Galesburg's financial plan is set for 2016. But the mayor has some concerns as he looks ahead to the future.
The total budget is $59,875,835, while the general fund is balanced with expenses of $22,030,865. The city didn’t need to increase its property tax levy to fund budget for this year.
The spending plan, which takes effect January 1, includes a $10 million dollar capital improvement program that will be funded over the next 20 years by a $14 million dollar bond. Projects covered by the capital plan include street repairs, renovations to the Armory, and improvements to the city’s sewer system.
The city council approved the budget on a 6-0 vote, with Second Ward Aldermen Wayne Dennis absent. There was no discussion prior to the vote, but aldermen have been working on the budget for months.
Mayor John Pritchard said he's generally happy with how the process played out. But he said there are looming issues.
“We still have the same issues of rising pension costs, and the fact that we simply have fairly flat revenues (while) operating costs go up every year,” Pritchard said.
The city might need around $1.3 million to help fully fund pensions for next year. Pritchard said all the delayed concerns could add up into a big deficit for the 2017 budget.
“We have potentially a $2.9 million deficit if you consider, take into account, what the state might cut and the pension costs,” Pritchard said.
Aldermen might begin talks on the 2017 budget as early as January, 2016.
