Frankfort Approves Over $19 Million in Surplus Fund Transfers for Future Projects

Article Summary: The Frankfort Village Board has approved the transfer of more than $19 million in surplus operating revenues to its capital funds to finance future infrastructure projects, equipment purchases, and street resurfacing. The move reflects the village’s strong financial position following the 2024-2025 fiscal year.

Village of Frankfort Board Key Points:

• A surplus of $10,289,482.29 from the General Fund will be transferred to the Capital Development Fund.

• An additional $8,800,000 in excess revenue from the Utility Operating Fund will be moved to the Utility Capital Fund.

• The transfers allocate surplus funds from the previous fiscal year, which ended April 30, 2025.

• Funds are earmarked for future capital expenses, including equipment, street resurfacing, utility projects, and IEPA loan repayments.

FRANKFORT – The Village of Frankfort will bolster its capital accounts with more than $19 million in surplus funds after the Village Board unanimously approved a pair of major end-of-year transfers at its Monday meeting.

The board authorized moving $10,289,482.29 from the General Fund into the Capital Development Fund and an additional $8.8 million from the Utility Operating Fund into the Utility Capital Fund. The action allocates a significant surplus of revenues over expenditures from the 2024-2025 fiscal year to pay for long-term village improvements.

Trustee Daniel Rossi, who presented the item, detailed the purpose of the financial maneuver. “These transfers provide for the allocation of excess operating revenues over operating expenditures to the capital funds,” he said.

The transfer from the general fund reflects a surplus generated during the fiscal year that concluded on April 30, 2025. “The amount reflects a surplus of revenues over expenditures from the 24-25 fiscal year and will be used for future capital expenses including equipment purchases, street resurfacing, and other capital projects,” Rossi explained.

Similarly, the transfer from the utility fund will support infrastructure needs. Rossi noted the $8.8 million will be moved “to the utility capital fund for future capital expenditures, including utility projects and loan repayments.”

According to village documents, the General Fund balance remains healthy even after the substantial transfer. The operating fund balance is projected to be 36% of the annual budgeted expenditures for fiscal year 2026, well above the 25% target range set by the village’s fund balance policy.

The transfers were part of a unanimous consent agenda that passed without individual discussion. Mayor Keith Ogle highlighted that the full meeting packet, including detailed financial documents, was available for public review on the village’s website. The move to transfer the surplus rather than hold it in operating accounts is a standard practice for the village to ensure funds are available for planned, large-scale projects without impacting day-to-day operations.