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Montgomery presents FY26 general fund: sales tax, income tax and property tax remain top revenue sources
Summary
Finance director presented the Village of Montgomery's proposed FY26 general fund budget, highlighting reliance on sales tax and other intergovernmental revenues, major spending on public safety, and proposed strategic priorities and limited new positions in public works.
Director Malewski (Finance) presented the fiscal year 2026 general fund budget and the broader budget process; trustees discussed timing for budget documents and several trustees urged greater emphasis and funding for economic development and downtown events.
Malewski said the proposed general fund revenues total $5.5 million and that the village's top three revenue sources—sales tax, income tax and property tax—account for roughly 80% of general fund revenues. The presentation noted the village expects $6.6 million in sales tax receipts and that the state eliminated the grocery sales tax last year; the state has allowed municipalities to adopt a local grocery tax beginning Jan. 1, 2026, and staff said they are recommending moving forward with a local grocery sales tax option.
On expenses, the recommended budget shows $15.5 million in total planned expenditures for FY26, with public safety accounting for 53% of general fund spending and public works about 20%. The village presented strategic plan alignment and noted initiatives across sustainability, professional governance, employee development and infrastructure. The presentation highlighted prior progress (for example, an ERP implementation and a billing audit of the water software system completed in FY25) and proposed three promotions in public works tied to succession planning.
Trustees asked for more lead time on budget binders and for additional investment in economic development tools and outreach. Several trustees urged funding for trade shows (including a major retail/commercial exposition) and for continuing concerts and other downtown events to drive foot traffic; staff confirmed Patrick (economic development staff) would attend a Chicago trade show included in the budget and that a Las Vegas trade show has a typical approximate cost of $3,000 and can be considered.
Malewski said the village will present further budget presentations on March 10 (special revenues and capital funds) and March 24 (enterprise funds), with first reading and public hearing for the budget ordinance scheduled March 24 and second reading on April 14. Trustees praised finance staff for preparing the materials and asked for quicker distribution of binders in future budget cycles.
