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Broadview finance committee: audit shows improved net position; pensions drive reported long-term liabilities
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Summary
Finance Director Tom Hood told the Village of Broadview finance committee that fiscal 2023 ended with a stronger net position after $29.5 million in revenues, but that GASB pension accounting has increased reported long-term liabilities; committee members discussed capital plans, an IEPA loan for water mains, and an estimated $168 million cost to replace all lead service lines.
The Village of Broadview's finance committee reviewed the fiscal 2023 audit on Feb. 11 and heard that the village ended the year with stronger finances even as actuarial pension estimates pushed up reported long-term liabilities.
"During the year, revenues of $29,500,000 exceeded expenses of $27,300,000, resulting in an increase to the net position of $2,200,000," Finance Director Tom Hood said, presenting the audit summary and charts. Hood said the village's net position at year-end was about $4.4 million and that government activities improved while business-type activities fell.
Hood emphasized that the large rise in the village's long-term liabilities reflects accounting for pension and other post-employment benefits, not new borrowing. "That big increase is in the pension," he said, noting the village's total long-term liabilities were reported at about $81.7 million and that GASB changes first added pension obligations into the financial statements in 2016.
Committee members asked for technical clarifications. Trustee Jerry Shelby asked about the interest rate on a recent low-interest IEPA loan used for water-main work; Hood said he would confirm the exact rate after the meeting. Hood also said the IEPA revolving loan and principal-forgiveness programs are being explored as a funding source for required lead-service-line replacements.
Hood told the committee that the village's revenue mix has strengthened, citing higher sales-tax collections (including online sales) and higher ambulance-service fees. He said replacement tax and other one-time items also boosted revenues, and he disputed public suggestions that Broadview runs primarily on grant money: "This particular year, less than 3% of it was grant money," Hood said, adding that grants are used for "above and beyond" projects rather than operating costs.
The committee discussed long-range capital planning and state funding strategies. A committee member described an established five-year capital list and said the village uses lobbyists to seek state funding to offset project costs. Members noted the rising cost of projects since grants were first awarded and the importance of phasing work.
On lead service lines, a committee member outlined the scale of the challenge: "If we was to replace every lead service line in the village of Broadview, it would cost us a $168,000,000 today," the member said, arguing for phased priorities that focus on schools and child-centered sites first.
Hood also reviewed special accounts and audit requirements, saying that restricted funds from the old Emergency Telephone System Board account remain and the village plans to exhaust and close that account. He warned that federal funding thresholds can trigger additional audits ("yellow book" tiers) and that audit costs have increased as the village's audit work expanded to pension and OPEB reviews.
Committee members were briefed on the budget timeline: department wish lists will be compiled and negotiated with finance staff, a finance-committee review will follow, and the board is expected to consider a final budget in May. Hood said staff are working to complete delayed audits and to prepare the 2026-27 budget cycle.
The meeting closed with thanks from Chair Trustee Judy Abraham and an announcement that Mayor Katrina Thompson will host a public Q&A on Saturday, Feb. 28, from 11 a.m. to 1 p.m. at Broadview Village Hall. The chair called for adjournment, members seconded, and the committee voted by voice to adjourn.
