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North Aurora budget preview flags water-rate placeholder and personnel-driven cost increases
Summary
At the March 16 Committee of the Whole meeting staff presented the proposed 2026-27 budget, noting a dip in some revenues, personnel and insurance cost increases, and a placeholder based on a water-rate study that could raise first-year water rates by roughly 20%; trustees scheduled further discussion in April and a public hearing on April 20.
Village staff presented the proposed 2026-27 budget at the March 16 Committee of the Whole meeting, telling trustees the village remains balanced but is facing decreased revenue in some categories and higher personnel costs.
Staff said total revenues across all funds are just over $40 million against proposed expenditures of about $44.3 million; the difference reflects transfers and capital planning. Sales tax (about $10.8 million), other taxes (about $5.6 million) and property tax (about $5.7 million) together make up the majority of general fund revenue, staff said.
Why it matters: presenters told trustees personnel costs are the largest driver of year-over-year increases. Staff cited unusually large health-insurance increases (noted at roughly 19.7% to 21.7% across plan types) and projected IMRF retirement rate movement as significant contributors. Staff said no net new headcount is proposed because a new public works operations assistant position would be filled internally and other shifts would reallocate existing FTEs.
Water rates and capital needs: staff flagged a placeholder in the water fund reflecting consultant EEI's first-year recommendation (approximately a 20% increase in the first year), which would raise the usage rate cited in the presentation from $5.95 to $7.14 per 1,000 gallons and increase the monthly base charge from $16 to $20 for the first 3,000 gallons. Staff described a long-term capital need for water system improvements estimated in the range of $80 million to $120 million over 25 years, including treatment-plant expansions, well maintenance and lead-service-line replacement. The presentation also listed a corrosion-control study budgeted at $450,000 described in the meeting as mandated by the IEP.
Trustees asked for more detail on personnel increases and questioned whether some increases (for pensions, step increases and health insurance) could recur annually. Staff said most increases are personnel-related (step increases, negotiated union wages and higher insurance costs) and noted that some one-time items had been moved in prior years into capital projects funds.
Next steps: staff said it will return to the Committee of the Whole in April with any changes and to discuss water rates; a public budget hearing is scheduled for April 20 and final budget adoption (and a likely water-rate ordinance) is planned for May 4.
Quotes from the meeting: "When you get to the water section, we're talking about finishing up our water rate study. It is essentially done now," a staff presenter said. "This is one where it's going to become an annual expense," staff said of the corrosion-control program.
What to watch: trustees will review recommended water-rate options in April before a public hearing on April 20 and a final vote on the budget and any water-rate ordinance on May 4.
