The finance committee presented the proposed 2026 budget and property-tax levy schedule to the Committee of the Whole. Stacy Peterson, the city’s chief financial officer, said the 2026 budget proposes $687,900,000 in total expenditures against $541,100,000 in revenues; the remaining difference is to be covered from prior-year carryovers and other sources.

Peterson outlined three levy functions: general city operations (roughly $47 million), pension costs (police and fire pensions and IMRF), and debt service. She noted historical levy stability before a rise in debt service and projected pension levies (police about $22.97 million; fire about $16.5 million). Peterson also showed an example of tax-bill impact on a $300,000 home and explained that equalized assessed valuation changes would materially change the final bill.

The proposed budget showed a $326,399 surplus before carryovers and late changes; after including carryovers (about $75.7 million) and late adjustments, the net position moved to a roughly $3.3 million deficit. Peterson described the composition of carryovers (capital projects, bond proceeds and other funds) and asked council members to review a late-change schedule; members requested a detailed line-by-line late-change summary to be circulated.

Council members pressed for more detail on internal-service funds and reserves. Peterson identified deficits/inadequate balances in the property and casualty fund and the compensated benefits fund and explained the city’s 10% general-fund reserve target. Staff and council discussed the revenue assumptions, additional gaming tax revenue projections, and potential timing risks tied to bond and capital projects.

Next steps: the city will hold a public hearing on Dec. 9 and consider final budget adoption that day, with the property tax levy to be considered on Dec. 16. Several budget-related items were placed on unfinished business to allow follow-up information to be submitted to the council before final votes.