The Village of Homewood’s water and sewer fund is projected to shift from a deficit in 2026 to a surplus in 2027 under the proposed budget presented at the March 24 meeting.
According to Amy Zukowski, Homewood director of finance, the fund is expected to post a $232,227 surplus in 2027, compared with a $204,945 deficit in 2026, as revenues rise faster than expenditures.
Revenue is projected at $8.6 million, up 22% from about $7 million, while expenditures are expected to increase 16% to $8.35 million, Zukowski said.
The revenue increase is driven largely by higher water and sewer service charges, totaling $5.4 million, along with gains in payments from Flossmoor and East Hazel Crest. Flossmoor’s share is projected at $1.7 million, up 10%, while East Hazel Crest’s is expected to rise 35% to $270,000. Sewer sales are also projected to increase 11% to $1.93 million, she said.
According to Zukowski, water acquisition remains the largest expense at $4.16 million, a 16% increase, including $3.8 million for purchased water. Utilities administration costs are projected to rise 30% to $2.49 million, due to higher contracting and consulting services.
Other areas remain relatively the same, with water distribution down 2% to about $720,000 and wastewater collection down 1% to about $480,000. Spending on meters and lift stations is expected to remain consistent at about $501,000, she said.
The water sewer capital fund is projected to decrease from $1.6 million to $750,000, Zukowski said.
The water and sewer fund operates as a self-sustaining enterprise fund, with services funded primarily through user fees rather than tax dollars, she said.
Recently, a water rate study was completed to ensure the fund remains financially stable as infrastructure needs to grow. Planned projects include lead service line replacements, water tower upgrades and ongoing water main improvements, Zukowski said.
The first phase of the lead service line replacement program is expected to begin this summer, with 267 lines planned. The village has applied for a $4.1 million state loan, with about $2.5 million expected to be forgiven, and is seeking additional funding to replace up to 750 lines, she said.
Aging infrastructure has led to more frequent water main breaks and warned that delaying improvements could increase long-term costs. The village is exploring additional funding options, including state programs and potential bond issuance, Zukowski said.
