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Village finance staff report stronger sales-tax receipts, kick off 2026 budget process
Summary
Staff presented the June financial report and opened the 2026 budget process, reporting higher sales-tax receipts tied to state sourcing changes, modest increases in property-tax receipts so far, and overall general-fund drawdown projections close to budgeted levels.
Nikki, a finance staff member, told the Village Finance Committee that the village’s June financial report shows year-over-year increases in several revenue categories and that staff is beginning the 2026 budget process. "For the month of June, our property taxes we have received here to date are more than last year by about 63,000, about 51% of budget," Nikki said, adding that the village has received a first installment and is projecting to collect remaining receipts by Dec. 31.
The report said sales taxes are running higher than last year “because of the changes that were made by the state of January 1,” Nikki said, explaining that the Department of Revenue’s shift toward destination-based sourcing of online sales has moved some receipts from use tax into sales tax. "From the information we have from the Department of Revenue, it's not going to be a 1 for 1," Nikki added.
Staff noted some revenue streams are down: use tax and personal property replacement tax remain below prior-year levels, the latter reduced by a change in the state budget. Utility and telecom taxes are also trending down but are expected to recover seasonally: "The utility tax is high geared towards weather, so we haven't seen utility bills come out from the recent heat. We'll see that in a few months," Nikki said.
When the committee looked at fund balances, staff reported the general fund’s unrestricted cash balance at roughly $15,600,000, about 53% of operating expenditures, and projected an end-of-year draw of roughly $4,400,000 when expenditures are included—close to the $4,800,000 draw planned in the current budget. The water fund is projected to end the year roughly $106,000 over revenue projections but to draw down about $2,600,000 when capital expenditures are included.
Committee members asked clarifying questions about timing and projections. Nikki said staff had adjusted projection spreadsheets to reflect anticipated later second-installment property-tax receipts and noted some midyear timing differences on capital expenditures and project rollovers from 2024. "Expenditures are running higher than last year, but only 44% of budgets. Really, that's mostly timing," she said.
The committee approved the prior month’s minutes before the financial presentation and directed staff to continue drafting the 2026 budget based on the recommendations and data discussed.
