Village of Flossmoor issued the following announcement on April 22.
The Mayor and Village Board of Trustees on Monday approved the Fiscal Year 2021 budget for the Village of Flossmoor at their regular Village board meeting.
The annual budget, which goes into effect with the Village’s new fiscal year on May 1, 2020, provides funding for the Village’s services including the Police, Fire, Public Works, Water & Sewer and capital infrastructure improvements. The total annual budget is $29 million, which includes $13.1 million in the General Fund, the Village’s major operating fund, and $3.9 million for the Water & Sewer Fund. The Village’s annual budget also includes the Flossmoor Library Fund budget, which is determined by a separate elected board.
Although budget preparation and discussion began prior to the impact of the COVID-19 pandemic, the adopted budget includes $573,384 in revenue adjustments, including $437,000 in the General Fund, in anticipation of the economic impact of the stay-at-home order. The budgeted revenue losses assume an extended stay-at-home order and a gradual return to normal social activities during the summer months. The Village’s strong fund balance, which is a product of prudent fiscal management, will allow the Village to continue to provide its operations and basic services should the revenue loss be greater than anticipated. The Village is also prepared to defer capital projects and capital equipment replacement should additional steps be necessary. The Board’s shared goal is to maintain operations in a way that preserves the Village’s strong financial management practices.
Despite the challenges of the pandemic, the Village’s overall financial health is strong. The Water & Sewer Fund budget includes a small operating surplus as well as a drawdown of fund balance to fund the water meter replacement and the engineering and analytical services necessary to support the Village’s move to a new water supply source in the coming years. This is a financial highlight for the Village, as the health of the Water & Sewer Fund has improved substantially in the past two fiscal years. The Village has temporarily delayed any discussion of adjusting water rates to accommodate the suppliers’ passthrough costs and any operating increases, a decision that they can continue to place on hold for a while longer.
“The Village Board is very sensitive to the personal challenges many of our residents are facing because of the pandemic. The Village will delay and defer any perceived extra strain on our residents for as long as possible,” said Mayor Paul Braun.
The Village’s General Fund expenditures of $13.1 million include the budgeted use of $2.4 million in fund balance, of which $1.4 million will support the water meter replacement program. The General Fund is the Village’s major operating fund, supporting the Police, Fire and Public Works departments as well as the administrative staff and processes that ensure the Village operates efficiently. Without the COVID-19 anticipated revenue loss, the General Fund would have budgeted $479,000 to support operating expenses; the total use of fund balance to support operating expenses increases to a budgeted $847,000 with the anticipated revenue shortfall.
“Every business and municipality is grappling with the long-term economic impact of the pandemic and there are still a lot of unknowns on the true impact on our budget. We will diligently monitor revenues, expenditures and cash flow so we can adjust accordingly,” said Village Manager Bridget Wachtel.
With the adoption of the budget, the Village Board continued to prioritize street resurfacing, allocating $450,000 to road projects, including $150,000 from the General Fund. The initial phase will begin this summer with a $300,000 allocation, followed by the remainder of the project later in the fiscal year dependent on Motor Fuel Tax revenues, which are anticipated to be lower than projected due to the reduction in gasoline purchases during the pandemic. Investing in roads and water as well as sewer and storm sewer systems is a priority, and Village staff continues to apply for grants for storm water and other infrastructure projects.
“The development of the annual budget is a group effort between staff and the Board of Trustees,” said Wachtel. “This coming fiscal year will be challenging, but we will be hyper vigilant in the review of revenues, expenditures and cash flow to respond as needed. Our goal is to ensure that operations and basic services continue through the next fiscal year. As we have previously shown during financial crises, our response will be measured and calculated.”
Original source can be found here.
Source: Village of Flossmoor
Alerts Sign-up