City Council Study Session

Regular Meeting

Rock Island, IL · July 28, 2025

Minutes

CITY OF ROCK ISLAND CITY COUNCIL STUDY SESSION City Council Chambers, City Hall, 3rd Floor, 1528 Third Avenue, Rock Island, IL 7/28/2025 - Minutes 1. Call to Order Mayor Harris called the meeting to order at 6:30 p.m. and welcomed everyone. 2. Roll Call Mayor Harris asked City Clerk Samantha Gange to call the roll. Present: Alderpersons Glen Evans, Linda Barnes, Jenni Swanson, Dylan Parker, Mark Poulos and Mayor Ashley Harris. Alderperson Randy Hurt arrived at 6:30 p.m. Absent: Alderperson Bill Healy Staff: City Manager Todd Thompson, Attorney Leslie Day, City Clerk Samantha Gange, and other City Staff. 3. Presentations a. Finance Department 2026 Budget Preview Presentation Finance Director Jessica Sager said one of the primary goals is to balance the budget. Over the last few years, there have been challenges preparing the budget, but staff’s goal is to keep financial impacts to a minimum while still maintaining the same level of service to businesses and residents. She added that fiscal responsibility remained a top priority and stressed the importance of not only maintaining the City’s current financial position, but also improving its future financial position. Ms. Sager explained that some assumptions were built into the preliminary budget, and those items will be adjusted after the final numbers are received. Staff estimate health insurance will increase by 10%. For police and fire pensions, they assumed 100% funding as per the actuary’s recommendation. The estimated Illinois Municipal Retirement Fund employer rate is 5.98%. A 2% overall merit increase and a 3% general wage increase (GWI) are also assumed. Ms. Sager discussed the challenges staff faced while preparing the budget. Continual decreases in the personal property replacement tax and use tax are expected. Personnel make up the largest budget expense category, causing GWI and minimum wage increases to have a large impact on the general fund budget. Ms. Sager said staff are continuing to work on closing negative fund balances and turning funds positive. In consideration of aging infrastructure, an amortization fund was established in late 2024. Approximately 78% of budgeted revenues are in categories with restrictions, creating another challenge. Ms. Sager went over the 2025 property tax allocation: 64% for the police and fire pensions, 15% for the library, 14% for parks and recreation and 6% for the general fund. Expenses staff will consider while budget 1 planning include general obligation bonds and Illinois Environmental Protection Agency loan payments, which total over $10 million. Ms. Sager said the remaining general fund surplus for 2024 was $6.7 million and $2.8 million was used to balance the 2025 general fund and parks budgets. The 2024 general fund surplus is $1.17 million, and the remaining general fund surplus is $3.98 million. Ms. Sager discussed the timeline of the budget schedule. The proposed 2026 budget and the capital improvement plan (CIP) budget will be presented in October and November, respectively. The second readings of the budget and property tax levy ordinances and the CIP adoption are scheduled for December. City Manager Thompson said Council can modify the budget schedule and include department presentations. 4. Public Comment Mayor Harris asked if anyone in the public wished to speak. Sebastiana Freiburg, Curtis Lundy, Shaelyn Dean, Tim Murphy, Norah Brenny, Nina Struss and Mary Lou Pearson spoke about the proposed Casino West project and the Rock Island wetlands. Barb Wlaskolich spoke about Big Island and TIF. Kristie Engerman spoke about the proposed amendments to Chapter 4: Building Regulations of the Municipal Code and the International Residential Code. 5. Adjourn a. Motion: Motion to adjourn. VV Voice vote is needed. MOTION: Alderperson Parker moved to adjourn; Alderperson Poulos seconded. VOTE: Motion PASSED on a 6-0-1 voice vote. Aye: Swanson, Parker, Poulos, Evans, Hurt, Barnes. Nay: None. Absent: Healy. The Study Session concluded at 6:43 p.m. [MIN_SIGNATURES] 2

Agenda

Packet

City Council Study Session Agenda July 28, 2025 - 6:00 PM City Council Chambers, City Hall, 3rd Floor, 1528 Third Avenue, Rock Island, IL Click Here to Watch Live 1. Call to Order 2. Roll Call 3. Presentations a. Finance Department 2026 Budget Preview Presentation 4. Public Comment 5. Adjourn a. Motion: Motion to adjourn. VV Voice vote is needed. This agenda may be obtained in accessible formats by qualified persons with a disability by making appropriate arrangements from 8:00 am to 5:00 pm, Monday through Friday, by contacting the City Clerk's Office at (309) 732-2010 or visiting in person at: 1528 Third Avenue, Rock Island, IL 61201. Page 1 of 14 2026 Budget Preview July 28, 2025 Page 2 of 14 2026 Budget Preview Budget Goals • Balanced budget. • Keep financial impacts to the citizens and businesses of Rock Island to a minimum. • Remain fiscally responsible. Adhere to established financial policies while maintaining the City’s current financial position and working to improve its long term fiscal outlook. Page 3 of 14 2026 Budget Preview Assumptions • Health Insurance – 10% * • Fire and Police Pension - Employer Contribution • Actuarial Recommendation of 100% Funding * o Lauterbach & Amen Police Pension recommendation $6,534,606 o Lauterbach & Amen Fire Pension recommendation $5,579,508 • IL Municipal Retirement Fund (IMRF) – 5.98% * • Merit Increases – 2% Based on Average • GWI – per contract; non-affiliates 3.00% *Preliminary until final numbers are received Page 4 of 14 2026 Budget Preview Challenges • Reduced revenue and increased expenditures • Union contract obligations for GWI’s • Negative fund balances • Aging infrastructure Page 5 of 14 2026 Budget Preview Revenues Approximately 78% of budgeted revenues in CY 2025 are in categories with restrictions. Restricted vs Unrestricted Revenues 22% 78% Restricted Unrestricted Page 6 of 14 2026 Budget Preview Property Tax CY 2025 Levy General Fund $1,109,164 Police Pension $6,151,244 Fire Pension $5,162,462 Estimated EAV received by the Library $2,681,483 County in September Recreation $890,774 Park $1,347,394 RIFAC $203,647 Public Benefit $80,546 Total Levy $17,626,714 Property valuation 635,753,064 Property tax rate 2.7726 Page 7 of 14 2026 Budget Preview GO Bonds & IEPA Loan Payments CY 2026 - GO Bond Payments Funding Source Principal Interest Total Water Fund 135,000 41,600 176,600 Wastewater Fund 1,470,000 544,600 2,014,600 Gaming Fund 2,357,649 1,420,228 3,777,877 Marina Fund 12,351 4,243 16,594 Parks Fund 45,000 37,000 82,000 Hydro Electric Fund 95,000 11,400 106,400 CY 2026 - IEPA Loan Payments Funding Source Principal Interest Total Water Fund 1,197,323 300,173 1,497,496 Wastewater Fund 2,638,175 439,428 3,077,603 Page 8 of 14 2026 Budget Preview Go Bonds & IEPA Loan Payments CY 26 GO Bond Payments CY 26 IEPA Loan Payments 4,000,000 3,500,000 3,500,000 3,000,000 3,000,000 2,500,000 2,500,000 2,000,000 1,500,000 2,000,000 1,000,000 1,500,000 500,000 - 1,000,000 500,000 - Water Fund Wastewater Fund Principal Interest Principal Interest Page 9 of 14 2026 Budget Preview Go Bonds & IEPA Loan Payments Total CY 26 GO Bond & IEPA Loan Payments Water Fund Wastewater Fund Gaming Fund Marina Fund Parks Fund Hydro Electric Fund Page 10 of 14 2026 Budget Preview General Fund Surplus Surplus Amount Prior years GF remaining surplus $6,771,830 Balance CY 2025 GF & Parks budgets $3,964,010 Total $2,807,820 CY 2024 GF surplus $1,173,626 Total $3,981,446 Page 11 of 14 2026 Budget Schedule August / September 2025 August • Budget review meetings with City Manager, Department Directors & Finance • Budget review meetings with Mayor/Council, City Manager & Finance • Dates to be determined August / September • Strategic planning and goal setting with Mayor/Council, City Manager, Department Directors & Finance • Date to be determined Page 12 of 14 2026 Budget Schedule October – December 2025 October 27, 2025 • Finance Director budget presentation to Council November 10, 2025 • Finance Director CIP budget presentation to Council • Public Hearing on budget ordinance first reading • Property Tax Levy ordinance first reading • Public Hearing on Truth in Taxation (if necessary) • Tax Levy >4.99% December 8, 2025 • Budget ordinance second reading • CIP Plan adoption • Property Tax Levy ordinance second reading Page 13 of 14 Questions Questions from Council? Page 14 of 14