Agenda Item:
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Presentation of the Draft Calendar Year 2027 Budget
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Staff Contact: Nikki Larson, Deputy Village Manager/Chief Financial Officer
Budget Impact: Budgeted
Strategic Priority Addressed: Workplace of Excellence, Reliable Infrastructure, Economic Vitality, Community Resilience
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BACKGROUND AND ANALYSIS
The draft Calendar Year 2027 Budget document has been posted to the Village’s Transparency Portal on the Village’s website and can be accessed here: <http://www.villageofglencoe.org/draftCY27budget>.
The draft budget was distributed to the Village Board on October 8 and will be extensively reviewed at the Finance Committee Meeting scheduled for October 13, 2026. During these discussions, Trustees will be asked to provide feedback on proposed operation plan for Calendar Year 2027 as well as review Community Investment Program (CIP) requests.
The draft budget, excluding revenues and expenditures for the pension funds, now includes $40,706,012 in revenue and $49,223,579 in expenditures. Attached to this memorandum are operating statements that reflect a summary of expenditures and revenues by fund. The draft budget as presented uses significant fund balance resources, including bond resources. In line with the Village’s balanced budget policy, operating budgets as presented are in balance.
The development of the draft Calendar Year 2027 Budget has included review of requests at each department level, followed by reviews by the Administration and Finance Department to determine appropriate resource recommendations. Over the past several months, the Finance Committee has also discussed and offered guidance on financial forecasts and policies, infrastructure and capital expenditures and has provided critical analysis of the Village’s financial condition. These have been integrated into this document as well.
A few key highlights of the budget include the following:
• Continued focus on Community Investment Program (CIP). A total of $10,325,000 is planned across the Capital Projects, Water, General, Golf and Motor Fuel Tax Funds, which will be funded by a combination of fund reserves, grants and proceeds from the Series 2026 General Obligation Bonds. Highlights include:
o Street Resurfacing Improvements- $1,725,000
o Water Main Replacement - Dundee Phase 2A - $1,320,000
o Facility improvements at Village Hall, Public Works Garage and Water Plant - $1,105,000
o Vehicles and other rolling stock - $1,855,000
o Sidewalk Improvements - $270,000
o Lead Service Line Replacement Program - $250,000
o Village-wide Stormwater Master Planning implementation and construction - $450,000
• Special projects including:
o Business District Streetscape and Parking Study Implementation - $300,000
o Continued work to further enhance the Village’s Information Technology Infrastructure - $210,000
o Water Treatment Plant intake cleaning - $450,000
• Requests for Additional Staff: Three new full-time positions are proposed. Development Services Department will replace temporary contractual permitting support with a more cost-effective, permanent resource in a new Permit Technician. Temporary support costs were projected to exceed the anticipated personnel cost of the permanent position. The position will support permit administration, improvements to permitting software and reporting and expanded same-day issuance of select permits, all with the goal of improving and investing in the customer service experience. In Public Safety, two new Public Safety Officers will expand front-line capacity for police, fire and emergency medical services from 26 to 28 officers. This is a measured first step in responding to the staffing study completed in 2026, addressing increased training obligations, State mandates and simultaneous emergency calls, while also working to increase the number of paramedics.
• Increases in current tax rates, fees and the proposal for several new fees and taxes are proposed to mitigate revenue loss and fund capital improvements. Following comprehensive analysis of costs of service as well as comparability to surrounding communities, fee recommendations across the various funds include increases in:
o Water rates (6%) and sewer rates (2.7%) to fund necessary capital, financing and operating expenses.
o General Collection Services Fee (2.7%)
o Increase in Residential Construction Building Permit Fees - $10 per square foot
o Reduction in remodeling and other home improvements from 3.5% to 3.0% of project costs, encouraging reinvestment in existing homes
o Adjustments to Golf Club fees to maximize utilization and incorporate year round operation and restaurant
Also Included in the draft budget document are the following reports prepared by staff:
• Financial Forecast for Calendar Year 2027 through Calendar Year 2031
• Major Village Financial Policies
• Proposed Calendar Year 2027 Operating Statements
• Department Narratives and Workplans
• The Village’s 10-Year Draft Community Investment Program, with project and equipment replacement detail for Calendar Year 2027
• Recommendations for adjustments for certain rates and fees
• Strategic Plan Update
The presentation of the draft budget represents the second step of the public budget adoption process. Following the presentation to the Village Board this month, the final budget will be presented for consideration and approval at the November 19, 2026 Village Board meeting, along with the proposed property tax levy, fee and fine recommendations and multi-year contract approvals. We expect annual budget amendments to be presented in December.
Staff looks forward to the in-depth review of the Calendar Year 2027 draft budget at the October 13, 2026 Finance Committee meeting.
RECOMMENDATION
Staff recommends review and discussion of the Calendar Year 2027 draft budget.
ATTACHMENTS
1. Operating Statements