Flossmoor trustees got a look at the village’s five-year financial projections that showed positive improvements, as well as possible revenue enhancements to offset financial threats.
Village Financial Director Ann Novoa and Village Manager Bridget Wachtel presented the projections to the board at the Oct. 20 board meeting for fiscal years 2026-2031.
They gave several options for new revenue, including a utility tax on water, updating fees, such as vehicle stickers, imposing a places-for-eating tax, and an amusement tax.
Village finances show operating revenues increasing each year. At the same time, fixed costs, a projected drop in state revenues and limits on raising revenue through property taxes are cause for concern.
The village’s general fund covers salaries, police and fire departments, public works, village operations and expenses, such as health insurance and pension costs. These fixed costs make up approximately 90% of Flossmoor’s expenses.
Wachtel said the village could justify shifting some salary expenses and costs from the general fund to the water and sewer fund as a way to “alleviate some of the financial stress on the general fund.” The shift could happen in 2027.
The report pinpoints shortfalls in revenue compared to expenses in fiscal years 2026, 2027 and 2028. It shows increases in revenue compared to expenses in 2030 and 2031.
“The five-year analysis continues to show an immediate and long-term structural imbalance between operating revenues and operating expenditures,” Novoa said.
Wachtel went over the impacts the village could face due to an expected drop in state support and the possible imposition by the state of additional police and fire pension costs.
Wachtel said the village’s state income tax revenue is the third largest revenue source for Flossmoor.
“It’s probably the one that’s grown the most over the last five years,” she said. “It’s also the one that is continuously the most threatened, from a state perspective.”
Wachtel outlined future opportunities for new revenue, including new sales taxes from future economic developments. Two new restaurants are coming to town, and the village has land available for future development.
According to the report, economic development helps increase the equalized assessed valuation for property tax purposes and increases sales tax revenue.
Wachtel and Novoa also outlined a possibility for a referendum asking residents to approve home rule. The state grants home rule status to communities with populations of 30,000 or higher. Smaller communities can gain home rule through a referendum.
Trustees will be asked to assess additional revenue sources as they continue the village’s financial planning toward balanced budgets.
Mayor Michelle Nelson said it is always good to have five-year reviews to take a hard look at the financial decisions being made in the next few years.
She was against a water utility tax, saying there are other options available. She also rejected a home rule referendum.
Nelson said she would favor an amusement tax and places-for-eating tax, both options available to non-home rule communities.
