Tinley Park officials have released a draft budget for the upcoming fiscal year that projects a $2.18 million surplus, built on a foundation of increased revenues from recent tax hikes and careful management of rising expenditures.
The proposed budget for fiscal year 2027, which begins May 1, outlines approximately $84.3 million in total revenue against $82.1 million in spending. This marks a significant increase from the previous year, with revenues projected to grow by $11.8 million and expenditures by $7.3 million. The village is also on track to end the current 2026 fiscal year with a healthy $2.62 million surplus, according to Interim Finance Director Scott Bordui.
During a presentation of the budget draft, Bordui commended the village’s financial team and leadership for their proactive approach. He credited his predecessor, Hannah Lipman, along with Village Manager Pat Carr, Mayor Michael Glotz, and the Village Board for وضع the village on a solid financial footing.
Revenue and spending drivers
The substantial growth in village revenue is largely attributed to several tax changes that took effect on January 1, 2026. Facing rising costs, the Village Board approved a 3.8% increase in its property tax levy in December 2025, the first such increase since 2022. This included a 4.9% increase for the Tinley Park Police Pension Fund, bringing its total to $5.74 million.
Additionally, residents and visitors saw increases in the home-rule sales tax, which rose from 0.75% to 1%, and the amusement tax, which climbed from 5% to 6%. The amusement tax primarily affects tickets for events like concerts, a significant revenue source for the village which hosts popular events like the Music in the Plaza series.
On the other side of the ledger, the primary drivers of the $7.3 million spending increase are personnel costs and, most notably, health insurance benefits. In a December 2025 meeting, Trustee Ken Shaw identified post-employment health insurance benefits as one of the village's fastest-growing expenses. Budget documents show the cost for these benefits a little more than $1 million for the current fiscal year, a sharp rise from about $614,000 in fiscal year 2023.
The budget also proposes spending $2.4 million from the general fund for new personnel. The challenge of balancing municipal budgets with rising costs is not unique to Tinley Park, as other municipalities across the country face similar pressures. For instance, in Portland, Maine, officials recently proposed staff cuts to limit property tax increases for its residents, according to a report on their city’s budget.
Capital projects and funds management
Despite the overall spending increase, the proposed budget includes a $1.6 million decrease in the capital improvements fund, from $26.5 million in 2026 to $24.9 million in 2027. Village staff recommended funding for 112 capital requests totaling $46.5 million. This represents a selective approach, as the village received 149 total requests that would have cost an estimated $62.7 million.
Bordui assured the board that the capital project fund balance, currently at $69.4 million, positions the village well to fund necessary projects beyond the 2027 fiscal year. This long-term view allows for strategic investments in village infrastructure, like the recent renovations approved for a local school.
Other notable financial maneuvers in the budget include using funds from the hotel tax debt service reserve to pay for improvements and parking lot construction at the Tinley Park Convention Center. Furthermore, with the expiration of the Main Street North TIF district in 2025, a fund balance of $3.5 million will be transferred to the New Bremen TIF under the new budget.
Managing costs and looking ahead
In a direct response to market volatility, the Village Board voted to amend its bulk fuel purchase contract. Public Works Director John Urbanski explained the decision to switch from a one-year to a six-month contract with Al Warren Oil Company Inc. was due to soaring fuel prices.
Obviously fuel and petroleum right now is kind of a heated topic. Hopefully we’re going to see after six months maybe some of the price can go down, and we have the opportunity to resign it for a lower price.</blockquote>
Urbanski noted that contract prices for this year jumped by about $1 per gallon for both unleaded and diesel fuel compared to last year. The new six-month contract locks in prices between $3.15 and $3.25 per gallon for unleaded and $3.75 to $3.85 for diesel, which he stated are still significantly cheaper than prices at the pump due to the bulk purchase discount.
Overall, Tinley Park's budgeted revenues have grown by approximately $9.6 million since fiscal year 2024, while spending has increased by about $11.8 million over the same period. Bordui affirmed that the village’s enterprise funds remain "healthy from an operating standpoint." This proactive financial management reflects the village's long history of adapting to economic shifts, dating back to its origins as a bustling railroad town in the 19th century.
The village will hold a public hearing on the proposed budget at 5:55 p.m. on April 21 at Village Hall, 16250 Oak Park Ave. The Village Board is expected to vote on the budget’s adoption at its meeting immediately following the hearing. The complete draft budget is available for public review on the village's website.
