Blue Island council adopts FY2025 appropriation ordinance emphasizing water projects, lead service-line work

Blue Island Mayor Randy Albany and the City Council on Feb. 25 adopted the city’s FY2025 annual appropriation ordinance after a public hearing that highlighted major investments in water infrastructure and a planned lead service-line replacement program.

The ordinance gives city departments authority to spend the amounts listed for the calendar fiscal year beginning Jan. 1, 2025, though administrators stressed that appropriation is not equivalent to guaranteed spending. Administrator Tom told the council the appropriation “does function differently than a budget” and that expenditures above $25,000 will return to the council for approval.

The mayor and staff identified two items driving the year-over-year increase in appropriations: $6,000,000 in forgivable loans intended for lead service-line replacement and a projected $10,000,000 in bonding proceeds tied to water revenue. Tom said the bonding funds would prioritize repainting the interior and exterior of the city’s water tanks, an item he said the U.S. Environmental Protection Agency has urged be completed “like, yesterday.” Council members were told the city has been in preliminary discussions with Fifth Third Bank about potential bond terms.

Staff also told the council they expect higher ambulance revenue in FY2025 following last year’s switch to advanced life support (ALS) ambulance service. Tom said billing lagged when Blue Island moved to ALS midyear and that adjustments have been made; he characterized the revenue projection as conservative but supported by call and billing data.

The appropriation package also includes funds for continuing fleet replacement across police, fire and public works. Tom said the city is exploring financing options to spread large equipment costs across fiscal years and listed possible purchases that could include a new fire engine, a replacement ambulance and one heavy public-works truck.

During the public hearing portion, staff reported preliminary approval from the Illinois Environmental Protection Agency for a lead service-line replacement funding award of about $5,900,000. City staff noted some of that amount would be forgivable and said the number of lines the city can replace will depend on per-line costs, which staff estimated at roughly $15,000–$17,000 per line.

Council members asked for clarification about the sources of general fund revenue and how property tax revenues fit into the total. Tom and other staff noted the general fund is the primary operating fund and reviewed last year’s figures, saying the city appropriated about $22,000,000 for the general fund in the prior year and expended just over $19,000,000, leaving a roughly $3,200,000 surplus. Staff also described other revenue streams used for projects, including motor fuel tax (MFT) and tax-increment financing (TIF) dollars.

Councilors voted to close the public hearing and then adopted the appropriation ordinance by roll call. In discussion the administration also said it will publish more detailed budget models and an interactive finance display on the city’s new website to increase transparency.

Other, smaller items handled during the meeting included approval of payroll dated Feb. 14, 2025, and a payment of $98,050 related to Waterworks Revenue Bonds, Series 2006, for debt service. Administrators and outside partners — including Lauren Fulbrat and Mark Petoska, who assisted in preparing the appropriation document — were on hand to answer detailed questions.

The ordinance gives the city authority to proceed with planning and financing steps for the cited water projects; it does not itself obligate specific contracts or bond issuances, which staff said will return to the council for separate approvals.