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Highland Park staff preview $150 million proposed 2026 budget, $40 million capital program and water/sewer rate increases
Summary
At a Sept. 8 Committee of the Whole meeting, finance staff presented the proposed 2026 budget showing roughly $100 million in operating revenue, $150 million total revenue (including debt), a proposed property‑tax levy reallocation to limit increases, and a $40 million 2026 capital program funded primarily with debt and pay‑as‑you‑go dollars.
City finance staff presented Highland Park’s proposed 2026 budget to the Committee of the Whole on Sept. 8, outlining revenue, proposed rate changes, and capital spending priorities ahead of the formal budget adoption process.
Why it matters: The proposed budget frames operating priorities, user rates and the capital program that would guide city spending and investments in infrastructure and services for fiscal year 2026.
Topline figures and context Finance staff said proposed 2026 operating revenue is about $100 million with total revenue of about $150 million—an increase driven primarily by proposed debt issuance to fund capital projects. The draft 10‑year capital improvement program includes $216 million in projects over the next decade and a $40 million capital spending plan for 2026; staff said about 65% of 2026 capital is planned pay‑as‑you‑go and 35% financed with debt.
Property tax levy and other revenue changes Staff described a reallocation of property‑tax levy components intended to minimize the general‑fund property‑tax increase. The packet presented a proposed 8% levy increase (city portion) in 2026 as part of the overall tax levy discussion; staff estimated the impact at roughly $138 per year for an owner of a $500,000 home, and noted Highland Park’s municipal portion remains relatively low compared with peer North Shore communities.
Fees, sales tax and other items Staff identified multiple fee and rate changes being considered for 2026, including: - Continued routine updates to ambulance transport and animal‑impound fees. - A proposed storage container permit fee ($75). - An outdoor dining fee for in‑street use ($300 annual fee discussed previously). - A grocery sales tax change that the city has already approved for an effective date of Jan. 1; staff said Cook County/Illinois Department of Revenue requirements might prompt a housekeeping repeal and reissue of the ordinance.
Water and sewer rates Staff recommended a 3.5% increase to water user rates and a 4.5% increase to sewer rates for 2026, citing the need to maintain fund balance targets and to fund sewer capital projects. Staff noted Highland Park’s proposed rates remain below many peer communities’ published rates.
Capital program and next steps The draft 10‑year capital program includes street, water, sewer and fleet investments; staff said 2026 funding will rely on a mix of debt financing, fund balance drawdowns, grants and transfers. Additional budget workshops and formal hearings are scheduled as part of the spring‑to‑fall budget calendar; staff asked council to provide policy direction now so staff can finalize the proposed levy and rate changes for public hearings.
Attributions and process notes Finance staff presented detailed slides and answered council clarifying questions during the meeting. Staff emphasized the budget is a multi‑stage process—staff will return with more detailed line items, the formal levy ordinance and public hearings before final adoption.
Ending Staff recessed the Committee of the Whole and indicated the remainder of the budget conversation and the regular council meeting agenda would continue later the same evening with public hearings and additional presentations.
