Gurnee unveils $27.6 million FY2026-27 capital plan; staff proposes $6.5 million general fund transfer

Village of Gurnee officials on Jan. 5 presented a multiyear capital improvement program that proposes $27.6 million in spending for fiscal year 2026–27 and approximately $93.2 million across five years.

The plan, introduced at the January board meeting by senior staff and department leads, directs 39 percent of next year's spending to transportation projects and allocates funds to building improvements, water and sewer, vehicles and equipment, technology, and stormwater. Staff said the FY27 package totals $27,600,000 with $10.9 million for transportation, $6.1 million for building projects, $5.4 million for water and sewer, $3.8 million for vehicles and equipment, $910,000 for technology and $400,000 for stormwater management.

Why it matters: staff told trustees the proposed program is the village's largest recent capital package and includes several multi‑year or one‑time high‑cost projects. To fund the plan, staff proposed a $6.5 million transfer from general fund reserves to capital—$5 million earmarked for infrastructure plus additional project needs—and said the transfer would be finalized with the April budget adoption.

Key funding sources and fiscal posture Staff said the plan will draw on a mix of funding: the village's home rule sales tax (1.5% total, 0.75% dedicated to capital), general fund contributions (drawn from excess fund balance), water and sewer rates, restricted funds such as motor fuel tax and police forfeiture proceeds, targeted grants, and limited short‑term financing. The presenters stressed a general policy of minimizing long‑term debt; outstanding long-term debt is limited to a low‑interest IPA loan for the Knowles Road Tower that staff said will be paid off early in 2031.

Fund balance and timing Staff reviewed the village's fund balance policy (60–65% of general fund expenditures) and said the village ended the most recent fiscal year (04/30/2025) at roughly 76%, with an additional positive variance of about $3.2 million through November. With the proposed $6.5 million transfer, staff projected the village would remain slightly above the 65% upper target at the end of FY26, noting that the transfer would be finalized as part of the formal April budget adoption and adjusted if revenues materially change.

Major projects and department highlights - Administration: $500,000 was proposed for Village Hall updates, including partnership with FGM Architects for phased improvements, AV upgrades and physical security enhancements.

- Information systems: staff proposed a multiyear network switch/routing replacement, firewall upgrades, Microsoft 365 records‑retention and a third‑party records solution, off‑site disaster recovery expansion and funding for cybersecurity consulting (SCADA focus) and incident response readiness.

- Public safety: Police asked to replace seven vehicles (six patrol, one evidence technician), continue a rifle replacement program (spread over multiple years at roughly $45,000 annually), consider an explosives/tracking K9 for local response, and pursue a real‑time information center to integrate camera feeds and 911 for faster situational awareness. The fire department described long lead times for engines and ambulances, AED/monitor replacement and masonry repairs at Fire Station 1 estimated at about $115,000–$120,000.

- Public works & transportation: engineering staff outlined roughly $11 million in transportation work including $3.7 million in resurfacing (about five miles) and $5 million for Fuller Road reconstruction (about 1.25 miles). The proposed water and sewer program totals about $5.4 million next year with $3.3 million targeted for water main replacement and a two‑year physical meter replacement program at approximately $1.5 million per fiscal year.

Questions from trustees and clarifications Trustees pressed staff on cybersecurity readiness and insurance after noting a neighboring taxing district experienced a cyberattack. IT staff said the village maintains disaster recovery copies of data, uses a managed security provider for monitoring, and participates in a pooled insurance program that evaluates each member's safeguards annually. On the meter program, staff said consultants and licensed plumbers will be used to accelerate replacements and address interior work and valve issues. Regarding Gow Beach, staff described a partnership with the high school and park district to remove structures, return the site to open space, and consider educational signage and native plantings.

Next steps Staff said the capital transfer will be requested as part of the April budget adoption. The board will continue operational budget work and hold a budget public hearing in March, following department meetings and publication of the budget book targeted for February.