The Homewood Village Board on Tuesday approved the transfer of $3.3 million from the village’s General Fund to the Capital Projects Fund to help pay for upcoming infrastructure and capital improvements.

According to Homewood Director of Finance Amy Zukowski, the funding comes from the village’s unassigned fund balance and will support capital projects planned for fiscal year 2026-2027.

The transfer is permitted under the village’s amended Fund Balance Policy, which was approved by the board in September 2023. The policy requires the village to maintain a minimum fund balance equal to five months of operating expenditures. Any funds exceeding that level are considered unrestricted and may be used for several priorities, including capital projects, Zukowski said. 

The village’s fiscal year 2024-2025 audit showed a significant increase in the General Fund balance, making approximately $5 million available beyond the required minimum, she said. 

In December 2025, the board approved allocating $1.6 million of those funds to the village’s police and fire pension funds. The pension funding will be distributed over three years to address a shortfall caused by lower-than-expected property tax collections over the past decade, Zukowski said. 

The $3.3 million transfer will be combined with other capital funding sources. About $2 million in general capital funds will be available as of April 30, 2026, along with roughly $1.2 million in the bond capital project fund, she said. 

According to Zukowski, the additional funding is the result of strong budgeting and auditing practices during the 2024-2025 fiscal year. The village probably will need to identify more consistent funding sources for capital improvements in the future, since significant unassigned fund balances are not expected to be available every year, she said.