What's Happening?
The Homewood Village Board has accepted the audit for the fiscal year 2024-2025, conducted by Lauterbach & Amen. The audit results indicate a nearly 19% increase in Homewood's net position, with $2.5 million added to the village's reserves. This financial
growth is attributed to gaming tax, interest rates, and the acquisition of two properties. The village's general fund reserves total $20.3 million, although most of it is earmarked for benefits, operating expenses, and non-tax increment financing incentives. The water and sewer fund remains stable, with expected increases due to approved water rate hikes starting in 2026. However, the village faces a shortfall in fire and police pension funds, which are required to be 90% funded by 2040.
Why It's Important?
The audit's findings are significant for Homewood's financial planning and stability. The increase in reserves strengthens the village's ability to provide services and manage unforeseen challenges. However, the pension fund shortfall presents a critical issue that requires attention to meet state funding requirements. The financial health of the village impacts its ability to invest in infrastructure, public services, and community development, affecting residents and stakeholders.
What's Next?
Homewood will need to address the pension fund shortfall to comply with state mandates. The village may explore strategies to increase funding, such as budget adjustments or new revenue sources. Monitoring financial trends and data will be essential for future planning and decision-making. The approved water rate increase will be implemented in 2026, potentially affecting residents' utility bills.
Beyond the Headlines
The audit results may influence public perception of the village's financial management and governance. Addressing pension fund challenges will require careful planning and community engagement to ensure sustainable solutions. The village's financial strategies could serve as a model for other municipalities facing similar issues.
