Winnetka’s ’26 budget plans for record capital costs, $440 more in fees per resident

Winnetka residents will see a new local sales tax and rate increases in the new year after the Village Council approved the 2026 budget on Tuesday.

The unanimous approval at the Dec. 2 regular meeting was part of the council’s consent agenda; though trustees had discussed the budget during previous meetings and workshops, including an all-day session on Oct. 30.

The Village of Winnetka’s 2026 total budget is $116.2 million, an increase of 23.1%, or $21.71 million, over 2025. The budget consists of $76.73 million in operating costs and another $39.48 million in capital expenses. The Village forecasts $92 million in operating revenue.

The Village’s planned capital investment in 2026 ($39.48 million) is the highest in recent budgeting history and likely in the village’s history. The number was $22.98 million in the 2025 budget, $32.25 million in 2024 and just $12.4 million back in 2017.

For capital projects, though, the village typically spends far less than the budgeted figure, such as $13 million (estimated) in ’25 and just $4.11 million in ’24.

Winnetka Chief Financial Officer Tim Sloth said next year’s capital budget supports several projects, including green initiatives ($3.7 million), downtown Winnetka streetscapes, roadway improvements and lead-service-line replacement. The largest chunk, $18.4 million, is planned for Willow Road reconstruction, a project that reportedly will include water-main replacement and intersection improvements.

Sloth said the village has secured nearly $10 million in grant funding to help offset the capital expenses.

In the budget letter, village officials listed public safety as a top priority in 2026. With that, according to the budget document, operating costs include funding for five new full-time employees, including four new police officers.

A new addition to village revenues next year will be a 1% home rule sales tax, which trustees considered adopting for the 2025 budget but ultimately deferred action until this past summer. In a memo to trustees, Sloth wrote thatcommunity outreach showed support for the sales tax among local businesses, including an endorsement from the Teri Dason, executive director of the local chamber of commerce.

The new 1% sales tax will support downtown improvement projects, according to village documents, with staff expecting it to generate $1.5 million annually.

Taxed items include any products sold as retail within Winnetka except “tangible personal property titled or registered” with the state, prescriptions and medical devices, and groceries. The tax does apply to alcoholic beverages, and food and soft drinks meant for “immediate consumption.”

The average resident will also see a $440 annual ($37.42 monthly), or 4.93%, bump in costs for municipal services, which figures in fees for water, electric, refuse, sanitary and stormwater.

Trustees also approved a 2.33% tax levy. Village documents said that levy includes .88% for the impact of new village developments and a 1.45% inflationary adjustment.

Following the vote Tuesday, Village President Bob Dearborn commended Village staff, including Sloth and Village Manager Kristin Kazenas for their work on the budget, calling it “a heavy lift this year.”

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