Council reviews draft 2025‑26 budget; TIF shows planned deficit as members debate Route 31 funding and Cold Springs Park study

City finance staff presented revisions and context for the proposed fiscal year 2025‑26 budget at the meeting, and council members focused discussion on downtown TIF spending, the Route 31 corridor project and a proposed planning and design study for Cold Springs Park.

Finance director Suzanne (surname in packet: Stroski) summarized changes since the council’s earlier review, including modest adjustments to departmental salaries and benefits, a $30,000 increase for Oakwood Drive engineering, and repaired spreadsheet corrections. She reviewed special revenue and capital funds, including the tourism fund (budgeted revenue indicated at about $288,000), the alarm board fund and other restricted funds. Staff noted the TIF fund is intended to be used to reinvest in the downtown and that it frequently operates with a temporary deficit when planned capital projects exceed that year’s incremental revenue; this year’s anticipated TIF revenue was about $980,000 with budgeted expenses near $1.3 million, producing an expected deficit that staff described as timing‑related.

Council members and staff reviewed several downtown capital priorities that drive the TIF spending plan: sewer replacement on Venice Avenue, Riverwalk decking and superstructure repairs, pedestrian bridge repair, and a downtown parking study. Staff emphasized that some Riverwalk Phase 4 items and power‑pole burial work had outstanding punch‑list items carried from the current fiscal year and were rebudgeted.

Separately, council considered a staff proposal to hire Hitchcock (park planner) to perform community outreach, schematic design and an OSLAD grant packet for Cold Springs Park. Staff said the formal Hitchcock proposal was approximately $36,000 rather than an earlier $30,000 figure; Hitchcock would run public participation, prepare schematic designs and assist with grant application materials. Some council members objected, citing homeowner agreements and the desire to preserve the park in a natural state; others — including the alderman representing the ward where the park sits — supported a funded planning and design process and said residents would likely engage in meetings and public feedback. Staff and council noted that an OSLAD grant requires design/engineering components and a local match if pursued.

Council also discussed the Capital Maintenance and Replacement Fund (ComEd account) and whether to earmark roughly $2.97 million in that fund toward the Route 31 improvement project; council members debated reserving money for Route 31 versus holding a portion in reserve for unpredictable equipment or infrastructure failures. Staff said Route 31’s current planning estimate is about $7.2 million and that the city presently has about $3.5 million set aside; members cited the recent Route 47 project in a neighboring town that rose dramatically in cost and urged prudence. Several council members urged starting to build the Route 31 reserve now while reserving some funds for other capital needs.

Staff asked for council direction so a final budget could be prepared for the April 21 meeting. No final budget vote occurred at this session; next steps include providing additional cost detail and the parking study, and council follow‑up on Cold Springs Park outreach and possible grant application.