Financial Discussion

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As Carol Stream discusses its financial condition, future expenditures, projected revenue shortfalls and future funding options, the topics below have generated interest. A collection of relevant links is included at the end of this page.

Pensions

In 2015, the Illinois Supreme Court determined that public pensions are constitutionally guaranteed and municipalities are unable to diminish or impair pension benefits. The Village is obligated to fund the Police and non-police pension systems under state mandated guidelines.

Other Agencies

The Carol Stream Village Government is a distinct and separate government entity. Other agencies like the Library, Park District, Fire District, School District, County and Townships are distinct and separate governmental entities with their own elected governing Board of Directors. The Village does not have jurisdiction over their actions or responsibilities. For example the Village cannot control how many parks the Park District builds or how many events they have.

Library Loan

The Carol Stream Library requested and the Village agreed to loan them up to $2 Million. It was determined that the overall burden on Carol Stream residents would be less if the Village loaned the Library the money versus the Library getting a loan from a private agency. In order to pay back the Village, the Library is increasing the levy, this increase is expected to be less than $15.00 a year for a median home value. Here is a link to an agenda of a Special Workshop held during the loan discussion.

Village Events

Most Village sponsored events are funded completely or partially by sponsorships, donations, grants, and partnerships. Those that do cost the Village money are typically between $250 to $1,500 dollars. The Village benefits from a wonderful volunteer base that is estimated to save us $30,000 a year with over 1,250 hours of volunteerism. Our most expensive event is our 4th of July Celebration. The parade is managed by the volunteer Parade Committee, a distinct group. The fireworks are a partnership with the Carol Stream Park District. The 4th of July Concert is funded by community sponsorships. Overall the 4th of July costs the Village around $15,000 to $20,000 any given year. Our events are not designed to be revenue generating for the Village and are designed to offer all residents low to no cost opportunities to gather as a community.

Salaries and Staffing

Municipal governments are service organizations, which is why approximately 75% of the cost of local governments are comprised of personnel costs. The 4.5% average increase in payroll and benefits costs is comprised of union and non-union salary increases as well as other payroll costs. This figure also includes payment of leave balances at retirement, promotional increases, savings from hiring replacement positions at lower salaries, contractually obligated union STEP increases and new employee costs. This figure also reflects staffing increases made after the Great Recession. During and immediately after the recession the Village decreased staffing significantly. In order to meet our service obligations, we have been slowly returning staffing to pre-recession levels. Carol Stream has approximately 4.13 total employees per 1,000 residents, which places us in the middle of our peer communities. Carol Stream salaries and benefits are competitive with our peer communities falling somewhere in the middle to slightly above average

Revenue Loss

Carol Stream, like many other municipalities, has seen a significant decrease in traditional revenues needed to provide basic Village services and maintain Village capital resources. Most other municipalities supplement the loss of sales, utility, and other revenues with a property tax assessment (see slides 27-28 in the workshop presentation). Without a property tax, which residents in most other municipalities pay, the Village will be forced to cut basic services, reduce employee size and allow capital facilities, such as roads and storm water facilities used to prevent flooding to be maintained at a much lower level.

Opportunity for Comment

All Village Board Meetings are open to the public and noticed on our community calendar. Agendas are typically made available online the Friday before the meeting. Special Meetings will also be announced on our calendar as we determine dates. We have scheduled two September 30th time slots for a special forum to discuss a possible property tax, one at 9 AM and another at 6 PM. Both forums will be recorded and shared on our YouTube Channel at a later date. 

Thank you all for your involvement in this important community topic.

Relevant Links

State of the Village (May 2019)

Special Meeting Workshop (8/5/19)

Special Meeting Workshop (8/19/19)

Annual Budget

Special Meeting Workshop (2/5/18)

Special Meeting Workshop (2/20/18)

Special Meeting Workshop (3/5/18)