The Normal Town Council on Monday heard a presentation on the proposed operating budget for 2026-2027, and for four years after that.
During a work session held before the regular council meeting, finance director Andrew Huhn presented highlights of the proposed $233.5 million budget for next year that calls for a 10% increase over last year's figure.
The budget projects a 2% increase in state sales tax from the previous fiscal year, and anticipates the same change for local sales tax. State and local taxes are projected to make up 42% of revenue in the town’s general fund.
Moves for the future
Fund reserves are strong, except for water, sewer and stormwater capital funds — issues to be addressed in the future in the town.
Water department needs for the next year include testing methods to remove ammonia from the drinking water, completing installation of Well #23 and a water main replacement on Linden Street. A rate increase of 2% is included in the budget, but town staff said rate increases do not keep up with water utility needs.
Sewer administration targets include further work at the Ironwood Pump Station and certification of employees in NASSCO Pipeline Assessment. Same as water, the 2% rate increase for the sewer fund does not keep up with needs, said the town.
The stormwater rate, which has been unchanged since 2006 at $4.60 per month, is in need of change. Unfunded projects that need to be addressed can’t be paid for without a rate increase.
The town needs to address the waste subsidy as well.
Huhn said waste collection is not paying for itself — the $4.6 million in revenue does not make up for the $5.6 million in spending. Remedies include modifying services or increasing rates to fix the problem. The proposed budget does not add rate increases, but such a move was mentioned as a possible future option.
Outlook
Nationally, Huhn said the inflation situation is improving as expected from this time a year ago. He added recession for 2026 is less likely, as he expects a favorable or stable economy.
“This picture, I think, is a strong financial picture for all of our funds for the upcoming fiscal year,” said city manager Pam Reece. “We don't want to kick the can down the road, which is why we want to have conversations about rates and capital and council's direction for the future.”
The budget is expected to come to a vote in March.
Firefighters seek work session
During the regular council session, several public commenters spoke to ask for a work session between Normal leaders and first responders from Local 2442 to address what to do about Normal Fire Station No. 2 on College Avenue. The town plans to close the station with the opening of a new station in east Normal.
“All they really want is a seat at the table, to have a discussion, to have a frank, honest discussion on what they see as issues regarding the fire department,” said Chris Coates, vice president of Associated Fire Fighters of Illinois.
“We're not going to go away when facts, data and science indicate an extremely stark difference in what this town is telling their constituents and their businesses,” added Chuck Sullivan, president of AFFI. “We are unapologetic when it comes to public safety, and we hope that you share that same sentiment.”
Council member Kathleen Lorenz said she supported having such a meeting.
“I will once again ask ... that we sit down and have a conversation, invite the firefighters to be at the table, to share the data from the town and their study, and be civic leaders,” said Lorenz. “I'm asking, I think I'm at this point, begging, for a work session.”
Other business
The council also approved:
- Purchasing two Chevy Equinox electric SUVs from Sam Leman Chevrolet in Champaign, in the amount of $58,745. The vehicles will replace two gas vehicles near the end of their useful life. Money was available for the purchase through a $100,000 Ameren Illinois grant meant for EV purchases and charging infrastructure upgrades. The rest of that total will be used for the latter purpose.
- A contract for a third-floor redesign of the Children’s Discovery Museum. The town will contract with Roto Group LLC for work not to exceed $90,000. The Children’s Discovery Museum Foundation will reimburse the town for expenses. Concept design work will begin immediately, concluding in the summer.
- Releasing minutes from two executive session meetings last year, and the retention of confidentiality for three meetings between 2024 and 2025. Executive session meetings are not open to the public, and minutes are made available at a later date.
- The appointment of Bryan Hinman to the Bloomington-Normal Asahikawa Sister Cities Committee.
