Long-Range Financial Planning Process Continues Tonight

The first of four public meetings to consider updates to the village's Long Range Financial Plan is set for 6:30 p.m. tonight in the Committee Room at Village Hall.

The LRFP allows for "dialogue" between the community, the Village Council and staff over financial challenges and issues facing the village in the coming years, said Village Manager Dave Fieldman in a video presentation posted on the village website and YouTube.

In it, Fieldman takes viewers through the history of the plan—which grew out of the 2008 strategic planning process—the structural gap between revenues and expenses which prompted the initial effort, the steps taken to close the gap and future actions under consideration.

At the start of the process, the village was faced with a 4.5 million shortfall in 2010 with the prospect of a $6 million gap between revenues and expenses by 2012. This prompted the village to change its business model and adapt a data-driven approach to its finances, Fieldman said.

The changes were put in motion before the 2008 economic crisis hit, giving the village a head start in addressing the resulting challenges, said Doug Kozlowski, village communications director.

Now a year and a half into the LRFP, the village has reduced expenses by $5 million through a 13 percent reduction in personnel, changes to its health benefits plan, elimination of events such as Heritage Fest and services such as the Counseling and Human Services Department, and increased operating efficiencies, Fieldman said.

At the same time, the village has sought to increase revenues, largely by increasing property taxes by $500,000 in each of the last two years. The village also tapped its reserve fund in 2010, although a balanced budget is projected in 2011 and the plan calls for the village to begin replenish the reserve fund in 2012.

Three more public meetings are scheduled to update the LRFP for the current environment. They are:

• 6:30 p.m., Tuesday, June 28
• 6:30 p.m., Tuesday, July 26
• 6:30 p.m., Tuesday, August 23

A fifth meeting will be held, if necessary, at 6:30 p.m., Tuesday, Aug. 30.