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Montgomery trustees adopt FY2025–26 levy after split vote; proponents cite pension and revenue risks
Summary
After extended debate, the Village of Montgomery board approved the levy ordinance for fiscal 05/01/2025–04/30/2026 on a 5–2 vote. Trustees cited a sharp increase in police pension obligations and a looming $2 million sales-tax revenue impact from a state groceries tax change as key reasons to capture levy capacity.
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The Village of Montgomery Board of Trustees voted 5–2 to adopt the levy ordinance for the fiscal year beginning May 1, 2025 and ending April 30, 2026.
Director Malewski presented the levy proposal to the board, describing a total levy figure of $2,924,932 that the staff broke down into a general levy request of $2,531,300 (comprised of new construction only) and special service area (SSA) levies totaling $393,632. Malewski said the village must pass the levy tonight to meet county filing deadlines (the counties require levy filing by Dec. 31). Clerks/finance staff said they would update the levy table before final signature and filing.
Trustees engaged in an extended debate. Supporters of levying the full 3.4% extension cited an increase in the village police pension obligation — described in the meeting as rising from about $400,000 a decade ago to more than $1,100,000 in the coming year — and the prospect of a state-level suspension of sales tax on groceries that a trustee estimated would reduce village sales tax revenue by roughly $2,000,000 annually beginning Jan. 1, 2026. Supporters said capturing the modest levy increase (presenters and trustees repeatedly characterized it as about $86,000 or roughly $10 per household annually) would preserve public-safety staffing and municipal services and provide fiscal flexibility.
Opponents said they sympathize with staff and public-safety needs but were concerned about residents struggling with rising costs; one trustee said local families and neighbors are watching every dollar and asked that the board not increase the local tax burden this year. Trustees discussed other fiscal tools, including increased economic development and annexations to grow the tax base, but said those take longer to produce revenue.
When the board called the final motion, the president read a total levy figure aloud as $2,612,760 and said staff would ensure the levy table is corrected before filing. The motion to adopt the levy passed by roll call 5–2.
Director Malewski and finance staff will update the levy schedule and file the adopted levy with both counties by the statutory deadline. Trustees said the levy can be adjusted in future years if revenue conditions improve.

