Streator City Council on Nov. 2 directed staff to publish a proposed 4.99% property-tax levy for public notice and spent most of the meeting debating ways to close a roughly $1.73 million shortfall in the general fund for 2026.

City staff reported a November budget draft showing a general-fund deficit of about $1,734,085. Finance staff outlined reductions and funding alternatives that together would reduce but not entirely eliminate the shortfall: removing or delaying capital purchases (a $130,000 fire training center expense, a $350,000 ambulance purchase, a $145,000 city-hall generator, a $150,000 grader and several vehicle purchases), reducing tree and gas budgets, and shifting some projects to TIF proceeds or home-rule sales-tax reserves.

The administration’s recommendation would maintain current staffing levels while trimming capital spending, but staff said community development personnel costs remain underbudgeted by about $100,000 and other structural pressures could require tapping reserves. TIF attorney Herb Klein told the council that, because the city-hall building lies in the 5th TIF district, TIFF proceeds could be eligible to fund the generator, and staff said they would pursue that option if council agrees.

Council members discussed trade-offs: some favored publishing the higher levy now to preserve the option of spending on items such as a pickup truck for public works and downtown cameras, while others emphasized minimizing the levy increase and relying on reserves or delaying projects. Staff emphasized that publishing a 4.99% levy permits later reductions but not an increase after the legal notice is posted.

The council asked staff to update budget documents to reflect the proposed cuts and transfers and to return with revised materials for final action (staff indicated an anticipated return at a December meeting). The council did not adopt the final budget during the Nov. 2 meeting; staff will make the adjustments and proceed with required public notices.

"If you want to add something, it needs to come up now," a staff member said, explaining the publication deadline and the city's inability to increase the levy after notice. The council scheduled the updated budget for further review in December.

Next steps: staff will update budget documents to reflect the council’s direction, publish the levy notice at 4.99% for public comment, and bring final documents back to council for adoption at a subsequent meeting.