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Village manager outlines $600,000 state funding shortfall in midyear review; proposes using stabilization fund
Summary
The village manager reported the midyear financial review showing roughly $600,000 in reduced local‑share distributions from the state and a 2% administrative fee that will cost about $85,000; he proposed using $600,000 from the economic stabilization fund and earmarking $900,000 of a $1.65M surplus to smooth rising pension costs.
At a Business Finance & Budget Committee meeting, the village manager presented a midyear review for 2017 that showed generally stable revenues and expenditures through June 30 but flagged two notable negatives: the loss of two large sales‑tax generators (estimated combined impact about $375,000 annually) and a state action that reduces local share distributions by approximately 10%, which the manager estimated will cost the village about $600,000. He also said the state is charging a 2% administrative fee on sales‑tax remittances, which he estimated at about $85,000 annually.
To blunt the short‑term impact, the manager proposed drawing $600,000 from the village’s economic stabilization fund (leaving an estimated $2.2 million in stabilization funds above four months cash on hand), splitting the use between the last half of 2017 and the first half of 2018 rather than making immediate cuts to services. The manager also recommended allocating $900,000 of a reported $1,650,000 surplus toward pension cost smoothing over five years and using $750,000 as a one‑time payment to reduce current pension liabilities. “So the bottom line when it comes down to it is we're out $600,000,” the manager said on the state reduction. The committee discussed the approaches and acknowledged the possibility of more permanent measures if the state reduction persists.
