Lisle staff propose $50.1 million FY2025–26 budget; board presses on reserves and capital funding

Village Manager Erp Mode introduced the village’s proposed fiscal year 2025–26 budget to the Village Board Committee of the Whole on Feb. 17, proposing $50,091,045 in total revenue across 17 funds and $55,241,803 in total expenditures.

Deputy Village Manager and CFO Sarah Mitchell told trustees the proposal keeps the property tax levy flat for a eighth consecutive year at $4,900,000 and does not add new recurring revenue sources. She said the recommended budget includes $13,122,739 (presented elsewhere in staff materials, $13.1 million rounded) for capital projects, with major allocations of roughly $6.6 million for roads, $2.9 million for stormwater and $1.9 million for water main improvements.

The budget summary shows the general fund remains structurally balanced per village policy because the plan uses capital reserves to finance one‑time capital expenditures rather than relying on one‑time revenues for ongoing costs. Mitchell said total estimated fund balance on April 30, 2026, is approximately $103.6 million and that fund balances exceed minimum reserve policy levels. Staff noted a 50% general‑fund reserve policy is used for planning; staff also prepared baseline, adverse and critical scenarios in a five‑year forecast that test sensitivity to lower sales tax and other revenue risks.

Trustees pressed staff for more detail about the general fund reserve: Trustee Lesniak asked why Lisle’s reserve is far higher than typical GFOA guidance and whether reserves are being used to fund capital. Mitchell and the village manager said many capital projects lack dedicated user fees (for example, no standalone stormwater fee) and therefore are usually funded from available reserves unless grant funding is obtained. Trustees also asked about the level of detail available in the online budget portal (OpenGov) for department expenses such as training and building maintenance; staff demonstrated that department‑level line items can be expanded in the portal, but certain narrative line‑by‑line conference detail is not included in the published book.

Key revenue notes in staff remarks: sales tax accounts for 51.99% of total budget revenue and the general fund represents 46.89% of total revenues. Mitchell said sales tax growth is partly driven by new retailers and online sales tax changes but will be partially offset in the coming year by the state repeal of the 1% grocery tax (effective Jan. 1, 2026). The village receives about $245,000 per year today from that grocery tax; staff are not recommending the village implement the optional local 1% grocery tax at this time. The budget includes a transfer of $2,073,783 from the general fund to the stormwater fund and $440,000 to the capital improvement fund for sidewalks and Main Street design.

Staff noted grant wins and sources of capital funding, including a Surface Transportation Program grant of $2,557,624 for Burlington Avenue reconstruction. The village’s IMRF rate and police pension contributions were discussed: Mitchell said Lisle is increasing pension contributions to meet statutory targets and that the village aims to reach actuarial funding goals required by state law by 2040.

Next steps: staff scheduled a public hearing on the proposed budget for March 17 and plan to present the final budget for approval on April 7.

Why it matters: the budget sets the village’s spending priorities and preserves the board’s long‑term capital pipeline; trustees pressed staff to show a clearer line between high reserves and near‑term capital needs so the public can assess tradeoffs between reserve drawdown and tax relief.