"The problem is not at this level," Donovan said during his presentation, "But we are charged with fixing it."
The Minoa mayor pointed out that village government is the "closest" to the people.
"It brings an identifiable sense of community that people can relate to," Donovan said.
The county is analyzing the plan to gradually decrease and possibly eliminate the sales tax revenue provided to each village.
Without knowing how much will not be available in the future, Olson has instructed his department heads to anticipate cutting an additional 5 percent from the 2011-2012 budget.
Despite the losses of revenue and forced budget constraints, Olson emphasized village residents will not see a decrease in services including those related to recreation, senior citizens, the library and parks.
The village board will schedule a public hearing on the budget to be held no later than April 20. The fiscal year begins June 1, 2010.