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McHenry staff presents balanced draft budget; proposes 3% water, 5% sewer rate increases
Summary
City staff presented a draft FY 2026budget showing a stronger-than-expected fund balance and recommended a 3% increase to water rates and a 5% increase to sewer rates; council members pressed staff on rec center support, staffing and long-term capital needs.
City finance and administration staff presented a balanced draft budget March 16 that projects the city will close the fiscal year with a stronger position than anticipated and proposes modest utility rate increases.
Suzanne Lynch, presenting the general fund highlights, said the city expects revenues to finish roughly 6.2% above budget while expenditures are running about 8.4% below budget, leaving a projected year-end general fund balance of roughly $23.7 million. She said the proposed 2026–27 budget is balanced and includes a recommended 3% water-rate increase and a 5% sewer-rate…
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