Schaumburg trustees poised to adopt $341 million budget for ‘more challenging’ year ahead

Schaumburg trustees have voted 5-0 to recommend a proposed $341.2 million budget for the upcoming fiscal year that Village Manager Brian Townsend predicts will be one of the most financially challenging times since the pandemic.

The issue is not declining revenues as it was four years ago, but unfunded state mandates and skyrocketing police and firefighter pension costs that have only been manageable in recent years because of similarly rising consumer tax revenues.

It also comes as the state legislature contemplates eliminating the 1% local grocery tax. If that happens, Schaumburg would need a 6% increase in other sales tax revenues to break even.

“This is definitely one of the more challenging years,” Townsend said. “However, in my opinion, the proposed ‘24-’25 budget is a stellar financial plan.”

With revenues of $344.4 million expected for the fiscal year that begins May 1, the village is projecting a $3.2 million surplus to be better prepared for the unexpected.

“That’s a good, solid, safe figure to count on for the current year,” Townsend added.

Inflation, always been a double-edged sword for the village, is projected to continue its recent stabilization. While inflation has increased the costs village purchases, it’s also increased revenues from consumer taxes.

Among the business sectors that have been improving since the pandemic, the hospitality industry continues to bounce back. At the village-owned Renaissance Schaumburg Convention Center Hotel, occupancy is projected at 63.1% over the coming year. That’s the highest in years, but still short of pre-pandemic peaks.

Assistant Village Manager Paula Hewson said $72.1 million in capital improvement projects are included in the budget, with $9.1 million funded by outside grants.

Schaumburg expects to complete architectural designs for a new village hall and police station this year, but construction costs aren’t included in the most recent five-year capital improvement plan, as better estimates are awaited.

The village also plans to spend $500,000 on a preliminary design and $1.6 million on land acquisition for a proposed pedestrian bridge over Meacham Road, between a new entertainment district around the convention center on the east side and the Veridian development on the west side. Construction isn’t planned this year.

Formal approval of the new budget is scheduled for the village board meeting Tuesday, April 23.

“We’re pleased to present this proposed budget that continues to prioritize goals set forth by the village board,” Schaumburg Finance Director Lisa Petersen said in a statement. “The village takes a conservative approach with its revenue projections to develop a plan that ensures it can maintain day-to-day operations as well as fulfill future obligations, all while maintaining its focus on meeting the needs of the residents of Schaumburg.”

To view the recommended budget, visit villageofschaumburg.com/government/finance/budgets-and-capital-planning.