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Adviser: income tax is village's biggest revenue source; council asked for clearer assumptions
Summary
Advisor David Connolly warned that the village relies heavily on income tax receipts and said the committee used a 7% growth assumption for planning; council asked that assumptions be visible and historical growth be shown.
David Connolly told the joint committee that the village's income tax is "the big dog" in its revenue mix and that heavy reliance on a single revenue source is a risk. "If you just at a glance, look at that 1st set of numbers at the top, your income tax is the big dog," he said while explaining the model's sensitivity to that revenue.
The committee discussed historical growth and projections: staff reported income-tax increases of 16% in 2022 and 2023 and 11% in 2024. Connolly said the group examined 3%, 5% and 7% growth scenarios and "ultimately landed on 7%" as a working assumption for the forecast, while noting that the figure can—and should—be revised at six-month checkpoints.
