North Aurora committee reviews proposed $56.6M FY25-26 budget; water rate hike and major capital projects highlighted

Jason Paprocki, finance director, presented the Village of North Aurora’s proposed fiscal year 2025–26 budget at the Committee of the Whole on March 17, outlining $42.4 million in budgeted revenues and $56.6 million in budgeted expenditures.

"Our total budget [fund] balance is expected to decrease $14,100,000 for the year," Paprocki said, describing large, multiyear capital outlays as the primary driver of the gap. "We have a no-nonsense approach," said Steve (staff member) at the start of the presentation. "The good news is everything is looking good financially for the village at this point."

Why it matters: The proposal uses reserves and debt to advance several multi-year capital projects while keeping the village’s general fund reserve above policy minimums. Trustees discussed personnel additions, the proposed water rate increase and several capital items that would require transfers or future ordinances.

Major numbers and drivers - Total budgeted revenues: $42,400,000; total expenditures and transfers: $56,600,000; projected fund-balance decrease: $14,100,000. Paprocki said capital projects explain much of the year-to-year spending pattern because some funds save over multiple years and then expend in a single year. - Sales tax is the largest single revenue source at about 24% of total revenues. Paprocki cited a projected $10.2 million in sales tax for the current year and a little over $10.0 million for next year, noting part of the increase last year resulted from a non-home-rule sales tax increase from 0.5% to 1%. - Personnel: Personnel costs are budgeted at just under $12.5 million (about 22% of expenses). The proposal adds 4.07 full-time-equivalent positions year over year, including an administrative operations assistant, part-time code officers, an additional patrol officer, a part-time custodian, seasonal public works labor and an additional water labor position. Paprocki said the public-works union increase is 3.75% and sergeants 3.5%; nonunion increases are budgeted at 3%.

Capital and major projects - Capital totals $21 million, roughly 37% of the budget. Paprocki said that figure reflects continuation of the public works facility construction and the multi-year Central Water Tower project. - The budget includes a $4.5 million transfer from the capital projects fund into the public works facility capital fund for design and construction management, and $3.1 million in the coming year for the central water tower (part of a $4.1 million planned water capital total). - Veterans Memorial: Phase 1 is budgeted at $6,675,000 (listed as a phase-one carryover in the presentation). - Public-safety and building systems: A new boiler for the police department was budgeted at $160,000 and replacement of multiple rooftop HVAC units was discussed as ongoing maintenance needs. - Accessibility lift: Staff reported a preliminary estimate of $200,000 to assess and potentially replace an outdated lift in the boardroom; they said ADA compliance likely requires substantial reconfiguration.

Water rates and water fund details - Paprocki presented a proposed water rate increase from $4.79 to $5.95 per 1,000 gallons; the minimum monthly charge would remain $16 for the first 3,000 gallons. Staff said the increase and a planned transfer from surplus funds would help shore up the water fund’s reserves. - The water fund includes planned SCADA and electrical upgrades at treatment plants and ongoing treatment-plant mixing-system work.

Other operational items - Vehicle and equipment purchases include a 1-ton dump truck ($145,000), salt spreader and truck outfitting costs; staff said vehicle procurement delays have stretched multi-year replacements. - Code enforcement: The budget would restore a part-time code enforcement position (about 10 hours per week) to address weekend and weekday issues such as parking, signs and property maintenance. - Technology and facilities: Document imaging, a new records management system first-year subscription ($144,000), boardroom A/V upgrades ($60,000) and forklift and shop equipment for the public works facility were included.

Taxes and next steps - Paprocki said staff will propose a 1% grocery tax ordinance and a water-rate ordinance; both were scheduled to be proposed on May 5 when the board considers final budget adoption. He also said the village will hold an "official public hearing on the 20 first" (as stated in the meeting transcript) before returning to the board for final action.

Board action at this meeting No formal votes on the budget were taken at the March 17 Committee of the Whole. The only formal motion recorded in the transcript was to adjourn, which trustees approved by voice vote.

What to watch next Staff will return to the board in April for updates if numbers change, hold the stated public hearing, and bring the budget and related ordinances back for formal consideration and possible adoption on May 5, according to Paprocki.