Lombard narrows 2026 property tax increase to new-growth only; board approves budget first reading with amendment

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…