Sauk Village Trustees Question Water Fund Transfers Amid Budget Shortfall (Sauk Village, IL) — A $180,000 transfer from Sauk Village’s Water Fund to cover payroll became a flashpoint at the Oct. 20 meeting, as trustees pressed Mayor Marva Campbell-Pruitt’s administration for tighter controls over village finances and clearer answers about how money is being spent.
The discussion unfolded as officials reviewed a fiscal 2027 budget draft showing a projected net fund balance of negative $1.448 million. Officials also described a General Fund shortfall of at least $1 million, underscoring the financial pressure behind the debate over transfers between village accounts.
The village administrator acknowledged that $180,000 had been moved from the Water Fund so employees could be paid. Trustees questioned the authorization for using money they described as restricted and demanded a formal approval process before further transfers.
They called for written requests identifying the purpose and precise amount of any proposed transfer, followed by board consideration and an ordinance authorizing the action. Their objections extended to the use of Water Fund money for accounts payable and other village expenses.
Trustees also raised a separate allegation that $2 million had been moved from the fund in 2024 without their knowledge or approval. That earlier transaction became part of their argument for requiring advance authorization and a clearer accounting of transfers.
The administration described transfers from the Water Fund as a practice previously used to help balance village finances. Trustees pressed for more documentation of departmental spending and greater board involvement in decisions about the fund.
For residents, the discussion raised questions about how the village will pay for daily operations while managing money set aside for its water system. The demands for documentation focused on identifying how much was being moved, what expenses it covered and who authorized it.
Legally, this move could land Sauk Village in hot water. According to the Illinois Municipal Code (65 ILCS 5/11-134-5), “The entire revenue derived from the operation of the waterworks system… shall be deposited in a separate fund, to be known as the water fund… This fund shall be used solely and only in paying the cost of maintenance and operation of the waterworks system, and the principal and interest of the waterworks revenue bonds… which are payable from the revenues of the waterworks system…”
Officials discussed several possible responses to the budget gap, including spending reductions across departments, closer review of vendor contracts and consolidation of telephone services. The administrator cited potential annual savings of roughly $25,000 from reducing phone-related costs.
Revenue changes were also discussed. Parking fines, ordinance violation penalties and service fees were identified as areas for review, with officials saying some charges had not increased since 2017.
The budget remained under review following the discussion, with trustees seeking additional financial information and clarification of departmental expenses.
Later in the meeting, the board approved an engagement letter for Baker Tilly to provide advisory services after an extended debate. Officials described the agreement as part of the village’s response to the Illinois Comptroller’s office concerning overdue financial audits.
Village records provide additional context for those concerns. In a report dated Feb. 13, 2026, addressing financial statements for the year ended April 30, 2021, Baker Tilly said incomplete records and insufficient supporting documentation prevented it from expressing an audit opinion.
The firm identified a “pervasive, systematic lack of controls” and described weaknesses involving purchasing, payroll, utility billing and financial reporting. It also reported that bank reconciliations were not prepared promptly and that the village could not provide a complete, balanced trial balance. The report’s findings concern the older financial records reviewed for that engagement.
The meeting also included two business presentations. Bonnie Kelly outlined a proposed breakfast and event space offering entertainment. Representatives of the Sanchez Group discussed redevelopment plans for an approximately 85-acre property formerly held by YRC, describing their background in asphalt paving and concrete work.
Sauk Village Trustees Question Water Fund Transfers Amid Budget Shortfall
