Moline outlines $164.1 million 2026 budget with $100 million, 10-year capital plan and seed housing fund

Moline City staff on Wednesday presented a balanced fiscal 2026 operating and capital budget that totals $164.1 million and emphasizes an aggressive capital program, continued investment in public safety and a new housing fund seed.

In a presentation to the City Council, a staff member who led the discussion said the city’s cash reserves across funds are “healthy,” noting the budget uses three-year rolling forecasts and targets four strategic pillars: infrastructure, housing, economy and quality of place. The presentation proposed a Special Capital Projects Fund with about $100 million over 10 years to finance major projects, including riverfront and downtown improvements and a new central fire station.

The budget document projects 2026 capital spending just under $80 million — the largest single-year capital program the city has included — and highlights $33.8 million for the South Slope Wastewater reclamation project, roughly $11 million for water projects (including lead service line replacement), and $24 million in additional infrastructure CIP over the 10-year plan.

Why it matters: Staff said the approach preserves operating fund health while using accumulated reserves to finance transformative projects intended to leverage private investment downtown and along the riverfront. The proposed plan also aims to keep the property tax levy rate low while capturing a larger share of assessed-value growth to fund one-time capital needs and mandated pension costs.

Key details - Total budget: $164,100,000 for FY2026. - Capital emphasis: Nearly $80,000,000 in capital projects in 2026, about 39% of the budget. - Special Capital Projects Fund: A 10-year, roughly $100,000,000 strategic fund for large projects; staff listed $15,000,000 of currently unallocated funds in the special CIP and proposed $2,000,000 seed money for a Moline Housing Fund phased over three years. - Funding sources: annual franchise fee revenue estimates (natural gas and electric), federal and state grants, property tax growth and targeted transfers. Staff said franchise fees are projected to generate about $1,846,200 annually for the fund. - Property valuation: Taxable EAV was reported above $1 billion for the first time, a roughly 5.92% increase versus 2024; staff proposed lowering the levy rate while capturing more of the growth in dollars. - Operating impacts: Average projected monthly household impact about $9.18 in 2026 ($110.20 annually); three-year average projected monthly increase about $7.75.

Pensions, reserves and risk Staff highlighted a $476,000 increase in police and fire pension obligations (about 10.85%), and noted IMRF employer cost growth that raised retirement contributions; these mandated increases consumed much of the available revenue growth. Council and staff repeatedly emphasized maintaining a general-fund balance within the city policy (about 20–25% of expenditures, ~72–90 days) to preserve credit quality ahead of contemplated bonding for the new fire station.

Housing and special CIP choices Councilors discussed the proposed $2 million seed for a new Moline Housing Fund, including questions about how the funds would be structured and used. Staff said the housing fund concept is informed by other cities’ models and Renew Moline’s work; they plan to provide more detailed program design at the council’s budget workshop.

Other operational highlights Carol, the senior finance presenter, said salaries and benefits account for 26% of the budget ($53.2 million) and forecast a 4.875% average GWI/merit increase for employees. Health-insurance renewal projections were favorable compared with national averages. The budget includes four new full‑time positions, additional seasonal hours, and an estimated vacancy assumption of 5% for 2026.

Next steps and schedule Staff said the council will continue review at a budget workshop scheduled for Saturday and aims to adopt a final budget before Thanksgiving. The presentation materials, budget book and supporting spreadsheets are available on the city agenda portal for council and public review.

Ending Councilors and staff framed the plan as a balance between conservative operating management and strategic capital investment intended to attract private development downtown and restore infrastructure.