Village Board of Trustees Standing Committee

AGENDA Finance Committee Special Meeting Village Hall 1900 Hassell Road, Hoffman Estates, IL 60169 May 18, 2026 Council Chambers 6:55 PM 1. CALL TO ORDER/ROLL CALL 2. PUBLIC COMMENT 3. NEW BUSINESS A. Approval of an ordinance to amend the FY2025 Budget as a result of the completed financial audit. 4. OTHER 5. ADJOURNMENT Further details and information can be found in the agenda packet attached hereto and incorporated herein and can also be viewed online at www.hoffmanestates.org and/or in person in the Village Clerk's office. The Village of Hoffman Estates complies with the Americans with Disabilities Act (ADA). For accessibility assistance, call the ADA Coordinator at 847/882-9100. Page 1 Page 1 of 14  AGENDA ITEM REPORT Finance Committee May 18, 2026 ITEM 3A REQUEST: Approval of an ordinance to amend the FY2025 Budget as a result of the completed financial audit. FROM: Rachel Musiala, Finance Director ITEM TYPE: Ordinance - Committee REQUEST SUMMARY As it relates to the Village's annual operating budget, it is probable that certain revenue and expenditure accounts will come in either under or over budget during the course of any fiscal year. What is important, however, is to ensure that expenditures do not exceed the budget at the department/fund level. Several factors can necessitate a budget adjustment. Certain actions taken by the Village Board to approve contracts or expenditures must be realigned with the budget ordinance that serves as the Village’s legal spending authority. Also, new programs and purchases obligating budget resources also require an amendment to the budget ordinance. In addition to the above factors, during the course of the annual audit, it becomes necessary to adjust certain revenue and expenditure accounts for events unforeseen at the time the original budget ordinance was adopted. A final year-end budget adjustment is necessary to reflect these changes. All the budget adjustments needed are detailed on the attached budget adjustment request forms. The ordinance is also attached for review. FINANCIAL IMPACT In each case where an adjustment was needed to the Village's budget, adequate revenues or unallocated fund equity were available to absorb the adjustment. RECOMMENDATION Request approval of an ordinance to amend the 2025 Budget as a result of the completed financial audit and to close out the fiscal year. ATTACHMENTS 1. Budgetord-amend (5-18-26) 2. Year End Budget Adjustments 25 Page 1 of 1 Page 2 of 14  ORDINANCE NO. ___________ - 2026 VILLAGE OF HOFFMAN ESTATES AN ORDINANCE AUTHORIZING AMENDMENTS TO THE 2025 BUDGET ORDINANCE NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Hoffman Estates, Cook County, Illinois, as follows: Section 1: That pursuant to authority granted by the statutes of the State of Illinois, there is hereby an amendment to the budget ordinance in an amount not in excess of the aggregate of additional revenues or fund reserves available to the Village. The sums of money hereinafter itemized for each of the respective corporate objects specified hereby increase or decrease the amounts included in the original budget ordinance, Ordinance No. 5127-2024 dated December 2, 2024. The appropriate sums shall be received from sources other than the tax levy. The respective sums of money, together with the resulting adjustments and changes in the budget are set out in Section 2 of this Ordinance. Section 2: Village of Hoffman Estates 2025 Budget Amendment Current Revised Budget Change Budget Revenue Budget Revisions General Fund 01000010-3105 100-0000-31050 Home Rule Sales Tax 5,200,000 689,500 5,889,500 CDBG Fund 04000012-3305 204-0000-33050 CDBG Grant Revenue 157,600 84,000 241,600 Fund 04 Fund 204 Decrease to Fund Balance 36,000 Higgins-Hassell TIF 72000017-3802 222-0000-38020 Note Proceeds - 612,000 612,000 Fund 72 Fund 222 Decrease to Fund Balance 350,000 Road Improvement Fund 29000018-3904 404-0000-39040 Transfer from CDBG - 120,000 120,000 Insurance Fund Fund 46 Fund 601 Decrease to Fund Balance 26,000 Police Pension Fund 50000015-3602 701-0000-36020 Gain on Sale of Investment 100,000 145,000 245,000 Fire Pension Fund 51000015-3601 702-0000-36010 Interest Income 850,000 260,000 1,110,000 Page 3 of 14  -2- 2019 Capital Project Fund 64000016-3701 414-0000-37010 Reimbursements - 47,500 47,500 Water & Sewer Fund 40400013-3425 501-0000-34250 Water Charges 24,360,520 850,000 25,210,520 40400015-3601 501-0000-36010 Interest Income 250,000 440,000 690,000 2024 G.O. Debt Service Fund 70000018-3901 307-0000-39010 Transfer from General 385,030 500 385,530 TOTAL REVENUES 3,660,500 Expenditure Budget Revisions Current Revised Budget Change Budget General Fund 01101220-4104 100-1012-41040 Salaries & Wages, FT (GG Admin) 890,700 86,000 976,700 01101324-4567 100-1013-45670 Outside Legal Fees 185,000 603,000 788,000 01616427-4870 100-6500-48700 Transfer to 2024 GODS 385,030 500 385,530 CDBG Fund 04000027-4829 204-0000-48290 Transfer to Road Improvement - 120,000 120,000 Higgins-Hassell TIF 72000025-4610 222-0000-46100 Other Capital Expenditures - 612,000 612,000 72000026-4702 222-0000-47020 Principal Expense - 350,000 350,000 Road Improvement Fund Fund 29 Fund 404 Increase to Fund Balance 120,000 Insurance Fund 46700024-4554 601-7000-45540 Workers Comp Claims 600,000 26,000 626,000 Police Pension Fund 50000021-4507 701-0000-42070 Retirement Pensions 7,968,730 145,000 8,113,730 Fire Pension Fund 51000021-4207 702-0000-42070 Retirement Pensions 6,753,830 107,000 6,860,830 Page 4 of 14  -3- 51000024-4574 702-0000-45740 Trustee Fees 100,000 153,000 253,000 2019 Capital Project Fund 64000024-4542 414-0000-45420 Other Contractual Services - 47,500 47,500 Water & Sewer Fund 40406724-4540 501-4067-45400 JAWA Expense 9,200,000 530,000 9,730,000 40407325-4609 501-4073-46090 Water System Improvements 2,945,000 280,000 3,225,000 40406728-4901 501-4067-49010 Water Cost Allocation 1,097,480 150,000 1,247,480 40407028-4901 501-4070-49010 Water Cost Allocation 560,410 165,000 725,410 40406824-4507 501-4068-45070 Professional Services 22,000 165,000 187,000 2024 G.O. Debt Service Fund 70000026-4543 307-0000-45430 Paying Agent Fees - 500 500 TOTAL EXPENDITURES 3,660,500 Section 3: That the Village Clerk is hereby authorized to publish this Ordinance in pamphlet form. Section 4: That this Ordinance shall be in full force and effect immediately from and after its passage and approval. PASSED THIS ________ day of _________________, 2026 VOTE AYE NAY ABSENT ABSTAIN Trustee Karen V. Mills _____ _____ _____ _____ Trustee Anna Newell _____ _____ _____ _____ Trustee Gary J. Pilafas _____ _____ _____ _____ Trustee Gary G. Stanton _____ _____ _____ _____ Trustee Karen Arnet _____ _____ _____ _____ Trustee Patrick Kinnane _____ _____ _____ _____ Mayor William D. McLeod _____ _____ _____ _____ APPROVED THIS ______ DAY OF _______________, 2026 Village President ATTEST: Village Clerk Published in pamphlet form this _______ day of ____________________, 2026. Page 5 of 14  No. 1 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: General Fund FISCAL YEAR: 2025 DEPARTMENT: General Government PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 100-1012-41040 Salaries & Wages FT $ 86,000 $ 890,700 $ 976,700 100-1013-45670 Outside Legal Fees $ 603,000 $ 185,000 $ 788,000 Decrease in Expenditures/Fund Balance or Increase in Revenues: 100-0000-31050 Home Rule Sales Tax $ 689,000 $ 5,200,000 $ 5,889,000 Reasons for Adjustment Request: GIS position added. Unforeseen settlement agreement payments and overall increase in legal fees: Pardilla $ 200,000 Gentle Dental $ 291,527 PSEBA $ 56,250 Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 6 of 14  No. 2 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: CDBG Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 204-0000-48290 Transfer to Road Improve Fund $ 120,000 $ - $ 120,000 Decrease in Expenditures/Fund Balance or Increase in Revenues: Fund 204 Decrease in Fund Balance $ (36,000) 204-0000-33050 CDBG Grant Revenue $ 84,000 $ 157,600 $ 241,600 404-0000-39040 Transfer from CDBG $ 120,000 $ - $ 120,000 Fund 404 Increase to Fund Balance Reasons for Adjustment Request: Funding for part of road project. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 7 of 14  No. 3 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: Higgins/Hassell TIF Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 222-0000-46100 Other Capital Expend $ 612,000 $ - $ 612,000 222-0000-47020 Principal Expense $ 350,000 $ - $ 350,000 Decrease in Expenditures/Fund Balance or Increase in Revenues: 222-0000-38020 Note Proceeds $ 612,000 $ - $ 612,000 Fund 222 Decrease in Fund Balance $ (350,000) Reasons for Adjustment Request: Issuance of TIF note and payment on those notes from TIF property taxes. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 8 of 14  No. 4 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: 2024 G.O. Debt Service Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 307-0000-45430 Paying Agent Fees $ 500 $ - $ 500 Decrease in Expenditures/Fund Balance or Increase in Revenues: 307-0000-39010 Transfer from General $ 500 $ 385,030 $ 385,530 100-6500-48700 Transfer to 2024 GODS $ 500 $ 385,030 $ 385,530 100-0000-31050 Home Rule Sales Tax $ 500 $ 5,200,000 $ 5,200,500 Reasons for Adjustment Request: Missing budget for bond paying agent annual fee. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 9 of 14  No. 5 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: 2019 Capital Project Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 414-0000-45420 Other Contractual Services $ 47,500 $ - $ 47,500 Decrease in Expenditures/Fund Balance or Increase in Revenues: 414-0000-37010 Reimbursements $ 47,500 $ - $ 47,500 Reasons for Adjustment Request: Street light expenses offset by ComEd rebate. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 10 of 14  No. 6 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: Water & Sewer Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 501-4067-45400 JAWA Expense $ 530,000 $ 9,200,000 $ 9,730,000 501-4073-46090 Water System Improvements $ 280,000 $ 2,945,000 $ 3,225,000 501-4067-49010 Water Cost Allocation $ 150,000 $ 1,097,480 $ 1,247,480 501-4070-49010 Water Cost Allocation $ 165,000 $ 560,410 $ 725,410 501-4068-45070 Professional Services $ 165,000 $ 22,000 $ 187,000 Decrease in Expenditures/Fund Balance or Increase in Revenues: 501-0000-34250 Water Charges $ 850,000 $ 24,360,520 $ 25,210,520 501-0000-36010 Interest Income $ 440,000 $ 250,000 $ 690,000 Reasons for Adjustment Request: Higher expenses for the water fund due to projects from prior years as well as increased water supply cost due to JAWA capital funding. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 11 of 14  No. 7 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: Insurance Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 601-7000-45540 Workers Comp Claims $ 26,000 $ 600,000 $ 626,000 Decrease in Expenditures/Fund Balance or Increase in Revenues: Fund 601 Decrease in Fund Balance $ (26,000) Reasons for Adjustment Request: Higher than anticipated workers compensation claims. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 12 of 14  No. 8 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: Police Pension Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 701-0000-42070 Retirement Pensions $ 145,000 $ 7,968,730 $ 8,113,730 Decrease in Expenditures/Fund Balance or Increase in Revenues: 701-0000-36020 Gain on Sale of Investment $ 145,000 $ 100,000 $ 245,000 Reasons for Adjustment Request: Pension increases due to new pensioners. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 13 of 14  No. 9 VILLAGE OF HOFFMAN ESTATES REQUEST FORM FOR BUDGET ADJUSTMENTS FUND: Fire Pension Fund FISCAL YEAR: 2025 DEPARTMENT: PROGRAM: Increase in Expenditures: Current Annual Budget Account No. Account Title Amount Annual After Budget Adjustment 702-0000-45740 Trustee Fees $ 153,000 $ 100,000 $ 253,000 702-0000-42070 Retirement Pensions $ 107,000 $ 6,753,830 $ 6,860,830 Decrease in Expenditures/Fund Balance or Increase in Revenues: 702-0000-36010 Interest Income $ 260,000 $ 850,000 $ 1,110,000 Reasons for Adjustment Request: Monthly trustee expenses unknown at the time of the budget due to new pooling. Retirement pensions increased due to new retirements. Approval Requested By: _______________________________________ Date: Approved by Department Head: _________________________________ Date: Finance Department Approval: ___Rachel Musiala_________________ Date: 5/14/2026 5/14/2026 Page 14 of 14