Kankakee budget committee reviews February finances, explores bond refunding and technology funding

The Kankakee City Budget Committee met for its March 2026 budget review but did not have a quorum and took no votes. Committee members reviewed February financial statements, discussed the status of American Rescue Plan Act (ARPA) funds and timelines, and explored options for bond refunding and funding for public-safety technology and medical insurance.

Committee presenters reported that year-to-date total revenues stood near 88.9% of the annual budget at the February checkpoint, above the approximate 83% benchmark for 10 months. Total expenditures were reported at about 82.4%. Salary costs were running near 78% of budget; training and travel spending was notably low (about 56% of budget), supplies and equipment were under 50%, and repairs and maintenance were around 53%.

The meeting included an update on ARPA: staff said an additional roughly $300,000 allocation had been processed this year and that most projects are expected to be completed before the ARPA spending deadline, though some contracts may cross into the next calendar year. Committee members noted the city did not draw its full $10 million allotment and discussed coordination with the redevelopment authority (ACDA) and contractors to finish remaining projects.

Members also reviewed a proposed municipal budget timeline that would present an initial package to the committee on May 11, publish the public-notice packet by June 1, hold the public hearing on June 15, present a final committee package on June 8, and seek the board vote on June 15. Committee members said the June meeting dates limit how far ahead the committee can finalize the budget this cycle.

On debt strategy, staff described exploratory discussions with financial advisor Bob Vale about refunding certain taxable bonds, including 2022 taxable POB bonds, which are callable and can be refinanced now. Staff said taxable refundings could be attractive in current market conditions and cited preliminary estimates that combining qualifying refundings could yield savings on the order of several hundred thousand dollars, with a working range discussed of roughly $800,000 to $1 million in potential savings if market timing and pricing are favorable. The committee said staff will continue monitoring the market and may return with a formal presentation.

Public-safety technology was another focus. Members discussed continuing investments in cameras and a ShotSpotter-like program to improve response times and reduce overtime. One attendee suggested a placeholder line item of about $100,000 to sustain technology operations and incremental expansion; committee members asked staff to evaluate whether that level can be accommodated in this year’s budget.

Staff also gave an update on medical insurance procurement. Preliminary quotes from Homestar (contact Susie) were under review; the total premium pool across all employer groups was described as roughly $3.9 million, with the city general-fund share about $2.55 million. Staff said they expect firmer numbers within one to two weeks and will brief council members individually before returning to committee.

The committee reported a pending audit item: auditors proposed adjustments to revenue recognition and the city engaged an independent third party to provide a review and recommendation; staff expected that work to conclude within the week.

With no quorum, the committee did not vote on minutes or any motions and adjourned at about 5:51 p.m. Next steps documented by staff included continued market monitoring on bond refunding, finalizing insurance rates, and following through on ARPA project closeouts so remaining allocations can be spent before federal deadlines.