North Aurora officials lay out 2026 budget; warn of rising health-insurance and water-system costs

The Village of North Aurora Committee of the Whole received an initial review of the 2026 budget on March 2, with staff flagging rising personnel costs, steep health-insurance increases and major water-system capital needs that could affect future rates.

Jason, a village staff member who presented the overview, said personnel costs will include pay adjustments effective June 1 — public works and police sergeants 3.25%, police officers 4.5% and non-union employees 3.0% — and projected a blended retirement (IMRF) budget assumption of about 10.28% after factoring a possible IMRF increase to 11%. He told the board that health-insurance premiums are a “major budget pressure,” reporting that “HMO is up 19.7%” and that high-deductible plans are “up 21.7%.”

To improve operations without increasing net headcount, staff proposed creating a Public Works Operations Assistant by reallocating existing positions: moving the utility-billing specialist into public works, backfilling the utility role at the front desk, and converting a part-time accounting assistant to full time — a net increase of roughly 0.3 FTE in the budget. Jason said the position would centralize resident communications, training schedules, records and EPA-related tasks.

On debt and capital, Jason said the village carries about $15.7 million in outstanding bonds and expects roughly $1.7 million in principal and interest next year. He said the village awaits decisions on potential low- or no-interest EPA loans for water capital projects (not yet awarded) and may need alternate revenue bonds if grants are not approved.

The water fund drew particular attention: Jason said the water-master plan is concluding and will inform future rate recommendations but warned of large long-term needs. “Over the next 25 years we have an estimated $100 to $125 million worth of upgrades that have to go into the system,” he said, adding that an IEPA-required corrosion-control study (roughly $450,000 capital and about $50,000 annual operating costs thereafter) is mandatory even if all lead service lines are removed.

Other budget notes included projected general-fund revenue of about $7.5 million (sales tax remaining the largest revenue source, up roughly $150,000 or 2% year over year), continued capital spending such as a $2.1 million 2026 road program, a veterans memorial phase one carryover (~$700,000), and vehicle and equipment requests (three outfitted police squads, water truck, audio-visual upgrades).

Jason also summarized TIF activity, saying the Route 31 TIF is scheduled for dissolution later this year and staff will recommend an ordinance to close it; United TIF revenue was projected at about $1.6 million with significant rebate and project set-asides.

The draft budget will be posted before the March 6 meeting for public review. Staff plans deeper departmental presentations at committee meetings in April, a public hearing on April 20 and final adoption at the May 4 meeting if the schedule holds.

The Committee permitted the presentation to conclude without a vote on the budget itself; the board will return for further review and potential amendments as numbers and grant decisions are finalized.