Lincoln Heights opens public hearing on 2026 appropriations; council questions restricted funds and proposed pay ranges

The Village of Lincoln Heights on March 30 held a public hearing on the 2026 permanent appropriation ordinance after a presentation from Finance Director John Key. The administration presented fund-by-fund allocations and carried-over resources, and council members requested additional committee review on restricted funds and proposed pay adjustments.

John Key said the 2026 budget process began in April 2025 and explained that the tax budget and temporary appropriations cover early-year needs until the county issues a certificate of estimated resources. "The 2026 budget process started back in April of 2025," he told council before reviewing departmental and fund-level amounts.

Staff presented the general fund total as $2,552,845 and said carryover from 2025 was approximately $1.2 million, which the administration said will be used for contingencies and planned items, including levy shortfalls. Council members pressed for clarity on several restricted funds: the transcript records a small balance in the indigent driver's fund and a balance for the opioid settlement fund (reported as roughly $13,000). Several councilors objected to the idea of transferring the opioid settlement dollars to another municipality and asked that the Finance and Law & Public Safety committees examine the allowable uses and options before any transfer is considered.

Council discussed the Lincoln Heights Days Festival fund (seed money for the village's 80th anniversary), which the administration said currently holds a modest balance and that staff expect a $25,000 grant award under consideration. The Tree Canopy Project and several capital street projects funded in part by a county Community Impact Grant were also reviewed; staff said tree planting has been initiated and remaining grant funds will be allocated this year.

Members raised procedural concerns about timing and review: several councilors said the detailed packet was available since March 6 but that they received materials late and requested fuller review in Finance Committee. Councilwoman Trina Carter suggested color-coding budget line items online to make restricted and unrestricted funds easier for residents to understand. Councilors also noted Exhibit B in the packet includes pay ranges and a proposed pay plan; the manager said the current proposal would allow raises of up to 7% but that "all compensation is subject to the council's appropriation."

The mayor and staff emphasized that the appropriation must be adopted by March 31 to meet administrative deadlines, but that the council can later adopt supplemental appropriations to change or adjust allocations during the year. The council scheduled committee meetings to continue vetting specific items: Law & Public Safety and Finance committees will review contracts and restricted-fund uses, and the Finance Committee is set to meet on April 7 to continue budget discussions.