Normal adopts FY2025–26 operating and capital budget; sustainability coordinator not funded

The Normal Town Council voted unanimously to adopt the town's operating and capital investment budget for fiscal year 2025'26 during its March 3 meeting, approving the ordinance on a 7'0'00 roll call.

City Manager Miss Reese said the final document reflects a tighter revenue outlook but continues to meet the town's general fund financial targets. "This particular budget document had some challenges...but we are meeting all of our general fund financial targets in this proposed budget. It's a belt tightening budget until we have a better understanding of where our sales tax revenues will be coming in," Miss Reese said.

The budget includes a $477,000 downward adjustment to revenue projections across the five-year forecast and about $151,000 in additional expenditures; staff offset much of the revenue reduction by lowering transfers to the vehicle and equipment reserve, Mr. Hune said. Council approval covers only the fiscal year 2025'26 appropriation; the town presents a five-year forecast for planning purposes.

Why it matters: the adopted budget sets priorities for operations, capital projects and pension payments while maintaining a 15% fund-balance target, meaning the town will use reserves and internal adjustments to smooth near-term revenue uncertainty.

Key details and council discussion

- Revenue and reserves: Mr. Hune told the council the $477,000 decrease in projected revenue was applied across all out years in the five-year forecast; the primary balancing measure was to reduce transfers out to the vehicle and equipment reserve rather than cut planned operating spending for 2025'26.

- Economic development: Council members stressed continuing emphasis on economic development even as the budget tightens. Miss Reese confirmed the council removed an unallocated economic development set-aside of $2,000,000 during the budget process. "We eliminated...$2,000,000 over a couple years in account development, and we eliminated that as part of this budget process," she said.

- Capital projects: The budget keeps the town's planned capital program largely intact. The council noted the underpass project remains in the program with an estimated $27 million shown as the remaining amount to be spent.

- Pensions: The budget includes an additional $1,000,000 one-time payment toward police and fire pension obligations; Council Member Preston described the extra payment as an important investment.

- Sustainability: At public comment, Kent King Nobles of Eagles Landing said he was "sadness over something that's not in the budget this year" and urged inclusion of funding for a sustainability office. Miss Reese and staff told council that the budget does not fund a standalone sustainability coordinator this year but that an internal sustainability committee has begun identifying metrics and "low-hanging fruit" initiatives to implement in 2025'26 and to prepare possible staffing proposals for future budget cycles.

Council reaction and vote

Council members repeatedly described the budget as conservative and intended to preserve core services while remaining nimble if revenues change. After discussion, the council approved the ordinance on a voice/roll call vote in which Mayor Coos and Council Members Preston, McCarthy, Lorenz, Harris, Byers and Smith voted yes.

Ending

Council members asked staff to provide periodic updates during the year on sustainability plan actions and on economic development priorities so the council can adjust future budgets or use available tools besides direct cash to support development projects.