City finance staff told the Committee of the Whole that the 2026 capital budget totals $113,300,000 and is driven largely by three major projects: construction of a new police station, metro station improvements, and potable-water-system improvements.

Debt and grants: staff said debt proceeds of $44,500,000 are budgeted for police-station construction and approximately $8,200,000 are budgeted for metro-station improvements. Intergovernmental grant revenue was cited as increasing by about $19,600,000 at the citywide level, and staff said roughly $18,400,000 in grants are associated with the metro station work.

Staff emphasized that capital increases account for much of the year-over-year change: overall revenues rose in part because bond proceeds were recognized in 2026 and because capital moved into the 2026 year after prior-year planning. Director Coyle told the committee the three major projects account for about 70% of the 2026 capital budget and that potable-water improvements include pumping-station and reservoir rehabilitation projects beyond design life.

Financing detail: potable‑water rehabilitation work (including three pumping stations) is budgeted at $7,800,000 and staff said those dollars will be financed through low-interest Illinois EPA loans repaid through capital investment recovery charges on utility bills. The city used a five‑year capital-expenditure baseline to set the 2026 capital program and said the 2026 capital total represents a substantial increase from the prior year’s $76.3 million.

Impacts and next steps: staff and council members discussed how debt proceeds and grants can distort year-to-year comparisons of operating capacity; council members requested continued detail on project schedules and financing assumptions as the budget process proceeds. No formal capital bond sale or construction contract awards were approved during the Committee of the Whole meeting.

Ending: staff said the finance committee and council will continue to review capital spending and project schedules in subsequent meetings.