Budget Meeting 6/25

I attended the Annual Budget Meeting on 6/25 and here's what I saw.

Background - this is a mandatory meeting to certify the budget, not really for working issues.

2013 problem.  We're forecasting Expenses to exceed Revenues by $160,000, or >$13,000 per month.  This is in part due to the State's discontinuation of subsidies, signed into law last year.  This is a HUGE issue.  We don't have the revenue to run the Village as it stands today.  While we have a $1,000,000 surplus now, it will disappear quickly.  Tony's budget said 1/2 of the surplus will be gone in less than 5 years.

Trusting 2013 numbers.  Questioning numbers and hoping it goes away aren't appropriate responses to budget concerns only 6-18months away.  We've got to agree that they're the best available, trust the authors, and work from them.

Out Year variability. I am learning no one trusts the out year forecasts (2014 and beyond). I think we shouldn't simply ignore them. Follow them out the window, no. But the smartest financial folks in the Village put it on paper, so I put some faith in it. I think there should be some skepticism, but some embracing of what it's telling us.

Mayor's suggestion of tax increase.  I was surprised to hear the Mayor suggest considering a tax increase after 2013.  This is the second time he's talked about it.  I still think this is premature, as we still have inefficiency we must wring out.  We must redouble our scrutiny of costs that don't directly benefit the "Customer", our Village residents.

Walking out of the meeting, we remain in financially tough shape.  While I'd love to work on more fun things for the Village, we've got to do more and make harder choices.

Cortney