ROCHELLE — With approval of the 2019 budget, the city of Rochelle will be working with a balanced budget.

Rochelle city council approved the new fiscal year budget during their meeting Monday that includes a 15 percent increase of general fund revenues compared to last year.

The budgeted revenues total $88,873,482; this includes a combination of the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, Trust and Agency Funds, and Capital Project Funds. Budgeted expenses total $95,390,130.

City manager Jeff Fiegenschuh explained the city will be tapping into reserve funds to pay for large capital projects, which is reflected in the budgeted expenses.

“We have been saving up money in the sales tax fund, water fund, and water reclamation fund for a couple years for some big capital projects to cash fund them,” Fiegenschuh said. “We are spending down the savings we have so we don’t have to go out and borrow for those projects.

Other business

Council approved the purchase of a new heating and cooling system in the older portion of city hall at a cost of $376,355. The project is expected to begin in early 2019 and will take about six months to complete.

The final plat for Hub City Development LLC’s 48-acre parcel was approved. The property will be subdivided into three lots; one with 12 acres, one with 13 and the rest undeveloped. The subdividing will allow the petitioner to commercially develop the property.

Two public hearings were held on the matter; city council in October and planning and zoning commission in November.

Council passed a motion on an ordinance to approve a three-year property tax rebate program for new single-family home construction. Pease explained the move is to encourage housing development.

“The reimbursements will only be paid to individuals who maintain tax liability for newly constructed single-family homes within the city who demonstrate that they have paid 2018, 2019 and 2020 real estate property taxes in full, and who certify that they have no prir year property taxes outstanding,” Pease said.

Combined with the already approved waiving of the sewer connection and permit fees, the savings could range anywhere from $2,000 to $2,500.