Questions Asked By Village Residents

1. Questions Asked By Village Residents Election Date February 28, 2012

2. What Actions Did The Village Take To Reduce Costs After the Millage Increase Failed In The Fall? • The Village is facing a $150,000 deficit in its General Operating Fund for the current fiscal year that runs through June 2012 • The council approved a number of cost reductions that take effect November 1, 2011 and will reduce the deficit to about $74,000

3. The Forecasted Spending Increases Seem Higher Than Increases In The Past? • Total Expenses were $1,323,867 in 2001-2002 and were $1,715,490 in 2010-2011. This increase of $391,623 over ten years is a compound annual growth rate of 2.6% • The compound annual growth rate during the forecasted period is 1.8%

4. The Pension Cost Increase at 7% Per Year, This Seems Too High? • The pension expense was forecast using the 2010 actuarial report prepared for the Village. • The pension is 61% funded using actuarial assumptions. The minimum required funding is $157,200 per year. The unfunded liability totals $1,680,274 • The pension is 55% funded using market value assumptions. The annual required funding would be $186,640 per year. The unfunded liability would be $2,161,914 • The forecasted growth of required pension funding is based on the assumption that additional funding will be required in the future to make up the difference between the actuarial value and the market value