Lake County Gazette

City of North Chicago Finance/Audit Committee met April 7

Here are the minutes provided by the committee:

Alderman Allen called the meeting to order.

ROLL CALL:

Present: Jackson, Coleman, Evans, Allen, Smith, Murphy, January

Absent: None

I. DISCUSSION OF FY2026 BUDGET:

Comptroller Tawanda Joyner provided a PowerPoint presentation of the FY2026 Budget.

She explained, if any questions of the budget, could schedule a meeting. The projected summary for FY 2025 was amount of $34,630,441. The proposed amount was $32,400,536. The budget of expenditures by department was $ 30,850,979. Lower amount able to fund the capitol projects. FY 2026 for General Fund Expenditures were $32, 181,520.

WATER REVENUE EXPENDITURES: (2023/2024)

The projected FY25 end amount would be $15,696,55 due to the 16th & Kemble Ave. project. The City was receiving loan proceeds in the fund and was completed. The projected expenditures were 18,983,112; less than was budgeted for FY25. There was a high reduction in revenue impacting FY26.

GRANT FUNDS:

Anticipated revenue of $693,111, awaiting reimbursements and $648,522 of expenditures.

Alderman Jackson questioned anticipation of current Federal administration how the City would be impacted and if a strong possibility of not receiving funding. The Chief of Staff elaborated further of a grant loss.

Alderman Evans asked of the retention pond and determined repairs on Broadway Ave. He suggested shift funding to the Broadway Ave. project. The residents were highly concerned and directed council approval suggesting asphalting to Grove Ave. The Mayor clarified it wouldn’t be feasible to resurface the roadways because of future underground work.

Chief of Staff Jackson was very disappointed. He had discussions with staff and the MFT funding wasn’t identified yet.

Alderman January strongly agreed with Alderman Evans. It needed consideration and was a main thoroughfare and should be utilized for the entire City.

Alderman Coleman questioned funding for the alleys in the 2nd Ward. Ms. Joyner stated $100,000 Alderman Allen emphasized the need to compromise. Alderman Coleman mentioned the electronics for the new Aldermen in the budget and he hasn’t received his tablet. Ms. Joyner clarified that it was pertaining to FY2025 budget vs. FY2026. His main concern was for Sheridan Rd. aesthetics. The amount of $20,000 should be for the appearance code of Sheridan Rd. That was ongoing. Chief of Staff Jackson explained that Sheridan Rd. and City of Waukegan were in the process of filing additional money with the quarter. The documentation for the study of the quarter including the current administration.

Alderman Smith strongly suggested utilizing the lobbyists as the people selected could speak on the City’s behalf. Chief of Staff Jackson explained he was preparing credentials within the next 30 days for discussion of potential lobbyists. The amount of $150,000 was spent for the lobbyist fund.

Alderman Evans stated if no lobbyist was found within (6) months and Chief of Staff questioned if the City would focus on Broadway Ave.

MFT FUND:

Ms. Joyner explained that she anticipated revenue of $1,620,08 and expenditures expected $1,856,145. In next FY2026, it would be slightly less including expenditures. The numbers would be estimated from the IML per cappa (Illinois Municipal League anticipating MFT fund was reduced.

Alderman Allen clarified that Wisconsin would receive the revenue when utilizing the gas for the IL vehicles.

Ms. Joyner explained that the streets were to be determined and what was decided, the number was unchanged.

CDBG FUND:

Ms. Joyner explained she wasn’t anticipating revenue. The remaining funds with expenditures from prior years would be utilized for the sewer lining project. FY2026 anticipated receiving some revenue of $39,483 and expenditures of $167,480.

FEDERAL FORFEITURE FUND:

Ms. Joyner explained revenue was interest received; expenditures of $8,400 for the rented Police building on 10th St. Upcoming FY2026 expected was $20,400 for expenditures.

DOWNTOWN TIF:

Downtown TIF was closed, February 23. The fund would eventually be $0 once all expenditures have been paid. In 2026, there would be $2,000 with interest.

Alderman Coleman questioned clarification if Broadway Ave. was related to the TIF District. Ms. Joyner explained not for downtown TIF District it would be related to ongoing projects in the TIF.

SHERIDAN CROSSING FUND:

Ms. Joyner clarified no revenue or expenditures allocated currently would remain open and was contingent upon future cleanup.

Alderman Smith questioned funding. Ms. Joyner stated it was in the capital fund. Lake County; estimated $6mil. Chief of Staff Jackson explained there were (2) different grants from the State.

HUD; 4mil for remediation and DECCO; $2mil for infrastructure converted to remediation. Ms. Joyner explained the amount was currently in the Grant fund. Chief of Staff Jackson stated that Lake County was currently the funding administrator. He elaborated further with the process. The remediation was considered in the summer of 2025.

Alderman January questioned the process, Chief of Staff explained Lake County would pay.

SKOKIE HWY TIF FUND:

The City anticipated amount of $1,088,767 and expenditures of $102,646 for ending of FY2025.

Expected revenue of $860,000 and expenditures of $135,540. She explained the money would be placed for future projects.

GRANT OPERATING FUND:

The Fund for Grant Operating and Capital Fund was no longer utilized and not yet cleared.

Once a$0 balance, would close the fund with council approval.

Alderman January questioned clarification of the fund balance. Ms. Joyner explained it would move to the General Fund.

DEBT SERVICE FUND: SERIES 2007A

Paid the BOND SERIES 2007A and remaining balance of $488 that will be carried over.

DEBT SERVICE FUND: SERIES 2007C – GRANT PLACE

The City anticipated principal payment for debt payment of $974,729 with expenditures of 966,558 = tax revenue of $9,171.

DEBT SERVICE FUND: SERIES 2014A

The debt was already paid, projects that were ongoing that would be utilized from the fund balance.

Once the projects were completed, there would be a $0 balance including Debt Service 2007B.

VISION FUND

FY2025 revenue; $17,226 and expenditures; $12,254. FY2026 revenue was $16,061 and expenditures; $14,000. The City was self-insured with the Vision and Retiree Funds.

RETIREE PREM. FUND

FY2025 revenue; $208,795 and expenditures; $156807. Fy2026 revenue; $183,000 and expenditures; $219,460.

The city created a Pension Reserve Fund to be transferred. The amount of $1,317,555 would be transferred to the specific fund. It was mainly the casino and Home Rule Tax.

Alderman January suggested the money earmarked. Ms. Joyner clarified the amount from Grant placed would be placed for payments of Grant Place debt.

Ms. Joyner reiterated the Casino and Home Rule Tax proceeds would be allocated to the Pension Fund.

LIBRARY FUND

The library prepared its own budget and the City filed it excluding the property taxes. FY2025 revenue; $1,251,644 and expenditures; $1,471,915. FY2026 revenue; $625,543 and expenditures; $1,114,902

Alderman Smith questioned the current rating. Mr. Joyner clarified the City had not requested a new bond rating. Chief of Staff Jackson explained that paying for the pension fund, would place the City in a better financial situation. Alderman Smith asked for a projection of what steps. Chief of Staff Jackson stated he was aware of what was reviewed with financial status. He followed his predecessor moving forward.

Alderman Allen clarified didn’t follow what was advised in the Audit which made the bad rating. He commended Comptroller Joyner with her presentation.

Ms Joyner added the new software with the budget. It was applied to Excel and the numbers manually entered.

Alderman Coleman has observed Mr. Joyner’s growth in her confident and commended her on the presentation. Alderman Smith concurred. Alderman Allen added including the staff. Ms Joyner clarified the entire team. If any questions or concerns, she and the Chief of Staff could schedule a meeting.

This will be placed on the next Council Agenda, April 21, 2025.

Alderman Evans moved, seconded by Alderman Jackson that Finance/Audit Committee Meeting stand adjourned.

ROLL CALL:

Ayes: Jackson, Coleman, Evans, Smith, Murphy, January

Nays: None

Absent: None

The meeting adjourned at 8:47 p.m.

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