New fiscal year has begun, but Island Lake is without a budget

Four weeks into the 2012 fiscal year, Island Lake officials still are without a budget.

But trustees say the village is operating fine even without a new spending plan. Bills are being paid, they said, and payroll is being met.

They also say they’re taking steps to rectify the situation, including meeting with the financially struggling town’s department heads to discuss spending needs and potential cuts.

“We are looking at everything we spend money on, and if we can send it out for bid or (get) an informal price comparison, we are doing it,” Trustee Laurie Rabattini, leader of the board’s finance committee, said in an email Friday. “Nothing will be overlooked.”

Village boards typically debate and approve their annual spending plans before the next fiscal year begins. Island Lake’s fiscal year runs from June 1 to May 31, and officials historically have budget talks in March and April.

This spring, however, trustees, Mayor Debbie Herrmann and department heads have been caught up in political drama that saw town leaders publicly feuding over issues big and small.

At one point, Rabattini and other trustees were moving to fire Finance Director John Little because of issues unrelated to the budget, but the matter never came up for a vote and Little kept his job.

Some springtime budget meetings were scheduled, but attendance was spotty, Little said. As a result, a budget wasn’t properly vetted or approved before June 1. Rabattini has held a pair of budget meetings since she replaced Trustee Connie Mascillino as leader of the finance committee.

Trustee Thea Morris said it’s “unfortunate” the fighting at village hall, which worsened this spring and resulted in Herrmann suing two current and two now-former trustees, caused the board to delay its annual budget talks.

With Morris and two other new members joining the board in May, progress is being made, she said.

“We are actively working on creating a budget,” Morris said.

The village had an $8.9 million budget during the 2011 fiscal year, Little said. The latest proposal for 2011-12 calls for $8.1 million in spending.

A revenue projection wasn’t available Friday. Rabattini said the village “is living paycheck to paycheck.”

“We cashed in our savings this past fiscal year,” she said. “We do not know when our next check is coming (from) the state.”

Trustee Chuck Cermak said he isn’t worried about the tardy budget. His outlook wasn’t as grim.

“The village is running day to day,” he said. “Bills are being met.”

Rabattini insisted the board will adopt a balanced budget and monitor spending and revenue throughout the year.

The finance committee is next scheduled to meet at 6:30 p.m. Tuesday at village hall. The board next meets July 14.

Rabattini hopes the board will approve a budget in late July or early August.