Homewood staff presented a review at the March 24 village board meeting of the proposed fiscal year for May 1 to April 30, 2027, budget. The general fund budget reflects stable finances, rising personnel costs and a projected surplus, according to Finance Director Amy Zukowski.

The general fund, which supports day-to-day municipal services such as police, fire, public works and general government, is expected to bring in about $30.2 million in revenue, a 9% increase from the previous fiscal year, which was $27.9 million. Total general fund expenditures are budgeted at $30.1 million, also a 9% increase. 

Taxes remain the village’s primary source of revenue, accounting for about 76% of the total. Sales tax is projected at $7 million, up $800,000, while income tax sharing from the state is expected to increase slightly to $3.58 million, Zukowski said. 

Some revenue sources are expected to decline. Property tax revenue is projected to decrease by about $339,000 to $2.1 million, as more of the levy is directed toward police and fire pension obligations, she said. 

Cannabis and local gasoline tax revenue is also expected to drop by about $130,000, and use tax revenue is projected to fall by $225,000. The reason for the decrease in cannabis tax is attributed to increased competition, she said. 

“At one point we were the only dispensary in town and now that is no longer the case,” Zukowski said, referring to Windy City Cannabis, which opened in 2015, a year after the state legalized sales.

Other revenues are increasing, including gaming taxes, which are expected to rise by $900,000 to $2 million following a full year of casino operations. Interest income is also projected to increase significantly to $600,000, she said. 

A new non-home rule sales tax, approved in 2025 and effective Jan. 1 is expected to generate $3.5 million. Those funds will be reserved for capital improvements and infrastructure, she said.

Public safety and public works makes up 83% of the general fund spending, which is the largest share. The police department budget is projected to increase about 8%, from $8.34 million to $8.99 million, she said. 

Within the department, spending on criminal investigations is expected to rise significantly, increasing about 80% from roughly $773,585 in 2026 to $1.39 million in 2027. In contrast, patrol services are projected to decrease slightly by about 2%, Zukowski said. 

The fire department and building division budget is also expected to grow, increasing about 11% from $4.43 million to $4.9 million. Public works has a 3% increase, with some additional funding for updated signage throughout the village, she said. 

Personnel-related expenses, including salaries and health insurance, make up about 61% of the budget. Finance and pension costs are projected to rise from $6.17 million to $6.96 million, a 13% increase, she said. 

Overall, the village expects to end the fiscal year with a surplus of approximately $175,935, up from about $158,418 in 2026. The budget reflects a balanced and positive-looking plan, though the general fund may not be able to support capital improvements at the same levels as in recent years, Zukowski said. 

“The fiscal year 2026-27 budget reflects a stable, and very positive outcome for the village,” Homewood Village Manager Napoleon Haney said. 

A public hearing on the budget is scheduled for April 14, with final approval anticipated at the April 28 board meeting, Haney said.