Sleepy Hollow adopts FY2026 budget, reallocates ARPA funds to begin Thoroughbred culvert work

Sleepy Hollow — The Village of Sleepy Hollow board on March 3 approved the fiscal year 2026 budget and five‑year capital plan and voted to redesignate federal ARPA funds previously set aside for water‑main work to begin design and permitting for a replacement of the Thoroughbred Lane culvert.

Director of Finance Eugene presented the budget and five‑year capital priorities and told the board the finance committee recommended reallocating the ARPA water‑main funds so the village could fund the culvert project without taking a higher‑cost loan. The motion to redesignate the ARPA funds passed by roll call with six affirmative votes and no negative votes.

The board’s decision follows a presentation from village engineer Jeff Steele, who summarized a culvert analysis showing the Thoroughbred culvert has internal separations and external corrosion and that “if that actually fails it’ll be very difficult as far as routing traffic around the village,” while Hillcrest’s culverts are "in the process of failing" but sit at a depth that may allow easier repairs.

“Based on condition and the effect on traffic, our recommendation is to proceed with Thoroughbred first,” Steele said during the meeting. He outlined four repair options and said a precast three‑sided span offers longer life and easier debris removal versus replacing with corrugated metal pipe.

Trustees discussed timing and permitting; engineers said starting design and contacting permitting agencies now would place the project on agency schedules and speed later construction, though actual construction is likely next year. The board directed staff to proceed with early engineering work and permitting steps so that permitting numbers and agency logs are in place to expedite construction.

The board also approved using sewer improvement funds to cover forward payment obligations next year to relieve pressure on the sewer account; that motion likewise passed unanimously. The five‑year capital plan adopted by the board includes the Thoroughbred culvert work and several vehicle and equipment purchases identified in the capital wish list.

The board recorded that the reallocations and approvals do not immediately fund construction; Eugene said reallocating ARPA money avoids higher interest borrowing the village would otherwise face for a culvert loan because water‑main projects have clearer user‑fee revenue streams for lenders to evaluate.

Next steps: staff will engage the village engineer to start design/permitting and return with detailed cost estimates, updated timelines, and any permitting conditions. The board’s action authorizes early work but construction scheduling remains subject to permit approvals and the village’s capital cash flow.