Waukegan officials present $292.2 million FY2025–26 budget, plan $76.3 million capital program and $29 million reserve drawdown

Don Schultz, staff member, presented a proposed citywide budget of $292.2 million for fiscal year 2025–26 at a May public hearing of the Waukegan Special Finance and Purchasing Committee, saying, "It's the largest budget the city has ever presented with the largest capital improvement program we've ever seen."

The proposal holds the tax levy at 0% for the upcoming year, budgets $76.3 million in capital improvements, shows an overall revenue projection of about $263.0 million and anticipates drawing roughly $29 million from reserves outside the general fund to balance total citywide spending and planned projects. The general fund is presented as structurally balanced, with a projected small surplus and an unassigned fund balance substantially higher than several years ago.

Why it matters: the plan increases one-year capital commitments and maintains current property-tax levels while using fund balances to pay for one-time and carryover projects. Aldermen pressed staff about how long such reserve draws and capital spending rates are sustainable and whether contingencies such as legal payouts are accounted for.

Don Schultz told the committee the budget covers 529 employees and that personnel costs account for the bulk of the general fund. Key budget figures presented include a $292,200,000 total budget (a roughly $47.2 million, 19.3% increase over the prior year), a $76,300,000 capital improvements program…