Barrington Hills reportedly has more than a year’s worth of expenses in reserve.
Seventeen suburbs are holding on to enough cash to fund municipal operations in those towns for at least one year.
The Government Finance Officers Association recommends a minimum of two months of operating expenses be held in reserve “to mitigate current and future risks.” The group does not recommend a maximum amount of reserves.
Among the towns in the analysis, only Aurora, Elmhurst and Fox Lake reported unassigned reserves below two months of those towns’ operating expenses.
According to the municipal audits, an average of 54.6% of annual operating expenses are being held in reserve among the 84 suburbs, which is the equivalent of nearly $1.3 billion combined.
“Just because your reserves are at 100% of annual operating expenses doesn’t mean you’re too high as long as your process has been completely transparent with constituents,” said Ralph Martire, executive director of the bipartisan Center for Tax and Budget Accountability. “Voters have the right to know why you are taxing at a level more than is needed to maintain current operations.”
Hanover Park Mayor Rod Craig expects the village’s reserves to take a significant hit next year when a new fire station is built using some of the $37 million it has in reserve. The village’s reserves are currently 100% of its annual operating expenses.
Other towns with more than a year’s worth of expenses in reserve include Barrington Hills, Bensenville, Inverness, Kildeer, Lake in the Hills, Lindenhurst, Lisle, Oak Brook, Prospect Heights, Rosemont, Round Lake Park, South Elgin, Vernon Hills, Wayne and Winfield.
Read more here.
A timely article as local municipalities are finalizing their tax levies. Please get involved and show up at these meetings. At least hear how local elected officials are managing the finances, that ultimately, YOU pay for. Transparency and accountability start at the local level.