WASHINGTON, Ill. – The city of Washington is set to approve one of the biggest spending plans it has ever had.
The fiscal year 2025 budget received a first reading at Monday’s City Council meeting, and is expected to be fully approved at the next meeting in two weeks.
The budget is estimated to be around $41.3 million, an increase of around $6.5 million, or nearly 19%, from the FY24 budget.
City Administration Jim Snider saying capital projects are the cause behind the increased spending.
“One is the Nofsinger Road realignment off the bypass north of town. And then we have the Freedom Parkway construction project that’ll connect Cummings Road to the Walmart-Menards area shopping center,” Snider said.
The Nofsinger Road project is estimated at $5.6 million, with the Freedom Road extension costing around $3.1 million. The Nofsinger Road project is projected to be completed in November, with Freedom Road by August.
Other projects include improvements on Catherine Street and the building of a new evidence storage building.
The city is only projecting revenues of around $31.5 million in FY25, causing a deficit of nearly $10 million. Snider says the city has prepared for that.
“This has been planned for several years, these main road projects, and we have the money in reserves to pay for it,” Snider said.
Snider says there are some causes for concern with revenues in the future. One item is the proposed elimination of the 1% grocery tax by Governor J.B. Pritzker. Snider says it would cost Washington about $500,000 each year if it was eliminated.
“We’ve taken a wait and see approach to see how the General Assembly actually votes on it, probably in June, and then we’ll go from there,” Snider said.
Snider says if the grocery tax is eliminated, the city would either operate with less revenues and spend less or look at increasing its sales tax.
He says the city has not been greatly affected by inflation so far, but notes the city is keeping an eye on retail sales and job retention in Washington.
Comments