Council hears public comment on 2026 operating budget, HOME and CDBG plans; no action taken

City staff opened public hearings on the proposed 2026 operating budget and two federally funded housing and community programs—HOME and the Community Development Block Grant—providing a high-level overview of revenue, major changes and next steps. No final council action was taken; the hearings are part of the public-review process ahead of action scheduled for Nov. 3, 2026.

Budget highlights presented by the city budget officer included a proposed total 2026 budget of roughly $114 million and a general fund increase driven largely by debt service and net new construction. Staff said the capital improvement budget is projected to decline by about $5.5 million while the municipal levy is projected to increase by just under $1 million (above 5%), with the tax rate estimated to rise about $0.263 per $1,000 of assessed value. Staff proposed a 3% cost-of-living adjustment for non-represented employees and said represented employees will receive negotiated contract increases. The presentation noted the city will return Nov. 3 for formal consideration of the operating budget; no votes were taken at the hearing.

At the HOME program hearing staff described Beloit’s membership in the Rock County HOME Consortium (Beloit receives 28% of consortium funds) and proposed 2026 HOME investments. Staff said the 2026 HOME estimate includes roughly $140,000 in new HOME housing grant funds and $14,000 in administrative funds, plus prior-year funds and program income. Proposed activities discussed included down-payment assistance (NeighborWorks), rehabilitation of 737 Bluff Street (conversion to an owner-occupied single-family home), and a proposed new-construction project by Wisconsin Partnership for Housing Development to build two houses on city-owned lots on Randall. Staff noted program income and prior-year balances will be used to supplement 2026 grant funds and that action on HOME funding will be scheduled for the Nov. 3 meeting.

During the CDBG annual plan hearing staff reviewed HUD rules and local priorities, including the Neighborhood Revitalization Strategy Area (NARSA) that targets Census Tracts 16 (Hackett) and 18 (Merrill). Staff estimated total 2026 CDBG revenues at approximately $629,782, made up of an estimated $520,000 grant, program income (~$95,000) and prior-year unspent funds (~$14,782). Staff reiterated HUD caps: public service activities may not exceed 15% of the grant unless they are in NARSA areas, and planning/administration is capped at 20% of the grant. Proposed recommended uses shown by staff included code enforcement, housing rehab funding, planning and administration, and several public-service and NARSA-targeted programs; economic development applications were not recommended for funding in the staff recommendation.

Several community speakers addressed the CDBG hearing. Anthony Malish, district executive for Scouting America Glacier’s Edge Council, described a local Scout Reach program and asked that small CDBG allocations be considered to support uniforms and scholarships. Valerie Philstead, a volunteer coordinator for Scouting programs serving Merrill and Hackett, said uniform and handbook costs present barriers for low-income families and noted Scout Reach specifically serves financially challenged neighborhoods within the NARSA area. Patricia Majid of Beloit Citywide Youth Softball requested consideration for partial funding to help pay umpires and program costs; she asked councilors to consider a $5,000 grant if the $7,500 minimum is infeasible. Amanda O’Kane of the Salvation Army Rock County explained the organization’s eviction-prevention program and said the requested CDBG dollars would go "directly 100% to preventing eviction," emphasizing that the Salvation Army serves all people regardless of faith and does not condition aid on religious participation.

Staff reminded the public that the CDBG annual plan is posted for 30-day public review and that council action is expected Nov. 3. The council did not take votes on these items at the meeting; city staff noted one council member recused from later action on the HOME item and turned duties over to the vice president for that portion of the agenda.

Next steps: the council will consider formal adoption and funding decisions at its Nov. 3, 2026 meeting, after the required public-review period for the CDBG plan and continued internal budget review.