DeKalb city leaders make case for more street repairs in proposed 2025 budget

DeKALB – With DeKalb set to spend more of its proposed fiscal 2025 budget on personnel expenses than last year, the city is expected to grapple with how to ensure comparable wages, raise staff levels to reduce overtime costs, pay pensions and seek more funds for street repairs.

During a special session Monday, the DeKalb City Council joined members of the Finance Advisory Committee to hash out details on the first draft of the city’s spending plan for the year ahead. Mayor Cohen Barnes, 3rd Ward Alderman Tracy Smith and 1st Ward Alderwoman Carolyn Zasada were absent.

The annual budget draft shows that DeKalb plans to spend about $51 million to cover its general operations.

In fiscal 2025, the city also intends to dedicate $42.1 million toward personnel costs compared to $38.3 million the prior year, documents show.

The budget also works under the assumption that the city will meet 100% of its pension costs. Officials have said before that 100% of the revenue the city collects from property taxes goes to paying its pension costs. That doesn’t cover the entirety of the pension obligation, however, though the city’s general fund coffers are expected to make up the difference.

Fourth Ward Alderman Greg Perkins said he takes issue with the state of Illinois’ ambivalence to address any problems with the pension fund system.

There is an increase expected in the city’s pension contribution owed in 2024 due to a lack of legislative action out of Springfield, according to city documents.

“Either they don’t care about our opinions, or they’re moving onto something else that they think is more important to them,” Perkins said. “What can we do to increase influence with them so that they understand the implication that it’s having on our community? Not trying to avoid any liability. We have to cover our liability. We have to cover what the actuaries say we have to cover. I get that, but their ambivalence to address the issue is frustrating.”

City Manager Bill Nicklas said it is hoped that the city can soften the impact felt by the pension fund issue.

“It’s a big problem, but it’s got vested interest,” Nicklas said. “Nobody has the desire, I assume, to see these funds go bankrupt where they’re not funded enough to provide for their state-statutory obligation to the pensioners who are the beneficiaries of those monies that they have contributed over time as they’ve been earning, as we continue and they continue, to donate over time after retirement.”

Nicklas noted that the proposed 2025 budget includes an option in which there is $4.5 million, doubled last year’s roads budget, allocated toward street repairs.

In 2024, the city spent $2.5 million on street repairs.

The city manager used the special meeting to get input from members of the City Council about whether to pursue $4.5 million in street repairs.

Perkins expressed some reservations about supporting added street repairs.

“I’m all for adding more to the road budget, but I don’t know that I’m supportive of going to $3.5 million let alone $4.5 million,” Perkins said. “I think that’s a longterm fix. It’s taken a long time to get here.”

The city’s fund balance for fiscal 2025 is projected at 62%, or $32.4 million, according to city documents.

Some alderpersons voiced support for investing in added street repairs.

Seventh Ward Alderman John Walker said he’s concerned that the cost of added infrastructure work may burden taxpayers.

There are no new taxes in the city’s proposed Fiscal 2025 budget as presented.

“I guess I just want to really just figure out a way where it just doesn’t hurt,” Walker said.

Monday’s special meeting is not the public’s only chance to sit in on the city’s budget-making process. In October, both the Finance Advisory Committee and City Council are expected to host public meetings to review property tax levy options.