2021 Proposed Budget

Proposed 2021 Budget Reflects 0% Property Tax Increase
Posted on 10/28/2020
Proposed 2021 Budget

The Village’s proposed 2021 Budget reflects a 0% property tax levy increase, which meets a Strategic Priority of the Village Board to keep any proposed property tax increase as low as possible, while maintaining all critical Village services during this difficult time. The $192.5 million budget includes an increase of 4.2%, or $7.8 million, over last year’s total expenditures for all the Village’s operating, capital and other funds. The Village’s fiscal year runs from January 1, 2021 through December 31, 2021.

The 0% increase in the property tax levy is due to a variety of factors, including:

  • The Village previously paid down a portion of the unfunded liabilities in the Police and Fire pension funds by transferring $1.25 million to each of these funds using 2019 General Fund surplus monies. Per the Village’s actuary, this reduced the combined public safety pension fund property tax levies by about $246,000 per year between now and 2040. In addition, the public safety pension fund levies decreased by an additional $200,000 due to positive investment returns in 2019.  (In 2018 the Village also paid down a combined $3 million of the public safety pension liabilities, saving the Village about $288,000 a year between then and 2040).

  • The Village managed its debt service levy by selling bonds in 2020 that result in annual principal and interest costs that are less than the retiring debt.  This resulted in a decrease in annual debt service payments of about $259,000.

  • $3 million in bond proceeds added to the Capital Projects Fund and the increase in MFT receipts from the State, allowed the Village to reallocate over $1.5 million in property tax revenues from the Capital Projects Fund to the General Fund’s police and fire protection levies.

  • Health insurance costs for 2021 increased by a combined 1.2% rather than the assumed increase of 5%, for a savings of about $287,000 which was due to better claims experience.  Additional expenditure reductions of $238,000 were also made during the budget internal review process of Department requests prior to submitting the proposed budget to the Village Board.

  • In September 2020, the Village Board approved one license allowing a local business that sold only medical-use cannabis to expand its sales to include the sale of recreational or adult-use cannabis.  Based on adult-use cannabis sales in other states and area communities, the 2021 Proposed Budget reflects a new General Fund cannabis tax revenue source of $500,000.

  • The use of $691,800 in General Fund reserves to balance the 2021 General Fund budget.

The proposed 2021 plan also maintains investment in the Village’s Stormwater, Road, and Water Systems in the form of various capital projects including:

  • Street Program ($6,200,000 – Capital Projects Fund) – This is an ongoing program to resurface or rehabilitate existing deteriorated street pavement and curbs.

  • Watermain Replacement Program ($4,000,000 – Water & Sewer Fund) – This is an ongoing project to replacement aging watermain infrastructure. The proposed $4,000,000 annual expenditure is enough to replace an industry standard of 1% of the Village’s overall watermains.

  • Street Rehabilitation Program ($4,000,000 – MFT Fund) – This is an ongoing street rehabilitation program consisting of the reconstruction of significantly deteriorated street pavement, curbs, and concrete panels. This is $1,600,000 higher than prior year budgets due to the State’s gas tax increase which was part of the new state capital plan and grants from the State capital bill.

  • Stormwater Improvement Program ($5,385,000- Stormwater Fund)- This program continues the improvement of combined and separate sewer systems in need of upgrade based on community experience and recent studies. 

Ask Questions About Proposed Budget
We invite residents to review our proposed 2021 Budget, which represents the Village’s plan for allocating its resources. Anyone who would like to ask questions regarding the proposed budget, please email budget@vah.com no later than November 2. Answers to all questions received by the deadline of November 2 will be posted on the Home Page of our website, under "Trending" on Thursday, November 5.

The Village Board’s review of the proposed 2021 Budget will begin with a virtual meeting on Monday, November 9 at 7 p.m.  A second meeting will be held on Tuesday, November 10 at 7 p.m. and if needed, a third meeting will be held on Thursday, November 12. All meetings will be virtual and held at 7 p.m. Check the Agenda & Minutes page of the website for agendas to these meetings. Agendas will be posted the Friday afternoon prior to the meetings.

Click here to review Budget Variances by Department (a document listing and explaining budget variances by Department for the proposed 2021 Budget.)