The city of Yorkville passed a budget for fiscal year 2027 the city finance director said sets Yorkville up for a “strong” five-year financial outlook.

In the budget, the city’s revenues are expected to cover its expenses at a general fund match at $27,926,474. The new budget year, which starts in May, was approved by the City Council during its April 14 meeting.

Finance Director Rob Fredrickson said the city’s general fund is projected to break-even through fiscal year 2029. He said the city’s fund balance is projected to maintain at $12 million through fiscal year 2029, before dipping for a year before recovering again.

He said the budget is a result of “careful management of expenditures, and healthy reserve levels.”

Fredrickson said while an uncertain national economic outlook could lead to some downturn, the city is in a strong position looking into the future.

“With continued general fund performance, improved aggregate fund balances, and significant planned capital investment, the city’s five-year budget outlook is slightly improved from last year’s proposal,” Fredrickson said in city documents.

Last year, the city budgeted for two massive infrastructure overhauls, the new $30-35 million Public Works and Parks facility and the $224.4 million Lake Michigan water sourcing project.

Yorkville is covering the water infrastructure project with a $170 million Illinois Environmental Protection Agency loan and through water rate hikes.

The city recently approved higher water rates for users. Residents will face about 20% annual increases for at least five years.

Fredrickson said the water rate hikes will help the water fund remain “financial sustainable” as the city’s infrastructure investments move forward.

He said even with some heavy capital expenses, the city’s five-year financial outlook remains well-positioned.

“The city’s greatest financial risk continues to be potential cost overruns on major capital projects,” Fredrickson said in city documents. “Historically, however, this risk has been well-managed through competitive bidding and careful project oversight.”

Fredrickson also noted the city’s undertaking of a special census that is expected to generate around $1 million in additional revenues for the city annually by documenting the city’s population increase before the next official U.S. census.

The approved budget includes projected new sales tax revenues coming from the city’s Costco. The shopping warehouse is expected to generate around $1 million in annual sales taxes for the city’s coffers.

The projected revenues within future budgets do not yet contain any potential tax proceeds from any possible data center development, according to city documents.