Crest Hill holds public hearing on proposed FY2026 budget; ordinance to be scheduled

Crest Hill — The City of Crest Hill held a public hearing on the proposed fiscal year 2026 budget on Tuesday, during which Finance Director Glenn Gerke presented detailed revenue and expenditure estimates and answered council questions about reserves and capital projects.

Gerke told the council the proposed combined budget shows a net deficit of about $2,600,000 that the city plans to cover by drawing on previously built fund balances rather than new borrowing. He said water and sewer capital projects tied to the city’s participation in the Grand Prairie Water Commission (RWC) — the agreement to obtain Lake Michigan water — drive a large share of planned capital spending over the next six years. Total projected water/sewer capital projects for FY2026 were reported as $15,030,000, with $9,922,392 expected to be reimbursed through IEPA, DCEO, and CDBG grants.

Gerke said general fund revenues were projected at roughly $12.7 million with total general fund expenses around $12.756 million, leaving a small projected general fund surplus of about $6,000 on paper. He described several other fund-level results: a projected water fund surplus (to be used toward the water projects), a capital replacement program surplus, and certain capital and debt-service deficits tied to scheduled projects. He also described the city’s liquid assets and said the city’s overall reserves would remain well above minimum recommended levels after planned spending.

The finance director briefed the council on the recommended police pension contribution — an actuarially recommended contribution of roughly $1.3 million plus a city ordinance-directed additional $150,000 contribution the council has been making until the pension hits 80% funding. For FY2026 the combined pension levy contribution figure discussed was about $1.4 million, with a small additional transfer of $26,036 from the general fund needed to meet the full ARC-recommended contribution.

Council members pressed for clarity on where the $2.6 million shortfall would come from; Gerke responded by showing the city’s liquid assets and explaining that the shortfall was a planned use of fund balance (savings) to pay for capital projects rather than new debt. He said the city maintains two “tiers” of reserve: the minimum reserves used for credit-rating purposes and additional reserves held for upcoming capital needs and contingencies tied to the Grand Prairie Water Commission work.

The public hearing was opened by motion and later closed by motion at 7:57 p.m. The council did not adopt the budget ordinance that night because the ordinance itself was not included on the meeting packet; staff said the omission was their oversight and asked that a special meeting be scheduled so the council can adopt the ordinance by the statutory deadline (staff indicated the city should adopt by April 30 under state guidance). The city intends to put the ordinance on a special meeting agenda before the next regular work session.

Why it matters: The FY2026 budget funds major near-term infrastructure work including water main improvements and conversion work connected to securing Lake Michigan water through the Grand Prairie Water Commission. The plan to use fund balance rather than borrowing will reduce short-term debt but uses reserves that would otherwise be available for other projects or contingencies.

What’s next: Staff proposed a short special meeting to vote on the ordinance before April 30; council members and staff said they preferred a brief meeting immediately before the next work session to complete the formal adoption.

Speakers quoted in this report are identified in the council record as Glenn Gerke, Finance Director; and Mayor (unnamed).