Sugar Grove projects modest 2027 surplus; board debates permit fees, trees and staffing

Sugar Grove staff on March 31 presented a draft general fund budget for fiscal 2027 that projects a small surplus and includes staff requests for targeted staffing and several fee adjustments. Finance Director Karen Johns said staff projects a $31,000 surplus for FY27 and expects FY26 to end with a projected surplus of $178,000; staff noted that revenue assumptions depend heavily on new housing coming online.

Key revenue and cost assumptions include a projection tied to approximately 194 new housing units (staff later noted subdivisions and duplex conversions may change counts), a projected 10% increase in medical insurance costs beginning Jan. 1, 2027, and modest IT and police records‑system investments. Staff proposed several fee changes, including increasing the maximum new‑home permit fee by 2.9% (from about $17,850 to $18,003.60) and raising the fee for tree planting associated with new construction from $550 to $600 to cover rising costs and administrative overhead.

Trustees debated competitiveness and timing: some cautioned the 194‑unit housing projection is optimistic and recommended staff present comparative fee data from neighboring communities before final decisions. Trustees supported keeping the village tree program but asked staff to confirm whether developer agreements and prevailing‑wage rules affect costs. Staff also proposed adding a part‑time building inspector (250 hours) and a six‑month‑funded maintenance worker partially budgeted in the water fund; board consensus was to include the positions in the budget but not hire until permit activity confirms need.

Next steps: notice of the public hearing on the proposed 2027 budget was announced for 6:00 p.m. April 7 at the Sugar Grove Library (staff will hold a community Q&A at 4:30 p.m. that day); staff will return with comparative fee surveys and more detail on proposed application and plumbing fees.