$36.8M budget set for city of Kankakee

KANKAKEE — A surplus $36.8 million Fiscal Year 2025 budget is set to be adopted on its planned July 15 second reading.

The proposed budget has revenues of $36.8 million and expenses of $35.5 million was placed on first reading at the July 1 Kankakee City Council meeting.

Revenues are up 6.91% from the Fiscal Year 2024 budget and expenses are up the nearly identical percentage, 6.89%.

Total expenses are $35.5 million, meaning the city has a budget surplus of $1.3 million.

The municipal budget year actually begins May 1. The city has not had a budget approved by May 1 in numerous years.

The city administration and the council’s Budget Committee had been wrestling for the past few months with the budget which was in the red by an excess of $1.5 million to $2 million, largely due to the planned loss the 1% state-imposed grocery tax.

Gov. J.B. Pritzker announced in February that the state was eliminating the tax to ease rising grocery expenses. Municipal leaders objected, citing the late notice they had received and the lack of time to find appropriate budget cuts or alternative sources of funding.

As a result of the back and forth between the governor’s office and the Illinois Municipal League, it was determined municipalities could impose and collect its own 1% grocery tax.

Based on the previous fiscal year, the state’s 1% grocery tax netted the city $1.06 million.

Regarding revenues, the largest generators are:

• 2% home rule sales tax: $6 million, up $150,000;

• Local sales tax: $4.1 million, up $75,000;

• Property taxes: $2.8 million, down $122,145;

• State income tax: $3.7 million, up $250,000;

• Ambulance fees: $3.9 million, up $1.1 million;

• Local hotel tax: $225,000; new tax;

• Marijuana tax: $260,000; same as previous year;

• Video gaming: $710,000; up $30,000.

As with previous years, the largest portion of expenses are related to personnel costs. By department:

• Police: $7.6 million, up $282,970;