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Rock Island council reviews proposed 2026 budget, projects modest tax-rate stability and utility increases
Summary
City staff presented a draft 2026 budget showing $144.1 million in proposed revenues and $153.6 million in proposed expenditures, with a recommended use of $3.9 million in general-fund surplus to balance the year; water and wastewater rates would rise 5.5% if a December rate study is adopted.
City staff presented the proposed 2026 budget to the Rock Island City Council, outlining revenues of $144,100,000 and proposed expenditures of $153,600,000. The presentation framed the budget goal as balanced across all funds and detailed several key assumptions, including a preliminary IMRF contribution rate of 6.28% (up from 5.81%), a 1.26% increase for police pensions and a 2.29% increase for fire pensions.
The finance presenter said personnel costs represent the largest single category at about 45% of total spending and that the budget includes reductions across departments—delayed hiring, overtime cuts and reduced professional services—totaling just under $1.7 million to help balance the general fund. Staff recommended applying the remaining general-fund balance of $3.9 million toward 2026 operations; after including projected 2025 results staff expects about $2.0 million of surplus left for future projects.
Staff broke down major revenue sources: charges for services were listed as the largest category ($40.79 million), followed by a combined "other" category and state and local taxes (about $28.65 million). Property taxes for all funds were presented at $24.29 million. The presenter described conservative assumptions on replacement tax and use tax collections and noted gaming revenues and local-option sales tax projections used in the draft.
The council was given an early preview of proposed enterprise fund rate changes pending a rate study expected for council consideration in December. The presenter said the study recommends uniform increases of 5.5% for water, 5.5% for wastewater, an average 7% increase for stormwater and a 12% increase for refuse if council adopts the study.
On the levy and tax-rate impact, staff estimated a proposed levy of roughly $18.73 million and a city tax rate of 2.7708, unchanged from the prior year; staff displayed an example showing the city portion of taxes on a $100,000 home would be $757 under the proposal. Staff noted that 61% of the proposed levy is allocated to police and fire pensions and that overlapping taxing bodies (most notably the school district) make up the majority of an individual homeowner's bill.
Council members asked for additional budget workshop materials to be posted online and sought clarity about funding for housing initiatives. Staff responded that programs are funded through a mix of CDBG, Illinois Housing Development Authority resources and targeted TIF uses, and that $450,000 in incentives is currently earmarked for infill and new housing but that details remain to be finalized.
Next steps: staff said a truth-in-taxation hearing is scheduled for Nov. 24, with first reading of the budget on Dec. 8 and a second reading Dec. 15 before adoption ahead of the 2026 fiscal year.
