The Village of Mahomet Board of Trustees will discuss its tentative Fiscal Year 2026 Operating Budget on May 13.

The proposed budget, covering the period from May 1, 2025, to April 30, 2026, outlines more than $9.1 million in capital improvements and vehicle/equipment purchases across items, including the completion of the Main Street 400-block project and upcoming phases of the Water Master Plan.

Key Financial Highlights

• Total Capital Projects: $9,129,287.80
• General Corporate Fund Reserve Target: $1.81 million (met with an estimated balance of $1.83 million)
• Special Census Funding: Scheduled for late FY2026 to increase future state-shared revenues
• Contingency Funds: $300,000 set aside for unexpected costs.

Revenue Projections and Transfers

• Sales Tax Revenue: Up 18.75% over FY2025 projections due to new businesses; budgeted at $1.425 million.
• Use Tax Revenue: Significantly down to $169,812, impacted by statewide changes to the Leveling the Playing Field Act.
• Income Tax: Estimated at $1.57 million, using a conservative per capita allocation.
• Real Estate Tax Revenue: Expected to increase by 6.462%, largely from property development.

Notable fund transfers include $600,000 to the Transportation Capital Improvement Fund, $400,000 to the Vehicle Replacement Fund, and $100,000 to support economic development—nearly double the typical transfer amount.

Public Safety & Police Department

The Police Department will expand with the addition of one officer, bringing the total to 15 sworn officers.

• Police Pension Fund Contribution: $478,051, up from $461,936
• METCAD Fees: Increased to $143,000, reflecting staffing levels and service costs
• Camera System Investments: Doubling to support enhanced technology, including license plate readers and AI-powered reporting tools

Infrastructure and Utilities

• Water & Wastewater: Both departments will undergo rate reviews in early FY2026, with anticipated increases after no rate hikes in FY2025.
• Capital Improvement Transfers: Down from $500,000 to $300,000 each for water and wastewater, though project expenses are up due to carried-over work and long-deferred repairs.
• EPA Loan: Mahomet expects the first installment for the Water Master Plan Phase 1 project, with budgeted revenue of $2.4 million.

Parks, Recreation, and Community Development

• Parks: Capital improvements increased to $247,500, including potential new pickleball courts if fundraising succeeds.
• Recreation: Program revenue expected to rise slightly to $270,000; department now meets four-month reserve target.
• Community Development: $140,000 set aside for professional services to update the Village’s Comprehensive Plan.

TIF and Business District Activity

• TIF District Revenue: Estimated at $4.19 million, with expenses near $5 million due to major infrastructure projects.
• Business District Revenue: Estimated at $400,000, with nearly equal expenditures planned.
• Commercial Core & East Mahomet TIFs: Combined transfers and expenditures support major development and debt service.

Other Expenditures

• The Village of Mahomet plans to do a special census starting in late fall 2025 or spring of 2026. This could result in an increase in state shared revenue sometime later in 2026. The Village paid for a special census in 2017. The last federal census held was in 2020. From 2010 to 2017, there was an increase of 1.124 residents.
• The Mahomet Music Festival fund shows projected revenues of $159,000 and expenses of $169,000.

New Taxes

A revenue change coming in FY 2026 is the implementation of a new 1.0% Business District Retailers’ Occupation Tax and Service Occupation Tax, which began January 1, 2025. This tax will apply to most retail and service transactions within the village’s designated business district, though it excludes essential goods like food and prescription medications. The newly established Business District fund anticipates $130,000 in both revenue and planned expenses.