Since 1895 when the Village of Lake Bluff was incorporated, officials say it has handled budgets one year at a time. Now the town is taking a different approach.
On March 28, the village board approved a budget for the next two fiscal years, starting May 1, 2016 and running through April 30, 2018.
“It puts an emphasis on looking at a longer range vision,” said Drew Irvin, village administrator. “To focus on a long-range plan and fiscal management.”
The change is something village officials have been considering for several years, but the shaky economy kept them from making the switch, said Susan Griffin, village finance director.
“A lot of changes have been made over the last five to six years with the start of the great recession,” Griffin said. “Now things are a little more stable.”
For fiscal year 2017, the village expects $13.1 million in revenue, a .08 percent increase over last year. Expenditures are projected at $14 million, a 1.8 percent increase, Griffin said.
In fiscal year 2018, the village expects $13.2 million in revenue with $13.9 million in expenditures, Griffin said.
The village will make up the difference between revenue and expenditures by tapping into savings, Griffin said. The village aims to have savings equal to at least 50 percent of its operating budget. Currently it has more than 60 percent, Griffin said.
About one-third of village revenue comes from property taxes. Other sources include sales tax, utility tax and state income tax, Griffin said.
In fiscal year 2017, the village will spend about $3 million and the following fiscal year about $2.7 million on capital projects.
“It’s a very aggressive capital budget,” Griffin said.
The capital projects planned include replacing sanitary sewer lines along Moffett Road, East Witchwood Lane and Prospect Avenue. That project is budgeted at $140,000 for design in fiscal year 2017 and $1.2 million for construction in fiscal year 2018, Griffin said.
There will also be road resurfacing done at a cost $550,000 each year, with $125,000 of that coming from gasoline tax, Griffin said. A water main project on West Sheridan Place is expected to cost $400,000, and $375,000 will be spent to add mobile transmitter devices to some water meters, Griffin said.
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The village gets about $3.6 million from money shared by the state, including home rule sales tax and its share of the income and gas taxes. If state revenue is reduced, the village would either delay capital projects or tap into its savings, Griffin said.
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