Village administrators presented the preliminary fiscal year 2026 budget at the March 13 board meeting, describing structural changes intended to improve transparency and shifting capital expenditures into a single capital fund.

Gavin (staff) said the proposed general fund beginning balance is approximately $2.4 million, with proposed revenues of about $3.5 million and proposed expenses of roughly $3.86 million, resulting in an estimated ending general fund balance of $2,142,310. He noted the village’s fund‑balance policy requires 25% of expected operating expenses as a minimum reserve and that the proposed ending balance exceeds that floor.

Gavin and Brandy (finance staff) explained that the capital fund shows a negative beginning balance (about -$1,000,000) because the village has already advanced funds for projects such as Acacia Drive and Wolf Road and is awaiting reimbursements — in one case a federal grant administered through IDOT and the West Cook Municipal Conference — for amounts and timing that are not yet certain. Brandy and Gavin emphasized that fund accounting separates obligated funds from cash on hand and that reimbursements can take years to arrive.

The water and sewer fund also showed a structural gap: staff presented projected water and sewer revenues of about $2,000,000 and expenses of about $3,300,000, largely driven by the Pontiac and Keokuk water/main and road projects; staff said 78% of the capital fund was allocated to the Pontiac project and that the water main replacement under Pontiac will be paid from the water and sewer fund with transfers from other funds as indicated in the budget.

Gavin told trustees the $945,000 grant referenced by trustees is not included in the budget because an environmental review must be completed before funds can be drawn down. He said the village will post the draft budget online, solicit public comments, and hold a public hearing at the April meeting; the budget must be approved before May 1, though amendments are possible after adoption if needed.

Staff asked trustees to submit questions to Gavin and Brandy as finance committee members prepare for the public hearing and final adoption.

No final adoption vote on the preliminary budget occurred at the March 13 meeting; trustees were invited to comment ahead of the April public hearing.