Long Range Plan
In an effort to be proactive, the Village of Lombard developed a Long Range Plan, with strategies to address the rising costs of non-discretionary (required) expenses.
The Long Range Budget Plan focuses on fiscal responsibility, prudent planning, and the implementation of resident recommendations via Village Committees. On June 16, 2016, the Village Board approved a resolution to formally accept the Long Range Plan as presented on April 25, 2016 at the Join Village Board and Finance and Administration Committee Workshop.
The challenges faced by the Village are associated with maintaining excellent core service levels to residents and business owners, while expenses continue to increase faster than revenues, due to State mandates beyond the Village’s control. The strategy approved in the Long Range Plan commits the Village to matching dollar for dollar (50/50) revenue increases and expenditure reductions, in order to maintain a balanced General Fund operating budget.
Long Range Plan: FAQ:
Why is there a budget deficit?
The long term budget deficit is primarily caused by increased costs related to unfunded State mandates, the rising costs of pensions, worker’s compensation costs, and general inflationary increases. The projected deficit in the General Fund is not related to the status of the Lombard Public Facilities Corporation, a separate entity that was created in 2003 to build a hotel.
What is the difference between a core service and an enhanced service?
The Village of Lombard is unwavering in its commitment to provide excellent core services to its residents and will continue to do so. These core services include public safety provided by Police and Fire Departments; road, sewer, and water maintenance from Public Works; building and code enforcement from Community Development, and responsible long term financial planning from the Finance Department.
Enhanced services are those services that, which while still important, are more discretionary in nature and may be the product of historical service delivery, local policy and/or preference. Examples of enhanced services currently provided by the Village include the Senior Taxi Cab program, downtown early start cleanups, or banner decorations.
How is the long term budget deficit being addressed?
The Village’s Finance and Administration Committee, which is made up of 8 Lombard residents, held meetings to study how to close the budget deficit without negatively impacting quality core services. A 1% increase to the Places for Eating Tax was proposed by the Finance and Administration Committee, to be implemented on January 1, 2017. The Finance and Administration Committee also recommended expense reductions related to non-core services such as the phase out of the Senior Taxi Cab Program, the Sewer Rodding Reimbursement Program and a reduction in Village banners and decorations.
Why a Places for Eating Tax increase?
It is estimated that over half of the total Places for Eating Tax generated for the Village of Lombard is paid for by non-residents, rather than requiring Lombard residents to shoulder the entire financial burden that stems from the State’s unfunded mandates.
Why is the Village's Taxi Subsidy Program being phased out?
The Village of Lombard has proactively developed a Long Range Budget Plan, with strategies to address a structural budget deficit and the rising costs of state mandates and non-discretionary (required) expenses. The Village Finance and Administration Committee, consisting of Lombard residents, was tasked with holding meetings to develop recommendations on how to eliminate the Village’s structural budget deficit. The Committee recommended a combination of increased revenues and expense reductions related to discretionary non-core services. The non-core services identified for expense reduction include the Taxi Subsidy Program, the Sewer Rodding Reimbursement Program, the Village banner and holiday décor program, and others. In April, the Village Board and Finance Committee held a joint workshop on the proposed Long Range Plan, which was adopted by Board resolution in June of 2016.
Does this include grocery stores?
No. The Places for Eating Tax does is not applied to grocery items, thus the impact on low and/or fixed-income households would be minimal.
Are there other communities that have a similar tax?
14 communities in DuPage County have a tax that applies to food and beverage ranging from 1%-3%. This is a common practice in our area. The Village of Schaumburg implemented a 2% Food and Beverage Tax in 1987 and the Village of Skokie implemented a 2% tax in July, 2015. Both Schaumburg and Skokie are similar to Lombard, in that they have a large mall that helps to generate significant revenue from non-residents.