Committee advances FY26 omnibus budget amendment, sends changes to full council

City staff presented the first omnibus budget amendment for fiscal year 2026 to the Committee of the Whole, describing a package of routine updates: recognizing grant receipts, rebudgeting unspent project funds, moving capital projects for better tracking and transferring a small amount to cover equipment repair. The committee voted to forward the amendment to the full city council for approval.

A staff presenter summarized the amendment item by item. Highlights included recognition of short‑term interest income tied to a previously approved hotel incentive loan (staff reported approximately $4.3 million in recognized interest income to be paid to the general fund), about $33,000 in reimbursable police training funds from the Illinois Law Enforcement Training and Standards Board, a $16,000 Justice Assistance Grant for the police department, and an $8,400 grant from the Illinois Department of Natural Resources for a historic‑preservation website. Community Development unspent social‑services funds of about $434,000 were rebudgeted, and the capital improvements fund was reorganized to improve project tracking. The equipment services fund requires an additional approximately $55,000 for a fire truck engine replacement; staff proposed a one‑time general‑fund transfer to cover that expense.

Staff said the estimated unassigned ending fund balance for the general fund after the amendment would be about $12 million, or roughly 25.16% of recurring expenditures — about $78,208 above the city’s 25% policy minimum. The presenter noted that the amendment also reserves $5.473 million for at‑risk federal grant programs and multi‑year community engagement program years.

Council members asked clarifying questions about the housing study rebudget, the equipment services amount and the city’s reserve policy. Staff said the housing‑study rebudget had been discussed with the Regional Planning Commission and that an RFP had previously been issued; the housing‑study contract would be brought to council for approval. Several council members expressed concern that the city’s margin above the reserve policy was narrow and requested a reminder of the formal policy steps if the city dips below the reserve level.

Council member Chandra moved to place the budget‑amendment ordinance on the next city‑council regular agenda for approval; the motion was seconded by Council member Mary Alice and approved to proceed. No final appropriation vote was taken at this committee meeting; the amendment will appear before the full council for adoption.