The village of Homewood is planning approximately $14.1 million in capital spending for the 2026-2027 fiscal year as part of an effort to address about $106 million in long-term infrastructure and facility needs, Homewood Assistant Village Manager Terence Acquah said.
Staff presented an overview of the village’s capital fund in the budget presentation at the March 24 meeting.
“On the capital side, this continues to be our biggest challenge,” Acquah said.
According to Acquah, last year’s capital plan totaled about $65 million for a duration of five years, but after a closer look, that number grew to $106 million.
The proposed capital budget, which includes grant funding already secured or anticipated, prioritizes improvements to public facilities, infrastructure and equipment across multiple departments, he said.
“These are necessary investments to maintain our infrastructure and preserve the quality of life people expect in the Village of Homewood,” Acquah said.
According to a memo to village trustees by Homewood Finance Director Amy Zukowski, nearly $8 million of the total is designated for general capital projects. Funding for those projects will come in part from proceeds of the village’s 2024 general obligation bond, along with transfers from available general fund reserves. Village staff are also exploring leasing options for some high-cost purchases to help manage cash flow.
Additional capital spending is planned within enterprise and dedicated funds. The village has budgeted about $4.5 million in the water and sewer fund, $910,000 in motor fuel tax funds and roughly $610,000 in tax increment financing funds for the upcoming fiscal year, Acquah said.
Among the largest general capital expenses are continued investments in public safety facilities and equipment. Plans call for improvements to police and fire department buildings, including training room upgrades, locker room renovations and replacement of aging infrastructure such as flooring and garage doors, Zukowski said.
The village also plans to invest in fleet and emergency response equipment, including scheduled replacement of vehicles and fire apparatus, as well as upgrades to extraction equipment, Zukowski said.
Facility upgrades extend to village-owned buildings, with funding allocated for roof replacements, heating, ventilation and air conditioning improvements and accessibility-related updates. Technology improvements are also planned, including upgrades to servers, website infrastructure and boardroom audio-visual systems, she said.
According to Zukowski, public infrastructure projects make up a significant portion of the multi-year capital plan. Major projects include street resurfacing, stormwater improvements, traffic signal upgrades and pedestrian improvements along key corridors such as Halsted Street. Additional work includes retaining wall stabilization, parking lot improvements and expanded signage.
In the water and sewer system, capital investments focus on maintaining and upgrading aging infrastructure. Planned projects include sanitary sewer lining, water main and storm sewer improvements, lead service line replacements and upgrades to water treatment facilities and pressure control systems, she said.
Motor fuel tax funds will primarily support ongoing street maintenance and resurfacing, while tax increment financing (TIF) funds will be used for targeted improvements in redevelopment areas. Planned TIF-funded projects include downtown lighting enhancements, parking improvements, pedestrian infrastructure and utility upgrades tied to transit-oriented development areas, Zukowski said.
The recent implementation of a 1% non-home rule sales tax, which took effect Jan. 1, is expected to provide a more stable funding source for capital improvements. The revenue may be used to support direct transfers to the capital fund or to help cover debt service on future bond issuances, she said.
Village staff plan to come back to the board later this summer with a prioritized list in order to align these needs with available funding, Acquah said.
According to Homewood Village Manager Napoleon Haney, the 2026-2027 fiscal budget will officially go before the board for approval at the April 28 meeting.
