The Lombard Board of Trustees on Thursday, Nov. 5, voted on first reading in two separate measures to approve both the 2027 budget and a tax levy request.
Proposed 2027 budget
There was public hearing at the start of the meeting, at which time Village Manager Nicole Aranas told the board that the proposed budget amounts to $151,298,660, saying that it is “primarily built around these priorities: responsible fiscal stewardship, maintaining high quality core services and the infrastructure.”
She said the Finance and Administration Committee, along with other committees, held workshops with staff since March before bringing a recommendation before the board as a whole.
There’s been a “significant amount of work that’s gone into preparing the budget,” Aranas added.
Finance Director Tim Sexton made a presentation outlining the proposed budget, saying that while the budget is close to $151.3 million, village figures project $131.9 million in revenue coming to the village.
“The reason for the higher expenditures this year is that the capital projects vary year by year,” he noted. “2027 just happens to be a really big year for our capital project program … We’ll be using reserves that have built up in those capital projects funds.”
Sexton outlined that the General Fund portion of the budget makes up about $50 million, with revenue coming primarily from sales tax, income tax and the Places for Eating Tax, which can fluctuate with the economy.
“We do look at these revenues every year,” he said, “and adjust future projections based on the actual amounts coming in, as well as we also take into account estimates we receive from the state and the Illinois Municipal League for those revenues.”
Sexton said 77 percent of the expenditures in the General Fund are for personnel, including wages and benefits, and the other 23 percent is related to village operations.
Among the funds Sexton also talked about was the Water and Sewer Operations and Maintenance Fund, saying that on Jan. 1, 2027, the rate will increase by 69 cents per 1,000 gallons used, or $18.90, and the fixed rate will increase 63 cents for billing and infrastructure, to $12.85.
Sexton said that amounts to about $3.39 a month for a household that uses 4,000 gallons a month. The majority of the village’s water expenses go toward the DuPage Water Commission and to the Glenbard Wastewater facility, or about two-thirds of the fund’s revenue. The remaining one-third goes toward maintenance of the village’s network of water and sewer systems.
The Finance and Administration Committee gave its advisory approval for the proposed budget at the Oct. 26 meeting.
Tax levy
Sexton presented figures for the permissible tax levy that is just over $12.895 million, most of which goes toward the pension and liability programs. It is an increase of $453,282, or 3.64 percent; or an additional $19 per year for a $386,000 home.
He emphasized that out of the total property tax, the village gets just under 8 percent.
Part of that $453.2 million includes factoring in potential revenue from new growth/construction, estimated to be $94,744, which became a topic for discussion among the board.
Discussion
In his committee report, District Five Trustee Dan Militello, chair of the Finance and Administration Committee, said members spent “significant time” reviewing the permissible tax levy.
He reminded the board that last year the committee recommended taking the full tax levy, “but the village board ultimately voted to take only new growth.”
This year, though, the committee on Oct. 26 voted 4-3 (two members were absent) not to request the full levy but only new growth, Militello related, adding that it was a “very passionate, thorough and respectful debate.”
Militello said both last year and now he is in favor of asking for new growth/construction revenue only, adding that some committee members talked about losing future revenue and how the money would be spent responsibly. But at the same time, others expressed concern about rising costs and taxes from other taxing bodies “that will heavily impact Lombard residents.”
He told the board that despite not taking the full levy last year, “We ended the year with a $3.6 million surplus.”
Later, District Three Trustee Bernie Dudek said he was “pretty comfortable” with the proposed budget, but as for the tax levy, “That’s where everything gets complicated for me … To be honest with you I’m sitting on the fence right now.”
He wanted to hear “what everybody else has to say.”
District Four Trustee Patrick Egan said that as a non-home-rule municipality, there are “state-imposed tax limitations” so taking the full levy “helps preserve our revenue needed to maintain services and meet future obligations.”
District One Trustee Brian LaVaque said he agrees with Egan, in part because costs will inevitably increase. There are “a lot of things going on that’s out of anyone’s control … a little different than last year” because more capital projects are in the works for 2027.
“It is the responsible thing to do,” he added.
District Six Trustee Bob Bachner said he also supports asking for the permissible levy, saying he is focused on maintaining infrastructure and funding pensions.
“I’m concerned with the public safety and the pension liability that we still have out there,” he added.
Prior to the votes, Village President Anthony Puccio commented that passing a budget is “probably the most important thing we do here,” and thanked the staff and board for their hard work.
He also said that no matter how the votes went, it is “a very nuanced decision. Either way is a responsible choice. The work that goes into this is not minimized.”
In separate measures, the board unanimously approved the proposed 2027 budget, but the vote for taking the full levy amount was four to one, with Militello voting no.
District Two Trustee Jessica Hammersmith was absent.
Aranas informed meeting viewers that “This is only the first reading,” with the votes on second reading slated to be held at the Nov. 19 meeting.
Visit villageoflombard.org for more details on the proposed budget and tax levy.
