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Glen Ellyn took a step closer to approving its 2010-11 budget this week, as most trustees expressed support for the financial plan at Monday’s Village Board meeting.
Finance Director Jon Batek presented information on next fiscal year’s proposed expenditure budget, which consists of 14 individual funds, totaling $42.4 million collectively. Though no formal vote was taken, all but one trustee said they approved of the budget during Monday’s meeting.
The one holdout, Trustee Pete Ladesic said he is concerned about allocating money for the Economic Development Corp.
“Every year, we point out the failures of the organization, but every year we continue to fund them,” Ladesic said.
Ladesic explained the primary goal of the organization is to retain and attract new business.
As far economic development, Ladesic said many community members have told him Glen Ellyn has “fallen on its face compared to the many progressive communities around us.”
Ladesic recommended an in-house group be put in place, “at least for the time being, to provide for greater control and transparency as far as the direction of how those funds are spent.”
In a memo addressed to the village president and board at a workshop meeting Monday, Village Manager Steve Jones discussed the possible setbacks that could occur if Gov. Pat Quinn’s proposal is approved to reduce the amount of state income tax revenue given to municipalities.
The worst-case scenario would be a permanent 30 percent reduction in the municipal share of income tax revenue, resulting in a loss of about $630,000 for Glen Ellyn, according to Jones.
Because the village is not in position to absorb such a loss, he said the officials developed a multipronged contingency plan, which included identifying capital improvement projects to delay and further trimming the budget.
Jones said several months ago, the board directed a team to contact village vendors and ask whether any price or contract adjustments could be made. The effort resulted in lowering costs by $77,000, which would offset lost revenues in 2010-11. If the municipalities’ share of the income tax revenue is not decreased, these savings would result in a surplus.
This contingency plan allows the village to withstand a single year of reduction. If municipalities were to face a permanent reduction of income tax revenue, the resulting revenue shortfall will need to be addressed through other measures.
What’s next
The final adoption of proposed budget is scheduled for Monday, April 26.
Glen Ellyn took a step closer to approving its 2010-11 budget this week, as most trustees expressed support for the financial plan at Monday’s Village Board meeting.
Finance Director Jon Batek presented information on next fiscal year’s proposed expenditure budget, which consists of 14 individual funds, totaling $42.4 million collectively. Though no formal vote was taken, all but one trustee said they approved of the budget during Monday’s meeting.
The one holdout, Trustee Pete Ladesic said he is concerned about allocating money for the Economic Development Corp.
“Every year, we point out the failures of the organization, but every year we continue to fund them,” Ladesic said.
Ladesic explained the primary goal of the organization is to retain and attract new business.
As far economic development, Ladesic said many community members have told him Glen Ellyn has “fallen on its face compared to the many progressive communities around us.”
Ladesic recommended an in-house group be put in place, “at least for the time being, to provide for greater control and transparency as far as the direction of how those funds are spent.”
In a memo addressed to the village president and board at a workshop meeting Monday, Village Manager Steve Jones discussed the possible setbacks that could occur if Gov. Pat Quinn’s proposal is approved to reduce the amount of state income tax revenue given to municipalities.
The worst-case scenario would be a permanent 30 percent reduction in the municipal share of income tax revenue, resulting in a loss of about $630,000 for Glen Ellyn, according to Jones.
Because the village is not in position to absorb such a loss, he said the officials developed a multipronged contingency plan, which included identifying capital improvement projects to delay and further trimming the budget.
Jones said several months ago, the board directed a team to contact village vendors and ask whether any price or contract adjustments could be made. The effort resulted in lowering costs by $77,000, which would offset lost revenues in 2010-11. If the municipalities’ share of the income tax revenue is not decreased, these savings would result in a surplus.
This contingency plan allows the village to withstand a single year of reduction. If municipalities were to face a permanent reduction of income tax revenue, the resulting revenue shortfall will need to be addressed through other measures.
What’s next
The final adoption of proposed budget is scheduled for Monday, April 26.
