Finance director projects roughly $600,000 general‑fund shortfall for 2026; administration asks departments to cut non‑salary spending 5%

Matthew, the village finance director, told the General Government & Finance Committee early budget work shows a projected structural deficit just under $600,000 for the 2026 general fund. He attributed the shortfall to higher salary and benefit costs (notably public safety union negotiations), slow growth in shared revenue from the state and below‑average projected net new construction.

To begin closing the gap, administration asked departments to reduce non‑salary expenditures by 5%, which Matthew estimated would save roughly $250,000. Staff were also directed to review charges for services for cost recovery and to seek new revenue opportunities. Matthew said the administration would present a tighter budget timeline and expects to return recommendations to the committee and Village Board in July and August as the process advances.

Trustees discussed additional approaches, including targeted service reductions, delaying capital purchases, and committee‑level budget review before a Committee of the Whole. Some trustees urged careful consideration of fee increases versus cuts to services and flagged staffing as the largest ongoing expense to review. Matthew noted departments were asked to begin identifying reductions and that further discussion would occur at the upcoming Village Board meeting.