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Washington council reviews FY 2026–27 general fund budget; finance director flags rising health insurance and falling telecom tax
Summary
The Washington City Council received a presentation on the FY 2026–27 general fund budget. Finance Director Paulette said expenditures are projected to rise about 8% for 2027, health insurance costs are increasing and a declining telecommunications tax used for dispatch may not cover costs by FY 2028. No final budget vote was taken.
The Washington City Council on Monday received a detailed review of the city’s proposed FY 2026–27 general fund budget, with staff recommending cautious revenue estimates and flagging several cost pressures.
Finance Director Paulette told council members the city has budgeted conservatively for revenue and expects total expenditures (excluding transfers) to rise about 8% in 2027. “We tend to budget revenues very conservatively,” Paulette said, and noted that while the city is projecting to add to reserves in the current fiscal year because sales tax receipts came in higher than expected, several cost increases—especially in health insurance—are built into the proposed numbers.
Paulette said health insurance premium increases are significant and that staff will revisit those costs at renewal time. She also raised concern about the telecommunications tax that has been used to pay for the TC3 dispatch contract, saying the revenue has declined and “likely, by the end of fiscal year 2028, that accumulated balance and the current revenue will not cover those costs.”
City Administrator Jeff Fagan Shue and staff emphasized the preliminary nature of the proposal. Transfers and several internal funds remain to be finalized; the council was told the budget will proceed through additional committee meetings on water, wastewater and internal service funds before a first reading in April. Paulette said the final budget will be proposed in April and likely adopted after two readings; one council member added the final approval is scheduled for April 20.
Council members asked about the timeline and opportunities for more detailed review. Paulette described the staff process for revenue and expenditure estimates and said the city uses Illinois Municipal League projections for several state-collected taxes. No vote on the general fund budget itself was taken at the meeting.
What’s next: staff will present additional funds at the next committee-of-the-whole meeting, finalize transfer numbers and return to the council in April for formal readings and a vote.
