Village manager presents $49.4 million tentative budget, proposes 6.9% levy increase and staffing reductions

Village Manager Kathleen outlined a $49,400,000 tentative budget that would raise the village's levy by about $2,000,000 — a 6.9% increase — to cover a roughly $3.0 million shortfall.

Kathleen said the gap stems from several concrete drivers, notably $960,000 in additional debt service from capital projects completed or underway, a revenue shortfall of about $357,000 (parking and permit fees, among other items), and higher operating costs driven by a growing vehicle fleet and insurance and fuel increases. "That debt service is impacting this budget in the amount of $960,000," she said. She also reported a net fleet cost of about $3.8 million over the past three years and said that has contributed to doubled auto insurance premiums.

To close the gap, the manager proposed a package of staffing and operational changes that she said would yield about $1.8 million in savings: eliminating the Department of Human Resources (saving $266,000), deferring the village planner position ($70,000), defunding an assistant planner, reducing overtime by $150,000, defunding selected positions across IT, accounting, recreation and the police department, pausing a second assistant village manager position and a hiring freeze. She also proposed policy and process improvements, including tighter procurement practices, an overtime policy and a vehicle inventory to identify surplus units for sale.

The presentation included use of reserves: the village has a fund balance of roughly $18.3 million, with $14.9 million unassigned, and Kathleen proposed transferring $899,000 from reserves to operations and $818,000 to year one of a five-year capital plan to avoid issuing new debt this year.

Trustees and residents asked for more detail on particular lines and the timeline for implementation. Trustee and public commenters praised the manager for candidly laying out prior gaps and urged the board to pursue ongoing cost discipline. Dan Natchez, who introduced himself during public comment, called the budget "refreshing" for its candor. Len Aubrey, chair of the village budget committee, called the tentative budget "aggressive and very necessary," noting state-mandated increases in personnel costs have made staying under the tax cap increasingly difficult.

The board opened a public hearing on the tentative budget and agreed to continue budget hearings at departmental presentations scheduled in the coming days. The hearing was adjourned and set to resume at the board's next budget meeting.