Restored revenue feeds Schaumburg’s new ‘normal’ budget
Schaumburg administrators are set to approve a new annual budget on Tuesday billed as a return to normal for the village of 71,000 people and Illinois’ second-largest center of economic activity.
The driver is the restoration of financial buffers after the pandemic’s previous severe impact on consumer-generated tax revenue, officials said.
“This budget is so much better than the previous two,” said Mayor Tom Dailly. “For me, that ticked off a lot of things that we wanted to do as we get back to normal.”
Among these is the amount earmarked for the repair and maintenance of roads.
The proposed budget provides $21 million for street repairs, including $8 specifically for residential streets.
Schaumburg plans to use federal funding to resurface six pavement areas and begin reconstruction of Rodenburg Road. Over $11 million is budgeted for these and other major road projects, with the village share being $4.2 million.
While the state of the pandemic is having a more favorable impact on the economy than two years ago, Dailly also credits village staff with some of what he sees as the positive aspects of the budget. He said the administration has been careful with rehiring and working to reduce leaks and other water system inefficiencies that have helped keep the water rate on residents’ bills for the year to to come.
Total budgeted revenue for the fiscal year beginning May 1 is $265 million, while total costs are $283 million. But the budget is considered balanced because some of the capital improvements for the coming year received their funding in the past and it doesn’t show up as new revenue, Dailly said.
The return to stronger revenues after the pandemic slowed is something Dailly said he started noticing in the fall. People are starting to spend money in the village as they did before the COVID-19 outbreak, although some of the bigger companies have not returned to their offices to the same degree as the smaller ones, he said. -he adds.
Nonetheless, Schaumburg is budgeting conservatively for the coming year, officials said.
“The Village is certainly more optimistic about budget planning this year than in the past two years, allowing us to restore in several areas that have been reduced during the pandemic,” Chief Financial Officer Lisa Petersen said. “However, while the revenue increases we have seen in FY21/22 have been impressive, they are largely driven by inflation and one-time revenue, so we will continue to monitor trends closely and be careful.”
Economic development plans over the coming year include the opening of Tony’s Fresh Market in Dominick’s old building in Town Square and the preparation of a new entertainment district around the Renaissance Hotel and the center Schaumburg Conventions. The latter will include Andretti Indoor Karting & Games.
Activity at the Al Larson Prairie Center for the Arts and special events such as a three-day Septemberfest over Labor Day weekend are expected to return to pre-pandemic standards.
Some of the budget’s targets were shaped by residents’ largely positive responses to a recent national community survey, said village manager Brian Townsend.
“The proposed budget is a responsible plan that allows the village to continue on the path of progress by focusing on areas deemed important by the community of Schaumburg,” Townsend said. “While we are delighted that residents have rated Schaumburg as a great place to live, we know there is always room to grow so that we can continue to provide a high quality of life for people who live, work and have fun here.”
Budget details are available at schaumburg.com/budget.