TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
title
Public Hearing Regarding an Ordinance Approving the 2025 Fiscal Year Annual Budget for the City of Joliet, Will and Kendall Counties, Illinois.
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BACKGROUND:
The proposed 2025 Annual Budget was made available to the public on the City’s website and in hard copy form at the City Clerk’s office since November 21, 2024. Main parts of this budget were presented to City Council on November 4th and November 19th. December 3, 2024 is the required public hearing on the proposed budget. Notice of the public hearing was published on November 22, 2024 in the Herald News.
This budget is the cumulation of five months of work from staff and Department Heads. Highlights of the 2025 budget are:
Government Operations
• Budgeted Revenues in the General Operating Fund are expected to be $16 million higher than 2024. The City is projecting increases in sales and miscellaneous taxes of $4.7 million. The City’s share of the State of Illinois Income Tax is projected to increase by $3.6 million. Billings for ambulance rides that are paid by insurance companies is expected to increase by $2 million as result of keeping our rates on par with Medicare.
• Budgeted expenses in the General Operating Fund are expected to be $16 million higher than 2024. The proposed budget includes 29 new positions; 14 Police Officers, 3 Firefighter/Paramedics, 3 Fire Lieutenants, 1 Fire Captain, 1 Community Paramedic funded by a grant, 3 Information Technology Staff, bilingual employee for Front Desk, Office Manager in Public Works, and Development Coordinator in Community Development. The budget also adds an additional $1 million to maintain City owned buildings. This amount is needed to avoid damage that is possible if we do not complete preventative and ongoing maintenance.
Sewer and Water Operations
• Revenues are expected to increase in 2025. The 2025 budgeted revenues are based on the information compiled by our rate consultant. These revenues include the rate increases approved by Council in 2023.
• Expenses are increasing by $5 million. The largest increases are the payment to the Government Operating Fund for shared staff and expenses and depreciation. A recent calculation of the shared staff and expenses has resulted in an adjustment to the amount previously used. Depreciation expenses have also increased as we are completing a large number of new infrastructure projects that require depreciation.
Governmental Capital Highlights
• Roads and Sidewalks - $17,851,868
o Approximately 60 lane miles of roadwork.
• City Square & Chicago Street Project - $18,000,000 ($3.5 million grant funded)
o City Square - $9,800,000
o Chicago Street Reconstruction - $8,200,000
• Slammers Stadium - $1,100,000
o Structural Painting, Fire Suppression system, Loading Dock and Parking Lot, AV upgrades
• Begin Design for Fire Station 7 Replacement and Training Facility - $1,750,000
• Roadway Landscape Upgrades - $225,000
• Roadways Equipment - $590,000
• Fleet Building Upgrades - $2,200,000
• Ottawa Street Parking Deck Repairs - $1,600,000 (Applied for 80% grant)
• 36 Vehicles - $3,600,000
o 28 Police Vehicles
o 3 Large Dump Trucks
o 2 Fire Department Vehicles
o 1 Fleet Van
o 1 Plow for Buildings and Grounds
o 1 Inspector Vehicle
Sewer and Water Capital Highlights
• Watermain Replacement Program - $101 million
o 30 Miles
o Debt Funded
• Lake Michigan Water Supply
o Improvements to accept Lake Michigan Water - $22.7 million
o Water Commission Design - $28.7 Million
• Lift Stations - $1,195,000
• Sewer Collection System - $9,375,000
• Westside Treatment Expansion Design - $6,175,000
• Meter Replacements - $8,500,000
• Water Distribution System - $2,146,000
• Well Rehabilitation Program - $1,350,000
• 5 Vehicles - $1,350,000
o 3 Trucks
o Hydro Excavator Truck
o Crane Truck
Fuel Tax Increase
The budget includes an increase in Fuel Tax from 4 cents to 5 cents for Gasoline and from 4 cents to 11 cents for Diesel. The proposal is to increase this tax and allocate the increase for vehicle replacements. We are proposing that diesel be more than gasoline to capture additional revenue from truck traffic in our City. Additionally, our data suggests that local fuel taxes do not impact the price at the pump. The ordinance proposing this tax increase is scheduled to be presented to the Finance Committee and City Council on December 17, 2024.
RECOMMENDATION:
recommendation
The City Administration recommends that the Mayor and City Council approve the 2025 Fiscal Year Annual Budget.
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