Committee approves Stormwater FY2026 budget and regional projects fund; commission seeks reorganization funded from vacant positions

The Stormwater Management Commission presented two related budget items on Oct. 22: the recommended FY2026 operating budget for stormwater management and a proposed separate fund for Lake County regional stormwater management projects. The committee approved both items, with staff and administration agreeing to follow up on fund accounting and a proposed staffing reorganization.

Commission leadership told the committee the recommended FY2026 budget shows a 63% decrease in total revenue driven primarily by a lower property tax allocation, while other revenues (stormwater permit fees and project-related receipts) remain steady or have increased. Staff highlighted several large, project-based revenue sources that have recently grown: the wetland restoration fund (cumulative collections described at about $4,000,000, with roughly $1,800,000 non‑encumbered), and two rounds of DCEO infrastructure grants ($30 million in round one for 12 projects and another $30 million for 16 projects in round two). The commission also reported receiving roughly $2.2 million in project‑expense match payments to date, with another ~$270,000 expected by year end.

Staff proposed configuring a separate capital/regional fund (referred to in discussion as fund 743) to segregate large non‑operational receipts and pass‑through project funding from the operating levy so that program income and project matches are used only for capital and project administration. Finance and the county administrator agreed to review transfers and appropriations and to emergency‑appropriate project funding received in FY2025 where appropriate to avoid double counting in FY2026.

The commission described personnel and administrative challenges: a wave of retirements in 2024 led to the loss of multiple administrative staff, delaying recruitment for capital improvement program manager positions. The commission asked to remove two full‑time capital improvement program managers and one part‑time accounting specialist from the FY2026 headcount and to repurpose the funding into a staffing reorganization. The stated intent is to consolidate the two capital improvement program manager roles into a single director‑level capital/maintenance role to better align duties with current capital and maintenance responsibilities; commission leadership said the request is budget neutral and would be achieved by promoting existing staff rather than creating net new headcount.

Committee members and staff from human resources and finance asked for final, documented reorganization plans and HR and budget office sign‑off before any personnel changes are finalized. County administration confirmed staff would return to the finance committee with reconciled fund accounting and, if needed, emergency appropriations to capture FY2025 receipts in the correct fund. Members emphasized the need to ensure municipal project matches and grant receipts are properly segregated and that IGAs and long-term maintenance responsibilities are clarified before widespread reorganizations are finalized.

The committee approved both the Stormwater Management operating budget and the Lake County Regional Stormwater Management Projects fund (agenda items 8.b.2 and 8.b.3) and directed staff and finance to reconcile fund balances and return with any necessary appropriation or transfer requests.