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Streator staff outlines cuts and TIF transfers to close budget gap; council leans to advertise 4.99% levy
Summary
City staff told the Streator City Council an original general‑fund deficit (about $1.73 million in the published report) could be reduced through capital deferrals, equipment deletions and transfers from TIF and home‑rule sales‑tax reserves; council members signaled support to advertise a 4.99% levy, which can be lowered later.
City staff presented the preliminary 2026 budget and tax‑levy options after an audit of revenues and expenses. The staff presentation began from a published budget report dated Nov. 2, 2025, which showed an initial general‑fund deficit of approximately $1,734,085. Staff proposed a package of reductions and reassignments to trim the gap:
- Remove a $130,000 fire training center building project to reduce the deficit. - Defer a $350,000 ambulance purchase; staff said an ordered ambulance may not be delivered in the upcoming fiscal year. - Consider using TIF proceeds to fund a $145,000 city‑hall generator because the building needs a reliable generator to ensure police and emergency operations during long power outages. - Cut two tree purchases (saving about $5,000) and reduce public‑works fuel by $5,000. - Delete a $150,000 grader and a pickup truck purchase and remove $50,000 for a separate building project from the general fund. - Increase some revenue estimates modestly (e.g., video gaming and water utility line items by about $15,000 each) and remove a $600 carnival permit revenue line that was being routinely waived.
Staff also said they may transfer or use about $500,000 of previously budgeted capital reserves in the home‑rule sales‑tax fund to cover near‑term needs, while cautioning that using those reserves reduces funds available for future capital. Staff discussed a range of options including modestly increasing the levy to a maximum suggested figure of 4.99% to preserve capital and operations; the council discussed an alternate advertised levy of 3.59% that would forgo a pickup truck purchase.
The presenter warned that the council can post (advertise) a higher levy and reduce it later, but it cannot increase the levy after publication. After debate, the council expressed consensus to proceed with advertising a 4.99% levy and to have staff update budget documents and return with final documents to the council at a special meeting expected on Dec. 9. Staff also flagged longer‑term issues: growing pension obligations, use of home‑rule sales tax for operations, and the timing of debt service that will free resources in later years.
No final levy adoption occurred at the meeting; staff will prepare notices and updated budget documents for council consideration in December.
