Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Shorewood trustees review 2026 budget; staff flags $410,241 shortfall and options to close gap
Summary
Finance staff told the Village Board’s Committee of the Whole that the preliminary 2026 budget shows a $410,241 deficit and a 3% property tax increase built into the draft; options discussed included using the parking fund, spending down reserves, or raising the levy within Department of Revenue limits.
Shorewood trustees were briefed on the village’s preliminary 2026 budget on Sept. 15, where finance staff reported a $410,241 gap in the draft and said the budget currently includes a planned 3% increase in the property tax levy. The memo and presentation identified lead service line replacement, future public‑works facility planning, and continued streetlight system upgrades as major cost drivers. Scott, the village finance director, said workforce costs include projected wage increases of 3–3.25% and a built‑in 3% rise in health‑insurance costs. The nut graf: the village faces a small but material shortfall in a year that follows a 7% tax increase in 2024; trustees were asked only to provide direction at this stage, not to adopt final numbers. Scott outlined three primary ways to address the gap: increase property taxes (up to roughly 5% under levy‑limit and expenditure restraint rules that come from the Department of Revenue), draw down fund balance reserves, or transfer revenue from the parking fund. He said staff could use one of those options or a combination. On specifics, the presentation showed a beginning general‑fund balance near $7.2 million and an estimated ending balance just under $6 million if the current draft holds. The capital projects fund currently assumes $665,000 financed from property tax revenue — the same allocation as in 2025 — and staff noted the capital projects fund would be drawn down by roughly $300,000 under current expenditure requests. Trustees asked for more detail before deciding which lever to use. Trustee Stokbrand and others emphasized deferring action until department‑level reviews and the Oct. 6 Budget & Finance Committee meeting; Trustee Warren said he favored keeping the draft levy increase to 3% and using other levers where possible. Staff flagged timing and communication items: a detailed fund‑by‑fund review on Oct. 6, a possible additional board review on Oct. 13 if needed, and a public hearing and final adoption scheduled for Nov. 17. Scott said staff will circulate more budget detail and meet with trustees who were not present that night. Ending: Trustees did not take any action on budget adoption at the meeting; staff will return with line‑by‑line details and options for covering the draft deficit.
