Lincolnwood finance director outlines FY2026 appropriation ordinance, rollover rules

At its Feb. 3 meeting, the Lincolnwood Village Board heard a detailed presentation from Finance Director Elizabeth Hallock on the village's Fiscal Year 2026 appropriation ordinance and the staff process for accounting for multi-year projects and rollovers.

Hallock said the appropriation ordinance — required under Illinois law and adopted within the first quarter of the fiscal year — establishes the village's maximum legal spending authority. She described a new five-year forecasting approach used this year that asked departments to: include expenditures if they expected them in 2025; allocate zero and rebudget in 2026 if they did not expect a project to start; or apportion costs between fiscal years when a project is expected to span years. "That was an additional step that the departments had to do when they were preparing their budgets," Hallock said.

Hallock illustrated how the rollovers work with examples: a park improvement originally budgeted at $600,000 that increased to $620,000 and will be rebudgeted in 2026; a $1.2 million water-main project split 50/50 across years (with year‑end adjustments if percent-complete estimates change); and a $50,000 fire-department equipment purchase that, if delivered after Dec. 31, must be charged to the fiscal year in which the goods and services were received. She explained that when actual 2025 experience does not match estimates, staff will propose amendments to the budget and the appropriation ordinance to reflect rollovers or reductions.

Because the appropriation ordinance is intended to provide a buffer for unanticipated expenditures, the village historically applies a 15% adjustment to the adopted budget subtotals to set the appropriation amount; Hallock noted that this 15% is not available to departments for spending unless the board approves a specific unanticipated expenditure. She said staff will itemize the rollover list and present supporting details so the board can see the specific projects and adjustments behind the recommended changes.

Board members asked clarifying questions but offered broad support for Hallock's approach. Mayor Patel thanked Hallock for the explanation and trustees noted the value of the additional forecasting and transparency. Hallock said staff had asked departments to submit all fiscal-year-2025 invoices and that she expected the appropriation ordinance to be presented for board review in mid-March (staff had earlier anticipated Feb. 18 but now expects March 18 while preparing the rollover list).

The presentation did not require an immediate vote; Hallock requested board approval to continue the process and to bring back the ordinance and the itemized rollovers at the next scheduled meeting.