Purpose of Audit

The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the Village’s tentative budget for the 2014-15 fiscal year are reasonable.

Background

The Village of Liberty’s proposed 2014-15 budget totals $3.7 million for the general fund, over $940,000 for the water fund, almost $1 million for the sewer fund and over $820,000 for the sanitation fund.

Key Findings

Based on the results of our review, except for certain matters, we found that the significant revenue and expenditure projections in the tentative budget are reasonable.

• The proposed budget does not include a tax overlay or provisions for infrastructure needs.
• There are budget gaps in the water and sewer funds which are planned to be funded by rate increases that have not yet been adopted.
• The amount of sewer rents revenue in the proposed budget has been increased without any supporting justification.
• The proposed budget complies with the tax levy limit.

Key Recommendations

• Include a tax overlay in the budget they adopt.
• Develop a comprehensive, multiyear capital projects plan.
• Approve the rate increases for water and sewer rents prior to adopting the budget.
• Update the budgeted sewer rents revenue amount to be consistent with current year usage adjusted for the change in rates.