Three Village proposes 2.87% budget increase; tax levy to rise 4.54% as vote set for May 19

Mister Carlson, the district staff member who presented the finance package, told the board on April 15 that the proposed 2026–27 budget is $244,980,092, a 2.87% increase from the current year, and that the associated tax levy would be $187,097,362, a 4.54% increase that complies with the state tax cap.

Carlson said the district’s tax-cap calculation reflects two components: the levy growth factor tied to inflation and a tax-base growth factor for new construction. “The CPI rate to be used is 2.63%,” he said, and added that this year the district’s tax-base growth factor is 1.19%.

Health-insurance costs are a major driver of the increase, Carlson told the board. “Our health insurance rates, health insurance is going up 12% next year,” he said, and administration flagged that increase as approximately $4.5 million (board discussion noted the 12% figure equated to roughly 2% of the district budget). Carlson also said reductions from retirements and cuts to discretionary spending were built into the proposal.

Carlson outlined the district’s fund-balance history and COVID-era impacts, noting reserves fell from about $24.9 million in June 2019 to roughly $10.1 million in the most recent reporting period after using reserves to keep schools open during the pandemic. He said administration plans to add to reserves over time and has budgeted $400,000 this year to deposit into reserves.

The capital portion of the proposal lists $3 million in priority repairs taken from a previous bond scope. Carlson named priority projects including cupola repairs at several elementary schools, pool repairs and machinery-room work at the high school, and flood repairs to a small gym floor; he said most of those projects would qualify for roughly 66% building aid.

Carlson also warned of the effects if voters reject the budget. He said the district could put the same budget up for a revote, revise and put a different budget up for a second vote, or go straight to contingency. “If it does not pass … we’d have to cut another $8,100,000,” he said, and noted capital projects would be the first items removed in a contingent budget.

The presentation closed with administrative answers about voting logistics and a reminder that the budget vote is scheduled for Tuesday, May 19, in the high-school gymnasium, with early voting and absentee procedures available through the district clerk.

What’s next: The board approved the property tax report card as part of the consent agenda; voters will decide the budget on May 19.