Oswego presents $32.7 million capital budget plan for 2026; public works facility funded from reserves

At a Village of Oswego Committee of the Whole budget workshop, staff presented the proposed fiscal year 2026 capital budget and a slate of capital projects that together will draw from the village’s reserves to fund a new public works facility and multiple infrastructure projects.

Andrea (staff member), who led the presentation, said the capital program lists 42 projects and 12 vehicles for 2026, “total[ing] over a $125,000,000 scheduled for next year.” She told trustees the proposed capital fund revenues for 2026 total $32,741,959 and that $10,530,000 of that amount is a planned transfer from excess general‑fund reserves specifically earmarked for the public works facility.

Why it matters: The village is proposing to use cash reserves rather than issuing debt for the public works facility, a decision that affects how much of the capital‑project pipeline can be paid for in the near term and how quickly reserves will be replenished.

The budget sheet presented shows capital fund expenditures budgeted at $34,800,000, leaving a projected 2026 deficit of roughly $2 million and a projected ending unrestricted capital fund balance of about $17 million. Village staff cited two of the largest project drivers as Wolf’s Crossing (the full Wolf’s Crossing at Douglas project budgeted at about $16,000,001.98) and the public works facility expansion (budgeted $10,530,000 in 2026, with a remaining balance to be funded in subsequent years).

President Coffman (Village President) framed the funding decision succinctly during the discussion: “we are paying that for that public works building entirely from reserves. We are not bonding out at all,” he said, adding that using reserves avoids borrowing costs.

Staff said other capital revenues shown in the proposal include grants for Wolf’s Crossing totaling roughly $10.5–$10.6 million and an estimated home‑rule sales tax of $5.4 million for 2026. Andrea said some grant dollars are federal pass‑throughs and others are state grants; the presentation noted a mixture of grant sources across projects.

Trustees and staff discussed how using reserves now will draw down the village’s cushion against future capital needs. The village’s fund‑balance policy was cited during the presentation: to plan for future improvements from cash reserves the capital fund would ideally hold about $25.6 million under the stated assumptions; the 2026 projection falls short of that target. Staff noted that the further out the projection the more uncertain the picture becomes because projects may be delayed or grants may materialize.

Other notable capital items presented: - Wolf’s Crossing at Douglas: shown as the full project budget of roughly $16.0 million (includes engineering to date). Staff said engineering is included in that figure. - Harrison Street streetscape: a streetscape between Washington and Benton budgeted just under $2.0 million and intended to add sidewalks, street trees, lighting, and about 104 angled parking spaces; acquisition of right of way from the park district was noted as part of the project scope. - Second parking deck and downtown silo parking and lighting: a downtown silo parking and lighting project budgeted at $275,000 with an expected $250,000 DCEO grant; village staff described the project as adding roughly 25 parking spots and programmable LED lighting for the silo/granary. - Village Hall and public‑works campus projects: a range of facility projects were listed, including the public‑works expansion (see above), roof replacements, a new generator for Village Hall (budgeted at $190,000), and relocation/buildout of a larger finance department conference/lunchroom area. - Police equipment: Starcom radios for patrol sergeants ($36,000) and multi‑year Taser upgrades ($44,700).

Staff noted the village is relying on a mix of cash reserves and grants to advance several near‑term projects. Andrea said the board previously indicated the $10.53 million transfer from the general fund to support the public works facility and that there will be an additional transfer from the general fund next year to complete the facility.

Trustees asked whether project estimates reflect recent market trends; staff said the estimates are recent (July) and that construction costs have recently shown some downward movement in their conversations with engineers. Trustees also asked about future transfers and long‑term capital funding; staff warned that without additional transfers or new revenue the capital fund will see significant drawdowns in later years.

What's next: Staff will continue to refine project budgets and bring the proposed FY2026 operating and capital budgets to the board for further review at the scheduled Saturday workshop. The Committee of the Whole recessed before finishing the review of several remaining projects.

Ending: The presentation emphasized that the village’s current financial position—high sales tax growth and strong reserves—allows funding of major projects without borrowing, but staff cautioned that continued grant success, development activity and future board transfers will materially change the long‑term capital outlook.