Resident's Guide to the Village Budget
At the December 15, 2022 meeting, the Village Board approved the Village's Calendar Year 2023 Budget - view it here. Comments and questions regarding the budget should be sent to firstname.lastname@example.org.
Annual Budget Development Overview
The budget is approved annually by the Village Board in compliance with the Village Charter and municipal code. The adopted budget serves as a forecast of revenues it will receive and expenditures it will incur during the year. Guided by the policies, priorities and goals of the Village Board (including the Village’s Strategic Plan, financial policies and source documents), the budget is the single most important policy document produced by the Village each year. The budget is both a spending plan for the Village's financial resources and the legal authority for Village departments to spend the resources for public purposes. Through these resources, services are provided to meet the needs of the community.
In conjunction with the budget, the Illinois Compiled Status (ILCS) requires the Village to adopt an appropriations ordinance, which sets forth the legal maximum spending limits for the Village for the fiscal year. The appropriation authority requested represents the budgeted amount plus 10%, which accounts for possible changes to planned expenditures that may take place in a given year. Revenues and expenditures are monitored through the year to determine whether actual performance is within the target allocations.
As depicted in the graphic below, 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 financial forecast and scheduling of a public hearing to consider the proposed tax levy ordinance for the coming year. Staff summarizes findings into reports, which are reviewed by the Finance Committee and considered in accordance with financial policies and other critical documents, as the Village’s annual spending plan is drafted. Such documents are included within the budget for reference. Feedback from each step, including the budget workshops to review the draft budget, is incorporated into the final budget document.
Calendar Year 2022 Budget Overview
The Village Board has established a deep commitment to exceptional service delivery as the Village’s first priority, and this budget preserves and enhances that commitment, while also remaining fully in balance. This budget reflects an improving local economy and the Village’s strong financial footing and addresses the many needs of our community in a reasonable and considered way, using the Village’s limited resources prudently and allocating them across a broad spectrum of services and important investments in our community.
The budget is the result of significant steps taken to review, prioritize and adjust all expenditure requests against revenue projections. Our goal is always to limit how much the Village asks of its stakeholders by closely examining program expenditures and diligently seeking alternatives sources of funding, such as State or Federal grants. Ultimately, we seek to maximize results for our community at the lowest possible cost.
Calendar Year 2022 Budget highlights include:
- A guiding force for the development of the budget is that it remains true to the Village’s strategic priorities. These priorities include financial sustainability, infrastructure replacement, community engagement, commercial vitality, operational effectiveness, organizational development and environmental sustainability.
- Aside from the use of reserves to fund one-time capital expenses, the General Fund, which is the Village’s largest fund and provides resources for nearly all day-to-day operations of the Village, is balanced. Revenues exceed expenditures (less capital where reserves are utilized) in all operating funds. All spending plan recommendations maintain minimum fund balances.
- Across all funds, over $9.2 million in capital and infrastructure spending is planned. These investments will be funded by General Obligation Bond proceeds (following the successful April 2021 referendum), Water Fund Bond proceeds and cash reserves, Motor Fuel Tax reserves, Rebuild Illinois grant funds, as well as General Fund revenues, user fees and other resources, including the use of General Fund Balance reserves for one-time purchases. In addition, the use of American Recovery Plan Act (ARPA) resources from the Federal government will be utilized to fund water distribution system improvements.
- This budget contributes actuarially mandated payments to all pension funds. This includes the Police Pension Fund and Fire Pension Fund, as well as required contributions to the Illinois Municipal Retirement Fund.
- While still maintaining a balanced budget, several new initiatives have been included, along with additional staff. Among others outlined throughout the budget, in the next year, the Village is expected to commence an update of the 1996 Comprehensive Plan, begin to update the municipal code, revamp the Village’s website, and begin the transition of our fleet to accommodate electric vehicles.
- The budget includes an increase in the property tax levy of approximately 1.4%, or $239,449. This increase is projected to have a limited impact to Glencoe residents’ property tax bills. Referendum-approved bond issues will impact property tax bills this year, though will do so with the support of our community.
- Water and sewer rates will increase by 6.5% and 3% respectively, the lowest increases in five years. Water rate growth is proposed to slow thanks to improved revenues and an infusion of ARPA funds to aid in water system improvements. Additional sewer revenue will be used to fund improvements to the Village’s sanitary sewer system. These increases will also supplement costs of day-to-day operations.
- Generally, most other fees and taxes remain flat. Understanding that our residents and businesses continue to be impacted by cost pressures elsewhere, Village fees such as vehicle stickers, parking fees, licensing fees and other fees are proposed to remain flat.
- The process of developing a new Strategic Plan will kick off in 2022.
- While not allocated in this budget, funding for the replacement of the clubhouse at the Glencoe Golf Club will need to be identified. Fundraising of private resources has begun to offset the cost of replacement of the over 100-year-old structure.
The Calendar Year 2022 Budget can be viewed here.