A Resident's Guide to the Village Budget
Annual Budget Development Overview
The budget is approved annually by the Village Board in compliance with the Village Charter and municipal code and includes detailed information about anticipated revenues and expenditures for the coming fiscal year which spans from March 1 to the end of February. Guided by the policies, priorities and goals of the Village Board and the Village’s Strategic Plan, the budget is the single most important policy document produced by the Village each year. The revenues and expenditures are broken down by the various operating, enterprise, fiduciary and special funds that comprise the total spending plan. Illinois Compiled Statutes (ILCS), or State law, 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.
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.
Fiscal Year 2020 Budget Overview
The Draft Fiscal Year 2020 Budget was presented to the Village Board at two budget workshops in November. Incorporating feedback from the November workshops, the Fiscal Year 2020 Budget is being presented for consideration at the January 17 Village Board meeting.
Fiscal Year 2020 Budget highlights include:
- The budget includes $25,890,565 in expenditures across all funds and departments (excluding the statutorily controlled Police and Fire Pension Funds and the Washington Place Special Service Area), representing a 2.6% increase in proposed spending compared to Fiscal Year 2019. These same operational fund revenues are projected to increase by 7.2%, growing to $24,279,805. The difference between expenditures and revenues is offset with a planned use of General Fund reserves (resources saved from prior fiscal years) to fund major capital and infrastructure projects, accounting for a balanced budget.
- Approximately $4 million in capital and infrastructure projects for the coming year including the Tudor Court Street/Streetscape Improvement Project, continued investment in a new enterprise resource planning software, downtown and residential sidewalk restoration, downtown parking system improvements and water main replacements at Euclid Avenue, Lincoln Drive and Longwood Avenue. This also includes over $314,000 in mandated rehabilitation of the Village’s sanitary sewer system.
- Resources for projects related to the Village’s new Strategic Plan, including funds for the fielding of a community-wide survey and a comprehensive ordinance and regulation review.
- Resources for the Village’s 150th anniversary celebration, which will be supplemented by sponsorships and several fundraising efforts, including a commemorative vehicle license.
- A proposed 2.1% increase in the property tax levy, in line with the limitations imposed by the Property Tax Extension Limitation Law PTELL). However, due to the completion of payments on a portion of the Village’s outstanding debt, the overall impact to residents is anticipated to provide for a slight decrease in taxes. This change will have a limited impact to Glencoe residents’ property tax bills, as illustrated in the Financial Forecast section. The Village Board will be reviewing the proposed tax levy at its December 20, 2018 meeting.
- Cost of living adjustments (COLA) of 2.5% for Public Safety union employees (contractual requirement) and a 2.5% for all non-union employees.
- An increase in funding for the Glencoe Police Pension Fund, in line with actuarial funding requirements.
- A reduction in contributions to the Illinois Municipal Retirement Fund (IMRF). The decrease in rate is primarily due to IMRF’s favorable investment returns in the last year, a portion of which has been credited to employer accounts (back to the Village).