Manhattan Unveils $32.8 Million FY2027 Budget Driven by Major Water and Sewer Upgrades

Village of Manhattan Board of Trustees Meeting | April 7, 2026

Article Summary: The Village of Manhattan presented a completely overhauled, zero-based budget for the upcoming fiscal year, featuring a $10 million state loan for wastewater treatment expansion and a new vehicle replacement fund.

Manhattan FY2027 Budget Key Points:

• Total expenditures are projected at $32.8 million against $32.4 million in revenues, an $8 million increase over the prior year.

• The budget includes a $10 million Illinois EPA loan to fund the first year of a massive wastewater treatment plant expansion.

• General Fund expenditures total $8.3 million, with the Police Department accounting for 57% to fund an additional officer and equipment.

• Village officials utilized a rigorous zero-based budgeting approach, removing broad contingency line items in favor of strictly documented departmental requests.

The Manhattan Village Board on Tuesday, April 7, 2026, reviewed a proposed $32.8 million budget for Fiscal Year 2027 that focuses heavily on sweeping infrastructure upgrades, long-term equipment planning, and a newly implemented zero-based accounting approach.

Village Administrator Rosemaria DiBenedetto opened the budget discussion by highlighting a shift in how the village built its financial blueprint following a January strategic planning session.

“We essentially stripped the budget down and rebuilt it with significantly more information and supporting documentation than has previously been provided,” DiBenedetto said. “We eliminated broad line items such as miscellaneous and contingency funds, removed any unsubstantiated figures, and asked our leadership team to focus on what is truly necessary.”

Finance Director Justin VanVooren detailed the numbers, noting that total revenues are projected at $32.4 million, an $8 million increase from the prior year. This spike is primarily driven by $10 million in loan proceeds from the Illinois Environmental Protection Agency (IEPA) to commence a major, three-year expansion of the village’s wastewater treatment plant.

The village’s primary operating account, the General Fund, projects $8.5 million in revenue against $8.3 million in expenditures. Property taxes will account for nearly half of the revenue, reflecting a levy increase approved by the board in December 2025. Sales tax revenues also showed strong growth, increasing by approximately $350,000 due to heightened retail activity within village limits.

On the expenditure side of the General Fund, the Police Department accounts for 57% of the budget. That reflects an

$800,000increaseoverFY2026toaccommodatethehiringofonenewpoliceofficerandtheestablishmentofadedicatedvehicleandequipmentreplacementfund.PublicWorksaccountsforroughly18$

1.5 million) of the General Fund, which includes a $200,000 increase for similar equipment replacement planning.

“Previously the village would fund replacement of vehicles through pay-as-you-go funding each year,” VanVooren explained. “Going forward, each department that utilizes those vehicles will contribute into the vehicle and equipment replacement fund, and those funds will stay in the [account] and be there when that vehicle or piece of equipment needs to be replaced.”

For FY2027, this new replacement fund allocates $34,000 toward four new police squad vehicles and $48,000 for Public Works equipment, including a hydro excavator, pickup truck, skid steer, and snowplow.

While general street capital projects will see a planned decrease from $4.7 million down to $400,000, water and sewer capital projects are surging from $9.6 million to $14.4 million. In addition to the $10 million wastewater plant expansion, planned water infrastructure projects include $433,000 for the Front Street water main, $1.3 million for the Marian Street water main, $473,000 for the Sunset Lakes force main replacement, and $2.1 million to complete the Well 7 treatment facility.

VanVooren also warned that while the Local Government Distributive Fund (LGDF)—the village’s share of state income taxes—is currently stable, the governor has proposed a slight decrease. Mayor Mike Adrieansen noted that village officials will be traveling to Springfield for a lobby day to advocate against cuts to the LGDF.

No formal action was taken on the budget Tuesday. The board will hold a mandatory public hearing and vote on the final budget ordinance at its next meeting on April 21.