Fiscal Year 2025-26 Tentative Budget Released

by Kathy Savolt -

Village Manager Kathleen Gill presented the 2025/2026 fiscal year (FY) tentative budget to the Board of Trustees (BOT) and the public at the March 24th BOT meeting.  Prior to this meeting, Gill had primed the BOT with data about mandated increases and issues from the prior administration that had to be addressed.  So, it was no surprise that the proposed budget included a 6.9% increase in the tax rate.  The Tentative Budget document is HERE.

Using a thorough Power Point presentation (See HERE) and asserting that “these are not normal circumstances,” Gill laid out the facts:

The budget increase exceeds the tax cap increase of 2.8%.  That low percentage would have allowed for a total of only $811,798 in additional spending – not enough to even cover the increases to mandated, nondiscretionary items such as pension, health insurance and union contracts.  Increases to those three categories alone total over $1 million.

·      Additional expenses/revenue shortfalls totaling over $2 million were also identified.  Four of these five items are directly linked to actions taken by the previous Village Manager and BOT.  They are:

o   Debt service                                      $960,000

o   Overestimated Revenue                      $357,000

o   Increase in Insurance/Fuel                  $260,000

o   Removing Salaries from Sewer Fund  $ 182,678

As previously reported (see HERE), several capital projects were approved in the past two years without any consideration of the impact of the debt on the operating budget. 

During the past two fiscal years, former Manager Jerry Barberio, put new or increased revenue sources into the budget (Rental Inspection Fees, Boat Storage at Harbor Island, for example).  It appears that most of these new initiatives were never implemented as there has been no revenue received from them to date.  Furthermore, the increases to existing revenue sources (parking permits, building permits) never materialized.  Since this “phony” revenue is in the base, it must be accounted for.  (Also note that in FY 22/23, the Village balanced the books with federal disaster relief.  The FY 23/24 audit has not yet been released.)

The third item – Insurance and Fuel –  is due to the purchase of 26 additional vehicles by the Village.  During the last three fiscal years, almost $4 million was spent to buy vehicles, some of which replaced existing vehicles but 26 were new additions to the fleet.  The vehicle inventory now totals 145 vehicles.  This increase has caused the insurance premium to double over the last five years and along with an increase in fuel expenses.  Gill intends to analyze the fleet – especially the vehicles assigned to staff to determine which vehicles can be sold.  Gill herself has not accepted the use of a Village-owned vehicle.

Finally, the Village raised the sewer charge in our water bills by 90% in FY 23/24 and transferred the collected funds into the General operating account to cover partial salaries of the Village Manager, the Manager’s assistant, the Deputy Manager, the Mayor, the Trustee, the Clerk-Treasurer and others.  Gill will correct this dubious practice over three years beginning in FY 25/26.  There was no mention of whether the sewer fee would eventually be reduced.

With $3 million in expenses to add, Gill proposed almost $2 million in reductions.  Among other actions, these include:

o   Eliminating the Department of Human Resources

o   Keeping a Village Planner position vacant for several months

o   Eliminating the Assistant Planner, Assistant Harbor Master and Recreation Supervisor positions

o   Reducing legal expenses (See article HERE).

Gill is also planning to develop and implement a new overtime policy, increase training and enforcement of the Village’s procurement policy, an assessment of Village facilities to aid in the development of a capital budget, a hiring freeze and no new vehicle purchases  in the coming fiscal year.

If all of the actions outlined above are approved by the BOT, the resulting tax increase will be 6.9%.  Gill pointed out that for a homeowner with a home at the median property assessment of $800,000, this increase would total just under $92/year.

After Gill’s presentation, the public was allowed to address the BOT.  Former Trustee Dan Natchez congratulated Gill for “a refreshing and honest budget.”  He suggested the BOT look to increase revenue from existing resources, such as the fields.

Chairman of the Village Budget Committee, Len Aubrey, said that while the Committee was opposed to exceeding the tax cap, they realized it was “inevitable.”  He cautioned that this BOT and the new Village Manager were not to be blamed for this budget referencing what he called “financial mismanagement” by the previous administration.  Budget Committee member, Glenn Tippett, was more blunt calling the actions of the previous administration “shenanigans” and called this tentative budget “real.”

Resident Richard Kelley, a self-professed occasional BOT attendee, stated he was “beyond shocked” and “disappointed” and called the increase in the number of vehicles “malfeasance.”  Kelley noted that residents are being hit with many cost increases, and they are stretched.  He urged the BOT to cut expenses, raise funds where you can and “put the place back in order.”

By the Numbers

FY 25/26 vs 24/25
	FY 24/25	FY 25/26 T*	Variance	% Change
Appropriations	$46,974,651	$49,425,318	$2,450,667	5.22%
Revenues other than RE taxes	17,095,529	17,530,137	434,608	2.54%
Appropriated Fund Balance	899,000	899,000	0
Tax Levy	28,980,122	30,996,179	2,016,057	6.96%
Assessed Value	$5,084,564,277	$5,330,250,647	$245,686,370	4.83%
Tax Rate/$1,000	$5.6996	$5.8151	$0.1155	2.03%
*Tentative Budget is subject to change

To determine your proposed tax levy, take your latest assessment, divide it by 1000 and multiply by the tax rate of $5.8151.

Budget Schedule

The BOT will continue its review of the tentative budget with meetings can be found HERE Page 20.  All meetings are open to the public.  The budget must be approved by May 1st for the start of the fiscal year on June 1st.

Editor’s Note:  the author of this article is married to the Chair of the Budget Committee, Len Aubrey.