Carol Stream projects $7.36 million FY26 surplus, proposes $6 million police pension payment in FY27
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Summary
Village staff told trustees that strong sales-tax growth pushed projected FY26 revenues about $2.7 million over plan and a total surplus near $7.36 million; staff proposed transferring $3 million to capital projects and increasing the FY27 police pension contribution to $6 million (actuary recommendation: $4 million).
Carol Stream officials told the village trustees at a special budget workshop that unexpectedly strong sales-tax receipts have produced a materially larger projected surplus for fiscal 2026 and enabled a proposal to accelerate payments to the police pension fund.
John Batac, the staff presenter, said year-end revenues are now projected to be about 7.3% higher than earlier estimates—roughly $2.7 million above plan—driven mostly by sales tax increases that began showing effects in June after state law changes. "In June this past year, I ran up to the manager's office and said, Bill, it starts with a 9 this month," Batac said, describing monthly deposits that moved into the $900,000 range and twice topped $1 million in the first 10 months.
That combination of higher revenues and underspending—Batac said FY26 expenditures are projected roughly $2.6 million below the approved budget, in part because of vacancy savings—produced a projected FY26 surplus of about $7,360,000. Under the village's fund-balance policy (which limits retained general fund balance to roughly 50% of annual expenditures), staff tentatively recommended transferring $3,000,000 to the capital projects fund and allocating remaining surplus resources to the water and sewer fund to help cover significant upcoming wastewater facility investments.
The presentation also recommended a substantially larger contribution to the police pension for FY27. "The actuary said to put $4,000,000 in," Batac said, and staff proposed rounding that up to an even $6,000,000 to more aggressively reduce unfunded liabilities. Batac said roughly three-quarters of each dollar contributed now would go toward unfunded liabilities and that the pension fund had a market balance of about $93,000,000 and unfunded liabilities of about $34,500,000.
Trustees asked for more detail on vulnerable revenue categories, including hotel taxes and charges for services, which Batac attributed to a down year for local hotels and to declining cable franchise and PEG fees. Batac offered staff follow-up to provide more detail on those declines.
Next steps: staff will refine capital and utility recommendations and bring a formal FY27 budget to the board in subsequent meetings; no formal vote on the FY27 budget or pension payment was recorded at the workshop.
Votes at a glance: The only formal recorded vote at the workshop approved adjournment (unanimous).
