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Villa Park City reports stronger-than-expected fiscal position ahead of June budget adoption
Summary
At a special budget workshop, staff told the City Council that audited balances and updated revenue projections leave the city in a stronger position than anticipated; councilmembers discussed reserves, pension funding and pending contract risks. No vote was taken.
At a special budget workshop, Villa Park City staff said the city’s finances are modestly stronger than projected and that council action will not be required at the meeting.
Lehi Habra, who reviewed the slides for staff, said the city carried a beginning fund balance of about $8.9 million and expects year-end revenues to total roughly $6.4 million — about $400,000 above the original projection — leaving more resources available for next year’s spending. “Long story short,” staff said, “there’s no formal action today; we’ll be going over the year-end projections, our revenue assumptions for next year, our estimated financing, and then the issues we have facing next year.” (Steve)
Staff summarized that final budgeted expenditures for the current year were set at about $7.3 million with projected year-end expenditures near $5.4 million, producing roughly $1.8 million of underspending that will be carried forward for rebudgeted capital projects. Restricted revenues include annual sewer assessments, a half-cent sales tax allocation for Measure M2-type funds, state gas tax receipts and PEG/cable franchise funds. Staff identified a remaining balance of roughly $59,000 from an edible-food recovery grant (transcribed as “SB 13 83”) that will be spent this year.
City staff described reserves and pension funding as healthy. According to staff, the city’s Section 115 trust holds about $1.04 million and the city’s pension funding stands near an 88 percent funded rate; staff said ongoing, moderate investment policy and continued annual contributions (roughly $100,000) are the strategy going forward. “We are 88% funded… we’re very good, well funded from our pension situation,” staff said. (Steve)
Staff cautioned that the largest budget risk is the pending results of labor negotiations tied to the sheriff contract; each 1 percent concession in those negotiations was estimated to raise costs by about $17,000. Officials said they do not plan to proactively adopt higher ongoing spending assumptions absent a negotiated settlement but will report back if the final contract requires changes.
The council did not take formal action. Staff said the city aims to adopt the FY 2026–27 budget on June 23 and that, absent changes to the sheriff contract, they do not expect major adjustments.
What’s next: staff will include the required GANN appropriation-limit calculation and the full fund-balance schedule with the adoption materials and will report back if sheriff-labor negotiations change the outlook.
