Title
title
Review of the Proposed Fiscal Year 2027 Budget
..end
Introduction
overview
This is a review of the proposed budget for fiscal year 2027, including both the operating and capital budgets.
end
body
Recommended Action
There is no recommended action associated with this presentation. It is the first of three meetings of the Board of Trustees to review the proposed budget, provide for a public hearing, and adopt an ultimate version for the coming fiscal year.
Prior Board Action
The Board of Trustees annually reviews, provides feedback, and adopts an operating budget and capital budget for Village activities.
The FY26 budgeting process included the following activities by the Board of Trustees:
• Initial review of the proposed budget on November 18, 2025 (ID 25-721)
• Public hearing on the proposed budget on December 2, 2025 (ID 25-744)
• Formal adoption of the budget on December 9, 2025 (ORD 25-220)
In 2026, Trustees have taken the following action(s) related to the budget:
• July 28: The Board of Trustees received a report from Finance of the FY2027 budgeting process and preliminary fiscal outlook on (ID 26-471)
• October 13: The Board of Trustees passed a resolution approving 2027 employee benefit plans, including health insurance budgeted out of the Health Insurance Fund (6028) (RES 26-268)
• November 4: The Board of Trustees approved a motion to determine the estimate of the property tax levy for fiscal year 2027 to be included in a public notice of the Truth in Taxation hearing (MOT 26-251)
o The Board also received an initial presentation in this meeting on the estimated tax levy amounts contained in the proposed budget and the historical context leading up the proposed amount from CFO Bueso.
• Finance Committee reviewed the proposed operating budget in several sessions prior to this meeting:
o October 29: operating budget presentations from VMO, Village Clerk, Law, and Human Resources
o November 5: operating budget presentations from Neighborhood Services, VMO-EVO, VMO-Adjudication, Police, Fire, Health, and Finance
o November 12: operating budget presentations from IT, Development Services, and Public Works
• Finance Committee reviewed the proposed capital budget in two sessions:
o September 24: proposed capital projects under enterprise and special revenue funds, including Parking, Water/Sewer, Community Development Block Grant (CDBG), and Motor Fuel Tax (MFT)
o November 12: proposed capital projects under capital funds, including General Improvement, Building Improvement, Fleet Replacement, and Equipment Replacement
Background
The proposed FY2027 Budget for the Village of Oak Park includes revenues and expenditures for operating purposes (e.g., day-to-day service and support activities) as well as capital projects (e.g., construction and maintenance of facilities and infrastructure). The Proposed FY2027 Operating Budget is available online at: https://oakparkgov.openbook.questica.com/#/budget-book/FY2027ProposedBudget <https://oakparkgov.openbook.questica.com/> .
The Village’s primary operating activities are budgeted in the General Fund, such as personnel salary and benefits, contractual services, materials and supplies, and other uses. Additional operating activities are budgeted across a variety of special revenue, enterprise, internal service, and custodial funds, such as external grants, parking, utilities, debt service, and other uses that are segregated outside of the General Fund but nevertheless support or impact Village operations.
The Village’s Capital Budget is detailed in a separate document, the Capital Improvement Plan. Spending for the capital projects in that plan are incorporated into the Village’s operating budget as well to provide a comprehensive picture of Village expenditures. The Proposed FY2027 Capital Improvement Plan Budget is available online at: https://oakparkgov.openbook.questica.com/#/budget-book/FY2027ProposedCIP <https://oakparkgov.openbook.questica.com/>
General Fund Overview
The proposed FY2027 Budget includes expenditures in the General Fund of $86,268,212.71 and revenues of $84,568,213.00. This balances revenues with all recurring Village expenses that are considered structural commitments. The planned use of fund balance of $1,699,999.71 is for one-time expenses identified during the budgeting process that are considered non-structural commitments. Accordingly, these one-time costs are excluded from the proposed property tax levy and intended to be paid for out of one-time use of fund balance. This fund balance appropriation will bring the Village closer to its policy of maintaining 10 - 20% unrestricted fund balance of the current year’s operating expenditures in reserves, which it has significantly exceeded in recent years.
• Proposed Personnel and Fringe Benefits spending in the General Fund is $62,903,997.28, an increase of 4.77% over the 2026 original budget.
o Fringe - $25,079,191.62 (1.08% change)
o Personnel - $37,824,805.66 (7.37% change)
• Contractual spending is $16,121,284.93 an increase of 8.62%.
Property Tax Overview
The Village’s property tax levy policy has, in recent history, targeted an annual increase of 3%. This policy was intended to support predictability and fiscal discipline, keeping rough pace with inflationary trends. However, the Village has not consistently hit its own target. It instituted lower levy increases in some past years - including maintaining the levy flat in 2022. It also did not tie the levy to inflation, which regularly outpaced Village spending. This approach met spending needs in each budget year, including some spend-down of reserves, but it did not grow revenues at a pace that reflected multi-year spending forecasts. Now firmly in the post-pandemic fiscal era, the Village faces a choice between sustainably budgeting for growing costs related to capital investment, personnel, and services, and making cuts to core services.
|
Property Tax Component |
FY2026 Amount |
FY2027 Proposed |
% Change |
|
Corporate Levy |
$19,125,000 |
$20,333,000 |
6.32% |
|
Debt Service Levy |
$5,016,897 |
$6,325,761 |
26.09% |
|
Fire Pension Levy |
$7,474,204 |
$7,778,704 |
4.07% |
|
Police Pension Levy |
$8,276,706 |
$8,621,459 |
4.17% |
|
Total |
$39,892,807 |
$43,058,924 |
7.94% |
Significant Budget Changes
• Tracking one-time and structurally recurring costs to better monitor spending and guard against unapproved long-term commitments.
• Shifting several revenues from capital funds to the General Fund to better align revenue types with day-to-day operations, including:
o Cannabis Tax - $155,000
o Home Rule Sales Tax - $6,200,000
o Infrastructure Maintenance Fee - $100,000
o Local Option Gasoline Tax - $500,000
• Moving from a largely pay-as-you go (“Pay-Go”) funding model for capital projects to a financing model, based on the long-term value of these assets.
o This includes anticipated revenues from the 2027 Series bond issuance.
o The proposed Capital Improvement Plan includes $96,131,733 of overall spending across the following funds:
§ 2030 - Motor Fuel Tax Fund - $1,311,223
§ 2083 - Community Development Block Grant Fund - $643,350
§ 3012 - Building Improvement Fund - $6,025,000
§ 3029 - Equipment Replacement Fund - $798,272
§ 3032 - Fleet Replacement Fund - $595,000
§ 3095 - General Improvement - $75,638,600
§ 5040 - Water/Sewer Fund - $9,952,000
§ 5060 - Parking Fund - $1,168,288
• Using a “Non-Departmental” division in the chart of accounts to more clearly show inter-fund transfers, vacancy savings, and cross-departmental projects.
Timing Considerations
Subsequent meetings to review the proposed FY2027 budget include:
• November 17: Truth in Taxation hearing
• December 1: Budget public hearing and continued presentation
• December 8: Proposed budget adoption
Financial Impact
This is the primary document that will guide Village spending and use of revenues in fiscal year 2027, beginning January 1, 2027.
Operations Impact
This proposed budget is the product of extensive effort and coordination between Finance, the Village Manager’s Office, and all Village departments. It was developed using two new software platforms for the first time, Euna Budget and Open Book, which provided a foundation for more efficient budget development and presentation in future years.
DEI Impact
There is no DEI impact associated with this item.
Community Input
Budget updates and proposed activities were presented at numerous public meetings concentrated in September - November 2026 and received public comment at several sessions.
Staff Recommendation
Provide feedback on the proposed budget for clarification or revision prior to the December 1st public hearing.
Alternatives
There are no alternatives associated with this item. This item is for discussion only.
Anticipated Future Actions
Subsequent meetings to review the proposed FY2027 budget include:
• November 17: Truth in Taxation hearing
• December 1: Budget public hearing and continued presentation
• December 8: Proposed budget adoption
Prepared By: Louis Hall-Makarewicz, Deputy Chief Financial Officer
Reviewed By: Kevin Bueso, Chief Financial Officer
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Proposed FY2027 Operating Budget Book
2. Proposed FY2027 Capital Improvement Plan Budget Book