Schaumburg's Budget Crafted with Both Optimism & Caution

The Village of Schaumburg has emerged from the Fiscal Year 2020/21 having reduced expenditures more than $23 million during the year to address a revenue loss of $38 million. Additionally, the village reaffirmed its AAA bond rating from Standard and Poor's Global Ratings Agency and restructured outstanding bonds to achieve a savings of $25 million.

The proposed Fiscal Year 2021/22 budget begins the process of reinstating some operations and programs that were reduced in the previous year because of the impact of the COVID-19 pandemic. No new increases in property tax or other taxes are included in the budget. Although the budget charts an optimistic financial plan given vaccine distribution and restrictions being lifted on local businesses, the village remains cautious based on a fragile economy that is at the early stages of what is expected to be a gradual recovery.

The Village Manager will present the proposed financial plan to the Village Board at 6 p.m. Tuesday, April 20. The budget is expected to be formally adopted at the Tuesday, April 27 Village Board meeting. Meeting agendas and remote login instructions can be accessed through the village's calendar at www.schaumburg.com.

The FY 2021/22 budget has projected total revenues and other financing sources of $248 million and projected total expenditures and other financing uses of $244 million for the fiscal year that begins May 1, 2021, and ends April 30, 2022. The proposed plan will be closely monitored and adjusted quarterly as necessary, as was the case throughout FY 2020/21 to ensure expenses appropriately tracked with revenues.

Revenues and other financing sources are up 2.8 percent, primarily due to a one-time sale of land (Experior property) and a rebound of economic activity that produces revenues in the form of sales tax, home rule sales tax, food and beverage tax and hotel/motel taxes as well as local recreational cannabis taxes. Expenditures are up 4.4 percent compared to the FY 2020/21 budget primarily due to a partial reinstatement of cost-cutting measures that were made due to the pandemic. While revenues and expenses are expected to increase in FY 2021/22 over FY 2020/21, they remain well below pre-pandemic levels.

"The village remains cautiously optimistic with our budget planning because there are still many unknowns that can affect local revenues," said Director of Finance Lisa Petersen. "Because we were able to make critical budget cuts at the start of the pandemic to account for anticipated lost revenues and make necessary adjustments throughout the year, the village can now propose partial reinstatement of some of the village's operations and programs."

Reinstatement efforts include plans to fill many of the village's previously vacant positions that were strategically held open but have been deemed essential to maintain service to the community; a tentative plan for a phased restoration of Woodfield Trolley services beginning in August; funding to assist with vehicles in need of replacement, modified operations at the Prairie Center for the Arts based on allowed programming; and the implementation of a basic Capital Improvement Plan.

While still not back to pre-pandemic levels, the budget allocates resources in alignment with Village Board priorities which include promoting economic development; investing in infrastructure; promoting diversity, equity, and inclusion; enhancing community engagement; and easing the cost of living.

Specific highlights include:

• Continuing to offer need-based forgivable loans to small businesses to assist with eligible operating expenses

• Completing a village-wide leak detection program to reduce water loss in the public and private water system, which will allow the village to maintain reasonable water utility rates

• Continuing efforts to provide additional emphasis and training on diversity, equity, and inclusion

• Continuing marketing and advertising campaigns to promote Schaumburg as a place to live and visit

• Conducting a National Community Survey to obtain community feedback that will allow the village to adjust strategic priorities coming out of the pandemic

The budget includes funding for the Capital Improvement Plan (CIP), which was approved by the Village Board in January 2021. The plan proposes $43.3 million in capital improvements of which $32.4 million is to be funded by the village. Prior to the pandemic, the three-year average annual spend in the CIP was $59 million with the village's share at $41 million. At this lower level, the CIP is focused on those infrastructure improvements that have been identified as a high priority by the Village Board and are in the most critical need of repair.

Capital Improvement Highlights include:

• $8 million for residential street repairs which includes reconstruction, resurfacing and preventative maintenance based on data and guidance from the village’s Pavement Management Plan.

• $6.1 million for Vital Street Projects, which includes resurfacing of Meacham Road from Higgins Road to Golf Road, Summit Drive from Wise Road to Schaumburg Road, and Weathersfield Way from Braintree Drive to Salem Drive. The village’s local share after grant funding is $3.3 million.

• $2 million for water main replacement projects in conjunction with residential street repair projects

• $7.9 million for intersection improvements at Meacham and Algonquin. The village's local share after grant funding is $722,000.

• $2.4 million for Phase 1 construction of the 90 North District Central Park.

"Due to continued economic uncertainty, the proposed budget has been crafted to restore some services based on need and revenue to pay for them," said Village Manager Brian Townsend. "Even after the budget is adopted, it will be important for the village to continuously monitor the economic climate and make adjustments accordingly so that the village can continue to serve the community in a fiscally responsible manner."

For more information and to view the proposed FY 2021/22 budget, visit the Village of Schaumburg website at www.schaumburg.com/budget, contact Lisa Petersen, Director of Finance, at lpetersen@schaumburg.com or dial 311 in Schaumburg.