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Manteno preliminary FY2027 budget shows roughly $1.8 million shortfall; trustees consider cuts
Summary
Village staff reported a projected $3.2 million shortfall for the current fiscal year and that the preliminary FY2027 budget currently shows about a $1.8 million deficit, driven by rising pension and payroll costs, lower intergovernmental revenue and legal fees tied to litigation; trustees discussed options including reducing the garbage subsidy and delaying capital purchases.
Staff presented the village's preliminary budget for fiscal year 2027 and an updated estimate for the current year, prompting trustees to press for additional detail on costs and possible cuts.
Chris, a village staff member who led the presentation, said the current fiscal year could finish about $3.2 million in the red and that the preliminary FY2027 budget as presented would run about a $1.8 million deficit. He identified several contributors: a police pension increase (about $76,000), an intergovernmental revenue reduction (about $107,000), reduced interest income (about $200,000), an increase in legal fees related to ongoing litigation (an added $100,000 in the budget), and payroll increases (roughly $247,500) partially offset by a $113,000 billing-department payroll drop.
Chris also itemized insurance and capital/project costs: a roughly $70,000 property-insurance increase tied in part to new municipal buildings; about $250,000 expected on square and pavilion work; a $20,000 commitment for soccer shed and dugouts; and $50,000 included for path maintenance. Garbage-related costs of about $770,000 are reflected in the draft budget.
Trustees questioned whether some programs should be scaled back or paused. One trustee suggested reconsidering the property tax rebates and the village's contribution to the garbage program; another urged exploring revenue growth from new businesses rather than immediate cuts. Staff noted the garbage contract requires about 90 days' notice to change billing arrangements and that stopping the village subsidy likely would require an ordinance or resolution.
Trustees asked staff to return with more specific pricing and options, including repair-vs.-replace estimates for aging equipment and vehicles. The road-and-bridge fund is proposed to cover a replacement truck budgeted at about $200,000; trustees asked for a repair-versus-replace cost comparison and lead time, which staff said could be eight months to a year for ordering and outfitting a replacement vehicle.
The board agreed to schedule additional finance committee work sessions to review line-item detail and potential policy decisions; no budget appropriation was adopted at this meeting.
