Summary
County Highway Department staff told the county board the proposed 2026 budget increases the levy by 1.5 percent, shows about $2.0 million unobligated funds available, and includes a multi‑year equipment replacement plan and carryover projects that drive cash‑balance needs.
County Highway Department staff outlined a draft 2026 highway budget that raises the levy 1.5 percent over last year and shows about $2,000,000 in currently unobligated funds available for expenditure.
The presentation, delivered by County Highway Department staff member (speaker a:2), said the $2,000,000 of unobligated funds must cover planned purchases and remaining payroll and operating expenses for the year. “Right now, we have $2,000,000 of funds that are unobligated to expend this year that could be spent,” the staff member said during the meeting.
The budget overview explained why the cash position appears stronger than in prior years even while many projects remain obligated. The department’s contracts‑payable and carryover project list includes resurfacing and bridge projects that are billed through the Illinois Department of Transportation (IDOT) and other reimbursements; those obligated sums are carried forward until invoices are processed. Staff said interest income and remaining real‑estate tax installments will improve the year‑end position.
Major elements in the draft budget: - Levy: staff said they increased the levy request by 1.5 percent to $3,415,360 in the O5 (highway) fund and to $1,667,520 in the O6 fund. The proposed levy numbers appear on the budget sheets stapled to the packet. - Unobligated cash: staff repeatedly stated about $2,000,000 unobligated now, but also noted existing obligations and upcoming purchases (two Bunnell bridges, a backhoe delivery and remaining payroll) that will reduce that amount. - Equipment and capital plan: the draft includes $540,000 planned in 2026 for a tandem pickup, a loader, plows and auger boxes; later years show further replacements (for example, 2027 estimated at $500,000, 2029 a grader replacement, and 2031–2034 staggered replacements). Staff said the department is budgeting roughly $500,000 per year for capital replacements and that these numbers are tentative and subject to price changes. - Payroll and benefits: the budget spreadsheets allocate payroll across multiple funds and include projected wages for engineering and maintenance staff. Staff said some payroll lines were rearranged to reduce risk of disallowed costs under IDOT audits by splitting certain labor between O5 and MFT accounts. Health insurance, retirees and overtime projections were included (for example, a health‑insurance projection of about $350,000 in one line and overtime projections discussed during the presentation). - Carryover projects and contracts payable: staff identified numerous carryover projects and contracts payable (resurfacing, bridge engineering and timber‑pile repairs). The contracts‑payable totals shown on the spreadsheet produced a negative financial condition if all bills were due immediately; staff noted upcoming tax installments and reimbursements will restore a positive position.
Staff emphasized that some line items are timing‑sensitive: township engineering fees, reimbursable bridge work, and federal or IDOT reimbursements move when a contractor submits a bill and IDOT processes it. “Most of those are all federal projects, federal funds into them, so they’re all lehi by IDOT. So we don’t pay anything till IDOT sends us a bill,” the staff member said.
Board members asked about assumptions and carryover, including whether cash balances can accumulate year to year; staff replied they can and are sometimes used as a planning “plug” when balancing the budget. The presentation also reviewed smaller operating lines (electricity, gas, telephone, janitorial), rental equipment, and line‑item variations based on a light winter and lower salt usage this season.
Next steps: staff presented the spreadsheets for board review and said the draft budgets could be approved to go to finance for further review; the board was invited to return with questions at the next meeting.
Ending: The presentation included recommended levy figures, multi‑year capital estimates, and a list of carryover projects the department expects to finish or invoice in the coming months. Staff cautioned the numbers are estimates and said final figures (for example, exact health‑insurance transfers and some equipment prices) will be updated before final adoption.
