Mt. Vernon reviews proposed $21.7 million 2025–26 budget; creates rec center fund

Acting City Manager Nathan McKenna presented the City of Mt. Vernon’s proposed 2025–26 budget at a special council meeting Wednesday, reporting the General Corporate Fund expects $21,672,127 in revenue against $22,651,121 in operating expenditures and a working fund balance of $12,610,201 (about 6.7 months). McKenna said the budget shows a net negative change of $978,994 driven largely by increases in wages, benefits and higher pension contributions for police and fire.

McKenna told the council the city will create a new Recreation Center Fund (Fund 16) “to separate and track the revenue and expenses for the new center.” He said Fund 16 will draw an anticipated $360,000 from the cannabis tax and will also include bond proceeds intended to pay for construction.

The budget workshop reviewed multiple dedicated funds and capital priorities. McKenna said Motor Fuel Tax Fund 10 will continue to finance in-house and contracted street projects and has $315,380 reserved for future work. The Sanitation Fund (Fund 12) is projected to end with a $196,828 balance; McKenna said a lower-cost vendor for an electronic recycling drive will allow the city to offer another drive this spring and possibly additional drives next year.

Quality of Life/Economic Development Fund 24 contains a number of planned projects McKenna highlighted: Dawson Park playground and parking ($90,000); demolition and replacement of Veterans Park courts and parking including new tennis and pickleball courts ($660,000); a $3,000,000 streetscape grant application that would require a $3,000,000 city match; Cusumano ballfield improvements ($40,000); an additional bus shelter ($20,000); and corner improvements at Harrison and 9th Street ($90,000).

McKenna said the Home Rule Sales Tax Fund 25 is the primary source for capital equipment and listed requests including demolition funds, sidewalk repairs, a new park mower, MDT laptops for squad cars, a Connex box for Police storage, a backhoe ($185,000), skid steer ($107,000), replacement tasers ($50,000), a drone replacement ($20,000), a new street sweeper ($450,000), a dump truck ($180,000) and five new squad cars ($365,000). He identified $480,000 for traffic signals at 34th & Veterans and $900,000 for Fountain Place roadway improvements; he estimated the fund’s working balance at $1,402,366 after those requests.

On pensions, McKenna said the Pension Sales Tax Fund 26 receives one-quarter of the 1% sales tax and reported revenue of $1,277,079; he estimated the next pension contribution at about $1,657,843 and a year-end working balance that will depend on market performance.

Water and sewer infrastructure were also discussed. McKenna described two ongoing water-main projects, work to place three transmission-line valves, and $75,000 budgeted for the Route 15/45th Street water main replacement ahead of the Exit 95 overpass project. He said $100,000 is budgeted to begin replacing lead service lines, an effort McKenna estimated would require replacement of roughly 700–800 services. The Water Fund includes a $3,000,000 allocation for a proposed new public works building. For sewer, McKenna cited a $2,339,797 annual contract with Veolia, a $50,000 land purchase near the wastewater treatment plant, manhole relining and a $609,000 cleaning and inspection allocation for a problematic area around 9th Street and Route 148.

McKenna briefed the council on TIF funds, saying $300,000 in the Downtown TIF has been identified toward the Howard & Casey Building and most other Downtown TIF dollars are committed to the downtown park project. He said the Westside (Industrial Park Conservation Area) TIF is under negotiation for extension with school districts and other taxing bodies and could see a significant revenue increase, though the amount was not known. The Eastside Route 15/I-57 TIF contains limited activity with the Drury project currently the only active item.

No executive session was held. During the procedural portion of the meeting, Council Member Joe Gliosci moved to appoint Council Member Donte Moore as Mayor Pro Tem; with no other nominations, the council approved the appointment. Council Member Mike Young later moved to adjourn; the motion was seconded by Gliosci and passed. The meeting adjourned at 2:43 p.m.

The council did not adopt the budget at the special meeting; the presentation and fund-by-fund review will inform subsequent budget hearings and final adoption steps.