If recent economic forecasts hold fast and officials fail to cut expenses or raise taxes in the next couple years, the village faces a $500,000 deficit by the end of fiscal 1997.
Village officials said this projection is based on “conservative” figures showing expenditures outstripping revenues by 4 percent each year for the next three years. The largest outlays are allocated to the village’s police and fire departments, which together consume about 58 percent of the total budget.
“We have some projections that definitely show a drain in our fund balance,” Village President Dennis Gallitano said during a recent meeting where officials heard an overview of village finances.
Village officials predicted they would either cut expenses, re-evaluate revenue sources or levy higher taxes to curb any potential deficit. They said they did not anticipate cutting funds or personnel from the police and fire departments.
The current budget appears to be in good shape with some $21.3 million in expected revenues and $20.3 million in anticipated expenditures, officials said.