Last spring the Village prepared a budget for the revenues and expenses of fiscal year May 1, 2010 through April 30, 2011. The following is the overview of the budget as this fiscal year comes to a close.
The main revenue and expense account for the Village is the General Fund. It operates much like the personal checking account individuals have. Revenues into the general fund are received almost daily and include sales tax, state income tax, liquor licenses, vehicle stickers, building & zoning fees, cable & utility rental fees, MFT funds, and other miscellaneous income. $224,401.22 was the balance in the General Fund as of March 23, 2011.

The expenditures going IN and OUT of the General Fund deserve some explanation:
Legal fees have been considered problematic because they exceeded the budgeted amount of $100,000.

There are legal fees associated with certain operations of the village and are not within the sole discretion of the village to regulate. They include services such as prosecution of police generated court cases, tax assessment appeals, union negotiations, developer or zoning issues (yes, there are still some), electoral issues, and facility rental issues (top of the water tower space) – these have cost the Village between $6600 - $19000 per month during the current fiscal year. These fees were not unexpected.

However, the legal fees for the Corporate and Personnel portion of the bill did not come within our planned budget – lawsuits were inherited, personnel issues loomed large, and various matters before the Board required increased legal advice. These expenses cost between $6800 - $17,000 per month during the current fiscal year.

Unexpected expenses, notably, a settlement for $20K to two Village Employees, a $50K settlement to the former Clerk, and $20K to an adjoining landowner were not in the budget but unavoidable having been ongoing in previous litigation. The final payout to retiring police officers cost over $150K which also was not budgeted. All these expenses were unique to this fiscal year and there is no denying they adversely affected the Villages’ bottom line.

The possibility of the Village borrowing from the Water Fund was presented to the Village Board and it is imperative that the residents understand the scope of this possibility. With the State of Illinois some 4 months behind in forwarding the Village’s share of monies totaling some $240K and with a slow overall economic recovery, the Village must be proactive in anticipating its economic future. The Finance Director is required to receive Board approval to borrow. If the need were to occur, the General Fund would borrow the least amount possible from the Water Fund and only if deemed absolutely necessary. As of today’s date, there are no plans to borrow any money.

Residents should understand the village is not in any way financially insolvent despite the past financially challenging year. If you have any questions or concerns regarding this article, please contact Mayor Herrmann at DebbieH@villageofislandlake.com