Villa Park presents draft 2026 budget; officials flag pension, insurance and capital needs

Village Manager Rivas and department leaders presented a draft fiscal year 2026 budget at a special Villa Park Board of Trustees meeting on Oct. 20, laying out a projected $27,100,000 in general-fund revenue and a slate of staffing, insurance and capital needs that trustees said require closer review before adoption.

The budget presentation identified two immediate pension funding requests: a $2,500,000 request from the police pension board and a $1,300,000 request from the fire pension board “to prevent negative funding,” Manager Rivas said. Finance Director Susie Micah told trustees the draft assumes a 2.9% property-tax levy increase aligned with the U.S. Bureau of Labor Statistics CPI figure the village may use when it brings the levy to the board in November.

Why it matters: Trustees and staff said the village is trying to reconcile recurring operating needs with one-time or constrained revenues while also correcting earlier budget presentation errors. Micah said the draft corrects an overstatement in the current book that attributed cannabis tax receipts as new revenue when the ordinance designates one-third each to parks, police and fire — a misallocation the finance team said they will “clean up” in next year’s book.

Key details and requests

- General fund projection: “The current projections are estimated to be at $27,100,000 right now for the general fund,” Finance Director Susie Micah said during the presentation. - Pension requests: Police pension board requested $2,500,000; fire pension board requested $1,300,000 for this year to avoid negative funding. - Cannabis tax correction: Two $80,000 line items previously shown as additional revenue (for police and fire) were described as overstated; Micah said the cannabis tax split is one-third parks, one-third police and one-third fire under local ordinance. - Insurance and risk management: Staff told trustees risk-management renewal costs could rise by an estimated 15%–20%; departments are working with brokers and exploring alternate providers. - Personnel and software changes: Departments are consolidating divisions and centralizing some software (customer relations management, ERP/BS&A, Time and Attendance, FOIA/redaction tools). Finance reported personnel costs make up 86% of its budget; contractual services consist mostly of the annual audit. - Public safety requests: Fire Chief Steve Stapleton asked for three additional full-time firefighter/paramedics at initial cost of about $232,000 plus benefits and proposed funding the positions by increasing ambulance fees to full-cost recovery under the GEMT cost-report process. Police Chief Kevin Kubish said salary increases negotiated with unions are the primary budget driver for his department. - Capital and enterprise projects: Staff outlined dozens of capital projects across TIF districts (Saint Charles Road, North Ardmore, Kenilworth, North Avenue), road and bridge projects funded by sales-tax–dedicated funds and referendum proceeds, and water/wastewater projects dependent on IEPA loan approvals. Several large vehicle and equipment replacements are included on multi‑year schedules.

Discussion and next steps

Trustees pressed staff for sensitivity analyses showing how much of the general-fund projection depends on one-time or variable revenues such as grants, TIF transfers or sales-tax receipts. Micah said the draft does not include speculative grant awards and that sales-tax receipts have been relatively stable historically but are subject to market variability.

Manager Rivas and Micah said a public hearing on the budget and the tax levy is scheduled for the board's Nov. 24 meeting; the FY2026 budget is slated for adoption at the Dec. 8 meeting and the tax levy adoption at the Dec. 22 meeting. Trustees requested more detailed department organizational charts and clearer line‑item rollups to make personnel and operating costs easier to review.

Ending

Staff emphasized the draft status of many numbers until final insurance and broker quotes arrive. Trustees thanked staff for the presentation and asked for additional detail in advance of the Nov. 24 public hearing so board members and residents can evaluate the levy and proposed expenditures.