Hinsdale board previews $24.8 million 2026 budget, keeps 25% reserve and $7.4M in pay‑as‑you‑go capital

The Village of Hinsdale on Nov. 18 reviewed a draft 2026 operating budget that projects $24,800,000 in total operating revenues and preserves a policy minimum 25% general fund reserve while funding roughly $7,400,000 in capital projects without issuing new debt.

President Greg Hart said the budget focuses on long-term financial stability and resident priorities while supporting pedestrian‑safety improvements and economic development. “The 2026 budget maintains our policy of a minimum 25% general fund reserve,” Hart said during his report.

Finance staff told trustees the draft shows operating expenditures of about $23,500,000, a 6.5% increase over 2025 driven largely by personnel, pension and benefit costs. Staff noted stronger-than-expected 2024–25 performance has increased ending reserves, enabling larger transfers to the capital improvement plan (CIP) and master infrastructure plan (MIP).

Key line items and assumptions include: projected revenue growth of 1.5% driven by stable property-tax growth and sales and income tax strength; transfers of $2,700,000 to the CIP and $2,000,000 to the MIP for 2026; and approximately $660,000 in capital grants earmarked for projects such as pool work and an elevator project. The budget documents also incorporate a new 20‑year MIP projection and a separate CIP fund beginning in 2026.

Trustees discussed rising police and fire pension contributions. Staff said statutory, statewide pension‑valuation assumptions — set by consolidated boards — drive higher required contributions; staff estimated an increase of roughly $385,000 in pension contributions for 2026 and noted that the village’s share of property‑tax growth for the levy year will generate about $369,000 more in property‑tax revenue, leaving a narrow $16,000 gap in the first approximation presented to the board.

Water and sewer fund highlights in the draft include a 4% assumed water‑rate increase to match anticipated charges from the DuPage Water Commission and a planned $200,000 engineering allocation to design lead service‑line replacements beginning in 2027, with estimated replacement costs of about $660,000 per year over a 10‑year program.

The full budget will be posted for public inspection on the village website on Nov. 26, and the board scheduled a public hearing for Dec. 9. After a public hearing and second reading, the Board expects to consider adoption that evening.