Coronavirus: La Grange Approach Differs From Burr Ridge

LA GRANGE, IL — La Grange is making few changes to its budget. By contrast, Burr Ridge is proposing major adjustments to its finances, including a wage freeze.

La Grange's proposed budget was drafted before the governor's stay-at-home order took effect. It projects an $11,000 surplus in the general fund and reserves amounting to nearly 60 percent of the village's operating expenditures, officials said at Monday's Village Board meeting.

"The Village Board does have the ability to make adjustments to the budget as it deems necessary," Finance Director Lou Cipparrone told the board, which was meeting remotely because of the stay-at-home order.

While the budget includes no major changes, Cipparrone said, the village is making short- and long-term plans for possible reductions.

"The village has sufficient reserves to maintain essential public health and public safety services during these challenging times," he said.

In Burr Ridge, the Village Board took its first look at the proposed budget for the fiscal year starting May 1 about a month ago. Its meeting was held the same day that President Donald Trump declared the coronavirus pandemic. So the Burr Ridge budget numbers did not take into account the economic crisis to come.

On Monday, the board received updated information showing that its general fund income was estimated to drop by 4.1 percent, or nearly $400,000, this budget year. For the next year, it is projected to plunge nearly 11 percent, or $1 million. Most of the losses are because of drops in sales taxes and state income tax payments.

As a result, the village is proposing to delay many planned capital improvements and freeze employees' wages in the new budget year.

Amy Nelson, the village's assistant finance director, said officials looked at Burr Ridge's finances through the Great Recession as one of the ways to figure out the impact of the pandemic.

"We don't anticipate that we'll be at 100 percent at the end of the next fiscal year," Nelson told the board members, who were connected to the meeting remotely because of the coronavirus. "We don't even see us realizing 50 percent of sales taxes after September."

She said the village staff would regularly brief the board on the status of the budget.

Mayor Gary Grasso said the village has enough money on hand to take care of major projects.

"In a crisis situation, unlike the state of Illinois, the village of Burr Ridge does have solid reserves," he said. "The board has real options."

Read more:

Illinois Coronavirus Update April 14: 794 Deaths

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