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Baker Tilly Financial Forecast Presentation
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Introduction
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The Village contracted Baker Tilly to develop a 10-year financial forecast. This presentation covers the fiscal model prepared by Baker Tilly.
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Recommended Action
Incorporate insights from the forecast into Finance Committee business and FY 2027 budget decisions in 2026.
Prior Board Action
The Board has taken the following prior action(s):
• On July 16, 2024, the Board adopted Resolution 24-259, approving a professional services agreement with Baker Tilly to provide a Strategic Financial Management Planning Program in an amount not to exceed $75,000.
Background
Baker Tilly was contracted to develop a 10-year financial forecast for the Village in July 2024. This forecast is the completion of Phase I outlined in Baker Tilly’s initial proposal: Develop a long-range financial forecast.
The Village contracted Baker Tilly in July 2024 following the issuance of an RFP issued in March 2024 to develop a financial forecast for the Village. Baker Tilly’s proposal outlined three phases: Phase I: Developing a long-range financial forecast, Phase II: Conducting a Village-wide organizational assessment, and Phase III: Preparing a fiscal sustainability plan. The Village contracted Baker Tilly to complete Phase I of their proposal - this presentation covers the fiscal model prepared by Baker Tilly. The fiscal model will serve as a tool for Village staff to continue work on developing a comprehensive strategic financial plan for the Village moving forward.
Timing Considerations
This item is a key discussion point for the Finance Committee because it helps establish the baseline financial framework for the FY2027 Budget process. The forecast provides an opportunity to align early on major financial assumptions, long-term expenditure pressures, revenue trends, capital needs, and policy considerations before detailed departmental budget development advances further.
Financial Impact
The subject of this presentation is the current and future financial position of the Village. The presentation itself has no operational budgetary impact on the Village.
Operations Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery. Staff spent approximately 5 hours per week over the last month on this item; roughly 25 total staff hours have been used.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Staff recommends the Finance Committee use this forecast as a basis for the FY 2027 budget process and a tool for internally carrying out Phases II & III of Baker Tilly’s initial proposal (Conducting a Village-wide Organizational Assessment and Preparing a Fiscal Sustainability Plan) following full department staffing and capacity.
Alternatives
Alternative 1:
The Finance Committee may use the Baker Tilly financial forecast as a baseline tool for FY2027 Budget development and future financial planning discussions.
Advantages:
• Establishes a structured, strategic, and holistic framework for FY2027 Budget discussions.
• Allows the Finance Committee and staff to begin aligning budget recommendations with long-term financial trends, service priorities, and future capital and operating needs.
Disadvantages:
• The forecast may require additional refinement as updated financial information, labor costs, capital needs, and departmental assumptions become available.
• Some policy discussions may require further analysis before specific recommendations are advanced.
Alternative 2:
The Finance Committee could delay discussion of the Baker Tilly financial forecast to a future meeting.
Advantages:
• Provides additional time for staff to review, refine, and supplement the model with updated financial and operational information.
• Allows the discussion to occur after additional internal budget development work has been completed.
Disadvantages:
• Delaying the discussion could affect the Village’s ability to develop the FY2027 Budget within a structured, strategic, and holistic framework.
• A delay may limit the Committee’s ability to provide early direction on key assumptions, long-term financial priorities, and budget development parameters.
Anticipated Future Actions
This financial forecast will serve as a basis for subsequent Finance Committee work during the remainder of 2026 and through the 2027 budget process. Finance staff will continue to utilize and update this model moving forward to inform operating, capital, and financial policy decision-making.
Prepared By: James Karsten, Management Analyst
Reviewed By: Kevin Bueso, Chief Financial Officer
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Financial Forecast Presentation Cover Memo
2. Baker Tilly Presentation