The Normal Town Council on Monday night adopted its next annual budget of nearly $209 million, up about 10% over the current year's budget.
The budget reflects significant revenue growth in the past year, especially in sales and income taxes, as well as food and beverage taxes, said finance director Andrew Huhn.
“This is probably the strongest budget since I’ve been involved in city government,” said longtime Mayor Chris Koos, adding that after enduring the hard times of the recession circa 2008, and later the COVID-19 pandemic, the town now has a chance to get back to working on projects.
The council adopted the budget on a 6-1 vote, with member Stan Nord voting “no.” Nord said he disagreed with the town’s decision to put $750,000 into a contingency fund.
Also at the meeting, the council OK’d using about $1 million of the town’s allotment of state Motor Fuel Tax (MFT) funds for 2023 street resurfacing, and spending about $811,000 to buy a set of dump trucks from Rush Truck Centers.
Revenue growth boosts Normal’s '23-'24 budget
“This budget is presented with a lot of pride” from town staff, said City Manager Pam Reece. It reflects the town’s strong financial position, and the ability to move forward with its Community Investment Plan to work on a number of capital projects, she said.
“The town has maintained our AAA bond rating. That is not by chance,” she added.
Reece encouraged the community to check out the town’s open portal, to review the Community Investment Plan details on the upcoming projects.
Huhn told the council this year’s growth also means the town is well positioned to address the next several years of expected rising utility costs — and other inflationary increases — while also tackling capital projects, boosting pension obligations, and reducing debt.
The council adopts the budget each March, following months of preparation that culminates with a January budget review session. At that time, Normal proposed a $205.4 million budget. However, with strong revenue continuing, the budget adopted Monday was more than $3 million higher.
The current year’s budget is expected to come in about $189.4 million when finalized, said Huhn. That puts the FY23-24 document about $19.2 million higher.
The new budget includes includes bumping up pension contributions for police and fire from $7.7 million to $13.7 million; as well as about $8.3 million for road work; and $3.3 million for parks and facilities. About $4 million in principal will be paid down on debt reduction.
It also accounts for about $2.5 million going into the construction fund for a second Normal fire station. A third station also is planned sometime in the next five years, Huhn said after the meeting.
Normal leaders also expect to see continued increases in utility rate revenue, noting it has doubled in recent years, and is expected to increase by $1 million this year.
Huhn said the town opted to put $750,000 — or less than 1% of its budget — into a contingency fund, and plans to do so each year duringthe 2023-2028 five-year budget cycle. That’s intended to be used “so we don’t have to dip into our savings,” he said.
If the council opts to eliminate the vehicle use tax, that contingency is one possible way to make up the lost revenue.
Council member Karyn Smith had proposed in February the town cut that tax, given the strong revenue coming Normal's way.
On Monday, she said town staff have explained Normal also administers that program for Bloomington. So, additional steps would need to be taken, prior to any decision to eliminate the vehicle use tax. But, it remains a possibility, she added.
The new budget also includes a 5% cost-of-living adjustment to the salary schedule for non-contract employees, effective April 1.
Notably, this budget reflects Normal shifting away from relying on property tax revenue as the sole source of funding police and fire pensions, and Illinois Municipal Retirement Fund obligations. Instead, Normal is using General Fund money to pick up the pace.
Huhn has said that’s a conscious decision to try to keep the town’s property tax levy flat.
Council member Chemberly Harris said Normal’s strong financial standing is evidence that town leaders' support of economic development pays off. “We’re able to continue to feed the vision of our community,” she said, while other U.S. communities still are trying to recover from the economic impacts of the pandemic.
“We are telling a great story about where we are at,” she said.
Street resurfacing projects start this spring
The council OK’d taking $1 million allocated by state Motor Fuel Tax (MFT) funds, and using that for part of the town's 2023 street resurfacing projects.
Town engineers are preparing three separate bids for projects addressing milling and resurfacing needs.
Council member Kathleen Lorenz noted the budget demonstrates Normal is choosing to use some of its economic growth and putting it back into improving road infrastructure.
“We’re going from $4.7 million to $8.3 million,” in roadways projects, she said.
Several factors are considered when town staff decides which streets to repair, according to board materials, including road condition, underlying utility needs, traffic level, cost and more.
A General Street Resurfacing project, and East College Avenue resurfacing, use the town’s roadside fund. But the MFT project also includes the $1 million OK’d on Monday. In addition, public works crews will be handling less intensive repairs around town.
The MFT project list includes stretches on nearly a dozen Normal streets:
- Ruston Avenue, Miles Lane, and Dial Court
- Orlando Avenue (Main Street to School Street)
- Aurora Way (Miles Lane to Alden Drive)
- Gregory Street (School Street to Fell Avenue)
- North Fell Avenue (Sycamore Street to Lincoln Street)
- Norwood Avenue (Fell Avenue to Lincoln Street)
- Douglas Street (Cole Street to Oglesby Avenue)
- Lincoln Avenue (Cole Street. to Oglesby Avenue)
- Oglesby Avenue (Beech Street to Lincoln Avenue)
The General Street Resurfacing project list includes sections of 16 Normal streets:
- Payne Place, Park Drag Lane, Cutter Court, Stephens Drive, Boone Court, Mark Lane
- Market Street (Adelaide Street to Samantha Street)
- Samantha Street (Market Street to Kern Street)
- Madison Street (Division Street to Apple Street)
- Apple Street (Madison Street to Main Street)
- South University Street (Division Street to Apple Street)
- West Virginia Avenue (Center Street to Main Street)
- Carriage Hills Road (White Chapel Way to Beech Street)
- Maplewood Drive (Stephens Drive to Belt Avenue)
- Maple Place (Stephens Drive to Maplewood Dive)
- Belt Avenue (bridge southeast of Maplewood Drive to Maple Place)
A third, separate College Avenue project, uses the town’s roadway fund to resurface:
East College Avenue (west of Blair Drive to east of Young Drive)
- In 2024, the town plans to resurface the remainder of College Avenue — from Young Drive to Veterans Parkway — as well as Mall Drive. Those will be tied to traffic signal and intersection improvements at College and Landmark/Mall Drive.
Also, a nearly $4 million project to update roads in the Savanna Green subdivision will be funded with American Rescue Plan Act (ARPA) money, noted Reece.Out-of-date dump trucks to be replaced
The council authorized spending about $811,000 to buy four dump trucks from Springfield-based Rush Truck Centers.
The town’s public works department uses 10 dump trucks for snow removal, fall leaf pickup and other tasks. Four trucks, more than a decade old, need to be replaced. Because of the pandemic and related supply chain issues, the town had to wait to take action.
In other business, the council OK’d:
- Spending about $61,000, with Minnesota-based Street Smart Rentals for a pair of Scorpion II attenuator trailers, to be used for roadwork safety.
- Several water department contracts, including a one-year, $115,000 agreement with Washington-based Core & Main for water main and service line materials; a $37,000 agreement with Bloomington-based Water Products to buy pipes needed for a well project; and a second quarter contract with Pennsylvania-based Brenntag North America, locking in chlorine at about $1,900 per ton.
- A three-year, amended intergovernmental agreement with the Ecology Action Center, for storm water education services.
