SHOREWOOD – The Shorewood Village Board approved Tuesday a $30.11 million budget for the 2016-17 fiscal year.
The village budgeted $30.11 million in total expenditures and $28.52 million in total revenue.
Major changes in expenditures from last year’s $29.9 million budget include a $500,000 increase in the general fund, a $4 million decrease in the capital improvement fund because of capital outlays, and an almost $2 million increase for the new Lake Michigan water fund.
The largest changes to last year’s revenues include an almost $500,000 increase in tax revenue, a $6 million decrease in the capital improvement fund due to debt proceeds from the new water tower, and $2.61 million in revenue to the new Lake Michigan water fund.
“Operationally, there is not a big change for us,” Finance Director Anne Burkholder said, noting that the operating fund is balanced. “There are a few positions – the IT position that we’re hoping to add in the fall and an additional police officer – that is being added due to growth.”
Burkholder said there are no plans to increase taxes beyond the 0.75 percent sales tax increase that took effect Jan. 1.
Among the few major changes for the village budget is the creation of the Lake Michigan water fund for the village’s plan to switch its water source from groundwater to Lake Michigan.
Due to concerns about future aquifer depletion, trustees voted to pursue a pipeline extension that would bring Lake Michigan water to the village.
To fund the project, the board floated a referendum in the April 2015 election to grant Shorewood home rule status, allowing the village to raise the sales tax by 0.75 percent.
The referendum passed, and the village has been progressing on the plan. The additional sales tax revenue going to the Lake Michigan water fund is expected to be $1.66 million.
Also, the capital improvement fund saw a drop in revenues and expenditures due to construction completion of the new water tower, which is coming off the books.