SAUK VILLAGE | The financial crisis that has gripped the village for the past two months has not yet released its hold. But the administration has taken steps it hopes will help loosen the knot.
Tuesday night, the Village Board approved extending the maturity date of a promissory note issued to First Midwest Bank.
The original note was for $500,000 and was due in full on or before Oct. 31. After discussions with First Midwest, the balance of $200,000 will be extended to Jan. 31.
"We needed a few months of breathing room as we get our finances in order," Chief of Staff Brunetta Hill-Corley said. "Other steps we are taking will hopefully allow us to be able to get back on a regular payment schedule."
The village has all of its accounts with First Midwest. The partnership helped pave the way for the extension.
The board also authorized the village and a bank to partner up and apply for loans from the state's short-term loan program.
The program, called Illinois Funds, is designed to bridge the gap between a local government agency's immediate needs and the time when additional revenues are available. Loans are made for three-month, six-month, nine-month or 12-month terms. The loans are made by local financial institutions, such as First Midwest, based upon the credit worthiness of the village.
Property tax money due the village in October have been delayed until at least November, Finance Administrator Beverly Sterrett said. The short-term loans can help the village avoid missing critical payments until tax money is delivered.
Last month, Sterrett reported to the board the village was short $113,000. Sterrett also told the board payroll would be met to all village employees, but it would be made "by the skin of our teeth."
According to board meeting notes, payments have been held to some vendors since June. Additional payments were held at Tuesday's meeting, but payroll and insurance payments were made.
The board also voted to retain the firm of Kane, McKenna and Associates as financial planners and advisers to the village. The firm will assist the village with financial analysis of projected revenue and debt.
The current administration was faced with financial challenges as soon as it took office last May, officials said. Projected impact fees, collected from developing industries within the village, fell $1.5 million short, which created an immediate deficit. Since then, the state has failed to pay $200,000 in tax allotments due the village.
The village has laid off three noncritical employees so far to help offset the deficit. Unpaid furloughs are being considered for other nonessential positions, according to Hill-Corley. In addition, contracts the village has with various insurance carriers, such as employees' health care and life insurance, have been scrutinized and modified whenever the village could save money.
