Villa Park trustees hear five-year budget showing $13.3 million gap by 2031

Finance Director Susie L. told the Village Board of Trustees on June 8 that the village's five-year financial plan projects growing deficits unless the board identifies new revenues or reduces costs.

"It is important to note that these figures are estimates and are subject to change over time," Susie L. said as she opened a slide review of the general fund. She showed projected deficit spending of about $7.8 million in 2027, $9.1 million in 2028, $10.3 million in 2029, $11.7 million in 2030 and roughly $13.3 million in 2031.

The nut of the discussion was whether the village can close those gaps without cutting services. Susie L. walked trustees through department-level drivers: a 10.4% increase in the public affairs line tied to anticipated union negotiations and higher attorney fees, planned IT capital (server and phone system) replacements, a roughly $1 million increase in liability insurance no longer covered by insurer-held reserves, and a projected 15% rise in health-insurance costs.

Susie L. also reviewed individual fund balances and constraints. The street improvement fund carried a reported $7.5 million balance as of Dec. 31, 2025, but staff said timing and project scope determine what can safely be spent. The capital project fund (Fund 64) showed roughly $5.2 million on hand going into the planning period; staff estimated about $1.6 million in the water fund at the end of 2026 after projected 2026 spending. The swimming-pool fund had an audited balance of about $517,000, and staff said newly earmarked cannabis receipts (estimated $155,000–$170,000 annually) will be applied to that fund in the 2027 budget.

Trustees pressed staff on several trade-offs. Trustee Cast asked when vehicle leases through Enterprise expire; staff replied leases and associated payoffs fall in the 2029'2030 window. Trustee Khan (Trustee Kumar) asked which uses are TIF-eligible; staff said eligible uses include property assemblage, road improvements and district-specific capital work and asked the community development director to assemble concrete project recommendations.

On TIF timing, staff emphasized urgency for the North Avenue TIF, which has only three years left and an available balance staff estimated at about $2.6 million at the end of 2026. "If we don't get these projects online and get this money spent, we have to refund that money back to the taxing districts," Susie L. said, noting the alternative would return funds to schools, the library and other taxing bodies.

Trustees discussed strategies to close multi-year gaps: aggressive economic development to boost revenue; targeted spending reductions or restructuring of employee health benefits; pursuit of grants; and potential capital financing. Trustee Sabri and others urged an "aggressive approach" to economic development; Trustee Tristan recommended hiring a grant writer and noted a resident, Tony Gro, had offered a free grants-qualification website for the village to explore.

Staff cautioned that several revenue items remain uncertain and were not included in the baseline projections: outcomes of union negotiations, new development coming online and other one-time or project-specific revenues. Staff also explained that wastewater fund revenue spikes in the projection reflect anticipated EPA loan or grant proceeds tied to capital projects (for example, an anticipated Washington sewer-separation project).

Trustee Cordova asked about liquidity: staff said Villa Park holds roughly 114'120 days of cash on hand and will provide an updated report at the next meeting. Trustees also noted a state representative, Diane Blair Sherlock, is scheduled to attend the next meeting to brief the board on changes from the recent legislative session; staff said the LGDF percentage was not altered in Springfield and that the village expects an uptick in LGDF receipts in 2027 once final numbers are known.

Votes at a glance: the only formal motion recorded during the committee-of-the-whole was a motion to adjourn. Trustee Constado moved to adjourn; Trustee Sabri seconded. The roll-call vote was unanimous in favor.

What happens next: staff said the five-year plan is a living document and will be refined as new information arrives; trustees requested additional follow-up on TIF project lists for North Avenue, a breakdown of capital funding sources in the capital plan, a May liquidity report and ideas from the new community development director on near-term revenue opportunities. State representative Diane Blair Sherlock is scheduled to brief the board at the next meeting on state-level funding items.

Ending: The committee-of-the-whole adjourned and the board planned to reconvene for its regular meeting at 7:00 p.m.