On Monday, the Finance and Personnel Committee approved the 2026 budget, maintaining current property tax levels and lowering the General Fund by $2 million from last year. Despite a state-mandated $5 million increase in public safety pension payments over last year (bringing the total pension payments to $40.5 million this year), the overall budget is lower due to continued efforts to control costs and operate more efficiently. The budget will go to City Council for approval next week and includes several key initiatives and investments aimed at maintaining essential services and supporting community priorities.

Key Highlights

• Public Safety/Crime Reduction:  Continues funding enforcement, prevention and intervention efforts, contributing to nearly a 40% reduction in violent crime and a decline in youth-related offenses in recent years. 
• Property Taxes: Keeps City property taxes flat for the 13th consecutive year, saving Rockford homeowners an average of $321 annually.
• Rockford Promise: Allows local students to attend college tuition-free.
• General Fund Support from Casino: Includes annual revenue from the casino to support general fund expenses, including pension obligations and investments in police and fire stations. 
• Cannabis Fund: Redirects unspent Cannabis Fund reserves to the general fund to support a temporary increase in fire staffing as more firefighters than usual become eligible for retirement. This one-time increase allows for the continuation of the 2025 pilot program for an additional engine and ambulance, while preserving $850,000 for equity-focused, restorative justice, and community reinvestment grants.
• Community Programs: Supports initiatives that benefit all residents, including:

• Free Bus Rides: Provides Veterans, K-12 students, and individuals enrolled in post-secondary or adult GED/HSE programs free rides on RMTD buses.
• Lead Service Line Replacements: Continues replacing lead service lines at no direct cost to homeowners.
• Critical Home Repair Program: Funds repairs to homes owned by low- to moderate-income residents.
• Tree Removal Loan Program: Assists residents with limited resources in removing dead, dying or diseased trees from private property.

• Economic Development: Sets aside funding for economic development initiatives including a set aside for investment in high risk neighborhoods.
• Fights Blight: Invests in blighted home rehabilitation and new home ownership opportunities.
• Arts/Culture: Allocates money for arts and culture initiatives across the community.
• Public Safety Pensions: Includes the state-mandated public safety pension contribution of $40.5 million, up from $9.6 million in 2013 and $5 million more than last year’s payments.
• Infrastructure Investment: Maintains historic levels of investment throughout the community, including residential neighborhoods and thoroughfares.
• Internships: Funds internship and career development opportunities within the City of Rockford, including the Concrete Workforce Development Program.

Financial History

 In 2017, municipal finance experts warned that the City of Rockford could run out of money by 2021 and that Rockford residents had a relatively high tax burden. In response, the City partnered with the National Resource Network to review the budget line by line, identifying efficiencies and areas for improvement. A Financial Task Force, including residents, financial experts, business leaders, aldermen, and public employee union representatives, provided input. These efforts have enabled the City to pass eight balanced budgets, maintain flat property taxes and continue investing in both infrastructure and residents, while lessening the tax burden on residents.

Mayor’s Statement
 
 “No budget is perfect. However, I think we can all agree that property taxes are already too high, which is why I am advocating not to increase them,” says Mayor Tom McNamara. “Our City has seen tremendous momentum - gaining national attention and renewed local pride - which reinforces our goal of making Rockford a place where residents and businesses can thrive. While tough decisions aren’t always popular, they are necessary to keep us on track and be responsible stewards of our finances.”