The Village of Lombard’s Board of Trustees on Nov. 6 approved first readings of the fiscal year 2026 budget and the village’s tax levy after amending the measures to limit any property-tax increase to new growth only and scheduling a second reading for Dec. 4.

Village Manager Scott Niehaus opened the staff presentation and said the proposed budget follows the village’s strategic-plan objectives and a conservative revenue outlook. “Our budget year goes from January 1 to December 31 each year. Our budget process is one that commences typically in February or March of every year,” Niehaus said as staff outlined the process and timing for adoption.

Finance Director Tim Sexton reviewed the numbers behind the proposal, telling the board that Lombard remains sales-tax dependent (sales tax equals about 29% of general fund revenue) and that personnel costs account for roughly 76% of general-fund spending. Sexton said the village projects a $48,817,760 general-fund operating budget in 2026 and that all funds combined in the posted documents total in the low- to mid-hundred millions. He also said water and sewer operating revenues are projected at about $20.2 million and that 2026 water rates will increase by $0.67 per 1,000 gallons with a $0.60 per bill fixed-charge increase (an average user of 4,000 gallons a month would see about a $3.28 monthly increase).

Sexton and Niehaus presented the capital program and levy options staff had included in the agenda. Staff identified a 10-year capital program of just over $200 million and put $27.4 million in capital projects in the 2026 budget; local sources were estimated at about 75% of capital funding. Regarding the levy, staff explained the limits available to a non-home-rule municipality (CPI adjustment, an amount for fire-pension obligations and new-growth additions) and provided example homeowner impacts based on a median Lombard home value of $378,000.

Board members then debated whether to capture the full statutorily permissible levy (which staff said could add approximately $522,000 compared with the prior year in the full-levy scenario presented in the agenda) or to take only new growth. Trustee Patrick Egan said he would vote for less than the full levy to provide relief to homeowners and to preserve a balance between services and taxpayer burden. Trustee Militello, who offered the motion to approve the budget as amended, said the board should seize the current fiscal runway but also be mindful of residents’ costs; Trustee Bachner (who supported taking the full levy) said additional levy revenue would reduce future bonding for the public-safety building program.

Trustee Militello moved to approve the budget ordinance as amended “to limit the tax levy increase to new growth only and to reduce the amount transferred to the building fund by $415,592,” with a second reading set for Dec. 4. Trustee LaVec seconded the motion. The board approved the motion by roll call; Trustee Wagner recorded a dissenting vote.

Militello then moved to approve the tax-levy ordinance as amended to include only new growth (motion text cited $12,474,037), with Trustee Egan seconding. That motion also passed on roll call with Trustee Wagner voting no.

The votes recorded in the transcript identify the following named votes for the two first-reading motions: for the budget ordinance motion, Trustee LaVec (Aye), Trustee Hammersmith (Aye), Trustee Dudek (Aye), Trustee Egan (Aye), Trustee Botelho (Aye), Trustee Wagner (Nay). For the tax-levy ordinance motion, Trustee Levesque (Aye), Trustee Hammersmith (Aye), Trustee Dudek (Aye), Trustee Egan (Aye), Trustee Motelow (Aye), Trustee Wagner (Nay). The motions carry and second readings will take place on Dec. 4.

Discussion and clarifying points

- Staff noted the village takes a conservative revenue projection approach because sales and income taxes (together roughly 43% of revenues) are economically sensitive.
- Sexton said pension liabilities in projections were down roughly $2 million due to market performance but that pension obligations are determined at the state level.
- The agenda and staff slides included both a posted budget figure for “all funds combined” (the agenda text lists $123,794,629 for the FY2026 ordinance as read when the clerk recited the separate-action item) and other summary references in the presentation that approximate $126 million. The motion text on the floor cited $123,379,037; those differences in stated figures were part of the public record during the meeting and reflect typographical/in-consultation differences in the posted slides and the motion language on the floor.

What the board directed next

The board set Dec. 4 as the second-reading date for both the budget and levy ordinances and approved, by first reading, a levy that includes only new growth. The budget will return for a second reading and final vote at the Dec. 4 meeting pending any further amendments.

Speakers

- Scott Niehaus, Village Manager (first reference: 00:01:51)
- Tim Sexton, Finance Director (first reference: 00:05:56)
- Trustee Patrick Egan (District 4) (first reference: 00:25:00)
- Trustee Militello (mover of the motion) (first reference: 00:55:31)
- Trustee LaVec (second on the budget motion) (first reference: 00:55:31)
- Trustee Hammersmith (first reference: 00:41:16)
- Trustee Dudek (first reference: 00:33:12)
- Trustee Wagner (dissent on recorded roll calls) (first reference: 00:55:37)

Authorities

- type: "statute", name/description: "State statute governing property-tax levy limits and CPI-based increases (non-home-rule units)", referenced_by: ["00:12:03"]
- type: "ordinance", name/description: "Proposed FY2026 annual budget ordinance (amount in clerk reading: $123,794,629)", referenced_by: ["00:40:05","00:55:31"]
- type: "ordinance", name/description: "Proposed tax levy ordinance (amounts as read in agenda: $12,889,629; motion cited $12,474,037)", referenced_by: ["00:40:05","00:55:53"]

Actions

- kind: "other", motion: "Close the public hearing on the FY2026 budget", mover: "Trustee Militello", second: "Trustee Levesque", vote_record: [{"member":"Trustee Levesque","vote":"aye"},{"member":"Trustee Hammersmith","vote":"aye"},{"member":"Trustee Dudek","vote":"aye"},{"member":"Trustee Egan","vote":"aye"},{"member":"Trustee Militello","vote":"aye"},{"member":"Trustee Wagner","vote":"nay"}], outcome: "approved", notes: "Roll call recorded; hearing closed; board returned to regular meeting."

- kind: "ordinance_first_reading", motion: "Approve the FY2026 budget ordinance as amended to limit the tax levy increase to new growth only and to reduce the amount transferred to the building fund by $415,592; table second reading to Dec. 4, 2025.", mover: "Trustee Militello", second: "Trustee LaVec", vote_record: [{"member":"Trustee LaVec","vote":"aye"},{"member":"Trustee Hammersmith","vote":"aye"},{"member":"Trustee Dudek","vote":"aye"},{"member":"Trustee Egan","vote":"aye"},{"member":"Trustee Botelho","vote":"aye"},{"member":"Trustee Wagner","vote":"nay"}], tally: {"yes":5,"no":1,"abstain":0}, outcome: "approved", notes: "First reading approved as amended; second reading scheduled for Dec. 4."

- kind: "ordinance_first_reading", motion: "Approve the tax levy ordinance as amended to include only new growth (motion text cited $12,474,037); second reading Dec. 4, 2025.", mover: "Trustee Militello", second: "Trustee Egan", vote_record: [{"member":"Trustee Levesque","vote":"aye"},{"member":"Trustee Hammersmith","vote":"aye"},{"member":"Trustee Dudek","vote":"aye"},{"member":"Trustee Egan","vote":"aye"},{"member":"Trustee Motelow","vote":"aye"},{"member":"Trustee Wagner","vote":"nay"}], tally: {"yes":5,"no":1,"abstain":0}, outcome: "approved", notes: "First reading approved as amended; second reading scheduled for Dec. 4."

Provenance

- topicintro: {"block_id":"45.004997","local_start":0,"local_end":180,"evidence_excerpt":"Yes. That is correct. Tonight's public hearing is in regard to the village's proposed budget for the 2026 fiscal year, which run run, runs from January 1 to 12/31/2026. The proposed budget has been available for review at Village Hall, and on the village's website, as required by state law.","tc_start":"00:00:45"}
- topfinish: {"block_id":"3353.065","local_start":0,"local_end":160,"evidence_excerpt":"I motion to approve the tax levy ordinance in the amount of $12,474,037 as amended to include only new growth in the tax levy with a second reading on the village board meeting of December 4.","tc_start":"00:55:53"}

Searchable_tags:["budget","levy","tax","water_rates","capital_projects","public_safety_building","Lombard" ]