Agenda & Packet

The Village of Kenilworth is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeting or who have questions regarding the accessibility of the meeting or the facilities are requested to contact the Village at 847-251-1666 promptly to allow the Village to make reasonable accommodations for those persons. Notice of Special Meeting There will be a special meeting of the Finance Committee at Village Hall, 419 Richmond Road; Kenilworth IL on Monday, August 31, 2026 at 4:00 p.m. The public may attend in person or by utilizing the following link: TEAMS MEETING LINK If you do not have access to a computer, you may attend via telephone: +1 872 242 8055 Meeting ID: 921 517 802# Finance Committee Special Meeting Agenda August 31, 2026 at 4:00 p.m. I. Call to Order / Roll Call II. Approval of Minutes A. Finance Committee – April 30, 2026 III. Regular Business A. Presentation and Discussion Concerning the Ongoing Water & Sewer Rate Study B. Six-Month Financial Review IV. Business from the Public V. Adjourn Village of 1 Village of Kenilworth Finance Committee 1 April 30, 2026 VILLAGE OF 1 2 KENILWORTH, IL 3 Finance Committee 4 Special Meeting Minutes of 5 April 30, 2026 at 4:00 p.m. 6 7 I. CALL TO ORDER 8 Chair Gottschall called to order the Special Meeting of the Finance Committee of the Kenilworth 9 Village Board in the Kenilworth Village Hall, Kenilworth, Illinois at 4:05 p.m. on April 30, 2026. 10 11 ROLL CALL 12 Chair Gottschall requested that Management Analyst Jordan Schmidt call the roll: 13 14 Members: 15 Trustee Joe Vitu Present 16 Trustee Tim Ransford Present (Arrived at 4:11 p.m.) 17 Chair John Gottschall Present 18 President Cecily Kaz Present 19 20 Members not present: 21 None 22 23 A quorum was present. 24 25 Others Recorded as in Attendance: 26 Village Officials and Staff: 27 Kathy Thake Village Manager 28 Heather McFarland Assistant to the Village Manager 29 Donald Leicht Public Works Superintedent 30 Jordan Schmidt Management Analyst 31 Kathleen Morley Lauterbach & Amen, Village Accountant 32 33 Public Signing-in 34 Allen Rauth (Ezee Fiber) 35 Gregory Thomas (Ezee Fiber) 36 37 2 Village of Kenilworth Finance Committee 2 April 30, 2026 II. APPROVAL OF MINUTES 38 39 Chair Gottchall asked if there were any questions or comments regarding the following minutes: 40 41 A. Finance Committee – August 14, 2025 42 43 Hearing no such request, Trustee Vitu made a motion to approve the minutes as presented. Chair 44 Gottschall offered a second to the motion. 45 46 A roll call vote was taken as follows: 47 48 For: Gottschall, Vitu 49 Opposed: None 50 Absent: Ransford 51 52 The roll call tally was two votes in favor, and none opposed. Chair Gottschall declared the 53 minutes were approved. 54 55 III. REGULAR SCHEDULED BUSINESS 56 57 A. Presentation and Consideration of a Resolution Authorizing the Village Manager to 58 Execute a Right-of-Way License Agreement with Ezee Fiber Texas, LLC, of Houston, Texas 59 for Residential Fiber Installation 60 Village Manager Kathy Thake introduced the item and provided an overview of the request. Ms. 61 Thake explained the license agreement would allow Ezee fiber to install fiber in Village Right-of-62 Ways, providing residents an additional internet provider option. Ms. Thake further explained the 63 plans for equipmenet in the Village, which did not include any large above ground cabinets, but 64 there would be a significant amount of underground vaults. Finally, Ms. Thake explained that as 65 part of the agreement, the Village had secured free fiber for Village facilities, as well as for the Park 66 District and School District. 67 Next, Ms. Thake introduced Allen Rauth and Gregory Thomas, representatives from Ezee Fiber, who 68 provided a presentation on their company and approach. Mr. Thomas provided additional details to 69 the company history, overview of services offered, and communication plan. The Committee 70 members asked questions regarding the location and depth of the cable and number of 71 underground vaults that would be installed. Mr. Thomas provided answers to the questions. The 72 Committee asked additional questions on the appearance of the vaults, and stressed the 73 importance of trees in the Village, and working around parkway trees. 74 The Committee was supportive of fiber in general and allowing a new company in te Village to 75 provide additional alterantives for residents, however was concerned about the frequency and 76 appearance of underground vaults, and what that would look like if additional companies 77 requested to work in the Village as well. The Committee members requested additional information 78 from staff to assist with the discussion when it goes before the Village Board, including information 79 on what providers are available in other nearby communities, areas where installation in the 80 parkway wouldn’t make sense, and information on the appearance and frequency of existing 81 underground vaults in the Village. 82 3 Village of Kenilworth Finance Committee 3 April 30, 2026 Hearing no additional discussion Trustee Ransford made a motion to recommend approval of the 83 agreement pending additional information from staff on the requested information. Trustee Vitu 84 seconded the motion. 85 A roll call vote was taken as follows: 86 For: Gottschall, Vitu, Ransford 87 Opposed: None 88 89 The roll call tally was three votes in favor, and none opposed. Chair Gottschall declared the 90 motion approved. 91 92 B. Discussion and Recommendation Concerning the Approval of an Agreemenbt with 93 NewGen Strategies & Solutions in the Amount of $24,000 to complete a Water & Sewer 94 Rate Study 95 Management Analyst Jordan Schmidt introduced the next item. Mr. Schmidt explained the need for 96 the study, including ongoing significant water infrastructure projects, and the need to ensure rates 97 are able to fund those projects and maintain ongoing operating expenses. Mr. Schmidt next 98 explained the proposal process, and how NewGen was identified as the preferred firm. Finally Mr. 99 Schmidt explained the timeline of the project, including how it is anticipated to be completed in 100 time for consideration during the budget process. 101 The Committee asked clairifying questions on the scope of the project. Mr. Schmidt provided 102 responses. Hearing no additional discussion Trustee Vitu made a motion to recommend approval of 103 the agreement. Trustee Ransford seconded the motion. 104 A roll call vote was taken as follows: 105 For: Gottschall, Vitu, Ransford 106 Opposed: None 107 108 The roll call tally was three votes in favor, and none opposed. Chair Gottschall declared the 109 motion approved. 110 BUSINESS FROM THE PUBLIC 111 Chair Gottschall asked if any members of the public had any questions. With no member of the 112 public posing questions, Chair Gottschall called the next item on the agenda. 113 114 C. ADJOURN 115 116 Chair Gottschall asked if there was any further business to discuss. Hearing none, he stated that he 117 would entertain a motion to adjourn the meeting. Trustee Vitu made a motion to adjourn the 118 meeting. Trustee Ransford seconded the motion. 119 120 A voice vote was taken as follows: 121 122 For: All 123 Opposed: None 124 125 4 Village of Kenilworth Finance Committee 4 April 30, 2026 The roll call tally was three votes in favor, and none opposed. Chair Gottschall declared the 126 meeting adjourned at 5:11 P.M. 127 Respectfully Submitted, 128 129 Jordan Schmidt 130 Management Analyst 131 5 Request for Committee Action Agenda Item: III.A Staff Contact: Jordan Schmidt, Administration Heather McFarland, Administration Subject: Presentation and Discussion Concerning the Ongoing Water & Sewer Rate Study Summary: As part of the FY2026 Budget, the Village Board identified the completion of a comprehensive water and sewer rate study as a budget initiative. At the May 18, 2026 Village Board meeting, the Board authorized the study to be completed by NewGen Strategies & Solutions. With the study underway and preliminary review and recommendations nearing completion, staff recommends the Committee review the current analysis and recommendations, and provide feedback on several key policy questions. Background of Matter: In preparation for the FY2026 budget, staff recommended the inclusion of a water and sewer rate study. The last time the Village updated its water and sewer rates was 2016. Water rates are the main source of revenue for the water fund, which is the main source of funding for water-related infrastructure projects (e.g. water main replacements). With several significant water related infrastructure projects expected in the next 10 years, including continued water main replacements, lead service line replacements, and water meter replacements, a professional analysis of water and sewer rates is needed to ensure the water and sewer funds can adequately support themselves. The goal of having a professional analysis completed is to ensure any proposed rate changes are done so transparently, equitably, and that the Village can support the continued operation and maintenance of the Village water system. After authorization was received in May, the Village began working with NewGen to complete the study. To guide the work, the study was given the following key objectives: • Cost recovery in operating and capital budgets • Rate structure or fee recommendations to facilitate capital infrastructure investment which incorporates the following: o Replacement of lead service lines in accordance with the specified timelines of Federal and State Legislation. o Completion of an identified 10-year Capital Improvement Plan for Water Mains. o Replacement of all water meters in the Village. o Water and Sewer Fund adherence to the Village Fund Balance Policy (Four months of operating expenses) With a preliminary review of the Village’s data complete, several key policy questions remain. Staff is seeking Committee feedback to help guide the development of the recommended rate plan. To help guide the discussion, NewGen will present their analysis, and several key topics, including a review of financial forecasts at current rates, capital improvement plan funding scenarios, rate increase scenarios, customer bill impacts, and regional bill comparison. Considered By: Date: Finance Committee Village Board Finance Committee 08/31/26 05/18/26 04/30/26 Village of 6 Important to the overall consideration of the study are the ongoing and potential upcoming water and sewer infrastructure projects. Over the next 10 years, the Village has an estimated $10.9 million in identified capital projects. These are largely water main replacement projects, as identified from a water distribution analysis of our system completed in 2018. Key projects include the following: • Water Main Replacement – Abingdon/Robsart/Tudor (Est. $1.9M) • Water Main Replacement – Green Bay Road (Est. $2M)* • Water Main Replacement – Ridge Road (Est. 1.9M) • Village Wide Water Meter Replacement (Est. $540K) *The TIF Fund (Fund 14) may absorb some costs for projects located in the TIF area. It is important to note that the cost figures provided above are current estimates, and are subject to change. The rate study factors in an annual 3.7% inflation increase to the current estimated project costs. In addition to this larger one-time cost, the Village also recently adopted a Lead Service Line Cost Sharing Program to help incentivize the replacement of lead lines. While not an exorbitant annual cost, this program is anticipated to be a new ongoing annual cost, currently estimated to be $90,000/year for the next 15 plus years for an approximate total program cost of $1.3 million. NewGen’s proposed rate plans factor in the total funding needs over the next ten years. Policy Questions System Improvement Fee All water customers in the Village receive a water bill approximately every 120 days. Included on the bill is a water usage charge, sewer usage charge, as well as a system improvement fee. The system improvement fee is $105, meaning each customer pays $315 annually for the fee. The fee was last modified in 2019, when it was decreased by $10 from $115, where it had been for nine years, when it was increased from $50 to $115 in 2010. The system improvement fee has been used to cover the Water Fund’s annual debt service payment since 2010. The 2015A bond is currently the only debt associated with the water fund, and the last payment is scheduled to take place in 2030. The system improvement fee is an important consideration for the water and sewer rate study, as it’s continued charge could be an additional revenue source for the Water Fund, or could continue to be used for bond payments, should the Board have interest in issuing additional debt to cover water related projects, without directly impacting property taxes. Debt Issuance Related to the system improvement fee question is how the Village should fund future water related capital expenditures: fund balance, debt service, or a combination of the two. To fund projects through available fund balance, the Village would need to wait several years to allow for the fund to grow enough to fund a capital project, while still maintaining enough in reserves to meet the fund balance policy (33-42% of operating expenses). As of the end of 2025, the water fund had an audited fund balance of $811,274. 7 Over the past six years, the water fund has experienced an increase in fund balance in four years. The two years that experienced a deficit were related to the completion of water main projects. On average, in the years that experienced a surplus, the water fund increased approximately by $127,000. If that trend continues it would take approximately 7-8 years to build reserves to a point where they could fund a $1,000,000 project. However, with increasing operational cost, at the current rates, it could take even longer. Alternatively, the Village could explore the use of bonds and debt to help fund future capital projects. Over the past several years, the Village has used bonds to fund several projects, including Green Streets Phase I and II, Sterling Road water main replacement, Brier/Maclean/Park water main replacement, and most recently the Beach Improvement Project. A specific bond issuance is not on the table currently, instead, staff are seeking feedback from the Committee on their appetite towards using debt in addition to a rate increase to fund future capital projects as it relates to the water and sewer rate study. If the Committee is not interested in utilizing bonds, to adequately build reserves to a point to fund capital projects a larger rate increase would be required. Conversely, the use of bonds could offset larger rate increases, allowing for smaller increases. Tying it all together, the three potential funding sources (1) Water Rate Increases, (2) System Improvement Fee, and (3) Bond Revenue all go hand-in-hand. At this time, some level of rate increase is recommended to ensure the water fund continues to operate at a surplus while operating costs continue to increase. What level of increase is largely dependent on the overall funding plan to complete anticipated capital projects, whether that be solely rate increases, or a combination of rate increases, bonds and the system improvement fee. Financial Impact: Any recommended changes to the water and sewer rate structure would result in impacts to the water and sewer fund. Recommendation: Staff recommends that the Finance Committee draft materials and provide feedback on the policy questions. Attachment: 8 Request for Committee Action Agenda Item: III.B Staff Contact: Kathleen Morley, Lauterbach & Amen Katarzyna Thake, Village Manager Jordan Schmidt, Management Analyst Subject: Six-Month Financial Review Summary: At its November 17, 2025 meeting, the Village Board adopted the FY2026 budget, effective January 1, 2026. Staff wanted to provide an overview of the FY2026 budget and Village’s current finances. At the six-month mark, the budget is in good standing, with general fund revenues slightly outpacing expenditures. At this time, the budget is still expected to produce a surplus. No action is required from the Committee on this matter. Background of Matter: At its November 18, 2024 meeting, the Village Board adopted the FY2025 budget, which took effect on January 1, 2025. Now past the mid-year mark, staff reports indicate the budget remains in good standing. General Fund revenues total $3,721,462 (63% of budget), slightly outpacing expenditures of $2,421,272 (42% of budget). This positive performance is largely attributed to property tax, state sales tax and building permit revenue. Departmental spending is generally in line with expectations. While support services and building and grounds are trending over 60% of the budget, this is offset by lower-than-expected costs in the administration and street light departments. The Police and Public Safety Department continues to represent the Village’s largest expenditure, primarily due to personnel costs. Beyond the General Fund, the Village maintains seven additional funds, all of which are in good standing and on track with 2026 goals. No action is required from the Committee at this time. Financial Impact: None Recommendation: None Attachment: 6-Month Financial Overview Considered By: Date: Finance Committee 08/31/26 Village of 9 V I L L A G E O F K E N I L W O R T H , I L L I N O I S Six-Month 2026 Financial Overview Fiscal year January 1 – December 31, 2026 · Results thro ugh June 30, 2026. This report has been complied by the Finance Department representatives with input from staff. The Village's financial resources are accounted for in various Funds. The General Fund is the general operating fund of the Village. It is used to support all day-to-day activities and those that are not accounted for in another fund. The unrestricted fund balance target should represent no less than 55% to 70% of operating expenditures. Balances above the target amount may be transferred to other funds or invested in capital projects at the Board's discretion. Year-to-date figures are drawn from the trial balance as of June 30, 2026. Fund balances shown as of January 1, 2026 are the audited balances reported in the Village's Annual Comprehensive Financial Report for the year ended December 31, 2025. Budget figures are from the FY2026 Adopted Budget approved November 17, 2025. General Fund Summary F U N D 0 1 — G E N E R A L F U N D ACTIVITY THRU 06/30/26 FY2026 BUDGET REMAINING $ BALANCE % USED R E V E N U E Property Tax Levy + Police Pension 2,078,895 3,665 ,965 1,587,070 5 7% Replacement Tax 25,509 52,613 27,104 48% State Sales Tax 331,600 207,000 (124,600) 160% State Income Tax 264,328 453,023 188,695 58% Local Use Tax 10,994 9,402 (1,592) 117% Consumption Tax 2,073 4,048 1,975 51% Utility Tax (ComEd, Nicor, telecom) 134,371 200,000 65,629 67% Permits — Building 439,410 524,950 85,540 84% Antenna Lease Fees 95,985 193,229 97,244 50% All Other Revenue (licenses, fines, refuse, interest, beach, grants) 338,297 601,825 263,528 56% Total Revenue 3,721,462 5,912,055 2,190,593 63 % 10 F U N D 0 1 — G E N E R A L F U N D ACTIVITY THRU 06/30/26 FY2026 BUDGET REMAINING $ BALANCE % USED E X P E N D I T U R E S Administration 407,703 1,140,895 733,192 36% Support Services 167,907 236,341 68,434 71% Buildings & Grounds 46,237 71,046 24,809 65% Streets 215,145 422,977 207,832 51% Waste Removal 54,555 106,231 51,676 51% Forestry 41,183 74,700 33,517 55% Street Lights 15,823 50,989 35,166 31% Beach 4,507 71,538 67,031 6% Police † 1,213,986 3,056,649 1,842,663 40 % Fire 254,226 510,562 256,336 50% Total Expenditures 2,421,272 5,741,928 3,320,656 42 % Operating Net Income (Loss) 1,300,190 170,127 — — Audited Beginning Fund Balance 01/01/26 5,846,588 5,846,588 — — Operating Net Income (Loss) 1,300,190 170,127 — — Unaudited Ending Fund Balance 7,146,778 6,016,715 — — † The FY2026 Police budget includes $790,084 for the Village's annual contribution to the Police Pension Fund — a $770,084 transfer of levy funds (01-900-4050) plus an anticipated $20,000 supplemental transfer (01-900-4051). Through June 30, $414,886 of the levy transfer had been recorded, matching police pension levy collections to date. Excluding pension transfers, Police operating spending of $799,100 is tracking at 35% of the $2,266,565 non-pension budget. The FY2026 Adopted Budget also includes a $200,000 transfer from the General Fund to the Capital Projects Fund, reported within Administration expenditures; this transfer had not been made as of June 30. 11 General Fund Revenue (Fund 1) In fiscal year 2026, at the end of the second quarter, General Fund revenues total $3,721,462, or 63% of budget. Operating revenue is primarily made up of State Income Tax, Sales Tax, Use Tax, Utility Taxes, Building Permit Fees, Property Taxes and Interest Income. The chart below indicates the relative portion of General Fund revenue by source compared to the current year budget. As of June 30, 2026, total major revenue sources are at $3,285,107 vs. budget revenue of $5,112,953, a budgeted variance of 64%. The top three operating revenues are property tax, building permits and state sales tax. The property tax receipts are for the 2025 tax year, but also include some 2024 due to delayed tax receipts. Recently, the Cook County Clerk posted the final numbers for the 2025 levy, which came in at $3,666,015. Remarkably, the figure is within $1,000 of the budget approved in December of 2025. State sales tax is at 160% of budget at the half-year mark, reflecting receipts from the Village's sales tax and non-home-rule sales tax combined against a conservatively set $207,000 annual budget. Building permits are at 84% of a budget that was deliberately reduced from FY2025 levels in anticipation of declining large-project activity. Interest income of $107,273 is recorded within All Other Revenue. 12 General Fund Expenditures (Fund 1) In fiscal year 2026, at the end of the second quarter, General Fund expenditures total $2,421,272, or 42% of budget. The General Fund is made up of ten departments, which help support and provide a variety of services to the Village of Kenilworth. Services include street maintenance, snow removal, public safety, waste management and beach operations. The chart below indicates the relative portion of General Fund expenditures by department compared to the current year budget. Support Services (71%) and Buildings & Grounds (65%) are running ahead of the half-year mark. Support Services reflects annual general liability and workers' compensation insurance premiums of $122,959 paid in full at the start of the year. These are offset by Beach (6%) and Street Lights (31%), which are well under the expected pace. However, beach staff payroll will not be fully realized due to the delayed beach season. The Police and Fire departments remain the most prominent expenditure for the Village at 62% of the General Fund budget combined and are primarily made up of personnel costs. The FY2026 budget included a 3.5% cost-of-living adjustment for all employees plus merit increases for exempt staff. 13 Lake Front Project (Fund 28) The 2024A Bond / Lake Front Project Fund (Fund 28) was established in fiscal year 2024 and operates as a capital fund on the Village's books. It is supported by bond proceeds, Village contributions, donations and interest, all directed to the Lake Front Shoreline Project. Phase One and Phase Two were funded by General Obligation bonds, interest earned on bond proceeds, and a $6.5 million transfer from General Fund reserves, Fund 23 and Fund 27. Gifts and contributions from the Fall 2025 fundraising effort were accepted through April 1, 2026. F U N D 2 8 — 2 0 2 4 A BO N D / L A KE F R O N T P R O J E C T ACTIVITY THRU 06/30/26 FY2026 BUDGET % USED Interest Income 106,967 25,000 428% Gifts & Contributions 159,689 — 100% Total Revenue 266,656 25,000 439% Professional Services – Architectural Service, Misc. Exp. 66,624 180,600 37% Building Improvements — Phase Two Construction 3,064,145 3,331,638 92% Total Expenditures 3,130,769 3,512,238 89% Audited Beginning Fund Balance 01/01/26 6,560,731 6,560,731 — Net Revenue / (Expenditures) (2,864,113) (3,487,238) — Unaudited Ending Fund Balance 3,696,618 3,073,493 — Phase Two construction accelerated sharply in the first half of 2026: $3,064,145 in building improvements was recorded through June 30, or 92% of the full-year budget. Interest income of $106,967 already exceeds the $25,000 annual budget. Gifts and donations crossed over FY25-26, as the fundraising campaign came to an end in April 2026. The prior year's expenditures were below budget by $2.7 million due to weather-related project delays. The Adopted FY2026 Budget was drafted prior to the weather delays. As a result, much of the work budgeted for FY2025 was pushed into FY 2026. By the end of the current fiscal year, it is anticipated that the fund balance will be near $1M, as we expect the project to wrap up in the next few weeks. 14 All Other Funds Other major governmental funds are the Debt Service Fund, the Capital Projects Fund and the 2024A Bond / Lake Front Project Fund. Non-major governmental funds are the Sewer Service Fund, the Motor Fuel Tax Fund and the Green Bay Road TIF Fund. The KW 2023 Capital Infrastructure Fund was closed out during fiscal year 2025; a residual $832 of interest remains to be swept. Finally, the Water Fund is a proprietary fund, which means it performs business-type activities and operations. A L L F U N D S U M M A R Y AUDITED BALANCE 01/01/26 YTD REVENUE YTD EXPENDITURES BALANCE 06/30/26 PROJECTED 12/31/26 01 — General Fund 5,846,588 3,721,462 2,421,272 7,1 46,778 5,766,715 02 — Sewer Service 557,497 48,079 34,925 570,651 551,153 06 — Motor Fuel Tax 637,051 71,545 — 708,596 746,891 14 — Green Bay Road TIF 2,056,373 84,307 41,217 2,099,463 1,695,773 26 — Debt Service (105,836) 1,037,630 276,765 655,029 63,439 27 — Capital Projects 2,682,311 53,249 61,915 2,673,645 2,832,541 28 — 2024A Bond / Lake Front (Full details outlined on previous page) 6,560,731 266,656 3,130,769 3,539,670 1,073,493 Total — Governmental Funds 18,234,715 5,282,928 5,9 66,863 17,550,780 12,730,005 35 — Water * 811,274 423,262 302,475 932,061 860,435 * Water Fund is shown on the Village's budgetary basis, consistent with prior six-month reviews. The audited GAAP net position of the Waterworks System Fund at December 31, 2025 was $11,906,188, which includes capital assets net of depreciation. The $811,274 beginning figure is per Finance's working schedule. Governmental fund totals exclude the Water Fund. Projected 12/31/26 balances apply the FY2026 Adopted Budget to the audited beginning balances and are adjusted based on current estimates. 15 Cash and Investments by Fund Balances below are total cash and investments against the June 30, 2026 trial balance — checking, payroll, petty cash, money market and IPTIP investment accounts — with June 30, 2025 shown for comparison. The Police Pension Fund and agency accounts are excluded. F U N D A T 6 / 3 0 / 2 0 2 5 A T 6 / 3 0 / 2 0 2 6 C H A N G E 01 — General Fund 6,936,214 6,613,419 (322,795) 02 — Sewer Service Fund 501,244 544,948 43,704 06 — Motor Fuel Tax Fund 830,969 698,417 (132,552) 14 — Green Bay Road TIF Fund 1,854,384 2,108,848 25 4,464 23 — KW 2023 Capital Fund (closed FY25) 1,161,947 — (1,161,947) 26 — Debt Service Fund 627,254 655,029 27,775 27 — Capital Projects Fund 5,583,445 2,671,505 (2,911,940) 28 — 2024A Bond / Lake Front Fund 909,251 3,836,148 2,926,897 35 — Water Fund 822,395 925,717 103,322 Total — All Funds 19,227,103 18,054,031 (1,173,072) The shifts among Funds 23, 27 and 28 since June 2025 principally reflect the fund transfers implemented following the FY2025 six- month review and Lake Front Phase Two construction activity. 16 Fund Highlights at the Six Months Debt Service (Fund 26) received $1,035,469 of its $1,778,000 property tax levy in the first half — 58% of the annual levy — while paying only $276,765 in interest. Principal payments of approximately $2.11 million are due later in the year. The fund began FY2026 in a $105,836 deficit, due to the delay of prior year property tax distributions. Prior year taxes have been paid, but now the county is anticipating another delay in property taxes, which could impact projected fund balances at year end. Green Bay Road TIF (Fund 14) has already collected $84,307, or 34% of its annual revenue budget, of which $38,329 is interest income. Expenditures of $41,217 represent only 7% of the $610,600 budget, with the budget $375,000 Green Bay Corridor Phase I engineering effort largely still ahead over a two-year period ($432,000 total contract split 70/30% between Kenilworth and Winnetka). A $15,000 façade improvement grant expenditure and $15,822 of street improvements expenditure have been recorded. Motor Fuel Tax (Fund 06) received $56,764 in allotments and $14,781 in interest, with no expenditures, consistent with the plan to build fund balance for larger roadway projects in future years. Water (Fund 35) revenues of $423,262 are at 39% of budget and expenses of $302,475 are at 29%, producing net income of $120,787 for six months. Capital Projects (Fund 27) has spent $61,915 against a $514,770 budget, with the ERP cloud migration ($27,547 in software) and IT equipment ($17,143) the largest items. The $390,000 bond issuance and $200,000 General Fund transfer budgeted as revenue had not yet occurred at June 30. Staff anticipate awarding the road project budgeted in the amount $136,000, in late August with work expected to be completed in the Fall. Audited Results v. Budget Assumptions The FY2026 budget was adopted in November 2025 using estimated year-end balances. The audit produced meaningfully stronger results in most funds. The table below reconciles the two starting points. F U N D FY26 BUDGET ASSUMED 12/31/25 AUDITED 12/31/25 VARIANCE General Fund 5,063,171 5,846,588 +783,417 Sewer Service 545,299 557,497 +12,198 Motor Fuel Tax 630,623 637,051 +6,428 Green Bay Road TIF 1,909,967 2,056,373 +146,406 Debt Service 87,734 (105,836) (193,570) Capital Projects 2,593,669 2,682,311 +88,642 2024A Bond / Lake Front 3,050,964 6,560,731 +3,509,767 Total Governmental Funds 13,881,427 18,234,715 +4,353,288 Two items drive nearly all of the variance. First, Lake Front Phase Two construction spending of $2,886,159 came in well below the $5,544,925 final FY2025 budget, leaving that authority to be spent in FY2026, which is what the first half of 2026 shows. Second, the General Fund finished FY2025 with $6,514,888 in revenue against $4,696,192 in expenditures. 17 Budget Goal Updates FY2026 goals below are taken from the Adopted Budget's fund initiatives, with year-to-date spending from the June 30, 2026 trial balance. SEWER B U D G E T G O A L S T A T U S Sewer capital improvement program — repairs, flushing, televising and catch basin cleaning ($47,200) In Progress: Catch basin completed in house, resulting in savings. Planned televising of Sheridan Road sewer expected to be completed by year end. Sewer smoke testing ($8,700) Project Completed. Sewer manhole lining and inspection In Progress: Work is anticipated to take place in August MOTOR FUE L TAX B U D G E T G O A L S T A T U S No FY2026 expenditures planned On track. No expenditures through June 30. Fund balance of $708,596 is being built for larger roadway projects anticipated in coming years. GREEN BAY ROAD TIF B U D G E T G O A L S T A T U S Green Bay Corridor Phase I Engineering ($375,000) In Progress: The engineering serves contract was awarded in April of this year, with initial project tasks having been started. Expected timeframe 18-24 months. Planning services ($100,000) Parking study project completed. Additional planning services are ongoing in coordination with the zoning code update, specific to the business district regulations. Façade Improvement Program ($45,000) In Progress: To date, the Village has finalized and paid out one award (636 Green Bay), approved a second award (400 Green Bay), and received an application for an additional request (430 Green Bay). 18 B U D G E T G O A L S T A T U S Planter Program per the Teska Planter Plan ($17,000) Project Completed Drop Chamber Relocation — remaining engineering fees ($13,000) In Progress: Coordination is ongoing with ComEd for electrical vault relocation, and IDOT/MWRD to finalize design and bring the project to be “Shovel Ready status”. DEBT SE RVICE B U D G E T G O A L S T A T U S No FY2026 project goals — scheduled principal and interest on G.O. Series 2024A, G.O. (ARS) Series 2022 and G.O. Limited Series 2025 On schedule. $276,765 in interest paid through June 30; principal payments due in the second half. CAPITAL PROJECTS B U D G E T G O A L S T A T U S Water main design engineering — Abingdon Ave., Robsart Rd., Tudor Pl. ($127,000) In Progress: Project kick-started in May and preliminary design is expected to be completed by November. Oxford Road rehabilitation & curb — design engineering ($59,000) In Progress: Project kick-started in May and preliminary design is expected to be completed by November. ERP system migration to cloud ($34,000) Project Completed Annual sidewalk replacement program — approx. 70 squares ($27,500) In Progress: Project anticipated to be completed by the end of August. Sheridan Road holiday light installation ($20,000) In Progress: Internal planning underway, in anticipation of installation this winter. Public Works garage door replacement ($20,000) Project Completed IT equipment — network switch, access points, laptops, desktops ($17,050) Project Completed Public Works fire suppression system, Phase 2 of 3 ($14,000) In Progress: Phase II anticipated to be completed by end-of-year. 19 B U D G E T G O A L S T A T U S Sheridan Road striping and crack filling ($14,000) Project Completed Village Hall generator tank replacement ($10,000) In Progress: The replacement will not occur, however a less costly alternative will be fabricated and fuel monitoring will be implemented until generator will reach end of life. Bridge tuckpointing ($7,000) In Progress: Inspection pending to confirm the level of maintenance required on the bridge. Transfer to future CIP projects ($200,000) Not yet made as of June 30. 2024A BOND / LAKE FRONT B U D G E T G O A L S T A T U S Phase Two improvements — construction, construction manager services and architectural fees ($3.3M) In Progress: Project ongoing, and nearing completion with roughly $2M remaining on Bulley and Andrews contract. WATE R B U D G E T G O A L S T A T U S Water rate analysis ($25,000) In Progress: Project kick-started in May and is anticipated to be completed by October/November, and incorporated into FY2027 budget discussions. Pressure Reduction Valve pit rehabilitation — Abbotsford Rd. & Ivy Ct. ($17,000) In Progress: Inspection planned to confirm the level of maintenance needed on the facility. Multi-year project is underway. Purchase of two fire hydrants ($15,000) Purchase and installation of two fire hydrants on Park Drive and Earlston Road anticipated to be completed by end-of-year. Village-wide community backflow testing ($4,400, every three years) Project Completed 20