Digging out of what Hinsdale Village President Tom Cauley termed a “dire financial mess” will require a variety of measures that could include tax and fee increases, significantly reduced expenditures and even privatizing the village’s water and sewer.
During Tuesday’s Village Board meeting, Trustee Doug Geoga presented a broad plan outlining possible actions the village could take to generate more revenue and reduce costs in the face of mounting cost estimates to address the village’s decaying infrastructure.
In 2008, the village said the estimated cost to address infrastructure needs was $66.1 million, a figure now revised to about $90 million, Geoga said.
“The major change is that the prior estimates did not include maintenance during the course of the proposed master infrastructure program,” Geoga said.
The latest report comes on the heels of a report by Nov. 3 Geoga report summarizing the village’s financial problems, issues he said were the result of years of the village neglecting capital maintenance and reduced revenues.
“This presentation moves into policy issues on which reasonable people can discuss and disagree,” he said. “I don’t expect this approach to be adopted literally as proposed here, but want to offer one possible starting point for discussion, and identify some alternatives.”
The report was informational, and is intended to give the Village Board and administrators a basis for developing future budgets and capital plans. No vote was taken on the plan.
“I think it was a good start, I have confidence in the plan,” Cauley said. “It makes sense to me. It is not only the best plan I have seen, but the only one I have seen since I have been on the board.”
Trustee Bob Schultz said he wanted to examine more potential revenue-generating options that would not place a burden on the residents, such as increases in revenue from private development.
“The thing is most of these things are nothing new to us,” Schultz said. “What we didn’t talk about, and need to talk about, is bringing in new revenue streams that don’t tax the citizens. We seem to spend a lot of time fighting development when we should be looking at ways to encourage it.”
One of the recommendations in the new plan would be to reduce the village’s expenditures by another $1.5 million.
Earlier this year, village officials planned on making more than $1 million in budget cuts to balance to balance the 2009-10 budget.
Geoga said budget cuts would be necessary to demonstrate to residents the village’s “stewardship” and generate faith in government.
“I believe we should not go to the voters and ask for additional revenues without demonstrating responsible stewardship, and should not ask for sales tax revenues or the MIP that are not sufficient to fund the programs,” Geoga said.
Cuts could include reducing staff levels by merging police and fire services with other communities, eliminating some services and moving full-time positions to part-time.
“These reductions would certainly impact public service categories,” Geoga said.
If cost reductions, increased sales tax and increased utility taxes are insufficient to solve the financial crisis, Geoga suggested alternative plans that include privatizing the village’s utilities, increasing other fees and property tax increases.
Hinsdale, IL —
