Kankakee budget committee hears revenue shortfalls, ARPA wind‑down; approves minutes

The City of Kankakee budget committee reviewed March financial statements and preliminary budget factors at its April meeting, where Comptroller Bill Rogers reported the city’s general‑fund revenues were about 8.45% below expectation and staff outlined remaining American Rescue Plan Act (ARPA) allocations.

Why it matters: The committee and staff said the data will shape the fiscal‑year 2026 budget work now under way, with formal adoption expected in the July timeframe. Shortfalls in some revenue lines and lingering ARPA projects could affect how the city balances services and capital priorities.

Comptroller Bill Rogers told the committee the city is “11 months into our 12 month cycle,” and that general‑fund revenues overall are “8.45 percent below where we'd expect them to be.” Rogers said property tax collections are essentially complete but corporate and other taxes are running under budget, and that an end‑of‑year accrual will pick up some timing differences.

Rogers pointed to several specific revenue shifts. Cable franchise fees have dropped sharply — he described the decline as roughly half of prior receipts — and he said cannabis excise receipts that come from the state have been averaging “only around $10,000 a month” into the city’s bank account. Service charges were running above budget, he said, while fines were down partly because code enforcement had been understaffed until two positions were filled.

On the expenditure side, Rogers said departments are broadly under budget and total expenditures were about 6% under budget at the time of the report. He noted the city closed a commitment to debt service for the year that reduced liabilities by about $2.5 million and that the capital fund had an original allocation of $1,500,000 of which roughly $1,300,000 had been spent by March. Rogers added, “We've still got $2,200,000 sitting there,” referring to general cash balances.

On insurance and benefits, Rogers said the city’s group insurance renewal was higher than last year but lower than feared — an increase of about 8.25% — and staff said they are tracking employee census and utilization trends with the Illinois Municipal League forecasts to refine next year’s budget lines.

The committee also received an update on federal ARPA funding. Rogers said the city allocated $15,052,000 in ARPA funds overall and that, after reimbursements, roughly $2,100,000 remained in allocation balance; cash in the ARPA escrow was expected to drop substantially in April. He said the city has until December of next year to spend the remaining allocations. Rogers identified several open items by name and approximate amounts: ECDA rental rehab (about $300,000), a $250,000 line described in the record as “Power men,” a pending $20,000 community payment with a check in process, and a $50,000 Harbor House item; he also said an invoice from the Kankakee County Justice Academy was outstanding.

Rogers told the committee the ARPA escrow had earned about $273,000 in interest during the holding period; when asked whether interest must be routed to particular programs, he said he would “have to do research on that” before answering definitively.

Committee members asked routine clarifying questions about the timing of accruals, the size of the cable and cannabis revenue drops, and whether staff would adjust next year’s budget assumptions. City Manager Paula (first name used in the meeting) and Rogers said staff will analyze each line item and bring recommended changes as part of the formal budget process.

Votes at a glance - Approval of March budget committee meeting minutes, as amended — mover: Alderman Malone Marshall; second: Alderman Johnson; outcome: approved (committee voice vote; transcript records “all in favor, aye,” with no recorded opposition). - Motion to adjourn — mover: Alderman Malone Marshall; second: Alderman Marzak; outcome: approved (committee voice vote).

The committee indicated it expects to continue detailed line‑by‑line budget reviews and to return with recommended adjustments ahead of the anticipated July adoption schedule.