Determine whether the Board and Village officials developed realistic budgets and long-term financial plans.
- The Board and Village officials did not develop realistic budgets. From 2016-17 through 2018-19, budgeted appropriations in the general, water and sewer funds exceeded actual expenditures by a total of $4.9 million (a 39 percent budget variance). Officials also appropriated $3.6 million of fund balance during this period that was not needed to fund operations.
- The Board has not adopted a fund balance policy or multiyear financial and capital plans.
- Adopt budgets with realistic estimates of appropriations and financing sources based on historical trends and/or known plans.
- Develop multiyear financial and capital plans and a fund balance policy.
Village officials generally disagreed with our findings and recommendations. Appendix B includes our comments on issues raised in the Village’s response letter.