FUND BALANCE HISTORY

Fund balance is intended to serve as measure of the financial resources available to the Village. An adequate fund balance may ensure that the Village can mitigate current and future revenue shortfalls and/or unanticipated expenditures. Fund balance is an important consideration in long-term financial planning. In addition, credit rating agencies utilize fund balance levels to evaluate a government’s continued creditworthiness.

The following graph reflects actual and projected fund balances, including reserves, for each of the Village’s major funds for the fiscal years ending April 30, 2022, 2023, and 2024.

General Fund – The fund balance is estimated to decrease by approximately $1,290,000. The decrease is due to the transfer of funds to the Stormwater Fund in the amount of $2,250,000 for the funding of stormwater projects and is offset by increases in sales and income tax. The fund balance continues to exceed the General Fund fund balance policy of 50% of operating expenditures.

Capital Improvement Fund – The fund balance is projected to increase in FY2023/24 by approximately $184,000. These funds will be available for future capital projects as needed.

Stormwater Fund – The fund balance is projected to decrease in FY2023/24 by approximately $3,900,000 due to the funding of stormwater projects per the Village Board approved stormwater master plan. The projects are funded by the American Rescue Plan Act (ARPA) and funds transferred from the General Fund.

Navistar TIF Fund – The fund balance is forecasted to increase during the fiscal year by approximately $97,000. These funds will continue to be available in the TIF to promote redevelopment of the property.

Water & Sewer Fund – The fund balance is projected to decrease from FY2022/23 by approximately $1,765,000. A water and sewer rate study was completed in FY2020/21 in which the Village Board authorized the restructuring of water and sewer rates and approved a ten-year water system capital plan. Budgeted revenues, based on the recommended rates, are sufficient to cover the budgeted operating and capital expenditures in FY2023/24 and to maintain the required fund balances.