Alderpersons, Klemm, Johnson, Simmons is absent, Parker, Stacy, Shadle, Sanders is absent, Sellers, we have a quorum.
Thank you.
If you could join me in the Pledge of Allegiance.
I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.
And if we could get approval of the agenda.
So move.
Second.
Go ahead.
Motion by Sellers, second by Klemm.
All in favor?
Aye.
Opposed?
Motion carries.
Miller.
Approval of the minutes from September 15th of 2025.
So moved.
Second.
Motion by Parker.
Second by Sellers.
All in favor?
Aye.
And opposed?
That motion carries.
Next is public comments, which none were listed.
And we go to item 7, discussion of the following budgets by city manager, Boyer, and director, Richter.
Huffines.
All right.
Good evening, everyone.
Good evening.
Tonight, as your agenda will state, let's see here, the first one we're going to discuss is general fund.
So this is revenue.
And I admittedly asked pretty small up there, but I'll hit some of the highlights.
So some of our larger revenue codes or property taxes in the 2026 budget, we're looking at about $3,100,000.
So that's a slight increase.
Once the estimated EAV is received from the county, we'll have a better idea.
So that doesn't really happen until a little later in the fall.
But that's what we're estimating right at the moment.
Also we've got income tax.
That's coming up to $4.3 million.
So we receive estimates from the Illinois Municipal League on income tax, and we receive funds from the state based on the 2020 census.
The increase, we're increasing at about $100,000.
Replacement corporate, I'm sorry, the replacement corporate tax, that's, we've got that budget at $668,000 this year, at this point.
The estimate is generated by the state.
And then we have the municipal sales tax that is estimated at 6,200,000.
So that's just an increase of 500 from last year.
Then we've got the municipal sales tax home rule.
We're estimating that at 4.7 million.
And then municipal auto renting tax is a very small amount, 12,000.
As a matter of fact, for efficiency purposes, I'm going to try to stick to things over six figures here.
So the video game tax slight increase for 2026 to 625,000.
And then we'll move down to food and beverage tax.
We're looking at about 895,000 for that.
The city imposes a 1.25% tax on food and beverages within city limits.
And this is an increase of $45,000 from last year that we projected.
The electricity tax is going to be about $830,000 and we're seeing decreased revenue on the city's electric tax, most likely due to various conservation efforts.
Then we've got natural gas tax, that's about $660,000 and that's holding fairly steady.
And then we've got the telephone utility tax at $173,000 and this has been dropping for many years and it's decreasing $25,000 this year as people get away from the hard-line phones.
Then we've got the cable television franchise tax at $215,000, again, we're seeing more competition and more people cutting the cord when it comes to cable.
With that, I'm going to skip down a little further to video gaming licensing, so that is $43.90, yep, there it is.
That's $105,000, that's based on the increase passed earlier this year, so it is $105,000.
Moving along, we've got construction and zoning permits, $225,000 is what we're budgeting, and it's the same as last year.
I'm going to move down to airport hangar rent that again is going to be about $150,000 for the year similar to last year because we haven't made any changes there.
Also airport grant we're budgeting at about a hundred thousand and then airport fuel sales a hundred and ninety thousand that's a bit lower than past years and also since we didn't have the air show we did lose out on some of the If you'll allow me to cruise on down to 4700 fines, traffic, DUI, ordinance, etc.
We're budgeting at about $150,000 for fines and DUI levies.
Moving down to 4730 city ordinance fines, we're budgeting $77,000, budgeted lower than what we received in 2025 due to one significant fine and an outside contractor.
So we received, I can't remember if it was about $35,000 we received from Surf Internet due to the fact that they were working without permits and a licensed contractor in town.
So we were we had a pretty significant fine related to that.
Moving down a little further to 4820 Water and Sewer in lieu of taxes 102,000 and that's the same as last year and we are wrapping it up here we got a couple a couple more items 40 4885 that's interest income we're budgeting about $900,000 for 2026 and then transfer from Fund 332 at $826,000 and that is from Ambulance Revenue Fund.
It's 54% by ordinance.
So this is a transfer in there to the General Fund.
So our total General Fund revenue is $26,134,000 and that is what we're budgeting for 2026.
So any questions on revenue?
I just Settlers.
I just wanted to know the video gaming license, do they have to renew that license every year or is that just a one-time number 101, the very first one at the top?
Yeah, 4080.4390.
Oh, 4390.
That's annual renewal and we doubled those with that ordinance change.
Okay.
And then the other one?
Was the overweight and oversized load.
Is that the new thing we just passed?
Yes.
Okay.
Yes.
I just would like to make a quick comment that it's nice to see those numbers so close together from last year and next year.
We'd like to see them go up, but yes, we'll take, we'll take.
We don't want them going down.
Yes, what is I think that's pretty much a placeholder but go ahead Michelle.
The PAPI lights grant is coming through and also I don't know if it's gonna hit next year the it's not hanger, terminal updates, terminal updates grant.
Essentially when we receive money from the FAA for grant funding.
We count that as revenue on this side of the the ledger.
Okey-doke.
With that I'd like to move into expenses.
So starting with government buildings.
So we've been, we were hit pretty hard this year with various issues.
One of them was at the PD, the air conditioning we continue to deal with but there's a about a hundred thousand dollar claim involved in that because of the brownout issue with the power supply coming in but this particular fund carries janitorial services and elevator maintenance HVAC maintenance and 50,000 for general repairs potentially could be used for tuck pointing a City Hall as well as in that's also carried over in the Capital Outlay.
But anyway, this is government buildings that we've got so far, including natural gas.
And like I mentioned, salt sheds is also involved in the government buildings due to the fact that they are, we've got some fully depreciated structure.
We've got some fully depreciated structures that we use for our salt sheds.
So any questions on government buildings?
I just have one.
Yes.
When you're talking about the air, oh, I'm sorry, oh, I'm sorry.
When you're talking about the air condition issues and stuff, that's not what we have the problem with.
Banks for Gagner also, that's something different.
It's related to that.
We had so many failures of the compressor.
It is can also contaminated the cooling or the the copper coils in the exchange unit so we're having some associated associated issues with that.
So so is that I know we had had said that they were going to get was it insurance or whatever it was so did that ever come through that money to help take care of and Michelle can verify that but I think we received what a hundred thousand dollars from the insurance company so they're in the process of trying to collect on that okay thank you okay with that let's move on to the cemetery care fund yes sure just I wanted to emphasize that we do need to get tuck pointing City Hall next year we have a lot of issues around the building and it may actually take a couple years of budget to be able to get the whole building Dunn, but we have some issues on the second story roof on the back that need to be addressed and we were actually really hoping to get to it this year and we're not able to with the budget so it is very important that we get that project started.
We don't have tons of options with City Hall because it's a historical building.
Thanks, Darren.
This year we did the, we invested in the storm Windows here at City Hall.
That should hopefully impact positively this winter.
But it's also going to preserve the historic windows and the maintenance required to do it.
Yes.
Well the year before they did some work around the outside of the building.
So now what, there's more leaking?
No.
No, that was a drainage project and we got the drainage routed away from the building before it would run drain toward the building and would end up in the basement and now we've resolved all that drainage running away and we also improved the the gutters downspout that runs out to the curb so that's been resolved okay with that I'd like to go on to the cemetery care fund so we're only able to use the interest for this fund per ordinance so we only budget for revenues so this year Miller, we're looking at about $12,000 this year and that would we would really receive about $6,000 in interest.
And it's a pretty small fund and we don't really do a whole lot with it.
It does help us with some of the items at the cemetery.
So.
I have a question.
At one while there was no grave sites available for vets.
Has that been corrected?
That's not true.
No.
That's not true.
Okay, you're saying that.
There are plenty of places for vets.
There's paid, paid plots.
No, no.
I think vets are interred at no cost, but there are plenty of vet locations.
For a veteran, it's just open and closed and they're great.
Yeah.
Again, I'm not sure who, you know, says stuff like that.
I just, I, that's not true.
So, any other questions on the Cemetery Care Fund?
With that, we'll be moving on to the Neighborhood Housing Fund.
So the primary source of revenue for property taxes, so property tax transfer tax budgeted at 220,000,225,000 for 2026, and that's a slight increase from this year.
In addition we have the interest and it's essentially the same as last year the fund balance reserve transfer this is the use of any remaining funds from 2025 and we have a couple of large demos we're working on for 2026 in addition to that you've got the economic development projects those are budgeted at $20,000 for next year.
The real estate taxes, that's fund 6610.
Once the city acquires the property, we are liable for the property taxes until our paperwork is approved for exemption.
So we budget about $10,000 for that.
In addition, 7020 land and property acquisition, we're budgeting approximately $20,000 for that.
And then demolition, we are budgeting a $990,000.
Walsh, Mark, Sometimes, the two most successful ones, who are the ones that are the most successful.
We also have over 30,000 demos that we do not have grants or large planned demos, for instance, like the holiday inn can be considered a large demo.
Are we taking down the old holiday inn?
Is this price including that?
We are budgeting funds that we can use for that if we are able to gain ownership of it through the court process.
Right now it's working its way through the court process.
Okay, that we'll move on to tourism.
Hotel motel tax is one of our revenues, item 4120.
The main revenue source for the tourism fund and increased budgeted by 15,000 over last year or 2025, I should say, 4885 interest is gonna be the same carryover.
Careyover, and then this is also where we provide funding for, in part, the Greater Freeport Partnership.
So the increase line item to $263,500 and we'll be decreasing any TIF support to equal the amount contracted to the GFP.
Miscellaneous expense, that'd B, the trolley for Tuddy Baker days and also the same budget as last year.
Then we have transfer out to general fund and that is used $25,000 to support the wages of the community development director.
With that, I'd like to move on to debt service fund.
Per governmental accounting rules, the city has a debt service fund.
Resources are transferred into the fund and the payments come out of the fund for the The following bonds.
The first bond is 2013A. That's the central fire station and that will come to an end and that will be fully taken care of in January 1st, 2028.
Additionally to that we have 2015A and that's a refunding bond which was refinanced.
The bond includes downtown TIF, library, sanitary, sewer and storm sewer projects and that will be completely paid for in January of 2034.
We have the rehab of City Hall that will be completed in January of 2036.
And a downtown TIF ends in January of 2033.
Then we have the 2019A Rhodes Bond.
That will be completed in January of 2034.
In 2020, we took on a pension obligation bond.
That will end in January of 2041.
We also have an additional roads and paver bond.
That will be complete in January of 2031.
And then the 2022 bond, Fire Engine and Ariel.
So that will end in January of 2033.
Any questions on debt service fund?
We've got the health care fund.
So this fund controls the inflow of revenue Outflow of Expenses for Medical Insurance Costs.
Revenues are received from employees, retirees, and the city.
And we do offer voluntary life, vision, and ID protection, all of which are paid in full by the employee, if that is something they wish to have.
We do have a significant increase in expenses expected in 2026 in the healthcare fund.
We're currently finalizing and John.
We are going to be doing a lot of fundraising numbers with our provider and there may be some changes when we bring this back to Council in early November.
So essentially the end of the year, the fall is when we do all of these quotes with the insurance company.
We're also negotiating various contracts with the bargaining units, so this all is going to affect the healthcare fund.
Any other questions on Health Care Fund?
Okay Landfill Closure Fund.
This fund tracks expenses for the landfills.
Even though they're closed, they still represent significant cost to the Close, they still represent significant cost to the city.
The first one I'd like to point out here is $47.95 and that's the transfer station rent.
The city records $29,500 annually in revenue from the contract we have with Gills.
We received a one-time payment of $1.4 million for 50 years use of the transfer station.
Also 4960 is transfer in that's from General Fund this has been one of the items on the audit that's because they have a they'd like to see us have a standing amount of about five million dollars in this account so we're building that back up so we're budgeting five hundred thousand to go into the landfill closure fund and and that'll slowly build over time to equal that 5 million dollars that they'd like to see in that account what is that account used for essentially taking care of the landfill until the EPA allows us to call it closed and officially resolved so like no more no more sampling would be required no more maintenance will be required they would consider it inert and done so that's that's the whole point is we have maintenance and so we have to do out there every year.
It involves the EPA, it involves water sampling at the leachate collection points.
It also includes grass mowing and tree cutting and that type of stuff.
Associated with the landfill, we've got 6170, which is contracted infrastructure repair and maintenance and that's general landfill repairs.
We're budgeting about 30,000 there.
And then 6215 is depreciation expense.
We're basically depreciating the bypass line that was installed a few years ago that drains, I think, what is it, cell number four?
Yeah, thank you.
And then 6430 includes the landfill closure expense.
So again, the testing and monitoring of all the leachate that's out there as required by the EPA.
That's about $365,000 a year so it's very expensive carrying cost.
Any questions on the landfill closure?
Okay moving on to health and environmental funds so this is garbage.
Item 4635 is reimbursement of transportation property taxes from Gills an amount of 16,000.
Also 4645 waste and recycling fees so the this is We have the collections from residents, $2,839,000.
We have $4915 fund balance reserve transfers, so the use of reserves to balance the year.
And then bad debt expense, so that's write-offs for uncollected balances.
And then disposal and recycling fees, bills paid to Gills monthly.
And then we have real estate taxes.
So on the transfer station there are, that are reimbursed by Gills.
And last item in the, in this budget item, the health and environmental 6630 revenue collection services.
The water and sewer fund charge the health and environmental fund for billing services on the monthly water bill, so essentially we're recovering some of our costs related to collecting the trash fees from the water utility.
So any questions on Health and Environmental Fund?
Okay.
Moving on to the OVW grant.
This is Violence Against Women.
We've had this federal grant for eight years.
It funds about half of the wages for the SVU detective.
The grant also assists with funding for voices and the state's attorney's office.
So that's essentially all that this is used for.
Any questions on Vitalskin Swimming Grant?
OK.
Next is Brownfields Grant.
So this is federal funds for 17 and 19 West Main Street.
That's the cleaners on Main Street.
So we're in the process of demolitioning those.
There's a lot of items that we have to get right the first time.
And so we're in the process of getting that done now.
Any questions on this Brownfield grant?
Yes.
We have a grant to take care of that.
Yes.
Older and stronger.
Just wondering, how long is that going to take?
When is that going to be done?
I'm guessing it's going to be later this year, early next year.
But go ahead, Dan.
Yeah, we're just waiting on USCPA to give us the green light.
The contracts have been signed with Fishers.
We had to do a 30-day notice period that just expired.
I believe it was October 2nd.
So we're just waiting for them to give us the thumbs up.
And we're hoping, I can't promise you, but we're hoping to get it done yet before the end of the season.
We won't have it finished, obviously, but at least get it down to the point where it's not dangerous any longer.
Thank you.
Any more questions on Brownfield grant?
OK.
Bulletproof vest.
So federal funds to purchase new vests for officers.
So about $5,000.
Any questions on that?
All right, moving on to DUI forfeitures.
So this is restricted funds for use by the police department.
They are for the purchase of equipment and other items that law enforcement handle DUIs.
Some examples would be radar guns and training for officers.
So, as you can see there, we've got about $13,000 in there for, I'm sorry, $64,000 for the revenue side and $64,000 on the expense side.
Any questions on DUI forfeiture?
Moving on to K-9.
So, these are restricted funds, donations for support of our K-9 officers.
Rather small account, so if you got any questions, I can answer them now, otherwise we'll move on.
With that, we'll move on to the sex offender funds.
So, sex offender funds must register and pay a fee annually.
Approximately two-thirds of this fee is forwarded to the state agencies and the city retains one-third.
Funds must be used for official purposes related to the sex offender registry.
As you can see, we've got about $5,000 in revenue and about $5,000 in and Expenses.
Any questions on that?
OK.
The next one is the Explorer Club.
And these are restricted donations to support the activities of the Explorer Club.
Any questions on that?
What's an example of an Explorer Club?
I'm going to let the Deputy Chief Davis mention.
So we currently don't have an Explorer Club.
It used to be kind of run in connection with boy scouts.
We had an officer that was a boy scout that ran that.
It generally was for younger individuals interested in possibly becoming a police officer.
Any other questions?
All right, moving on to auxiliary police.
So these are restricted donations to support the activities of the auxiliary police.
Similar to what the county has these are essentially just a reserve officers that can come in and help out on an event.
I don't believe we have very many people in it but but it is here.
Any questions on the auxiliary police?
IDHA Strong Communities this is our demolition grant as you can see here we're moving rapidly through here, about $120,000, and we will use that $120,000 on demolitions.
Any questions on that?
Okay.
ETSB 911.
So this is funds are received from the ETSB for 911 Center to purchase items such as software and equipment.
As you can see, we're budgeting about $81,000 revenue, and we have various items that need to be updated, machinery and equipment and education and training are the main ones.
Any questions on that?
Okay.
Next one is Department of Transportation Safe Streets for All.
So this is in progress.
The total grant of $400,000 plus a city match of $100,000 and we have already provided our match at this point.
So this will go into various projects throughout town to increase safety at dangerous intersections, increase crossing Guard.
Howard, notification lighting signs and paint striping just to overall increase the safety.
Any questions on that?
Grants to close in 2025.
So we've provided reports for the following grants.
However, we plan on them closing in 2025, so therefore a budget for 26 will not be required.
So they are the IDNR round two demo grant, the DCEO demo grant, an additional DCEO demo grant, CDBG housing rehab grant, and ILETSB recruitment and retention grant and pre-disaster Miller.
So those will be closing out in 2025.
Any questions on those grants?
I'm sorry, I didn't hear when you said the, when it would be closing, you said the end of 2025?
Is that what you said?
They will close in 2025, so they're not carried over in 2026.
That's why they're not in the budget.
How much of that money have we not used?
Of what?
Which one?
Of the demo grant.
The flood mitigation grant or the IDNR round two?
I think the first one you said.
Wayne, can you comment on that?
Yes, the city of Freeport spent more money than any community in the state of Illinois at 2.7 million dollars of the 3.5 million and the reason that the 800,000 was not spent is it's a voluntary grant and the people chose not to sell their property.
All right.
All right with that we'll move on to Pretzel City Transit grant.
So this is a federal grant.
It's about a hundred and hundred and ninety eight thousand in federal dollars and it goes toward maintaining the Pretzel City Transit.
In addition to that the next grant is the Downstate Operating Grant, and that is also for the Pretzel City Transit at $1,431,000 in state dollars.
Obviously, Pretzel City Transit is going to continue to operate for the year of 2026.
Any questions?
All right, that completes my presentation for this evening.
So, thank you very much.
Is there any other budget discussions?
Seeing none, we would open for public comments.
If Anybody would like to speak?
Seeing none, I'd like to make a motion for adjournment.
So moved.
Second.
Motion made by Parker, seconded by Sellers.
All in favor?
Aye.
Opposed?
We are adjourned, Madam Mayor.
Yeah we'll whatever you need Kurt about two minutes okay so we'll we'll come back as soon as