When Gov. Bruce Rauner suggested withholding half of the municipal share of income tax revenues to shore up state finances, he assumed towns could absorb the loss by dipping into their reserves.
That’s easier said than done in some places, according to a Daily Herald analysis of reserves in 90 suburbs.
The reserves of the 90 suburbs analyzed averaged 60 percent of annual expenses. Besides Island Lake with its deficit, only West Dundee, Aurora and Hampshire reported reserves below the minimum suggested threshold. Hampshire reported reserves of just 1.1 percent of the village’s annual expenses last year. Four more towns — Antioch, Barrington Hills, Carpentersville and Prospect Heights — could drop below two months of reserves after an initial year of income tax cuts.
Read more here.
BHO, the issue of reserves “on hand” for VBH was raised by Citizens for Stieper during the past “two” election cycles (2011 and 2013). Would it be too much to ask BHO to provide for its readers the average dollar amount of reserves on hand for VBH during the period of time Pres. James Kempe was in office versus the period of time Pres. Robt. G. Abboud was in office? If there was a significant difference in the reserve average, is BHO able to explain why?
Also, it might be worthwhile to explain to VBH residents how “reserves” are accumulated, what purpose they serve and why the average dollar amount in the VBH reserve account decreased/increased during the reign of Abboud and his “Save 5 Acres” majority on the BOT.
Finally, what should the “optimal” dollar amount of “reserves” on hand for VBH be and where does VBH currently stand in this regard? Is this an issue which should cause concern to the VBH taxpayer?