Village hears preliminary second-quarter budget showing revenues exceed expenses by $1.3 million

Finance staff presented a preliminary, unaudited second‑quarter budget review for April–June 2025 showing the village had received roughly $9.4 million in revenues and expended about $8.1 million across funds, leaving revenues $1.3 million higher than expenditures.

The presentation, which the presenter said had one updated slide from the posted packet, broke revenue and expense trends down by fund and category and compared year‑to‑date figures with the prior fiscal year. Staff reported general‑fund receipts at about 50% of the projected annual total, permit revenues above benchmark, and taxes lagging because property‑tax distributions were processed in June.

The review highlighted two locally new levies that began in 2022: the streaming tax (total collections to date of about $348,312) and the vehicle/parking tax (about $712,961 since 2022), with staff noting collection timing varies by payer and some large accounts remain in outreach. Motor fuel tax (MFT) receipts and distributions were described for street projects; staff identified MFT expenditures for snow removal, streetlight utilities and engineering for the Barrington Avenue project.

Capital‑project receipts cited included a local gas tax (first receipts in April), a parking‑garage grant from the Illinois Department of Commerce & Economic Opportunity (DCEO) reported at about $350,000, and video‑gaming distributions of roughly $221,000. Capital expenditures through June included purchases and projects such as a public‑works dump truck ($125,000), building improvements, property acquisitions (16 East Main and 120 Railroad, about $287,000), and ongoing parking‑garage costs. Staff said some post‑June invoices and a few July payments remained outstanding.

On the utility side, the water and sewer fund showed about $1.8 million in revenues (67% of budget) and 41% of budgeted expenditures, with West Dundee payments and interest receipts noted. Staff outlined a village debt history: a total historical borrowing figure was described as about $48 million, the current outstanding reported near $12.3 million, and a police‑pension unfunded liability identified at about $23 million. Village staff said the administration is pursuing Illinois Environmental Protection Agency (IEPA) low‑interest loans—roughly $13 million planned—for water projects including lead service line replacements, standpipe and tower rehabilitation, Well No. 6 rehab and meter replacement.

Trustees asked about timing of collections, how large capital expenditures affect year‑to‑date percentages (capital was about 85% expended in Q2 largely because of the parking‑garage project), and whether the village expected to come in on budget. Staff said July figures would give a clearer picture but expressed confidence "as long as nothing crazy happens." The board directed staff to use the presentation material as a starting point for fall budget discussions, including operations in September and capital in October and to incorporate planned IEPA borrowing and police‑pension funding scenarios into next budget charts.

Ending — Staff noted the presentation was intended to familiarize three recently seated trustees with the village finances ahead of 2026 budget planning, and indicated follow‑up reports and a reworked debt chart that will include proposed IEPA borrowings and the pension liability would be provided during the budget cycle.