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Mt. Vernon council reviews proposed 2024–25 budget, flags $1.2M grocery-tax risk
Summary
Finance Director Stephanie Bailey presented a proposed 2024–25 budget showing $116,069,173 in projected revenue and $93,834,356 in expenditures, with an $11.48 million projected General Corporate surplus after a $3.4 million loan to the Route 15/I‑57 TIF; officials removed $1.2 million from the budget anticipating the proposed elimination of a 1% grocery sales tax.
Finance Director Stephanie Bailey presented the City of Mt. Vernon’s proposed 2024–25 budget during a special council workshop on April 4, outlining projected revenues of $116,069,173 and expenditures of $93,834,356, which would leave an estimated fund balance of $22,234,817 if projections hold. Bailey told the council the General Corporate Fund, combined with the Aquatic Zoo Fund, is expected to end the year with an $11,475,306 operating surplus after a planned $3,400,000 loan to the Route 15/I‑57 TIF Fund for large projects.
The budget review focused on fund-by-fund projections and planned capital work. Bailey described capital and grant-funded projects across multiple funds: a $3,000,000 grant for a Downtown Streetscape project; roughly $3.6 million designated for road projects (about $3.4 million to be financed by bonds); and $8.421 million in Water Fund capital expenses. She said the Pension Sales Tax Fund is projected at $2,496,152 and the Health Insurance Fund at $3,042,090 on April 30, 2025.
A key revenue risk discussed was a proposed elimination of a 1% grocery sales tax in the governor’s budget, which prompted staff to remove $1.2 million from the General Corporate Fund projections. “This has been reduced in anticipation of losing the 1% sales tax on groceries,” Bailey stated, and City Manager Mary Ellen Bechtel noted that the adjustment reduces budget flexibility. Staff also noted completed development agreements for Holiday Inn, Culver’s, Mach I and Fujiyama that free the city from further benefit payments and add about $200,000 to the budget, while continuing agreements remain for Kohl’s, Drury Inn, Rural King and Ashley Outlet.
Other funds and projects described included the Tourism Fund (2% of hotel/motel tax) earmarked for a historical water-system exhibit, a Downtown Park grand opening and Fourth of July fireworks; the CDAP and Community Investment Grant funds for sewer relining projects ($650,000 grant with $20,000 match and a $3.2 million relining grant, respectively); the Motor Fuel Tax anticipated for the Fairfield Road FAU project, oil-and-chip and overlays; and the Downtown TIF serving a loan for Broadway Commons. Bailey also explained that leftover balances in the Industrial Park (Westside) TIF would be transferred to the Route 15/I‑57 TIF to repay the general corporate fund as obligations are met.
No formal votes on the budget were taken at the workshop; the council discussed projections, funding sources, and planned capital work. Council Member Joe Gliosci moved to adjourn at 2:19 p.m.; Council Member Donte Moore seconded and the motion carried with Gliosci, Moore, Mike Young and Mayor John Lewis voting in favor. Council Member Ray Botch was absent. City Manager Mary Ellen Bechtel and Assistant City Manager Nathan McKenna were present for the presentation and answered council questions.
