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Review of the Recommended Five-Year Capital Improvement Plan (CIP) for FY 2027-2031 for the Parking Fund, Water/Sewer Fund, Motor Fuel Tax Fund, and CDBG
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Introduction
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This is the first in a series of annually scheduled Village meetings to prepare for the Capital Improvement Plan for the 2027 fiscal year budget. The first session focuses on Special Revenue and Enterprise funds that include capital projects in their budget. A second Finance Committee meeting will review the four main Capital funds to complete the CIP review.
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Recommended Action
Review the attached inventory of projects and fund overviews to provide feedback on project sequencing in 2027 and through 2031, and recommend advancement to the Village Board.
Prior Board Action
There is no prior Board action associated with the proposed FY 2027-2031 CIP.
Background
The Village updates its 5-year schedule for capital projects annually through its Capital Improvement Plan (CIP). This is a supplemental document supporting the annual Operating Budget, focused on multi-year capital expenditures, which can be located in the main budget under the category “Capital Improvements.”
“Capital Improvements” are higher-dollar projects (typically $10,000+ value per unit) with a useful life of multiple years or decades. They can include new buildings, renovations, streets, water mains, sewer improvements, land acquisitions, major equipment purchases, and more.
Capital projects are budgeted within one of four Capital funds:
• 3012 - Building Improvement Fund
• 3029 - Equipment Replacement Fund
• 3032 - Fleet Replacement Fund
• 3095 - General Improvement Fund (Main CIP)
Additional capital projects are classified within the Village’s Enterprise and Special Revenue Funds, which are the focus of this initial meeting:
• 2038 - Motor Fuel Tax Fund
• 2083 - Community Development Block Grant (CDBG) Fund
• 5040 - Water/Sewer Fund
• 5060 - Parking Fund
The 2026 CIP may be found here: <https://www.oak-park.us/files/assets/oakpark/v/1/finance/capital-improvement-plan-cip/cip-fy26-30_final.pdf>
Timing Considerations
The comprehensive Capital Improvement Plan (CIP) is intended to be presented to the Board of Trustees in mid-October, with discussion, feedback, and adoption finalized by mid-November.
Approving the CIP on this timeline will allow for Public Works and other involved departments to begin procurement activities necessary to begin projects on schedule in 2027.
Financial Impact
The four funds under review today propose spending that is within budgeted revenues for each fund in FY2027 - with the exception of one project that is expected to be reimbursed with Federal grant dollars. Cumulatively, capital project spend is $12,778,716.
• 5040 - Water/Sewer Fund - $9,472,000
• 5060 - Parking Fund - $1,168,288
• 2038 - Motor Fuel Tax - $1,311,223
• 2083 - CDBG Fund - $643,350
2027’s CIP spending in these funds is budgeted to not include any spend-down of reserves (i.e., surplus revenues from past periods), except for the Motor Fuel Tax (MFT) fund, which has been untapped for the last several years and has built a significant fund balance.
The dollar amounts for capital projects shown above are in addition to non-capital spending in each fund (e.g., personnel salary). The presentation reviews both the total amount of capital project spending and overall spending by fund.
Operations Impact
The projects in this initial CIP presentation are part of a continuing schedule of large-scale capital investments for the Village’s parking services, water and sewer infrastructure, road resurfacing, and alley/sidewalk maintenance.
They are the product of considerable time and effort to develop, implement, manage, and maintain recurring budget information on a multi-year basis. Public Works is the primary driver of activities to carry out the CIP, with additional collaboration and activity from Development Services (Parking), Neighborhood Services (CDBG), and Finance.
The focus of this meeting is to review proposed projects as part of the ongoing capital improvement plan; however, carrying that plan out over the course of 2027 and future years requires significant additional effort. This includes procurement, oversight of contractors and consultants (e.g., project design, construction activities), financial management (e.g., budgeting, payments, grants, GO bond financing), and strategic collaboration (e.g., sequencing projects together with overlapping activities to lower costs).
No significant changes in day-to-day staff activities will arise from reviewing and approving this portion of the CIP to proceed to Board review (e.g., no new hiring). However, there are several updates about the CIP document itself and related project management to note:
• Each project has an assigned ID that allows for project-level tracking and reporting within BS&A, which will be a new focus in 2027.
• The CIP document will be shared online in a new format on Open Book, including new features like maps and interactive fund schedules.
DEI Impact
The capital projects proposed in the 2027 - 2031 CIP include projects directly related to the Village’s DEI goals, including the Percy Julian Streetscape project, as well as several projects that improve environmental health and address climate impacts that tend to disproportionately affect lower-income residents (e.g., home flooding):
• Flooding mitigation to reduce storm damage to homes and businesses
• Rainscape grant program that supports storm runoff management at residences
• Lead Service Line replacement - both infrastructure and private outreach
• Percy Julian Streetscape project
• Electric Vehicle Charging Station (2028)
Community Input
The CIP includes numerous projects that were informed by public input, including projects that were approved by the Village Board and subject to public hearings (e.g., Percy Julian Streetscape). Other projects were informed by public feedback to the Village in less formal settings, such as public reports of flooding that led to the proposed flood mitigation activities.
Staff Recommendation
Staff recommends that the Finance Committee review the proposed FY 2027-2031 capital projects for the Parking, Water/Sewer, Motor Fuel Tax, and CDBG funds; provide feedback on project scope, timing, and sequencing; and recommend advancing this portion of the CIP, with any resulting revisions, to the Village Board for consideration.
Advantages:
• Keeps the CIP and FY 2027 budget process on schedule, allowing departments to begin procurement and project planning early enough to support timely delivery.
• Advances coordinated, multi-year investment in core infrastructure using dedicated or enterprise revenues, without relying on General Fund transfers for the projects under review.
Disadvantages:
• Advancing the plan establishes preliminary project priorities before the full CIP and FY 2027 budget are finalized.
• Project costs, grant reimbursements, revenue estimates, or operating conditions may change and require later adjustments to scope, timing, or funding.
Alternatives
Alternative 1:
Recommend specific revisions to one or more projects, funding levels, or implementation schedules before this portion of the CIP advances to the Village Board.
Advantages:
• Allows the Finance Committee to align project scope and sequencing more closely with current policy priorities and affordability considerations.
• Creates an opportunity to reprioritize projects or funding while the broader FY 2027-2031 CIP is still being assembled.
Disadvantages:
• Additional revisions may delay completion of the CIP and the related FY 2027 budget process.
• Changing project timing may affect procurement lead times, grant schedules, or coordination with other infrastructure work.
Alternative 2:
Defer consideration of this portion of the CIP to a later meeting.
Advantages:
• Provides additional time to review project details, updated cost estimates, revenue assumptions, or grant requirements.
• Preserves near-term flexibility if the Finance Committee wants to consider these projects together with the remaining capital funds.
Disadvantages:
• Deferral may delay procurement, design, and construction activities needed to keep 2027 projects on schedule.
• Postponement may increase costs or disrupt coordination among parking, utility, roadway, and grant-funded improvements.
Anticipated Future Actions
The next Capital Improvement Plan review will take place at a future Finance Committee meeting and will focus on projects budgeted in the main capital.
Following Finance Committee review, feedback, and any resulting revisions, the CIP will be presented at a future Village Board meeting. The draft CIP document, including detailed Project Sheets, will be shared with Trustees prior to that meeting.
A follow-up Board meeting has been reserved for Tuesday, November 17, for any additional presentation and review of the CIP. Adoption by the Board of Trustees is tentatively scheduled for that meeting.
Prepared By: Louis Hall-Makarewicz, Deputy CFO
Reviewed By: Kevin Bueso, CFO
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. FY27 Capital Budget Presentation #1_Finance Committee