DeKalb Times

City of Dekalb Finance Advisory Committee met Aug. 18.

Here is the agenda provided by the committee:

SPECIAL JOINT MEETING OF THE CITY COUNCIL & FINANCE ADVISORY COMMITTEE

A. CALL TO ORDER

1. City Council Committee of the Whole Call to Order and Roll Call.

2. Finance Advisory Committee Call to Order and Roll Call.

B. APPROVAL OF AGENDA

C. PUBLIC PARTICIPATION

D. CONSIDERATIONS

Consideration of Key Assumptions for the Fiscal Year 2026 City Budget.

City Manager’s Summary: At this point in the City’s fiscal year (which runs with the calendar year), the City staff have sifted through the Annual Comprehensive Financial Report (ACFR), for 2024, published in mid-June 2025, which reports financials for the fiscal year that ended on December 31, 2024. Additionally, the City staff have studied financial trends gleaned from state-shared revenue reports since January 2025. Forecasting 2026 revenues from these records is very speculative each year, in no small part because state reports of key revenues collected locally and remitted to the state (e.g., 1% sales tax, local use tax, state income tax, and home rule tax) are received by the City after a typical two to three month interval. In brief, our City officials are looking at key income categories that reflect consumer spending in April and May of 2025.

Nevertheless, our financial staff are accustomed to the revenue forecasting challenges and have developed working predictions for FY2026 City revenues impacting spending by the City’s operating departments. More detailed revenue and spending projections will be available at the mid-October Finance Advisory Committee (FAC) meeting. The focus of this August meeting is traditionally the City’s General Fund, which comprises the operating departments whose services our local residents encounter more regularly than any other in a given fiscal year. Some attention will also be given to the general capital funds, which support local infrastructure and City fleets.

GENERAL FUND OVERVIEW

A. General Fund Revenue Assumptions

Although all General Fund revenue line items have been analyzed year-to-date, the principal assumptions will need to be further reviewed as general revenues are recorded through the third quarter of 2025. The table below identifies the major General Fund revenue sources, which comprise $40,213,628 or 74.03% of the total general projected revenues:

Comments:

a) Police and Fire Property Tax Levies. The 2025 legislative Spring session in Springfield failed, once again, to produce a bill that would address the long-term structural problem in the unfunded state pension obligations. Even the rumored possibility of bringing the assets of the Police and Fire downstate public safety pension funds to a 90% funding level by 2050 or 2055 instead of 2040 through an agreed bill at the eleventh hour failed to materialize. As a result, no state legislative action in the veto session this fall will alter the City’s actuarial responsibilities as laid out in the annual actuarial reports for the active and retired “lives” covered by the City’s police and fire pension boards. There will be an upward spike in the City’s pension obligations, partly owing to new hires but primarily owing (in 2025) to the imperatives of the closed amortization system.

The City will meet 100% of its current pension obligations, but the City levies will not cover the entirety of that obligation. The balance will be paid from other General Fund revenues as indicated in the table below:

As in every fiscal year since 2013, the City of DeKalb’s 2025 property tax levy will be entirely dedicated toward the funding of Fire and Police pensions. In terms of the total General Fund revenues, in 2003, 12% of all operating revenues were dedicated toward state Fire and Police pensions; the total in 2026 will be 20%.

Actuarial reports for the City’s public safety obligations will not be completed until later this year. In 2025, DeKalb’s unfunded liabilities are as follows:

Fire: $57,789,765 (44.0% funded, up from 41.6% in 2024)

Police: $46,391,645 (54.4% funded, up from 52.8% in 2024)

Total: $104,181,410 (the total in 2024 was $105,321,467)

The pension “ramp” flattened for DeKalb in 2024 because of favorable interest rates. Yet, with a fiduciary obligation of such enormous magnitude, one truly feels that the City’s annual contribution is like paying only interest on a growing credit card debt.

DeKalb is not alone. Across the entire state, the combined total of Fire and Police liabilities in 2018 was about $960,000,000. Currently, it is well over a billion dollars. The solution is beyond local municipal resources. The answer, which cannot come soon enough, is a different amortization model. Amortizing a pension system as if every obligation needs to be paid on a certain date – whether it is 2040 or 2050 – is fiscally and politically foolhardy.

The resolution of this fiscal challenge rests with the State of Illinois and will require the collaboration of the Associated Fire Fighters of Illinois (AFFI), Fraternal Order of Police (FOP), municipalities across the state (aligned with the Illinois Municipal League (IML)), and the Illinois legislature. Negotiations within and between such large, vested interests need to begin – the outcome will be years away, but the clock is ticking.

The City’s operating reserve will diminish as the annual pension obligation increases and the City meets the 100% funding target each year. It is estimated that the City’s General Fund balance will steadily diminish over the next 10 years to a point where it will no longer exceed the policy threshold of 25% of the annual General Fund expenditures.

Although the annual, in-depth levy discussion is several months away, working assumptions are needed at this early date because of the importance of property tax as a general revenue for the City. The City’s emphasis on local property tax reduction, spearheaded in recent years by Mayor Barnes, has informed the proposed levies highlighted in the list of major General Fund revenues herein. The City has provided leadership since 2018 when the Council realized the community was at an economic crossroad: if unaddressed the property tax burden on local businesses, homeowners, and renters alike would put DeKalb in a non-competitive economic position. At that time, DeKalb’s aggregate tax rate was nearly 20% higher than the aggregate rates of the City’s nearest geographical competitors, which averaged about $9.0009 per $100 EAV. The progress, led by the City of DeKalb in reducing the aggregate property tax rate.

More than any other factor including the substantial “equalization factors” applied to the EAV of properties in DeKalb Township in recent years, the ability of local taxing bodies to realize the benefit of new construction in their levy decisions while lowering their property tax rates is the continuing development of industrial values on DeKalb’s southside.

b) States Sales Tax and Home Rule Sales Tax. Both categories of sales tax were strong again in 2024, according to the June audit. As noted in Table 2, above, it is expected that the City’s 1% sales tax will increase by about $314,776 to $8,184,170 (about 4.2%) over the revised FY2025 estimate of $7,869,394 million. The home rule tax will increase by about 3.62% in FY2026 over the revised 2025 estimate of $9,812,201. The projections for the approved 2025 budget as well as the 2024 budget were overly conservative.

c) Municipal Utility Tax. This category includes electric (ComEd) and gas (Nicor) tax receipts. The tax is based on kilowatt hours (electric) and therms (gas). The estimated 2026 revenues are partly based on the monthly averages for the past five years but also anticipate higher kilowatt hours generated from Meta buildings just now being energized. The Meta discount of about 50% will begin in 2027.

d) State Income Tax. This tax is allocated on a per capita basis by the State of Illinois. The population number used since 2022 is 40,290. The IML's per capita estimate of $179.00 was used to formulate the projected 2026 amount. Municipal distributions are made from the Illinois Treasurer’s Local Government Distributive Fund (LGDF), which currently distributes about 6.47% of all collected state income taxes to municipalities on a per capita basis. The City of DeKalb and the other 1,295 municipalities in Illinois are united in seeking the restoration of the 10% rate that prevailed for decades until the housing crisis of 2008.

B. General Fund Expenditure Assumptions

a) Personnel. An historical overview of the City’s staffing plan over the past four years.

With respect to Fire and Police staffing levels, there is no question that actual budgeted levels have increased in recent years, in accordance with Council direction.

The projected staffing in Table 8 reflects the Council’s prior commitments to a fourth Fire station and Police shift levels sufficient to meet patrol, investigative, and community policing objectives:

The 2024-2027 Fire contract projects a gradual rise in minimum shift coverage to establish the full staffing of Station 4 over time. On October 1, 2024, the minimum daily department shift was 16; by April 1, 2025, the minimum daily department shift increased to 19; by October 1, 2026, the minimum daily department shift will be 20; and by October 1, 2027, the minimum daily department shift will be 21.

b) General Obligation Debt.

The City’s Ground Emergency Medical Transportation (GEMT) Fund is reimbursing the General Fund for a number of years to cover a slight increase in overall general obligation debt related to the construction of Fire Station 4, which will only last through 2027, when an equivalent amount of debt falls off as other general obligation bond notes are retired.

At this preliminary stage, the working draft of the FY2026 General Fund budget is balanced for FY2026. The FY2027, FY2028, and FY2029 General Fund projections

The Council and FAC should be aware, however, that the preliminary FY2026 General Fund budget does not cover the following minor capital needs that might be paid from departmental budgets:

1. Non-Vehicle Department Minor Capital Needs. There is no transfer of General Fund reserve monies to the Capital Projects Fund (Fund 400) to provide approximately $200,000 that the Fire ($100,000) and Police ($100,000) departments require annually over and above the allocation for vehicles in order to address facility and equipment needs. A short list of these minor capital needs identified for FY2026 is listed below:

a) Police

In 2026 the focus is the Investigative Equipment listed in priority order, below:

▪ Access to Flock’s Nationwide LPR System. The Department uses the Genetec brand locally, so it doesn’t have access to Flock’s extensive database. Flock has bought out some other companies recently and has become the pre-eminent vendor in the LPR market. The Department can gain access to Flock by purchasing an annual subscription to their database for $20K per year or transition its Genetec LPRs to Flock’s camera system for $32K, which would also afford access to their entire database. The latter seems to be the better option, and the transition could be completed in several phases to reduce the FY2026. The estimated cost for the complete transition is $32,000.

▪ Computer Voice Stress Analysis (CVSA) Equipment. This is similar to a lie detector but does not require physical connections to the person and can be used in ordinary interviews. The cost is $12,000 for the equipment and training for two detectives who can train the others.

▪ Vehicle Data System Download Equipment (BERLA-iVe). For vehicles subject to a search warrant, this equipment downloads the Bluetooth and “black box” data from the vehicles. The quote for the equipment and training for one detective is just over $15,000; training for an additional detective is $4,500. The overall price is $20,000 for the equipment and training for two detectives.

▪ Mobile X-Ray Imaging Equipment. This is used during legal searches for drugs, weapons or other contraband inside hidden vehicle compartments, furniture, walls, floors, etc. There are a variety of vendors and products from which to choose. The overall price is $25,000.

▪ Vehicle Burglary Detection System. This system would be installed in a “bait car” to apprehend car burglars. The Department has an older system, but it is outdated and unreliable.

b) Fire

▪ Complete the Installation of the G2 Alerting System for All Stations. This system passes radio traffic and all alerts, and the transition is nearly complete. $8,200.

▪ Fire Alarm Panel Replacement, Station 1. It has failed inspection for two years. The replacement cost is $25,000.

▪ Replacement Windows for the 31-Year-Old Station 3. Twenty (20) windows in all. Presently, all windows in the apparatus bay and most in the kitchen and day room are screwed shut because the hardware and wood jambs have failed. The same make windows (Andersen) can be fitted at a lesser cost. Estimated cost: $35,000.

▪ Six Overhead Garage Doors Need to be Replaced: Four at Station 1 and two at Station 3. Estimated cost: $45,000 ($7,500 each, excluding paint). These can be replaced in logical stages.

▪ Upgrading of Station 1 Restroom Facilities for Female Employees. Cost: $30-$40,000.

2. Commemoration of the 250th Anniversary of the Approval of the Declaration of Independence. The Council voted to support DeKalb’s participation in the America250 initiative of the U.S. Semiquincentennial Commission on July 28. Mayor Barnes will be appointing a local commission to plan for a range of commemorative and educational initiatives in 2026 leading up to July 4, 2026. The City contributed $14,250 to the Park District’s fireworks this year. Certainly, a more sizeable budget for commemorative events beyond fireworks will require a budget allocation that is not included in the draft FY2026 General Fund budget as of yet.

CAPITAL FUND OVERVIEW

A. Motor Fuel Tax Fund (Fund 210).

The City’s annual budget has 30 funds, including the General Fund, that are expected to account for $137 million in expenditures in 2025. The projected overall operating expenses in the General Fund in 2026 total $54,021,450 – the next largest annual expenditures come from the Transportation Fund (Fund 200 – about $25.1 million); Water Operations (Fund 600 – about $9.3 million), Health Insurance (Fund 710 – about $7.4 million) and the two pension funds (a combined $10.1 million), and the Library Fund (Fund 900 – about $4.2 million). The City’s capital funds are next in the pecking order and are probably better known to our residents and businesses because of the broadly recognized physical impacts.

The City receives a per capita allocation of Illinois Motor Fuel Tax (MFT) revenues on a monthly basis from a State tax on gasoline purchases. These funds can only be used for certain costs related to street maintenance and improvement projects as set forth by the State of Illinois. The annual MFT allotment to the City in FY2026 is projected to be flat at $1,790,000. According to the IML, gas prices lingering around $3.40 per gallon across Illinois have not significantly depressed the number of gallons pumped, which is the basis for the MFT calculation.

About $618,000 of the FY2026 state MFT allocation will be used to defray the City’s electrical charges for streetlights ($333,000) and road salt purchases ($285,000), which have levelled since the annualized inflation rate peaked in June of 2022. An additional allocation for street supplies and commodities ($133,000) can be considered part of the annual street maintenance work. The ”natural” or recurring state MFT funds available for street maintenance in Fund 210 total $1,000,000.

B. Capital Projects Fund (Fund 400).

The local MFT rate of 9.5 cents per gallon is split between road expenditures (7 cents), airport expenditures (1.5 cents), and vehicle replacement (1 cent). Proceeds from the local tax on motor fuel can be used for any public capital improvement. In FY2026, a total of $940,000 is projected in local MFT revenue, the same as in FY2025.

Aside from the Fund 400 allocation for street and alley maintenance in FY2026 ($750,000), the fund will also support the purchase of IT equipment such as PC replacements, network infrastructure upgrades, and public safety cameras ($140,000), miscellaneous building improvements ($50,000), the non-TIF architectural improvement program started in 2023 ($70,000), and the annual Barb City Manor allocation ($50,000). The “natural” or recurring street and alley maintenance budget from local MFT revenues in FY2026 is $750,000.

As of yet, no transfer of General Fund reserve monies to either the MFT Fund (Fund 210) or the Capital Projects Fund (Fund 400) is proposed to beef up the “natural” accrual of state and local MFT for street and alley maintenance in the draft FY2026 Budget. The total of all recurring state MFT monies (Fund 210) and local MFT monies (Fund 400) dedicated toward street maintenance in FY2026 is $1,750,000 – lower than the level of street maintenance expenditures in FY2022.

Table 12 does not include recent infrastructure projects such as the N. First Street and Lucinda Avenue Bridge replacements, the Peace Road widening, the construction of Afton Road, or the completion of the bike path on Fairview Drive because these projects were significantly funded by state bond monies. The annual street maintenance program is an initiative that Illinois communities primarily pursue with local revenues to repair and re-surface mostly asphalt residential and collector streets, as well as alleyways that carry local traffic. This has been the guiding purpose of DeKalb’s annual street maintenance program for decades.

Proposed FY2026 Street Maintenance Program

The principal targets for street maintenance in 2026 based on the current five-year plan (2024- 2028) approved on April 24, 2023, and the pavement rating study completed by DSATS (DeKalb-Sycamore Area Transportation Study) in 2022 continue to be streets and alleys that were rated “poor” or “failing:”

▪ Greenwood North and the Fairway Loop;

▪ Overlook Point;

▪ County Farm Road;

▪ W. Hillcrest Drive from Sycamore Road to Normal Road (removing speed tables and using other traffic calming methods).

▪ Scattered site alley surface removal, grading, and re-surfacing.

The estimated cost of these street improvements (not including the much-needed alley repairs) was roughly $2.4 million in April 2023. Allowing for inflation and including an allocation for alley work, the preliminary 2026 street maintenance budget might be $3,000,000 – not including contractual engineering costs of $250,000 that are shown in the Fund 400 draft budget. This would require a General Fund balance transfer of $1,250,000. If such a transfer was approved, and an additional $200,000 was transferred to cover the priority list of Fire and Police capital purchases listed above (for a total of $1,450,000).

When the projected year-end FY2026 General Fund balance in Table 13, above, is compared with the projected year-end FY2026 General Fund balance in Table 10 (p. 8, above) it is clear that the habitual use of the reserve to fund a higher level of annual street maintenance budgets in the coming years will gradually erode the General Fund balance.

Alternative Options

As discussed in the City Council retreat at the Faranda’s Banquet facility in April 2024, the City government has two structural deficits: one is the unfunded Fire and Police pension liabilities addressed in detail at the top of this preliminary budget presentation. The other is that the annual hot mix asphalt re-surfacing program does not keep pace with the actual need. Despite the more aggressive and strategic allocation of street maintenance funding since 2019 and the upgrade of key City arterials and residential collector streets (e.g., N. First Street, S. First Street, N. Seventh Street, S. Seventh Street, W. Taylor Street, N. Thirteenth Street, N. Fourteenth, and the Knolls Avenue loop), the City’s road miles continue to steadily deteriorate. In addition, street-related costs such as sidewalk repairs and alley improvements get less than desired attention as the limited funds are spread further on the more compelling and distressed road surfaces.

The local MFT increase of 2019 helped the City raise the annual street maintenance allocation from an average of about $860,000 to an average of $2,340,332 over the past seven years, as shown in Table 12. In order to raise the PCI of most City streets from a failing or poor PCI rating to a fair rating (56-70), a floor of $3,500,000 is needed per year – an average increase of $1.75 million over the present “natural” revenues in both Fund 210 and Fund 400. Ideally, a “blitz” for four to five years of annual allocations in the range of $3-4 million might help us “catch-up” in terms of raising all failing and poor streets to a “fair” condition, but substantial annual transfers from the General Fund balance only diminish the City’s ability to meet its pension obligations.

There are a few key assumptions that have guided the City’s financing of capital purchases and infrastructure in the past:

▪ The General Fund should pay only for government operations. Presently, as noted above, the General Fund reserves are a critical hedge against the increasing actuarial demands from the Police and Fire Pension funds within the closed amortization system that the State of Illinois imposed decades ago. Several one-time community grants have been allocated from the General Fund reserve with unanimous Council support, but they do not constitute recurring claims.

▪ Capital expenditures should not exceed our revenue capacity, especially because of the City’s “structural” fiscal issues. Unlike a cyclical deficit, which may appear in a calendar year before budgeted taxes or state-shared revenues are received, a structural deficit is a condition without a ready remedy – either within the fiscal year or in the foreseeable future. The “cure,” as it were, is typically through a change in policy.

▪ Revenue sources should be diversified and not vulnerable to “external” threats.

▪ Minimum fund balances of 25% or more are desired (but not yet achievable) in the City’s general capital funds (i.e., Funds 400 and 420).

▪ The City’s entire property tax revenue will be dedicated toward pension payments for many years to come. Further, aggregate property tax reduction requires continuing downward adjustment or at least levelling of the City’s rates for years to come.

OPTION #1

Maintain a Roughly $2.5 Million Annual Commitment to Street Maintenance. This approach has certainly improved the condition of long-neglected minor arterials and major collector streets in town, but many neighborhood streets and alleys across the City would continue to lose ground in pavement rating at that level of annual funding.

Not recommended.

OPTION #2

Increase Local MFT Revenues. To realize the goal of at least $2.5 million in street maintenance allocations per year, all of the state MFT revenue from Fund 210 (trending at $1.79 million) – less the amount needed for salt and ice control ($285,000) and streetlight electrical service and maintenance (about $350,000) – has been needed to supplement the local fuel tax each year. Based on the 2025 projection for local MFT revenue ($940,000),

which is generated from a local tax of seven cents per gallon pumped, a one cent increase will generate another $134,420. To get to the additional $1 million needed to start closing the gap in street repair, an additional 7 cents per gallon would be needed on top of the current 7 cents per gallon already assigned to the Capital Projects Fund (for a total of 14 cents per gallon for this City purpose alone). The impact on the consumer of a substantial 7 cent per gallon increase in the local MFT would arguably be more negatively impactful than the home rule tax increase described below.

Not recommended.

OPTION #3

Increase the Home Rule Sales Tax. The Illinois Constitution of 1970 created home rule for certain municipalities and counties, and the enabling legislation was adopted on July 1, 1971. Home rule status allows qualifying cities and counties more local control, including the ability to enact and enforce local taxes to meet needs identified by the locally elected authorities. Currently, there are 221 home rule municipalities in the state. Nearly all impose a home rule tax. The City of DeKalb imposes a 1.75% home rule sales tax on sales of general merchandise. This tax is not collected on the sale of unprepared food, drugs, or tangible personal property items (such as vehicles) that are licensed or registered with the State of Illinois.

*Other “college towns” are purposely chosen. As in DeKalb, the universities don’t pay property tax and the student levels have been irregular or declining, impacting sales tax revenues.

Home rule tax rates can be increased or decreased in 0.25% increments. If DeKalb’s home rule tax rate was increased by 0.25% (from 1.75% to 2.00%) that annual 14% increase would generate about $1,421,788 in the first year based on the 2026 Budget revenue estimate (an increase from the projected $10,155,628 to $11,577,416).

If this option was pursued, the Council could direct that one-eighth (1/8) of all annual home rule tax proceeds will be transferred to the City’s Fund 400 (Capital Projects Fund) for street maintenance purposes, in the same manner that the Council religiously puts aside a percentage of every year’s water user rate increase annually for capital improvements to the City water system.

Recommended for further discussion.

The foregoing analysis is rooted in facts that anyone can pull from City Council agendas and financial audits. The year and a half since the Council’s last retreat has not removed the structural fiscal challenges or raised new and better options to meet them. As the Council and FAC consider the brick and mortar of the more prosaic operating budget at the top of this report, it is City staff’s hope that equal attention will be given to the structural deficits facing the capital side of the house.

C. Capital Equipment Replacement Fund (Fund 420).

The City’s GEMT Fund has supported Fire Department vehicle and equipment needs for several years and will continue to do so. The Police and Public Works departments rely upon the one cent per gallon local fuel tax, which will raise an estimated $130,000 in 2026. Another source of annual revenue in Fund 420 consists of lease payments from telecommunication companies with antennae on the City’s water towers (“Rental Income”) and sales of surplus property (such as old vehicles put out of service or land sales). In FY2023, payments from the DeKalb County E-911 board totaling several hundred thousand dollars were shifted under new auditing rules to the General Fund because of their personnel content, reducing the recurrent funding sources. A new dedicated funding source – cannabis tax payments – began accruing in FY2024 and is projected to accrue about $225,000 in FY2026.

In FY2026, with the help of a General Fund transfer of $200,000, the following vehicle expenses are planned:

▪ Police: $300,000 (4 squad replacements).

▪ Public Works: $485,000 ($165,000 to pay off aerial truck; $78,000 for pickup with plow; $242,000 for dump with plow). In addition, a $60,000 crack-filling machine will be purchased in FY2026.

ENTERPRISE FUND OVERVIEW

A. Airport Fund

At this early stage in the City Council/FAC review of FY2026 budget assumptions, the City’s enterprise funds (Water Funds (3); Airport Fund; and Refuse and Recycling Fund) are not typically reviewed. However, one City enterprise fund – the Airport Fund – should be the center of much discussion in the community as Northern Illinois University (NIU) joins the Mountain West Conference as a football-only member beginning July 1, 2026.

On January 7, 2025, the Mountain West Conference announced the addition of NIU, which will join the Air Force Academy, the University of Hawaii (Manoa), the University of Nevada (Reno), the University of New Mexico, San Jose State University, the University of Nevada (Las Vegas), the University of Texas (El Paso), and the University of Wyoming. The Huskies are the winningest FBS (Football Bowl Subdivision) program in Illinois this century when conference championships, winning seasons, and bowl appearances are considered. In anticipation of the move to the Mountain West Conference in less than a year, NIU has launched a donor appeal focusing on specific facility areas and additional revenue streams.

One key area for City consideration is the fact that, at present, DeKalb is the only “home” venue in the Mountain West without the ability to land passenger jets exceeding 30 passengers. Football “team planes” carry 100-120 passengers. Although the DeKalb Taylor Municipal Airport has a runway, Runway 2-20, that is 7,026 feet in length and offers ample space and length for team jets carrying more than 100 passengers, the Airport would need to be upgraded from an Airport Design Group II to an Airport Design Group III, which would require the capital expenditures and cost shares.

Additional start-up equipment and service vehicle costs for firefighting and safety to achieve Part 139 certification might total about $300,000 to $500,000. Annual, additional personnel costs are estimated to start at about $225,000. One key consideration is whether inbound and outbound team flights, which are arranged through private charter companies, need to conform to TSA guidelines found at larger commercial service airports such as Chicago and Rockford. Logistically speaking, if outside security through fixed base operators at private hangars may be substituted for the TSA system of luggage handling and the loading and unloading of gear, the transition may be much less expensive. It is estimated that a dozen charter flights might be needed per year for pre-season, regular season, and conference title games.

It should also be noted that if an upgrade was permitted and accomplished, the Airport would have a much more dynamic future. It would be able to handle more cargo flights, more corporate flights to and from local businesses both in and around DeKalb and would attract more corporate hangar interest and development. Each of these possibilities carries its own potential for more regular Airport revenue in the form of fees, fuel sales, and land leases.

In terms of the FY2026 Airport Budget, which is going to break even in FY2026, the next step in the exploration of the availability of substantial state and federal funding to fiscally leverage movement in the direction of Part 139 certification might be the hiring of a lobbyist or consultant who can make the City’s case to the Illinois Congressional delegation (all Illinois House members and both Senators), as well as key agencies (IDOT Aeronautics; FAA) and the relevant House and Senate subcommittees in Washington. If this step was pursued, a strong partnership with the NIU administration, other Region 2 airports (including Rockford), and private charter interests, seems in order. The point in raising this matter now is to make it clear that no consulting or lobbying effort of the type described above has been discussed or funded as of yet and the Mountain West engagement is not far off.

Remaining FY2026 Budget Preparation Schedule

The following schedule was approved by the Council for development of the City’s municipal budget for 2026 after the joint meeting on August 18:

▪ August 19 through October 10 – Intense department-level budget discussions around spending targets based on general goals established on August 19.

▪ Thursday, October 16 – Publication of an agenda for an FAC meeting on October 21.

▪ Monday, October 20 – FAC meeting to review proposed, detailed FY2026 Budget highlights, including annual levy assumptions, 6:00 p.m. to 8:30 p.m.

▪ Monday, October 27 – Council consideration of property tax levy options.

▪ Monday, November 10 – Presentation of a Council resolution establishing a Truth in Taxation Hearing for November 24.

▪ Monday, November 17 and Wednesday, November 19 (if needed) – Back-to-back special Council meetings in joint session with the FAC to go over the proposed FY2026 budget document. The General Fund departments, Capital Funds, Enterprise Funds, and Special Funds will be the focus.

▪ Monday, November 24 – Truth in Taxation Hearing and FY2026 Budget Hearing. First reading on Proposed FY2026 City Budget.

▪ Monday, December 8 – Second reading on Proposed FY2026 City Budget.

▪ December 29 – Last day to file the approved FY2026 Annual Budget and Property Tax Levy with the DeKalb County Clerk.

E. ADJOURNMENT

https://www.cityofdekalb.com/AgendaCenter/ViewFile/Agenda/_08182025-2736