Gurnee adopts $101.4 million 2025–26 budget, approves fee, transfers and multiple public-safety and capital contracts

The Village of Gurnee Board of Trustees on April 7 approved the village’s $101.4 million fiscal 2025–26 budget, a package of fee and rate changes and a slate of contracts and capital transfers, voting unanimously on each item.

The adopted budget carries no property-tax increase, keeps the village’s reserves above policy and plans a net use of approximately $2.1 million in fund balance for capital spending next year, village staff told trustees.

The budget package also included a 6% increase in water rates, a $4.0 million general-fund capital contribution (split as $2.75 million to the capital improvement fund, $1 million to the golf course fund and $250,000 to the water and sewer fund), and approvals of multiple professional-service and equipment contracts for public safety, streets and public works.

Village staff summarized the budget at a public hearing before the vote, saying the document was prepared without a property-tax increase, maintains healthy reserves across funds and keeps the village’s debt burden low. Pat, a village staff member who presented budget details, said the general fund is projected to end the year with about $33.4 million — roughly 73.8% of expenditures less transfers — above the village policy target of 60–65%.

Why it matters

The budget determines the level of capital work the village will deliver next year, funds staff and public-safety programs and sets user rates residents pay for water and other services. The board’s approvals move forward a multi-year capital program that includes roughly $20 million in projects for transportation, buildings, water and vehicle replacement.

Key details from the meeting

Budget totals and reserves: Staff presented a total budget across all funds of $101,400,000, up about $2.3 million (2.3%). The presenters said the planned net use of fund balance (across all funds) is $2.1 million and that the capital improvement fund will still show a projected balance of $2.1 million after the current planned drawdown. Village staff said the water and sewer fund will finish next year with about $4.5 million (roughly 41.7% of revenues). The health insurance fund showed a projected shortfall tied to moving from self-insurance toward a government pool for health coverage.

Water rates and fee schedule: As part of the annual fee ordinance, trustees approved a 6% increase in water rates. Staff said the village remains one of the lowest-cost water providers in its JAWA purchasing group even after the increase. The fee ordinance also adjusted hydrant-meter billing to monthly from quarterly and raised tanker-fill fees to better reflect cost recovery.

Capital transfers: The board approved transfers that staff described as coming from 2023–24 surpluses. The approved allocation moves $2.75 million to the capital improvement fund, $1 million to the golf course fund (to help pay for a planned irrigation-system replacement) and $250,000 to the water and sewer capital fund for upcoming design work.

Public-safety and technology contracts: The board approved a five-year, enterprise contract for police equipment and software with Axon Enterprise and a one-year agreement with Paladin Drones for a “drone as a first responder” program. Deputy Chief Gahn described the Axon package as an expanded technology suite that would cover body-worn cameras, in-car video, AI-assisted report writing and evidence redaction tools and said the new contract would cover all 70 officer positions. Gahn said the contract’s features include language-translation tools, improved redaction for juvenile and FOIA responses, telematics for vehicle tracking and tools to reduce report-writing time.

Paladin Drones: The board approved an initial Paladin drone installation and service agreement that staff described as an autonomous, rooftop-mounted drone system with FLIR (thermal) capability, a roughly five-mile operating radius and an initial discounted capital cost followed by an annual service fee. Staff said the drone system is intended to reach many parts of Gurnee in about 90 seconds and to integrate into the department’s real-time crime / camera platform for on-scene situational awareness.

Redevelopment and economic development items: Trustees approved a redevelopment agreement with 6161 Grand Avenue (identified in staff presentation as Kite Enterprises/10 Hotel and Residences LLC). The agreement includes a minimum private investment of $6,250,000, $25,000 in reimbursement for a requested sidewalk section and a revenue-share incentive capped at $1.3 million (the village shares certain hotel, food-and-beverage and sales taxes above a $125,000 baseline for up to six years or until the cap is reached). Economic Development Director Alan Dean summarized the developer’s timeline expectations and a 20‑year operating commitment for the site.

Small-business grant amendment: Trustees approved an amendment to a previously awarded small-business capital grant for Top Shelf Ice Arena (6152 Grand Avenue) to allow reimbursement of a used ice-resurfacing machine (Zamboni) purchased for $40,000 in lieu of some HVAC items previously listed in the grant. Staff said Top Shelf has invested roughly $300,000 in the facility over two years and that the village’s grant funding has supported roughly $110,000 of that investment.

Public-works and capital contracts: The board approved several engineering and construction-related items, including a contract award for the 2025 street-resurfacing program to low bidder Peter Baker & Sons Company at $5,275,472.54, a construction-oversight services agreement with Clark Dietz (not to exceed $175,000) for roadway reconstruction (Glen Flora/Blackburn/Ferndale), and a contract with FGM Architects for preliminary design and construction administration for Fire Station No. 2 renovation (estimated construction cost staff flagged at about $800,000; design fee quoted at roughly $69,000).

Equipment and fleet purchases: Trustees approved purchases for squad and fleet vehicles and chassis that staff said are budgeted and needed to replace aging units. Motions covered multiple vehicle buys using cooperative or state purchasing contracts and included a package of police units and utility chassis; staff noted continuing long lead times on some emergency vehicles.

911/ETSB consolidation: The board approved dissolution of the Northeast Lake County Consolidated Joint Emergency Telephone Systems Board, part of the planned consolidation into the Lake County consolidated dispatch (LACOM). Staff said the village will continue to retain control over its ETSB funds until state approval of the consolidated entity is finalized.

Public comment and next steps

Resident Keith Owens urged the board to adopt written public-comment rules and to restore a public-comment period before agenda items, citing the Illinois Open Meetings Act’s requirement that public bodies establish and record rules for public comment. Owens said the act’s public-access-counselor process allows residents to seek review if they believe a violation occurred.

Votes at a glance (selected ordinances, motions and outcomes)

- Ordinance approving annual budget for FY 2025–26 (ordinance referenced in agenda). Motion: Trustee Garner; second: Trustee Thorson. Vote: Woodside Aye; Ross Aye; Garner Aye; O’Brien Aye; Balmus Aye; Thorson Aye. Outcome: approved. - Ordinance amending Chapter 32, Article 2, Section 38 (comprehensive fee schedule) — includes 6% water-rate increase, hydrant-meter and tanker-fill changes. Motion: Trustee Balmus; second: Trustee Garner. Vote: unanimous. Outcome: approved. - Ordinance authorizing transfer of $4,000,000 from the general fund (split $2.75M capital improvement, $1M golf course, $250K water/sewer). Motion: Trustee Garner; second: Trustee Ross. Vote: unanimous. Outcome: approved. - Redevelopment agreement with 6161 Grand Avenue (Kite Enterprises / 10 Hotel and Residences LLC) — minimum $6,250,000 private investment; revenue-share incentive capped at $1.3M or six years. Motion: Trustee O’Brien; second: Trustee Garner. Vote: unanimous. Outcome: approved. - Amendment to small-business capital grant for Top Shelf Ice Arena to reimburse $40,000 Zamboni purchase in lieu of specified HVAC items. Motion: Trustee Garner; second: Trustee Thorson. Vote: unanimous. Outcome: approved. - Professional services agreement with Clark Dietz, Inc. for construction oversight (Glen Flora/Blackburn/Ferndale) — not-to-exceed $175,000. Motion: Trustee Thorstenson; second: Trustee Balmus. Vote: unanimous. Outcome: approved. - FGM Architects — preliminary design and construction-administration services for Fire Station No. 2 renovation (lump-sum design fee ~$69,000). Motion: Trustee O’Brien; second: Trustee Ross. Vote: unanimous. Outcome: approved. - Ordinance dissolving the Northeast Lake County Consolidated Joint Emergency Telephone Systems Board (ETSB) as part of consolidation into LACOM/Chesapeake Lake County. Motion: Trustee Balmus; second: Trustee Thorpeyson. Vote: unanimous. Outcome: approved. - Five-year Axon contract for police technology and equipment (annual cost presented ~ $371,039.79; expected $1.86M total over five years). Motion: Trustee Baumas; second: Trustee Garner. Vote: unanimous. Outcome: approved. - Paladin Drones agreement (initial installation discounted; annual fee thereafter ~$47,000) for drone-as-first-responder services. Motion: Trustee O’Brien; second: Trustee Thorson. Vote: unanimous. Outcome: approved. - 2025 street maintenance/resurfacing awarded to Peter Baker & Sons — low bid $5,275,472.54. Motion: Trustee Garner; second: Trustee Balmus. Vote: unanimous. Outcome: approved. - Multiple fleet and vehicle purchases and chassis orders (state/cooperative procurement): motions carried by unanimous roll call; purchases noted in staff memos and on the consent/regular agenda.

Discussion vs. formal action

Trustees and staff distinguished between discussion, direction and formal actions during the meeting. Several items were previewed at a March budget workshop and at a separate public hearing before the April 7 vote. Staff noted contingencies and external dependencies on several items: the water-rate increase reflects upcoming JAWA rate changes; the Axon and Paladin contracts are technology purchases requiring integration with the village’s CAD/RMS and the county’s LACOM transition; and several capital projects carry long lead times for equipment and vehicle upfitting.

What to watch next

- Implementation: Staff said the capital program timing and transfer amounts will be revisited after the FY 2024 audit is complete and may return to the board for further transfers or project adjustments. - Dispatch consolidation: The ETSB dissolution will proceed as the consolidated Lake County dispatch obtains state approval; funding and operational transitions will continue to be coordinated with LACOM/Chesapeake Lake County. - Public-comment rules: A resident requested the board consider codifying written rules for public comment, including restoring a pre-agenda public-comment period; trustees did not schedule that item but could place it on a future agenda for discussion.

Trustees adjourned following the votes; several staff and department presentations noted that long lead times for vehicles and specialized equipment mean delivery and upfitting schedules will extend into next fiscal year.