Title
FY2026 Budget Amendment #2
History
Budget Amendment #2 updates multiple Village funds to align the FY2026 budget with current grant awards, redevelopment financing activity, capital project needs, and internal staffing reallocations. These adjustments include revenue and expenditure changes that maintain stable operations while ensuring appropriations accurately reflect ongoing program requirements.
As several development initiatives continue to advance, a third amendment may be necessary later this year. Staff will continue monitoring spending and revenue trends and will recommend additional adjustments if warranted.
Adjustment to General Fund Revenues
-Strong Sales Tax Performance
The Village is experiencing a $2.5 million increase in general sales tax revenue, driven largely by the community’s strengthened economic environment and improved public perception. Based on feedback received from businesses, residents, and community stakeholders, this growth reflects:
-A significant reduction in the prior cycle of continuous negative publicity.
-A visible increase in public safety presence and performance.
-High operational and community standards.
-A renewed, proactive “open for business” approach attracting commercial activity.
These improvements have contributed directly to more organic consumer spending and strengthened trust in the Village’s commercial corridors.
-Grocery Tax Transition
Following the State of Illinois’ elimination of the grocery tax, staff analyzed expected impacts on the Village’s sales tax base. Initial baselines projected a shift of $4.0-$4.5 million. The adopted FY2026 budget reduced the general sales tax line by $4.0 million and established a separate grocery tax revenue line of equal value. After three months of actual receipts showing a stable baseline of approximately $300,000 per month, the revised year‑end grocery tax projection is now $3.5 million.
-Intergovernmental Facility Use Revenue
During final budget adoption, the Village entered an agreement with Tinley Park establishing monthly payments for use of the new Range/EOC facility. Because this revenue was not included during the original budget process, it is now added through this amendment. The total also includes an annual payment from the Village of Manhattan, which recently joined the facility program.
Adjustment to Federal Forfeiture Spending
Staff requests increased expenditure authority from the Federal Forfeiture Fund to support Police Department operational needs. This adjustment aligns authorized spending with FY2025 forfeiture revenues and ensures fund balances remain stable while supporting tactical readiness, equipment modernization, and safety enhancements-without impacting local taxpayers or general fund resources.
Consulting - Gallup Q12
On June 15, 2026, the Village Board approved a three-year Gallup Q12 employee‑engagement program. This amendment adds the Year 1 consulting cost of $60,000 to the General Fund in alignment with the approved contract.
ClearGov Reporting Software
This amendment incorporates initial funding for the financial reporting software adopted in Spring 2026. ClearGov will automate ACFR production, support transparency initiatives such as PAFR and quarterly reporting, and enhance Board-facing financial metrics.
Borrowing
Consistent with the previously approved debt parameters ordinance and the Village’s Five‑Year Financial Plan, this amendment aligns project baselines with approximately $21.3 million in borrowing. Nearly all corresponding
proceeds have already been issued (February 2026). No new debt is created through this amendment.
Traffic Enforcement Overtime
To address community concerns regarding speeding and vehicle noise, targeted overtime enforcement continues through year-end. While increasing payroll expenses, fine revenue is expected to largely offset overtime costs. The initiative’s primary objective remains improving public safety and compliance.
Sub‑Area Development Study
This amendment reflects the partnership with Houseal Lavigne to prepare development plans for four major districts, following a competitive proposal process. Their planning expertise supports strong community engagement and high-quality deliverables.
SDK Geospatial AI
This amendment adds funding for Urban SDK’s mobility data platform, allowing the Village to transition from manual traffic counts to continuous, high‑resolution, real‑world performance metrics that support engineering, planning, grant funding, and public safety.
Reallocation of Salaries
Salary allocations for the new EMA Division are corrected through this amendment, shifting previously split police/ESDA positions into the proper EMA budget.
Creation of EMA Operating Budget
This amendment finalizes EMA operational needs now that staffing is in place. Part‑time wage projections were reduced by $181,000, enabling reallocation toward required operating lines.
Special Events Coordinator Reallocation
The Recreation & Parks Department has identified an operational need for another Special Events Coordinator, and rather than requesting a new part-time position, they are reallocating an existing one by moving the position from Recreation Administration to the Special Recreation division.
Electric Vehicle for Water Department
Following the successful EV dump truck grant award, this amendment incorporates the first $360,870 tranche of the vehicle’s build cost, with the second tranche and grant revenue planned for FY2027.
Ravinia Extension, Dicks House of Sport, and Riviera Acquisition
This amendment authorizes spending bond proceeds for these redevelopment projects and property acquisition. Spending levels reflect anticipated project timelines and reimbursement requirements.
Downtown Orland Park Cost Consultant Services
A $41,500 amendment is requested for cost consulting services from The Concord Group, along with additional SB Friedman consulting, to ensure compliance and protect the Village’s fiscal interests.
Reallocation of Engineering Services
Due to the resignation of an engineer, funds previously allocated for personnel are reallocated to contracted engineering services, with no net increase in spending.
Mobile Generator Purchase
A budget amendment is requested for up to $778,800 to purchase an 800kW mobile generator to ensure reliable backup power for mission-critical facilities following recent severe weather events.
Emergency Tree Services
A $1,400,000 amendment is requested to fund storm cleanup contracts for the July 27 and August 10 tornado events and to ensure resources are available for any additional incidents through year-end. The Village is pursuing federal reimbursement.
Special Events / Taste of Orland Expenses
A $199,605 amendment is requested for expanded recreation event and operational costs, partially offset by internal savings and the successful under-budget performance of Taste of Orland.
America 250 Expenses
A $30,025 amendment supports unbudgeted America250 and 9/11 commemoration programming.
Senior Programming Expenses
A $23,620 amendment funds new senior programs, excursions, theater outings, and marketing for the Q4 Senior Speaker Series.
Centennial Dugouts Renovation
A $389,478 amendment is requested to cover 2026 costs for the multi-year Centennial Dugouts renovation project, which now totals $2,973,695 due to necessary infrastructure improvements.
Officials Department
Spending adjustments reflect expanded outreach efforts and the creation of a dedicated line item to track community engagement activities.
Legal Services
An additional $370,000 is necessary to maintain uninterrupted legal representation amid active litigation and complex development activity, ensuring continued protections for the Village’s interests.
PIO Support Consulting Services
This year, the Village formally established a Police Department Public Information Officer (PIO) position to strengthen transparency, crisis communication, and public safety messaging. Through its issued RFP for PIO Support Services, the Village is finalizing a consultant to develop a comprehensive PIO Manual, provide initial staff training, and deliver on‑demand communications support for both routine and emergency incidents. These services will supplement the newly formed PIO function and ensure continuity as the Village builds its internal communications capacity.
Addition of a Second Assistant Public Works Director
The addition of a second APWD will stabilize operations, support staff development, strengthen accountability, and ensure uninterrupted public service.
Additional Code Enforcement Positions
The Police Department’s Code Enforcement Division plays a critical role in proactive policing by addressing property maintenance, nuisance conditions, and neighborhood standards that directly protect public safety and preserve a high quality of life. Following workload findings presented during a recent review, a restructuring plan establishes an Administrative Assistant position to free field time, promotes key personnel, and adds two new Code Enforcement Officers-including one dedicated to landscaping compliance in coordination with Development Services. This amendment funds these staffing enhancements and necessary startup equipment to strengthen proactive enforcement, improve responsiveness, and support the Village’s continued commitment to maintaining high community standards.
Inspector and Engineer Positions
Position changes within Engineering and Development Services were absorbed within existing budgets; no amendment is required.
Financial Impact
A revised spreadsheet of revenues, expenditures, and changes in fund balance is attached. All fund impacts associated with the amendments above are incorporated into the updated FY2026 figures.
Recommended Action/Motion
I move to recommend to the Village Board approving a Budget Amendment #2, reflecting adjustments across multiple Village funds to align the FY2026 budget with updated grant awards, redevelopment financing activity, capital project needs, and internal staffing reallocations, resulting in the fund expense and revenue changes as presented.