Hampton Hills opens public hearing on FY2025–26 budget; trustees weigh $59,000 gap, police costs and grant strategy

Trustees for the Village of Hampton Hills opened a public hearing on the proposed fiscal year 2025–26 budget and discussed options to close a roughly $59,000 deficit while preserving the village’s cash reserves and public safety services.

Treasurer Timothy McPhillips told the board the finance committee’s revised draft reduced an earlier estimated shortfall from about $457,000 to approximately $59,000 by cutting legal costs, trimming a police vehicle purchase and lowering a contingency line. “That second version has a deficit of 59,000, approximately,” McPhillips said during the presentation.

The finance committee and several residents urged trustees to press for further operating cuts and to consider revenue options and grant strategies rather than drawing down reserves. John Olsen, a long‑serving member of the finance committee, told trustees the village has been “very fiscally conservative” and recommended a multi‑year operating plan to avoid recurring deficits.

Why it matters

McPhillips told the board the village currently has roughly $5.99 million in unrestricted cash on hand and that after projected shortfalls for the intervening year the village would still hold about $5.59 million in reserves. Still, he emphasized the board faces a choice between accepting a significant deficit or pursuing additional reductions: “It’s really a matter of do you wanna go somewhere between the original budget of a deficit of approximately $457,000 or closer to a 0 deficit which is still $60,000.”

Key budget details and constraints

- The draft general fund expenditures total $3,180,000. McPhillips showed the police salaries line at $1,366,000 — about 43% of the proposed general fund spending — and noted statutory obligations that limit cuts, including required pension contributions and contractual dispatch fees. “By statute, we have to pay that,” he said of the pension contribution.

- The finance committee reported having little leverage over several fixed costs, including the police pension contribution, contractual dispatch fees (about $95,957) and insurance through the village’s risk pool.

- The committee increased the projected interest income in the budget from $150,000 to $200,000 as a conservative adjustment to narrow the gap.

Grants, accounting and policy questions

A substantial portion of the board discussion focused on whether and how to show grant awards in the village budget. Trustees and staff agreed grants have been increasingly important in offsetting expenses but differed on whether to include projected grant dollars as revenue in the FY2025–26 budget.

Treasurer McPhillips said the budget must present defensible revenue estimates: “The budget has to contain estimates of revenue available to the municipality for the fiscal year for which the budget is drafted,” and he cautioned against counting awards that are not yet confirmed.

Several trustees suggested a middle path: include an “aspirational” or contingency grant line with a matching contingency expense so the budget does not portray unguaranteed money as recurring revenue. Trustee Mike (last name on file as Mallett/Millett in the minutes) and others proposed adding a grant target and an offsetting contingency line so award‑contingent spending would occur only if the grant arrives.

Police grants and equipment

Police staff reported several recent and pending awards that could affect next year’s finances if they are confirmed. The department received $9,411.60 for replacement Tasers and said a pending recruitment and retention grant could total approximately $650,000 over two years (about $325,000 per year) to support two officer positions if awarded. The department also expects a body‑worn camera/storage grant in the mid‑$30,000 range.

The police chief warned trustees that removing the squad car purchase from the capital plan to close the budget gap could be costly in the long term. The chief described a recent transmission failure that fell under a powertrain warranty and said: “When you start thinking about these factors, the increased maintenance cost… is going to double and triple if you keep these cars around.” He also said aging, high‑mileage patrol cars can hinder recruitment and retention.

Public comment and resident suggestions

Resident Tom Williams opened public comment by praising village leadership and volunteers: “Becoming a trustee was truly a humbling and eye opening experience… I truly believe and I want Campton Hills to continue to become the best place it’s ever been.”

Patsy Smith, identified in the meeting as a founder of the village, suggested several revenue measures and cost‑control ideas that trustees discussed, including requiring new subdivisions to form special service areas for local roads and evaluating the cost and benefit of a special census to capture population growth for state revenue calculations.

Board action and next steps

Trustees paused a final vote and agreed to continue budget work before adopting an ordinance. Several formal motions related to the hearing were recorded and approved on roll calls during the meeting (see “Votes at a glance” below). Board leaders said newly seated trustees would be given time to review the materials and that staff and finance committee members would provide follow‑up information before the board votes to adopt the budget.

Ending

Trustees left the public hearing open for additional review rather than adopting the budget at the meeting. Staff pledged to supply follow‑up figures and a detailed list of pending grant applications so the board can consider whether and how to reflect those awards in the final FY2025–26 budget.