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Review of the Proposed FY2027 Capital Improvement Plan (CIP) 2 of 2
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Introduction
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This is the second of two sessions dedicated to reviewing proposed capital projects in the Village’s Capital Improvement Plan for fiscal year 2027, focused on projects budgeted within the Capital Funds.
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Recommended Action
Review the proposed projects and provide feedback on budgeting, sequence, and prioritization.
Prior Board Action
September 24, 2026: Finance Committee previously reviewed the projects proposed for the CIP that are budgeted in the Village’s Enterprise and Special Revenue Funds, including Parking Fund, Water/Sewer, CDBG, and Motor Fuel Tax.
Finance Committee also approved a bond financing plan via RES 26-241, which included several projects that are part of this CIP for 2027, including the Police Station Project, Percy Julian Chicago Ave. Streetscape, and Bike Plan / Vision Zero.
Background
Village of Oak Park's FY2027 Capital Improvement Plan (CIP) is a supplementary document to the annual Operating Budget, which summarizes the plan for major capital expenditures. It provides an ongoing framework for identifying capital requirements and future financial impacts, the scheduling of projects over an extended period of time and strategizing for the most efficient completion of projects. This year's proposed CIP provides details on capital projects funded out of the Village's Capital Funds, Enterprise Funds, and select Special Revenue Funds for fiscal year 2027 and beyond. Generally, CIP includes improvements that are relatively expensive, non-routine in nature (excluding street and alley resurfacing) and have a useful life which often extends over several years. Such projects include but are not limited to new buildings, additions or renovations to existing facilities, construction of streets, water mains, sewer improvements, land acquisitions and major equipment purchases. Due to the nature and total costs often identified for these types of projects, various funding sources are typically required such as one-time transfers in to capital funds from surplus operating revenues or planned use of reserves, general obligation bonds and grant proceeds.
Priority Projects
The proposed Capital Plan includes numerous ongoing maintenance and improvement projects, such as recurring repairs, equipment and vehicle replacements, and building improvements. These are smaller projects that are standard for maintaining or improving the condition of existing capital assets. Additionally, the CIP includes several larger projects that are driven at the direction of the Board of Trustees through measures including the Village's bond financing plan, pavement condition index (PCI) targets, availability of outside grant revenues, and other factors that make such projects timely and necessary for the coming fiscal year.
Projects included in the Village's financing plan for 2027:
• Police Station Replacement - a significant construction project to create a new facility for use by the Police Department
• Bike Plan / Vision Zero - a series of projects continuing the expansion of Oak Park's bike grid infrastructure and related sustainability and energy efficiency projects
• Dr. Percy L. Julian Chicago Avenue Streetscape - a series of projects including street repairs, water/sewer improvements, and streetscaping part of a broader initiative to honor Dr. Julian.
Additional large projects included in the proposed CIP include:
• Street Resurfacing - $5.1 million devoted to continuing street improvements to achieve the Village's Pavement Condition Index (PCI) target of 70 for road quality
• Alley Improvements - $2.6 million devoted to continuing alley improvements and repairs around the Village
• Roof Restoration - $2.2 million is budgeted for repairs to the roof of the Public Works facility, which is nearing the end of its useful life
• The roof restoration is being timed with the availability of external grants that will allow the Village to install solar panels for significant reduction in energy costs while recouping a large portion of project costs for installation through Federal grants.
Capital Planning Changes for FY2027
The Village's proposed Operating Budget for fiscal year 2027 included shifting a net of approximately $5.5 million in local tax revenues to the General Fund to support ongoing operations and reduce impacts to the annual property tax levy. This change is described in detail in the transmittal letter for the proposed Operating Budget, which may be found on the Village's website. Along with shifting these revenues, the Village is adopting a three-fold strategy to support capital project funding in future years in a way that is fiscally sustainable and equitably distributes the costs over time of large projects with long lifespans. This marks a change from a primarily pay-as-you-go (Pay-Go) strategy that drove much of the Village's capital planning in past years.
• Capital-Exclusive: In past years, the Capital Improvement Fund included expenditures for personnel salaries, benefits, and other operating expenses that supported the Funds’ programs and projects. These operating expenses are shifted to the General Fund as part of FY2027's proposed Operating Budget. This change is intended to transparently identify the Village's spending on capital and to more clearly distinguish ongoing operating expenditures from capital project costs.
• Bond Financing: The Village is adopting a strategy of funding large capital projects, such as the Police Station, through General Obligation bond issuances. This approach allows the Village to make large capital investments while spreading the cost of those assets over multiple decades, such that they are paid for over time by residents who pay taxes and benefit from services while those assets are in use. By using tax-exempt municipal bonds, the Village is able to achieve a lower cost of borrowing and a predictable level of debt service load that can be managed over time.
• Capital Funding Sources: The Village is also exploring new revenue streams to support maintenance and smaller capital projects in future years, including expanded use of grants, transfers from enterprise funds that generate revenue (e.g., Water-Sewer), and additional local revenues that could be generated in the future. Collectively, these non-financed revenues are expected to support recurring capital fixes and replacement of existing assets.
Multi-Year Capital Planning
This represents a new strategic approach to how the Village identifies, plans for, and funds capital projects. Recently approved and current conversations are taking place to identify the scale and scope of additional large projects, including potential remodeling of Village Hall, Fire Station construction, and core infrastructure requirements. Simultaneously, the Village approved and is in the process of implementing changes to fee-based revenues that support capital projects, including utility billing and other local revenues. Subsequently, the Village Manager's Office (VMO), Department of Public Works (DPW), Finance Department, and other department stakeholders plan a rigorous review of capital needs over the next 5-year and 10-year periods in quarter 1 of 2027. They expect to present an updated multi-year Capital Improvement strategy for consideration by the Village President and members of the Board of Trustees in mid-2027.
This will allow the Village to accurately assess the impacts of revenue changes and project demands that are being discussed or implemented currently, developing a multi-year capital plan that will guide any future bond issuances, reflect comprehensive revenues, and consider core service needs directed by the Board of Trustees.
Timing Considerations
Providing review and feedback to the proposed capital projects in a timely manner allows the proposed CIP to proceed to the Board of Trustees for review and ultimate adoption.
The anticipated dates for public meetings related to the CIP include:
• September 24, 2026 (Finance Committee) - Draft CIP review: Parking, Water/Sewer, CDBG, Motor Fuel Tax
• November 12, 2026 (Finance Committee) - Draft CIP review: General Improvement, Building Improvement, Equipment Replacement, Fleet
• November 17, 2026 (Board of Trustees) - Capital Improvement Plan FY2027 presentation
• December 1, 2026 (Board of Trustees) - Capital Improvement Plan FY2027 presentation
• December 8, 2026 (Board of Trustees) - Capital Improvement Plan FY2027 adoption
Financial Impact
Projects in this proposed CIP include the following expenditures across Capital Funds:
• 3012 Building Improvement Fund - $4,875,000
• 3029 Equipment Replacement Fund - $798,272
• 3032 Fleet Replacement Fund - $380,000
• 3095 General Improvement Fund - $71,843,600
Proposed projects in the CIP include several that were part of the Village’s 2027 financing plan, which was approved by the Village Board via RES 26-241 to generate $73,245,520 in General Obligation bond financing.
Operations Impact
The projects in the second CIP presentation are part of a continuing schedule of large-scale capital investments, including for the Village’s facility upgrades, 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 Finance, IT, Police, Fire, and other departments. 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).
DEI Impact
Several projects in the proposed CIP relate directly to the Village’s DEI goals, particularly related to racial justice and environmental sustainability, including the Percy Julian Streetscape project and Bike Plan / Vision initiatives.
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., Police Station, Percy Julian Streetscape). Other projects were informed by public feedback to the Village in less formal settings, such as public reports of road repairs that inform road resurfacing and alley improvement projects.
Staff Recommendation
Staff recommends that the Finance Committee review the proposed capital projects for the General Improvement Fund, Building Improvement, Equipment Replacement, and Fleet Replacement 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 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:
• This action allows the Finance Committee to align project scope and sequencing more closely with current policy priorities and affordability considerations.
• This action creates an opportunity to reprioritize projects or funding while the broader 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.
Anticipated Future Actions
The next expected public meeting regarding the CIP will be with the Board of Trustees on November 17th to review the proposed projects along with the overall operating budget.
A subsequent meeting with the Board of Trustees is scheduled for December 1st to continue presenting the proposed CIP in addition to the operating budget.
The final document is expected for adoption by the Board of Trustees on December 8th, 2026.
Prepared By: Louis Hall-Makarewicz, Deputy CFO
Reviewed By: Kevin Bueso, Chief Financial Officer
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. FY27 Capital Budget Presentation #2_Finance Committee
2. Proposed FY2027 Capital Improvement Plan (CIP)_Budget Book_Draft