Hinsdale officials are being pulled in two different directions — how to deal with projected budget shortfalls while formulating an extensive capital improvement plan to fix decaying infrastructure.
Among the items to be discussed is the possibility of placing a referendum measure on the February primary ballot asking voters to approve a 1 percent sales tax hike.
Village President Tom Cauley said the meeting Tuesday, Nov. 17, will encourage public involvement to provide village trustees with some direction as it begins to plan budgets in 2010 and beyond.
“We hope to have the public more involved, and we will be discussing in more detail the report that was presented Nov. 3,” Cauley said. “Two weeks ago we received the factual information, now we will start looking at ways to address the situation.”
On Nov. 3, Trustee Doug Geoga gave a summary of the village’s finances, a report outlining several areas of need that have been influenced by a variety of factors, including a weak economy that has resulted in decreased revenue.
“For many years, we lived beyond our means,” Geoga said at the Nov. 3 meeting.
“How did we get there? A variety of factors, including failing to pay for, or reserve to fund, necessary capital requirements such as streets and other facilities, resulting in huge deferred capital requirements we now face,” he added.
The village faces an annual deficit of $4 million unless steps are taken to either increase revenues or decrease operating expenses.
During the past decade, the village has spent down its fund balances from $5.4 million in 2002 to as low as $2.9 million last year. By the end of the current fiscal year, the fund balance is expected to grow to $3.7 million, or 19 percent of the village’s general operating funds.
The village targets a fund balance of 25 percent of operating expenses, officials said.
About $70 million in road and sewer improvements are necessary during the next 15 to 20 years at a time when funding is not available for all the targeted improvements, officials said.
“It took a long time to get in this hole, and it will take a long time to get out of it. It will take several more years of diligence to be where we want to be,” Kevin Kane, chairman of the Finance Commission. “We aren't going to solve this overnight.”
The board meeting begins at 7:30 p.m. Tuesday, in Memorial Hall, 19 E. Chicago Ave.
At a glance
How Hinsdale’s estimated 2009-10 fiscal year fund balance compares to other communities. The percent figure is comparing the fund balance to the town’s operating budget.
TOWN BALANCE PERCENT
Hinsdale $3.67M 19 percent
Downers Grove $15.2M 38 percent
Woodridge $10.9M 55 percent
