Freeport council reviews 2026 budget estimates, hears updates on grants, demolition and landfill closure

Freeport City Council reviewed proposed revenue estimates and expenditure plans for the 2026 budget during a regular meeting in which City Manager Boyer walked the council through major revenue lines and several restricted funds.

City Manager Boyer told the council the city is budgeting $26,134,000 in general-fund revenue for 2026, and highlighted major line items including property taxes (about $3,100,000), income taxes (about $4,300,000), municipal sales tax ($6,200,000), home-rule sales tax ($4,700,000) and a video gaming tax projected at $625,000. "So, our total general, fund, revenue is 26,134,000. And that is, what we're budgeting for 2026," Boyer said.

The presentation emphasized that several estimates depend on outside inputs and timing: Boyer said the estimated equalized assessed value (EAV) from the county will refine the property-tax forecast later in the fall, and the Illinois Municipal League provides the income-tax estimates the city uses.

Why it matters: The council’s line-by-line review identifies revenue assumptions and fund balances that determine whether the city can cover operating costs, fund capital repairs and continue grant-supported programs. Several funds discussed carry legal or contractual restrictions that limit how money may be used.

Major fund highlights and program notes

- Government buildings and capital repairs: Boyer said government-building budgets include janitorial, elevator and HVAC maintenance and $50,000 for general repairs, with an approximate $100,000 insurance claim connected to police department air-conditioning failures. Councilmembers pressed staff about insurance recovery; Boyer said staff is "in the process of trying to collect on that."

- Cemetery Care Fund: Per ordinance, the council may use only interest earnings for this fund. Boyer said the fund is expected to generate roughly $6,000 in interest on a $12,000 revenue line in 2026 and that the account is small and used for limited cemetery maintenance.

- Neighborhood Housing and demolition: The Neighborhood Housing Fund relies primarily on property-tax transfers and a reserve balance. Boyer said the city has budgeted approximately $990,000 for demolition work in 2026 and reserved about $20,000 for land acquisition. He noted one large possible demolition—the former Holiday Inn—would require the city to obtain ownership, currently progressing through a court process.

- Tourism and Greater Freeport Partnership: The hotel/motel-tax-supported tourism fund is budgeted with a modest increase and will continue to fund the Greater Freeport Partnership; Boyer said the GFP line item is being adjusted to match contracted support and reduce TIF assistance.

- Debt service: Boyer outlined outstanding bonds and final-payoff years, including a central fire station bond ending 01/01/2028, refunding bonds through 2034, a City Hall rehab bond through 2036 and a pension-obligation bond ending in 2041.

- Healthcare fund: The city expects significant increases in healthcare expenses in 2026. Boyer said final premiums are still being negotiated with the provider and with bargaining units and that updated numbers will be brought back to council in early November of the budget process.

- Landfill closure fund: The city is rebuilding reserves for long-term landfill monitoring and maintenance. Boyer said the city received a one-time payment related to transfer-station use and plans to transfer $500,000 into the landfill-closure fund in 2026 as part of an effort to approach an audit-recommended $5,000,000 standing balance for future closure and monitoring obligations. He described annual closure costs—sampling, leachate monitoring and site maintenance—at roughly $365,000 per year.

Grants and redevelopment updates

- Brownfields grant and demolition at 17–19 West Main Street: Boyer said federal brownfields funds are in place for demolition at 17 and 19 West Main Street (the former cleaners on Main). He said contracts have been signed, a required 30-day notice period expired on Oct. 2, and the city is waiting for the U.S. EPA to give final clearance. "We're just waiting on US EPA to give us the green light," said a staff member identified in the meeting as Dan, adding the city hopes to abate hazards before the end of the season but would not promise a finish date.

- IDHA Strong Communities and other demolition grants: Boyer said the city will deploy about $120,000 from an IDHA demolition grant and cited multiple demo- and rehab-related grants that are winding down.

- Transportation and safety grants: The council was told the federal Safe Streets for All grant totals about $400,000 with a $100,000 city match already provided; projects will include intersection safety improvements, enhanced crossing signage and striping.

- Transit grants: Pretzel City Transit will continue operation in 2026 with federal operating funds (about $198,000) and a downstate operating grant (about $1,431,000).

Public-safety and other restricted funds

- Police equipment and restricted funds: Boyer noted several restricted revenue streams for the police department including DUI-forfeiture funds (revenue and expenses budgeted at about $64,000), K-9 donation accounts, auxiliary and explorer-club donations, and a federal bulletproof-vest grant (roughly $5,000 planned for vests).

Speaker questions and clarifications

Councilmembers and staff asked clarifying questions during the presentation. Councilmember Stacy asked whether airport-grant funds were for PAPI lights or terminal updates; staff confirmed both could be included and called the airport grant line a placeholder at about $100,000. When asked about the brownfields timeline, Dan said contractors had been selected and the city completed required notice periods; EPA clearance remained the final step.

Wayne, a city staff member, provided a summary of demolition spending for a specific state grant, saying, "The city of Freeport spent more money than any community in the state of Illinois at $2,700,000 of the $3,500,000," and explained the remaining funds were not spent because property owners chose not to sell.

Votes at a glance

- Approval of the meeting agenda — Motion by Sellers; second by Clem. Approved by voice vote. - Approval of minutes for Sept. 15, 2020 — Motion by Parker; second by Sellers. Approved by voice vote. - Motion to adjourn — Motion by Parker; second by Sellers. Approved by voice vote; meeting adjourned.

Ending

City staff said several budget lines remain subject to external confirmations (e.g., county EAV, insurance recoveries, grant closeouts and federal agency clearances). Boyer closed the presentation and indicated the council would receive updated figures later in the fall as final estimates and grant confirmations arrive.