Riverwoods board adopts 2025 appropriations ordinance; approves demolition, energy and maintenance actions

The Board of Trustees of the Village of Riverwoods adopted the Appropriations Ordinance for the fiscal year ending Dec. 31, 2025, during its March meeting and approved several related and separate administrative actions including a demolition change order, termination of the village's Nordic Energy aggregation agreement and an extension of a mechanical maintenance contract.

Finance Director Vasquez told the board the Appropriations Ordinance sets an upper bound for expenditures and is deliberately higher than the budget to leave room for contingencies and as-yet undecided capital projects. "Unlike the budget, which we prepare for planning and managing expenditures, the Appropriations Ordinance sets an upper bound for expenditures," Vasquez said. He also said appropriated amounts typically run about 10% above the budgeted line items and that the village is not required to spend the full appropriation.

The ordinance passed on a roll call vote with trustees recorded as voting in favor. Vasquez highlighted several fund-level forecasts included in the packet: the general fund shows about a $160,000 deficit for 2025 after removing a $300,000 contingency line; the Motor Fuel Tax (MFT) fund shows a deficit driven by the upcoming Saunders Road project; the water fund shows a reduced capital program and a roughly $170,000 deficit; and the sewer fund shows an approximate $335,000 deficit driven by capital needs. Vasquez said 2024 included one-time activity that affected margins: about $1 million received from Lake County for stormwater storage at the Federal Life parcel and approximately $950,000 spent by the village for its portion of that property.

In separate votes, the board:

- Approved a change order for demolition work at the Federal Life site to remove lighting poles, conduits and a flagpole, at a cost of $20,675. The board discussion indicated the contractor will remove poles, foundations and associated site features before mass grading.

- Approved a resolution authorizing termination of the village's aggregation agreement with Nordic Energy. The village attorney explained Nordic Energy invoked a material-adverse-change clause after market auction pricing rose; the termination resolution authorizes execution of a termination agreement that, if finalized, would leave neither party with continuing liability and would allow residents to revert to ComEd service.

- Approved an extension of the mechanical maintenance contract with Emmy Bach, to continue service for Village Hall and the police department through Dec. 31, 2026, at an amount not to exceed $7,700. Director Witt said the extension aligns contract periods with fiscal-year administration and that unit pricing remained consistent with prior service when adjusted for contract length.

The board’s approval votes were taken by roll call and carried. Trustees voting in favor of the appropriations ordinance and these items were recorded during the meeting minutes and roll calls provided in the packet.

Why it matters: The appropriations ordinance establishes the village’s legal spending ceiling for 2025. The other votes (demolition change order, termination of the aggregation agreement, and contract extension) affect near-term project costs, service continuity for village facilities, and how resident electric service will be handled if the aggregation program is ended.

Looking ahead, Vasquez said the audit is underway and he plans to start the 2026 budget process in July with a goal of presenting a full budget and appropriations to the board in December rather than March.

Votes at a glance

- Appropriations Ordinance (fiscal year ending 12/31/2025): motion for second reading and approval made at the meeting; roll-call recorded votes in favor (Trustees Dickon, Eastman, Hollander, Jamieson, Smith, Crane). Outcome: approved.

- Change order, Federal Life demolition (removal of lighting poles, conduits, flagpole): motion made and seconded; roll-call votes recorded in favor (Trustees Hollander, Jamieson, Smith, Clayton, Dickon, Eastman). Amount: $20,675. Outcome: approved.

- Resolution authorizing termination of Nordic Energy aggregation agreement: motion made and seconded; roll-call recorded ayes (Trustees Jamieson, Smith, Clayton, Dickon, Eastman, Hollander). Outcome: approved. The resolution authorizes staff to execute a termination agreement that would state no early termination costs are due from the village.

- Extension of mechanical maintenance contract with Emmy Bach (Village Hall and Police Department): motion made and seconded; roll-call recorded ayes (Trustees Smith, Crane, Dickon, Eastman, Hollander, Jamieson). Amount not to exceed $7,700; contract extended through Dec. 31, 2026. Outcome: approved.

What officials said

"We can spend money for our purposes from revenues received during the fiscal year, as well as from our investment balances," Vasquez said when explaining revenue estimates and how appropriations interact with spending authority. He added that investment interest was higher than budgeted in 2024 and that the village budgets conservatively for interest in 2025.

Clarifying details

- Contingency: a contingency line item shown in the budget increased in the packet from $300,000 (budgeted) to roughly $3,000,000 in appropriated amount due to the standard practice of increasing appropriation lines about 10% and to provide authority for possible property acquisitions or other unanticipated capital needs; the village has not historically spent to the full appropriated amount.

- Fund balances: general fund shows about a $160,000 deficit for 2025 after removing the $300,000 contingency; MFT and sewer fund deficits were attributed to major projects (Saunders Road, sewer capital). The village reported large one-time 2024 activity (about $1 million from Lake County and ~$950,000 spent on the Federal Life property acquisition) that affected 2024 results.

Proper names mentioned in this article: Village of Riverwoods (agency), Federal Life (property), ComEd (utility), Nordic Energy (aggregation supplier), Emmy Bach (mechanical contractor), W. B. Olson (demolition contractor).

Ending

Board members said they expect to revisit budget and program topics as audit results and project bids arrive; staff said it will begin the 2026 budget process in July with a finance workshop in the fall.