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Mount Vernon council reviews first-quarter budget, flags sewer repairs and contractor disruption
Summary
At an Aug. 28 workshop, Mount Vernon city officials reviewed first-quarter FY2025-26 finances, highlighted $6.5M in year-to-date revenue versus $5.3M in expenses, discussed sewer repairs potentially tied to Clearwave bore operations, and said a contractor's closure has delayed park parking-lot resurfacing.
Mount Vernon city officials gathered Aug. 28 for a workshop to review the first-quarter FY2025-26 budget, during which City Manager Nathan McKenna outlined fund balances and flagged repair and contract issues that could affect spending plans.
McKenna said, "The City has received 6.5 million in revenue and 5.3 million in expenses," noting that expenses are running at about three-quarters of what had been anticipated for the year. The review covered multiple funds, capital projects and recent adjustments to budgeted amounts.
Why it matters: the workshop identified projects that rely on outside funding or contractors'and therefore carry scheduling and cost risk. Officials also discussed funds set aside for capital purchases, ongoing sewer repairs and the possibility of reallocating certain project funds.
Financial snapshot and capital projects City Manager Nathan McKenna and Finance Director Dan Plumb walked the council through key funds. McKenna said Motor Fuel Tax revenues supported resurfacing on Old Fairfield Road and other roadwork; after milling is complete, paving waits on E.T. Simonds to resume operations. The Motor Fuel Tax Fund is projected to have a working balance of $315,380 at year end.
The newly created Recreation Center fund holds $360,000 from the city's cannabis retail tax, and the budget packet includes a $26,000,000 placeholder for potential bond proceeds tied to that project. The Home Rule Sales Tax Fund paid for recent traffic signals and land purchases and is projected to end the year with about $1,413,460.
Pension and insurance reserves McKenna said the Pension Sales Tax Fund is projected at roughly $2,440,154, though required employer contribution amounts have not yet been finalized. The Health Insurance Fund is self-funded and shows a projected balance of $3,042,090, but McKenna cautioned a single catastrophic medical year could significantly deplete that reserve.
Sewer, water and contractor issues Officials reviewed several sewer and water priorities. McKenna said Community Investment Sewer Grant projects are in the assessment phase (crews are televising lines) and a CDBG-funded sewer relining project is nearly complete. On the Sewer Fund, McKenna described a possible reallocation of funds from a South 9th Street repair to work on Richview Road.
McKenna reported that Clearwave has bored into the city's sewer line in several places; city staff have contacted Clearwave and are negotiating how much of the repair cost the company will cover. The City is still assessing liability and repair timing.
Separately, the resurfacing contract for parking lots at Veterans Park and Dawson Park had been awarded to Jax Asphalt, but McKenna said that company has closed. The city is seeking new pricing from other contractors and is pursuing the Jax Asphalt performance bond.
TIFs, reconciliation and budget adjustments The Downtown TIF (Fund 71) is projected to finish the year with about $596,105, including a $250,000 loan from the General Corporate Fund that will be reimbursed when the TIF expires. McKenna said the Industrial Park (Westside) TIF (Fund 72) is under negotiation for extension; if not extended it will expire in 2032.
Finance Director Dan Plumb noted a discrepancy in the Route 15/I-57 (Eastside) TIF Fund 73: the published budget showed a zero working balance while quarterly activity shows a deficit of $635,489. Plumb said the two sets of TIF accounting have not been reconciled yet; the City expects some state reimbursement tied to the South 44th Street project.
Plumb also described several budget adjustments: raising a fire-truck refurbishment line to $300,000, reallocating costs for additions to a second fire truck, using $1,701,725 for property purchases, and creating expense accounts after the Police Department received an ILETSB retention grant and separate Police Academy donations. Fund 25 savings from expired cardiac monitor leases were reallocated for reporting software and fitness equipment for the Fire Department.
Council questions and next steps Council Member Donte Moore asked whether money had been set aside for a public works building; McKenna said a $3 million line item in the Water Fund corresponds to property that has closed and can move forward if the council agrees. Mayor John Lewis said McKenna is exploring whether solar subsidies could be applied to the new Rec Center and water treatment facilities.
No members of the public spoke during the visitors portion, and no executive session was convened. Council Member Joe Gliosci moved to adjourn; Council Member Donte Moore seconded and the motion carried. The meeting adjourned at 3:45 p.m.
The council did not take final votes on budget amendments during the workshop; staff will continue reconciling fund activity and bring any formal requests to the council for future action.
