Deadline Looms for Trustees to Adopt Stalled 2011-2012 Budget

At the two previous village board meetings, trustees could not agree on passing the fiscal year 2011-2012 budget, amid concerns over a $500,000 fund transfer from the Water and Sewer Fund to the General Fund and other unresolved questions from trustee holdouts. 

The special meeting to be held Wednesday evening will give the board a final chance to adopt the budget before the April 30 deadline.  Approval of the budget by this date is required by state statute. 

If the budget is not passed by that date, the Lake County Clerk has the authority to refuse to extend the tax levy, according to the Village Attorney Ruth Schlossberg.

“State statute says that the county clerk theoretically could refuse to extend the tax levy, but this is a very rare circumstance and it is difficult to find in past case law,” said Schlossberg.

Schlossberg went on to say that there is a 30-day period after budget adoption when it needs to be filed with the clerk.  After that time period, notice would have to be given to the village regarding any tax levy issues.

“Without adopting a budget, any spending by the village could potentially be challenged,” Schlossberg said.

At the April 4 village board meeting, the budget was voted down by Trustees Rich Sustich, Jonathan Sprawka and Jeff Halen. The trustees asked administration to come back with information at the April 18 meeting about the impact on village services if the transfer was not made. 

At that meeting, trustees complained that administration did not provide an answer to the question.

Also at issue is whether the ambulance that is currently out of service could be brought back, in addition to questions about the use of other funds.

The meeting will be held at 7 p.m., Wednesday, April 27, at Village Hall located at 70 E. Main Street.