Waukegan City Council Approves First Surplus Budget in Recent Memory, Vote Splits 8-1
Waukegan City Council voted 8-1 to approve a $281.7 million budget with a $600,000 projected surplus, the first in recent memory. The vote came with concerns about Vista Medical Center and vague job titles.
The Vote That Flipped Waukegan’s Budget From Deficit to Surplus
The Waukegan City Council voted 8-1 on Monday to approve a $281.7 million budget that projects a $600,000 cash surplus for the fiscal year beginning May 1. It is the first budget in recent memory to show a surplus, according to Mayor Sam Cunningham and city public relations director David Motley.
The council approved the spending plan at City Hall. A companion salary ordinance for management and non-union personnel passed by a 7-2 vote.
"By driving operational efficiencies, capturing lost revenues and modernizing the city’s operation, we are delivering an ambitious commitment to our people, our infrastructure, and our shared future," Cunningham said in an email to reporters.
Where the Money Goes
Nearly half of the budget, $134.7 million, is devoted to salaries and benefits for city employees, including police, fire, public works and other services, according to the proposed budget document.
Contractual services such as engineering, utilities and telephones account for $77.4 million.
Capital improvements total $62.8 million. The funds cover road, sidewalk and alley resurfacing and repaving, as well as city vehicles, bridges, culverts and vehicle acquisition, according to the budget.
The city plans to spend $11 million less than last year. Property taxes will not increase. That marks the sixth consecutive year without a city share property tax hike, Cunningham said.
How the Council Voted
Voting for both the budget and the salary ordinance were:
- Ald. Sylvia Sims Bolton, 1st Ward
- Ald. Juan Martinez, 3rd Ward
- Ald. Victor Felix, 4th Ward
- Ald. Edith Newsome, 5th Ward
- Ald. Keith Turner, 6th Ward
- Ald. Michael Donnenwirth, 7th Ward
- Ald. Thomas Hayes, 9th Ward
Ald. Lynn Florian, 8th Ward, cast the lone vote against the budget. She also voted against the salary ordinance, along with Ald. Jose A. Guzman, 2nd Ward.
Concerns About the Hospital and the Future
Florian said she supports the surplus but fears unforeseen expenses could erase it. She pointed to national uncertainty and the ongoing financial troubles of Vista Medical Center East.
"We really don’t know what the future holds, especially with this current federal administration," Florian said. "Are we in a war? Are we not in a war? Is it ending? I am concerned about how the hospital situation is going to affect the city."
Florian said the hospital has failed to pay property taxes of approximately $1 million for the third consecutive year. Around $400,000 of those taxes go to the city. A closed hospital could mean longer ambulance response times as crews travel to facilities in Libertyville, Highland Park, Lake Forest and Kenosha, she said.
The Fight Over Job Descriptions
Guzman wanted to amend the budget to add detailed job descriptions for eight positions listed as "special project analysts." Cunningham said job descriptions are not part of the budget process. The mayor’s answer did not satisfy Guzman.
"I want an actual job description," Guzman said. "You have eight positions on the budget that say, special project analyst. It’s vague. I want to know what those positions are. I want to know what they do."
Guzman voted for the budget but voted against the salary ordinance.
Revenue Breakdown
Less than half of the city’s revenue comes from taxes. The budget estimates $116 million from property tax, sales tax and the city’s share of the state’s income tax. Property taxes are estimated at $34.6 million, according to the budget document.
Total projected revenue is $282.3 million. Total projected spending is $281.7 million. The difference creates the $600,000 surplus.
The Bigger Picture
Cunningham campaigned on a "Rebuild Waukegan" platform. The approved budget is designed to support that effort through operational efficiencies and captured lost revenues, he said.
The vote comes as Waukegan navigates other major transitions. The city recently saw the groundbreaking for the $302 million permanent American Place Casino, a project expected to create 700 jobs and open in 2028, according to the Chicago Tribune.
The council had previously tabled the budget vote in early June. The postponement put $60 million in capital projects and student summer jobs on hold, according to earlier reporting. The June 16 vote resolved that delay.