The Homewood Village Board got its first look at the 2025-26 fiscal year budget at the Feb. 25 board meeting.
Director of Finance Amy Zukowski presented the budget plan for the coming fiscal year starting May 1. The budget is divided by various funds, but it is the general fund at $27.8 million that covers the majority of village operations.
Zukowski called the municipal budget the most important annual document prepared for and acted upon by the trustees.
According to Zukowski, the general fund is the main operating source for the village. It includes the financial support to provide services to residents, including police, fire and public works, she said.
For the fiscal year that runs through April 30, 2026, the draft budget is estimated at $27.9 million in general fund revenues and $27.8 million in expenses. With that estimation, the budget should finish with a surplus of $128,876, Zukowski said.
“Over 75% of the general fund revenue comes from various tax sources,” she said, adding, “it is heavily dependent on sales tax revenue, which is nearly 30% or $6.2 million dollars of all taxes collected.”
Employee salaries and health insurance take up over 60% of the budget. This is common among municipalities, Zukowski said.
This will also be Homewood’s first full year where gaming tax revenue will be included and tracked, Zukowski said.
“Since the (Wind Creek Chicago Southland) casino opened in November, we have budgeted just over a million dollars for the next fiscal year,” she said.
The water and sewer fund is financed through water bills, and will not use any village tax dollars to pay for service costs, according to Zukowski.
Tax increment financing (TIF) is a separate fund. There are currently six active TIF districts, and a seventh, the new North Halsted TIF, was approved at the board meeting.
These are important for economic development, and have been “extremely successful,” Zukowski said.
The debt service fund is used for capital improvement projects. The village borrowed $2.6 million dollars with a 3.4% interest rate in September. This short-term borrowing will be repaid through property tax collections annually, she said.
Zukowski said $11.7 million is budgeted for capital funds. This will be funded through general capital funds and bonds, as well as water capital funding sources, she said.
The next step for the 2025-2026 budget draft is a public hearing set for March 11, followed by the board adopting the budget ordinance at its meeting on March 25.
