Sycamore City Manager Proposes $700K Budget Increase for 2026

The city of Sycamore is set to increase its fiscal 2026 budget by $700,000 without raising property taxes, according to the city’s manager, Michael Hall. During a recent meeting with the Sycamore City Council, Hall outlined his proposal, emphasizing that no new services or personnel would be added. The majority of the proposed increase is attributed to rising costs associated with city personnel.

Hall noted that the city’s 120 employees account for approximately 60% of the overall budget. He stated, “Preliminary estimations right now, all of that added up is roughly $500,000. That’s no new employees. That’s what goes up without nothing changing. So these are requirements and things that we have to do.”

The next largest segment of the budget, comprising 27%, is allocated to goods and services. Hall explained that inflationary pressures in the Sycamore area, currently between 2.7% and 3.1%, are expected to increase the costs of essential city purchases by about $200,000 in the upcoming fiscal year.

Despite these increases, Hall reassured council members that there would be no increase in the tax levy for 2026. “We’re proposing no increases to the tax levy in 2026,” he stated. “That is up to the City Council, of course, but that is going to be our recommendation.”

To cover the budget increase without raising property taxes, Hall plans to introduce higher user fees. He clarified that user fees are associated with specific services, such as licensing and inspections, rather than general taxation. “User fees are a little bit different. They are directly for using something,” Hall explained. He cited examples like ambulance fees and inspection fees.

The city of Sycamore has a variety of fees in place for developers and businesses, as outlined in the city’s code. While Hall presented his preliminary budget plan on September 15, 2025, the city will engage in further discussions about the budget before a final vote.

City officials are scheduled to review fiduciary funds during the City Council meeting on October 6, 2025, followed by a discussion on enterprise funds on October 20, 2025. The public will have opportunities to provide input, with a public hearing on the fiscal 2026 budget set for November 17, 2025. Final approval is anticipated on December 1, 2025.

Hall also noted that his budget and inflation estimates do not account for potential economic impacts from tariffs pursued by former President Donald Trump in 2025. “I don’t know how to calculate tariffs yet,” Hall admitted, referencing instances where public works projects experienced cost increases due to tariffs on proprietary items.

As Sycamore looks ahead to fiscal 2026, the proposed budget reflects efforts to manage costs effectively while maintaining services for the community. The upcoming months will be crucial for city officials and residents as they navigate the challenges of budgeting in an inflationary environment.