Hampshire has passed a balanced budget for the fiscal year that begins May 1, and it contains an increase in water and sewer rates and a capital improvement fee for maintaining the water system.
The budget reflects $9.6 million in revenues and $9.5 million in expenses, said Lori Lyons, finance director. It maintains village services and capital funding for infrastructure and equipment, including four small street-resurfacing projects, a new plow truck to replace the ‘Big Red’ 1999 truck that will be retired to serve the wastewater treatment facility, two new police squad cars and a pickup truck for the streets department. The 50/50 tree replacement program also is funded, she said.
Supplemented by a grant, the budget provides for the rehabilitation of Well No. 9. The higher capital improvement fee provides for long-term maintenance of village water and wastewater treatment plants and improvements in infrastructure.
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The increase in water and sewer rates means the average residential water customer using 5,000 gallons of water each month will owe an additional $17 per billing cycle.
Lyons pointed out that the final budget differs in one area from the tentative budget. Fund 30, the water fund, reflects a $5,450 increase in equipment maintenance to wash the elevated water storage tank at Hampshire High School and a corresponding $2,000 reduction in the contingency fund to assure that revenues continue to exceed expenses.
Lyons told Village Board members this week that delaying expenditures on equipment and infrastructure to concentrate on core functions has come home to roost.
“The cumulative effect of lost revenue and increased professional service expenses was that the village’s investment in equipment and infrastructure has fallen behind what was needed to preserve the quality of public infrastructure and services that Hampshire has known and expects,” she said.
“With revenues stabilizing,” Lyons said, “it is imperative that the village now take a more strategic, thoughtful approach to long-term planning, thereby ensuring Hampshire’s long-term sustainability. To that end, the staff will be working closely with the Village Board finance committee to create a capital maintenance, improvement and replacement plan to ensure that items such as critical software, as well as police and public works vehicles and equipment, are replaced in a timely manner and to assure that village streets, storm and sanitary sewer and water systems are maintained, improved and replaced as necessary.”
She also mentioned uncertainties surrounding the state’s finances and a proposed property tax freeze, which, if enacted, would force the village to cut the budget.
Lyons thanked the 2017 village budget team which included Hampshire Police Chief Brian Thompson, Street Supervisor David Starrett and Supervisor of Utilities Mark Montgomery.
She also thanked the village finance committee which included Village President Jeffrey Magnussen; Trustee Mike Armato, finance committee chairman, and Trustees Jan Kraus and Mike Reid.
Trustee Mike Armato praised Lyons for her work on the budget.
“We will get through this next fiscal year in good shape,” Armato said. “Overall, everything will be maintained that should be maintained.”
Denise Moran is a freelance reporter.