Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Montgomery presents $100M‑plus FY2026 enterprise budget; trustees weigh municipal grocery tax option
Summary
Staff presented the village’s largest recommended budget to date, driven by enterprise spending for water system work and debt; trustees also discussed a state repeal that removes a grocery tax previously passed through to municipalities and the option for Montgomery to adopt a local replacement tax.
Village staff presented a recommended fiscal‑year 2026 budget that would be the largest in Montgomery’s history and highlighted how enterprise spending for water projects and debt refinancing drives the totals.
The recommended all‑fund budget exceeds $100 million, with enterprise funds—water, water improvement and refuse—making up roughly 63.5% of the total. Staff said the village anticipates $19.9 million in IEPA water‑main financing, major transmission‑line work, well and tank maintenance and a meter‑exchange program. The recommended water fund budget shows a planned spend down (expenditures exceed revenues in that fund in FY26) mainly because the village expects to use debt proceeds issued earlier to fund projects carried into FY26.
Director Malewski (budget presenter) said the recommended budget includes a new water‑rate schedule that takes effect May 1; average users will see about a $15 monthly increase on bills effective with June statements. The rate changes and anticipated debt structure are intended to secure long‑term financing for the Lake Michigan water transition and to cover rising capital needs.
Separately, staff discussed the state‑level repeal of the grocery sales tax that had previously been collected and passed through to municipalities. The repeal reduces village revenues by an estimated $1.5 million based on 2023 grocery sales; state law allows municipalities to adopt a local municipal grocery occupation tax to replace lost revenue. Staff said 46 Illinois municipalities have already adopted the local tax. Trustees scheduled a future vote on the municipal grocery tax and built the option into FY26 planning; a public vote by the board is expected at a future meeting in April.
Trustees asked for additional detail on enterprise fund debt plans, the timing of debt issuances (including GO bonds and refunding of earlier debt certificates), and the planned use of WIFIA vs. IEPA loans. Staff said the WIFIA loan remains a longer‑term option (35‑year term tied to U.S. Treasury rates) while IEPA loans are lower cost for near‑term construction draws. Staff also noted the village will continue meter exchanges and complete planned projects such as the transmission line and clear‑well maintenance in FY26.
No adoption votes were taken; the ordinance adopting the budget was presented for first reading. The municipal grocery occupation tax was presented as a first reading and will be before the board for approval on a future agenda.
