan for ensuring the organization’s continued financial sustainability. That plan, along with the Village’s already strong financial position, enabled the organization to withstand many of the financial challenges our peer communities have experienced as a result of this pandemic.
Major Initiatives and Factors Influencing Budget Development
- The Village’s COVID-19 Budget Response Plan provided for a phased approach to implement several actions to mitigate effects of the pandemic as it unfolded. The Village Board’s decision to defer or eliminate certain capital projects, equipment replacement, and other operational items from the FY 2020 adopted budget, implement a hiring freeze on several vacant full and part-time positions, and direct staff to seek all available financial assistance through State and Federal resources offset unanticipated revenue shortfalls and increased expenditures required to respond to the pandemic crisis. As a result of these proactive budgetary deferral measures and reimbursement for eligible expenses through the Federal CARES Act, the FY 2020 General Operating Fund reflects an estimated year end revenue surplus of $853,900 and unreserved fund balance totaling 55% of expenditures on December 31, 2020.
- The FY 2021 budget reflects no new resident or business owner local tax, fee, license, or fine increases. This includes the second consecutive year of no increases to the Village’s water, sewer, and capital improvement surcharge user fees. Despite FY 2021 projections reflecting declining state shared sales and local eating establishment taxes and continued challenges faced with increases to our employer contributions for police and fire public safety pension funds, the Village’s prudent budgeting measures during the pandemic, resilience of employees to provide efficient municipal services with fewer resources, and unreserved fund balances in the two largest operating funds exceeding previously adopted financial policies, the Village is in a strong position to minimize any additional financial burden on its residents and business owners.
- The Village’s Strategic Plan includes an initiative to ensure funding of the Five Year Capital Improvement Program. During FY 2020, the Village began receiving additional State allocated motor fuel tax and grant funding as a result of the Rebuild Illinois program. In addition, the Village was notified it will receive Federal surface transportation program grant funding for the completion of a joint project with Schaumburg for Rodenburg Road improvements. As a result, this influx of additional funding from the State and Federal governments allows the Village to better align and expand the annual street improvement program in FY 2021 within the Motor Fuel Tax and Rebuild Illinois funds and then use the General Capital Projects Fund for additional improvements to our municipal building, stormwater, sidewalk, streetlight, and tree reforestation programs.
- The FY 2021 budget includes a recommendation to make substantial improvements to the public works administrative and garage facility. Built in 1993, the only improvements made to the facility since then are a kitchen remodeling, roof replacement, and exterior painting. Much of the existing flooring, bathrooms, locker rooms, lighting, and furniture has exceeded its useful life and is in need of replacement. Additionally, the public works reorganization plan approved earlier this year by the Village Board could be augmented further by a reconfiguration of several office, training, and conference rooms. Other improvements to the vehicle garage and mechanic shop are also necessary. Staff has developed a scope of work and estimated cost of the project by meeting with the facility’s original architect and contractor, appropriate vendors, and the Village’s chief building official. An estimated cost for the project is $631,000. The project would be funded through the General Capital Projects Fund (70%) and Water/Sewer Operating fund (30%).
Significant Budget Highlights
- The General Operating Fund budget reflects revenues exceeding expenditures by $2,345. The projected unreserved fund balance will be $9,445,793 or 52% of expenditures, thereby exceeding the Village Board’s Strategic Plan Financial Sustainability Priority and financial policy target of at least 35%.
- The General Capital Projects, Motor Fuel Tax, Rebuild Illinois, and Water/Sewer Capital Projects funds include $990,000 for the annual street improvement program, $1,166,000 for water main replacement, $2,647,400 for wastewater treatment plant and collection system projects, $237,250 for municipal building and facility repairs, and $315,000 for stormwater improvements. An additional $37,740 in funding has been budgeted for repairs to a portion of the Metra Train Station parking lots.
- The General and Water/Sewer Equipment Replacement funds include $1,440,210 for the replacement of several police, fire, and public works vehicles. The budget reflects replacements of three police emergency response vehicles, a fire emergency response engine and rescue squad, two public works street division dump and snow removal trucks, and three water and wastewater utility division vehicles. In addition, $60,000 has been included for the replacement of two sets of fire department extrication equipment for vehicle accidents and other types of entrapments.