Highland Park presents proposed FY2026 budget; $100M operating, $40M capital, $24M planned debt issuance

City Manager Geeta Newkirk and Finance Director Christy McAllieu presented the city’s proposed FY2026 budget at a public hearing Nov. 10, outlining operating and capital assumptions and a schedule for formal adoption.

McAllieu said the budget proposes about $100 million in operating revenue for 2026 (roughly flat with 2025) and total revenue of about $150 million, an increase driven largely by non‑operating items including planned debt proceeds. The capital program is estimated at $40 million for 2026, including $34 million for streets and $6 million for facility and fleet work. Staff described a funding mix of roughly 65% pay‑as‑you‑go and 35% debt for capital spending and noted a planned $24 million debt issuance to fund parts of the capital plan.

The proposal also includes a property tax levy (city portion cited at approximately $19.8 million and the library at $6.4 million) and an expected combined increase that was presented as an approximate $138 annual impact for a taxpayer with an assessed EAV of $500,000. Staffing assumptions include about 273.6 full‑time‑equivalent positions.

Council members probed the impacts of fund balance drawdowns, Moody’s rating considerations, health‑care cost assumptions for personnel, and the schedule and funding for lead service line replacement. Staff said the city has applied for Illinois EPA funding and expects up to $10 million available for the first phase; the IEPA loan portion cited for the city’s initial phase was approximately $7,900,000. Staff said the lead program will be multi‑year and the city’s planned first round would replace roughly 600–700 service lines.

The council voted to close the public hearing (7 ayes, no nays). The council will consider the budget ordinance on Nov. 24 and the tax levy on Dec. 15.

No adoption vote on the budget occurred on Nov. 10; that is scheduled for later meetings.