Villa Park council hears FY 2025–26 budget update; staff warns ‘margin for error’ is thin

The Villa Park City Council on May 5 received a second workshop on the city’s proposed fiscal year 2025–26 budget and an update on capital projects, pension funding and several outstanding items that staff said remain under negotiation.

At the meeting, staff said the city is operating from a position of financial strength but warned the “margin for error is getting thinner and thinner,” noting that projected 2025–26 revenues are close to operating expenditures and that one-time funds are being used for several capital items. “Our philosophy has always been to project revenues low and expenditures on the high side. That margin is thin right now,” staff member Lee said during the presentation.

The workshop covered year-end projections for the current fiscal year, the revenue and expenditure assumptions for 2025–26, a summary of restricted grant funding, and a review of capital projects and pending policy items. Staff said audited fund balance carried into the current year was about $7.9 million; the projected ending fund balance for 6/30/2025 is roughly $8.2 million. For 2025–26 staff proposed total revenues of about $6.04 million, operating expenditures near $5.8 million and capital/project expenditures of about $1.2 million, producing an estimated ending fund balance of about $7.2 million on 6/30/2026 after planned capital spending.

Why it matters: Villa Park’s budget is heavily dependent on property taxes, which staff said account for roughly 60% of general fund revenue. Staff are projecting a conservative 3%…