OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Elgin City Council Committee of the Whole Budget Deliberation - November 12, 2025

Committee of the Whole and City Council — Wednesday, November 12, 2025
BodyElgin, Illinois
SessionCommittee of the Whole and City Council
DateWednesday, November 12, 2025
StatusFILED
Video Record
0:00 / 5:02:28

Transcript — Verbatim
0:08

Call the committee of the whole meeting for the City of Elgin special committee of the whole meeting for the Elgin City Council for November 12th 2025 to order.

0:17

We'll please call the roll.

0:19

Council members of our Dixon.

0:22

Present.

0:23

Good.

0:23

Here.

0:23

Martinez?

0:24

Here.

0:25

Ortiz?

0:26

Here.

0:26

Powell.

0:28

Stefan.

0:28

Here.

0:29

Thor.

0:30

Here.

0:30

Mayor Captain.

0:31

Here.

0:31

Uh, we have no one uh signed up for public comment this evening.

0:35

So, Mr.

0:35

Manager, you're gonna work from down on uh main floor tonight.

0:40

Mayor Council members, good evening.

0:42

This is the first of three meetings of budget deliberation regarding the 21 decision proposal budget and through your financial plan.

0:49

We got a reintroduction last week to lay the groundwork for what to expect as part of the discussions.

0:55

And this evening, we are going to be hearing from Deb Naraki with discussions about the general fund, the recreation fund, the river boat fund, and after we get that information, we will segue into information on the proposed capital improvements in the 2026 budget, and at that time you will hear department heads coming out with brief descriptions of the initiatives that they're recommending for this year, and in every instance when the council has an inclination to ask me or any of the department heads a question or seek clarification, no need to wait until the end of the meeting, just fire away in the normal manner that you do working through the mayor.

1:34

So on the November 19th, the plan is any follow-up items or questions that are unresolved after this meeting will be resolved at the beginning of those budget deliberations.

1:47

But also scheduled during that time will be a presentation on the utility fund that includes water, sewer, and all of the money and incredible number of capital projects that flow through that through that initiative.

2:01

We put everything together on November 19th in preparation for the truth in taxation hearing that will be occurring on December.

2:08

That's the first Wednesday in December.

2:11

December 3rd is really the final meeting in which we need to dial in any potential changes or amendments to the budget because by December 17th, the third Wednesday in December, we're obligated by law to approve a balanced budget.

2:27

And unless anybody wants to stay until the end of the year to work through the holidays through that, that has been the plan as long as I've been working for the city.

2:35

So the hope is to work through this evening for about an hour and a half or so.

2:41

And if the mayor is so inclined, perhaps a 15-minute break, and we'll go on with that.

2:45

We have work planned that'll take us to about nine o'clock, but if the council wants to go any later than that, we're certainly able to do that.

2:53

So before we begin going through the previews for the benefit of the public or those that are watching from home, Karina Nava is gonna come up and do a quick walkthrough with the online budget book to show the most salient portions to help and then to help not anybody on the dais, but everybody at home follow along with what we're presenting.

3:13

So Ms.

3:14

Nava.

3:15

Thank you.

3:17

Hello, good evening.

3:19

Um so for those not too familiar with our online budget.

3:23

I'm just gonna walk through how to access it.

3:26

So if you go to Elgin IL.gov, um that's our home page.

3:30

You can access the budget right from there.

3:32

Um but uh first at the cover we have uh budget introduction.

3:36

We have the menu on the left-hand side.

3:38

So you're able to see the letter of transmittal, uh, personnel changes, that's where those live.

3:44

Um actually it's easier if I look at the computer screen.

3:47

My eyes are not that great.

3:48

All right, uh, under general information, uh, we've got uh the demographics, the how to use this document, budget process, all of that, and then uh fund summaries.

3:59

So this is where you'll find the summaries for the general fund, the river boat fund, any special revenue funds, um, enterprise funds, so you can explore there, and then um under departments um has the departmental uh summaries of departmental budgets.

4:14

We've got the user fees, and then um under capital improvement plan, department requests is where you will be able to find a lot of the uh capital requests that we will be talking about today.

4:28

And what's neat about this is let's say that you want to learn more about let's see who do we want to pick on.

4:35

Well, I'll be talking about this today later.

4:37

So the electronic voting and agenda management system.

4:40

So you can click on that, and it'll take you to the description of that initiative along with details of what strategic plan outcome area it's tied to and um information about the budget, uh what's being requested.

4:55

Is this a one-year initiative, two years, three years, um any ongoing costs with that?

5:00

So that's just a little example there.

5:04

And that's it.

5:06

And if you would prefer to print it, you can do that by going to PDF over here, creating a PDF.

5:12

You can include all the pages, which I will warn you, it's a little bit over 700 pages.

5:18

But if you want to just select certain sections, you can also do that, so that would reduce the amount of pages you're printing.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis██████████████████████████26%
Engineering And Infrastructure█████████████13%
Parks and Recreation█████████████13%
Arts And Culture███████████11%
Public Engagement████████8%
Personnel Matters████████8%
Technology and Innovation█████5%
Transportation Safety█████5%
Public Safety██2%
Summary of Proceedings

Elgin City Council Committee of the Whole Budget Deliberation - November 12, 2025

The Elgin City Council held a special committee of the whole meeting on November 12, 2025, from approximately 6:00 PM to 9:30 PM to begin deliberations on the proposed 2026 budget and three-year financial plan. City Manager Rick Kozel, Finance Director Deb Naraki, and other department heads presented detailed information on the general fund, recreation fund, riverboat fund, and capital improvement projects. No public comments were received. The meeting focused on understanding the $4.2 million gap in the general fund, driven largely by personnel costs and declining riverboat revenues, and discussing potential revenue options, including a 13.2% property tax levy increase.

Public Comments & Testimony

  • No members of the public signed up for comment.

Discussion Items

  • General Fund Overview (Deb Naraki): For 2025, revenues are estimated at $177.7 million (up $900,000 from budget) and expenditures at $184.1 million (up $7.9 million), resulting in a $6.4 million draw on reserves. The fund balance is projected to decline from $129.2 million (73% of expenditures) to $122 million (66%). Key variances include $1.1 million over-budget in ambulance revenue, $9 million under in intergovernmental revenue (due to a denied grant and unbudgeted homeless housing funding), and $5 million over in contractual services (including $2 million for 10 City cleanup). For 2026, the proposed budget shows revenues of $181.2 million and expenditures of $190 million, with a further $8.8 million draw, reducing the fund balance to $114 million (60%). Property tax levy increase of $7.7 million (13.2%) is proposed, the first increase in 11 years for the general corporate levy. The levy components include general corporate (from $27.8M to $32M), police pension, and fire pension. Earning and benefits drive an $11 million increase due to COLAs, new positions, pension contributions, and health insurance (11.2% increase). The SAFER grant provides $1.2 million in 2026 for nine new firefighters. Riverboat fund revenues have declined from $9 million in 2019 to $7.8 million in 2026; $1.7 million in traditional riverboat expenditures are moved to the general fund.
  • Impact on Households (Gio Hungo): Based on 2023 median home value of $253,000 (assessed value), the proposed levy increase would cost the typical homeowner approximately $150 per year ($12.50 per month). The city receives 16-18 cents of every property tax dollar; the rest goes to schools and other taxing bodies. Estimates are ballpark due to lag in county assessment data.
  • Senior Tax Freeze Proposal (Councilmember Dixon): Proposed a freeze on the city's portion of property taxes for senior-led households (approximately 20% of households). If the 20% were exempted, the remaining 80% would pay an additional $30-40 per year (about $2.50-$3.50 per month). The city would need to administer rebates, as the county cannot segregate the levy. Councilmembers raised concerns about equity and administrative complexity.
  • Alternative Revenue Sources (Councilmember Powell): Requested analysis of home rule sales tax increase as an alternative to property tax increase, including comparisons with neighboring communities.
  • **New Positions and Personnel:
    • Fleet Mechanics (3 positions): Proposed to consolidate fire department fleet maintenance under public works. Currently, fire department uses overtime for mechanics; new positions will reduce overtime and outside repair costs. Industry standard is 35-50 vehicles per mechanic; current ratio is 110 per mechanic. New mechanics will be housed at Fire Station 7.
    • Building Operations Worker (1 position): High-level technical position for building maintenance systems, previously unfilled since 2018. Intended to reduce outside contractor calls.
    • Operations Manager, Cultural Arts & Special Events (1 position): Reorganization to replace retiring Hemmens Cultural Center Director; position will oversee maintenance for all city cultural facilities.
    • Accounting Technician (1 position, shared Police/Finance): Full-time position to cross-train for police payroll and assist finance with accounts payable.
    • Parks & Recreation Positions: Land Management Maintenance Tech (1), Safety Inspector (1), Land Management Groundworkers (4), Sports Complex Lead Worker (1), Athletic Manager (1), Volunteer Coordinator (1). Many tied to the expanded Sports Complex; funding for part-time positions is revenue-generated.
  • Capital Projects Highlights:
    • Wing Park Renovation: Phase 1 ($600,000 OSLAD grant for inclusive playground, trails, parking); Phase 2 ($3.55 million) proposed for 2027.
    • Channing Park Refurbishment: $232,000 budgeted for design, contingent on OSLAD grant.
    • Edward Schock Centre Renovation: Repurposing old Sherman space for early childhood programs.
    • Streetscape Design at Hemmens.
    • Sports Complex Field Renovations (Year 3 of 4).
    • Fulton Parking Deck Painting.
    • Audio/Visual Upgrades at Hemmens.
    • Walton Island & Bike Path Plank Replacement.
    • Tennis Court Preventative Maintenance.
    • Bowes Creek Shore Stabilization.
    • Highlands Golf Course Simulator Project ($1.3 million total, $100,000 in 2026 for design).
  • Public Works & Engineering Capital Projects:
    • Collector street resurfacing ($3 million) and neighborhood resurfacing ($5.5 million).
    • Dundee Avenue Reconstruction ($7.6 million, ongoing).
    • Dundee/Center/Villa St. Corridor Improvements ($600,000).
    • National Street Reconstruction ($1 million design).
    • US 20 Widening Phase 2 Design.
    • Highland & Lyle Roundabout Construction (addressing safety concerns; designed to current standards).
    • Larkin & Airlight Intersection Improvements ($300,000 for phase 1 design).
    • Fox River Bridge Replacements ($3.2 million for phase 2 design).
    • Bridge Inspection Program and Bridge Rehabilitation (including National Street Bridge, $4.5 million).
    • Neighborhood Street Flooding Mitigation ($1.8 million for Lincoln & Logan).
  • Building Maintenance Capital: General repairs ($1.25 million), Airlight Water Treatment Plant Boiler ($750,000), Highlands Clubhouse HVAC, City Hall Roof Replacement, and security upgrades for Clerk's Office and State's Attorney's Room.
  • Cultural Arts & Special Events: Hemmens Lobby Renovation, Wing Park Electrical Discovery, City Marquee Replacement (relocation to Douglas & Highland), Inventory Control System, Pickup Truck, Drop Deck Trailer, Santa House, 250th Declaration of Independence Celebration, Angel of Independence Base, and a Friday Concert for Nightmare on Chicago Street (projected $300,000 in ticket sales). Also proposed repurposing the End of Summer Bash into enhanced neighborhood events.

Key Outcomes

  • No formal votes were taken; this was a deliberation session.
  • The council requested additional information: detailed list of 'other charges' in expenditures, comparison of home rule sales tax with neighboring communities, impact of delaying or eliminating new positions, and a schedule of upcoming budget meetings.
  • Councilmember Dixon's senior freeze concept was discussed but not formally proposed; staff will explore feasibility.
  • The next budget meeting is scheduled for November 19, 2025, at 5:00 PM, focusing on the utility fund and central area TIF.
  • The city intends to adopt a balanced budget by December 17, 2025.

Meeting Transcript

Call the committee of the whole meeting for the City of Elgin special committee of the whole meeting for the Elgin City Council for November 12th 2025 to order. We'll please call the roll. Council members of our Dixon. Present. Good. Here. Martinez? Here. Ortiz? Here. Powell. Stefan. Here. Thor. Here. Mayor Captain. Here. Uh, we have no one uh signed up for public comment this evening. So, Mr. Manager, you're gonna work from down on uh main floor tonight. Mayor Council members, good evening. This is the first of three meetings of budget deliberation regarding the 21 decision proposal budget and through your financial plan. We got a reintroduction last week to lay the groundwork for what to expect as part of the discussions. And this evening, we are going to be hearing from Deb Naraki with discussions about the general fund, the recreation fund, the river boat fund, and after we get that information, we will segue into information on the proposed capital improvements in the 2026 budget, and at that time you will hear department heads coming out with brief descriptions of the initiatives that they're recommending for this year, and in every instance when the council has an inclination to ask me or any of the department heads a question or seek clarification, no need to wait until the end of the meeting, just fire away in the normal manner that you do working through the mayor. So on the November 19th, the plan is any follow-up items or questions that are unresolved after this meeting will be resolved at the beginning of those budget deliberations. But also scheduled during that time will be a presentation on the utility fund that includes water, sewer, and all of the money and incredible number of capital projects that flow through that through that initiative. We put everything together on November 19th in preparation for the truth in taxation hearing that will be occurring on December. That's the first Wednesday in December. December 3rd is really the final meeting in which we need to dial in any potential changes or amendments to the budget because by December 17th, the third Wednesday in December, we're obligated by law to approve a balanced budget. And unless anybody wants to stay until the end of the year to work through the holidays through that, that has been the plan as long as I've been working for the city. So the hope is to work through this evening for about an hour and a half or so. And if the mayor is so inclined, perhaps a 15-minute break, and we'll go on with that. We have work planned that'll take us to about nine o'clock, but if the council wants to go any later than that, we're certainly able to do that. So before we begin going through the previews for the benefit of the public or those that are watching from home, Karina Nava is gonna come up and do a quick walkthrough with the online budget book to show the most salient portions to help and then to help not anybody on the dais, but everybody at home follow along with what we're presenting. So Ms. Nava. Thank you. Hello, good evening. Um so for those not too familiar with our online budget. I'm just gonna walk through how to access it. So if you go to Elgin IL.gov, um that's our home page. You can access the budget right from there. Um but uh first at the cover we have uh budget introduction. We have the menu on the left-hand side. So you're able to see the letter of transmittal, uh, personnel changes, that's where those live. Um actually it's easier if I look at the computer screen. My eyes are not that great. All right, uh, under general information, uh, we've got uh the demographics, the how to use this document, budget process, all of that, and then uh fund summaries. So this is where you'll find the summaries for the general fund, the river boat fund, any special revenue funds, um, enterprise funds, so you can explore there, and then um under departments um has the departmental uh summaries of departmental budgets. We've got the user fees, and then um under capital improvement plan, department requests is where you will be able to find a lot of the uh capital requests that we will be talking about today.

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