City unveils $292M budget with flat tax levy; ‘It is all about rebuilding Waukegan'

Chicago Tribune

2 days ago

It took Waukegan Mayor Sam Cunningham less than a month after taking office to make critical elements of his plan for the city part of the 2026 fiscal year budget, with significant money for capital improvements for the next three years and necessary personnel to make plans flow smoothly.
Proposing a record budget of more than $292.2 million for the fiscal year ending April 30, against just over $262.9 million in revenue, Interim Finance Director Don Schultz said the city will use slightly less than $29.3 million of the city's reserves — 16.2% of non-pension reserves.
Schultz described the budget as one that will include $76.3 million for capital improvements, nearly $124 million for workers' salaries and benefits, $1 million to start planning improvements to the Washington Street corridor and $10.6 million to continue lead service line replacements.
'This is the largest capital improvement project we've ever had,' Schultz said during a public hearing on the budget before the City Council's Finance Committee Wednesday. 'This is for three years of projects.'
'My capital improvement plan is part of our five-year plan,' Cunningham added. 'It is all about rebuilding Waukegan.'
The City Council is scheduled to vote on the budget for the 2026 fiscal year at 7 p.m. Monday at City Hall to officially enact the spending plan for the city through April 30.
Of the city's 529 employees, 445 — 84.1% — are with the police, fire or public works departments, which includes the water plant. The total planned expense for personnel is $124 million.
Other than personnel and $76 million for capital improvements, other major expenses include another $49 million for contracted services, $22.8 million for police and fire pension contributions and $22.8 million for workers' compensation and liability insurance.
With total revenue of slightly more than $262.9 million in revenue, $120.8 million will come from taxes, of which around $37 million is property taxes. The City Council kept the real estate tax levy flat again this year.
Among new positions created in the budget are an environmental specialist and several special projects analysts. Cunningham said the environmental specialist is needed based on Waukegan's history of environmental issues, from five Superfund sites to coal ash and ethylene oxide.
'In the last 30 years, Waukegan has had its share of environmental issues,' he said. 'We need someone who is aware of our environmental issues and understands the regulatory process. They will guide us in relation to the environmental issues of our community.'
With a variety of issues facing the city, which have a number of parts, Cunningham said the special project analysts' role will be to responsibly manage them to eliminate any potential confusion.
'For the casino, they will be the one person working with the developer,' he said. 'The same thing with the College of Lake County (Urban Farm) project. The same thing with Chick-fil-A,' he added, referring to a new restaurant in the Fountain Square area where manufacturers and the restaurant are at odds.
With significant attention on infrastructure in the next few years, Schultz said two of the special project analysts will be assigned to the public works department. Three more will work out of the mayor's office, and one in the water department.
A few days before he took office, Cunningham said infrastructure is a high priority, particularly the Washington Street corridor. Now it is part of the budget, with enough allocated to cover three years of projects.
'We're been talking about it for a long time, and it's time to get it done,' Cunningham said at that time. 'We'll do curbs, gutters and sidewalks. We will repave the surface.'