Peotone Village Board Reviews Budget with $148K Deficit, Maintains Strong Reserves

By Andrea Arens

The Peotone Village Board reviewed its draft fiscal year 2027 budget March 9, which projects a $148,000 deficit for the upcoming year, though officials say the village remains on solid financial footing thanks to conservative budgeting and healthy reserves.

The proposed budget covers April 1, 2026 through March 31, 2027 and includes both operating and capital expenses. According to village finance consultant Annmarie Mampe, expenditures are expected to exceed revenues by about $148,000 for the year, but the village will still maintain its policy of keeping a 30% fund balance reserve.

Village officials said that reserve level — significantly higher than many municipalities — allows Peotone to absorb short-term deficits without immediate financial strain.

One-Time Grant Funding Ends

One factor contributing to the deficit is the loss of one-time grant funding received during the current fiscal year.

Peotone received approximately $849,000 in ARPA-related grant funding through Will County in fiscal year 2026. Because that funding was temporary, it will not be included in the upcoming budget year.

Mampe noted that revenues are projected using a conservative approach, relying heavily on per-capita estimates for sales tax and other tax-related revenue streams.

Growth in Local Revenues

Despite the projected deficit, several local revenue sources continue to grow.

Village officials reported increases in revenues tied to the Interstate 57 corridor developments, including the travel center, hotel activity, and video gaming.

The village’s TIF 2 district, which includes the hotel and travel center area, is expected to generate approximately $315,000 in incremental tax revenue, representing a significant increase compared to the previous year.

Major Expenses: Personnel and Pension Costs

Personnel costs remain the largest portion of the general fund budget.

Salaries, benefits, and pension contributions make up just over 50% of total general fund expenditures. The budget includes:

• 3% salary increases for non-union employees 
• Contract-based raises for union employees 
• $505,000 contribution to the police pension fund, based on actuarial requirements
  

 

Capital Projects Planned

The draft budget also includes approximately $890,000 in capital spending.

One of the largest projects is a South Street paving project, budgeted at about $474,000. Officials noted the project could be reevaluated depending on whether water main work is required in the area.

Other capital purchases planned include:

• Two new police vehicles 
• A pickup truck for the public works department 
• Continued investment in the village’s new financial software system 

Technology Upgrades Approved

During the meeting, trustees also approved several technology upgrades aimed at modernizing village operations.

The board authorized the purchase of a new HPE ProLiant server and server rack for $18,318.65, replacing equipment nearing the end of its service life. The current server was 5 years old and the new server was quoted through Leading IT Services that has a current monthly service contract with the Village for managed IT services.

Trustees also approved a $3,000 change order to add cloud-based employee timesheets to the village’s new BS&A enterprise resource planning (ERP) software system. Although the new cloud based software was originally authorized for an amount not to exceed $89,920, Village Administrator Nick Palmer said there would be cost savings due to Mampe’s knowledge of the software. Palmer said the upgrade will eliminate paper timesheets and streamline payroll processing.

Other Business

In additional updates Monday night:

• Game On Bar & Grill permit for a car cruise scheduled for June 20 was approved along with a one-day liquor license. Their cruise in will extend the road closures for the previously approved cruise in hosted by Cornerstone Coffee House, Kyle Richards, and All Automotive. Owner Vicki Moore added that Game On is hosting a beer tent for the cruise in.
  
  
• Police reported the first criminal incident at the new local hotel, involving a stolen vehicle from Las Vegas. The driver was arrested and charged with possession of a stolen motor vehicle after a traffic stop. 
• Village officials reported receiving positive public feedback on the new Peotone sign, which has been attracting visitors and photos on social media.
  

The village board will hold a final vote on the fiscal year 2027 budget ordinance on March 23.