While summer’s end is still on the horizon, it’s never too soon to start looking ahead. Riverside officials are doing just that as they consider the village’s capital improvement plan for 2027 ahead of the start of the official budget process for the year.
The capital plan has a total cost of about $11.2 million across all of the village’s funds, with about $7.5 million in the water and sewer fund, $1.78 million in the motor fuel tax fund and $1.5 million in street improvements.
A majority of the costs in the water and sewer fund, about $4 million, will be dedicated to leaded water service line replacements, though the project is dependent on Riverside obtaining zero-interest loan funding for the full $4 million price tag from the Illinois Environmental Protection Agency, Village Manager Jessica Frances said on Aug. 20.
Riverside has been earmarked to receive $1 million in capital appropriations from the state’s budget, with half going to bondable capital improvements, $200,000 to lead water line replacements, $200,000 for a renovation of the water tower and $100,000 for infrastructure improvements, Frances said.
“Just because we have an appropriation does not mean it will be immediately released. There have been appropriations that take many, many years to be released at the state level, but we’re very proud of these new appropriations that we received that will help to offset future costs for Riverside residents,” she said.
Frances made note of the increasing surplus of funds that Riverside has in the form of reserves held by the Intergovernmental Risk Management Agency, a nonprofit municipal risk pool that operates like insurance for public entities.
“Last year, we had requested authorization to do a transfer of the excess surplus, but we did not end up doing that. Because of the surplus that was derived at the end of fiscal year 2025, we kept the money at IRMA, and we currently have $2.3 million. We also have, in another fund at IRMA for our optional deductible, $124,245, for a total of $2.445 million available at IRMA,” Frances said.
She said she recommended the village transfer $450,000 from its IRMA reserves to put toward items within the capital improvement plan. She also recommended Riverside in June 2027 issue $1.45 million in limited tax debt, which the village has done every three years, historically.
“It’s debt that we are able to issue beyond our tax caps,” Frances said. “It previously was to fund the repayment of the public works facility. When that was paid off, we started issuing it to pay for various capital. This coincides with that schedule.
“That total funding puts us pretty close to having funding for fiscal years ‘27 and ‘28 for the capital which is listed,” she added.
Frances said the discussion is just the first step in Riverside’s look ahead as the end of the year draws closer.
“Our budget process starts with staff going through the capital needs of the village, then we move to the financial forecast, and staff presents a budget,” she said. “We approve the budget, the budget ordinance, the tax levy ordinance, and then we move right back into the audit process.”
Frances said village trustees will have another chance to review capital items costing less than $25,000 before the 2027 budget is approved. Items that cost more than $25,000 will be presented directly to the village board for further discussion and approval, she said.
