What's Happening?
Flossmoor's village officials have presented a five-year financial projection plan to address potential financial challenges from 2026 to 2031. Village Financial Director Ann Novoa and Village Manager Bridget Wachtel outlined several revenue enhancement
options during the October 20 board meeting. These options include implementing a utility tax on water, updating fees such as vehicle stickers, and introducing a places-for-eating tax and an amusement tax. The village's general fund, which covers essential services like police, fire departments, and public works, faces pressure due to fixed costs and a projected decline in state revenues. The report highlights a structural imbalance between operating revenues and expenditures, with shortfalls expected in the fiscal years 2026, 2027, and 2028, but improvements anticipated by 2030 and 2031.
Why It's Important?
The financial projections and proposed revenue enhancements are crucial for maintaining Flossmoor's public services and infrastructure. The village's reliance on state income tax revenue, which is under threat, underscores the need for local revenue solutions. The potential introduction of new taxes and fees could impact residents and businesses, but they are seen as necessary to offset financial shortfalls. Economic development, including new restaurants and available land for future projects, offers opportunities to boost sales tax revenue and property values. The discussion of a home rule referendum, although not favored by Mayor Michelle Nelson, indicates the village's exploration of various strategies to achieve financial stability.
What's Next?
Flossmoor trustees will continue to evaluate additional revenue sources as part of their financial planning efforts. The village may consider shifting some salary expenses from the general fund to the water and sewer fund by 2027 to alleviate financial stress. The potential for new economic developments could provide a boost to local revenues. Mayor Nelson's opposition to a water utility tax and home rule referendum suggests that the village will explore other options, such as an amusement tax and places-for-eating tax, to address financial challenges.
