Finance director outlines fund rules ahead of Rockford budget process; casino, cannabis and CAP tax limits explained

Finance Director Haggerty presented an overview of Rockford’s accounting structure to the City Council on Sept. 29, explaining the constraints that govern how different revenue sources may be used and answering questions about casino and cannabis receipts, pension funding and the city’s capital‑sales‑tax commitments.

Haggerty said the city tracks three broad types of funds: governmental funds (general fund, special revenue, capital projects and debt service), proprietary funds (enterprise and internal service funds) and fiduciary funds (pension trust funds).

Why it matters: Council members will use the fund rules and revenue constraints as the 2026 budget process begins; some revenue sources are legally or policy‑restricted to particular uses and cannot be repurposed without council action or, in some cases, a public referendum.

Major points from the presentation

- General fund: core city services (police, fire, streets, permitting, economic development) are paid from the general fund. Haggerty said revenue sources include property, sales and income taxes, permits and fees. - Special revenue rules: the director emphasized that certain taxes are legally restricted. The 5% portion of…