by Kathy Savolt -
Besides the problematic state of affairs with capital spending (see article HERE), there are issues with the current Operating Budget. At the February 10, 2025 Board of Trustees (BOT) Work Session, Acting Treasurer Laura Vasami presented a list. See HERE.
Revenue Shortfalls
Former Village Manager, Jerry Barberio, had a history of overstating revenue and proposing new revenue streams (the boat storage business in a Harbor Island Parking lot for example). Again, this year, there is a list of revenue lines that will not meet their budget including:
· Parking (Railroad permits and meters) - projected shortfall of $100,000
· Building Permits –shortfall projected at $150,000
· Rental Inspection Fee – this new program was rejected – first by the community and then by the BOT for a shortfall of $50,000
· Tennis - $57,000 projected shortfall
· Boat Storage at Harbor Island – budgeted at $50,000 and only $3,850 received this winter leaving a shortfall of $46,150
These six line items add to a revenue gap of over $403,000, less than 1% of the total $46.4 million revenue budget.
Spending Problems
The approved budget was amended by over $2 million, with more than half due to open spending carried over from last fiscal year. Subsequently, the BOT added 16 new items totaling over $800 thousand by resolution transferring the funds from the reserve. The largest additions were for staff shortages in Building and Planning, a topographical survey listed for Water Maintenance, emergency mold remediation in Village Hall, and new Crossing Guard contracted services. (The LMC Media franchise fee was offset by the revenue.) Vasami estimates the impact at a little over $500 thousand, 1% of the budget.
Vasami also reported she anticipates higher costs for insurance premiums and utilities.
In fiscal year 2022-23 (the last audit available), the Village balanced the budget with FEMA grant money primarily from Hurricane Ida. Even after transferring $1 million from the reserve fund, operating expenses were more than $1 million higher than regular revenue. See HERE, page 21.
The current fiscal year ends May 31, 2025. The budget for fiscal year 2025-2026 is currently being prepared.
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