Budget 'Wish List' and TIF Maneuvers Raise Red Flags in LaSalle's 2024 Appropriations

Budget 'Wish List' and TIF Maneuvers Raise Red Flags in LaSalle's 2024 Appropriations

LaSalle, IL — March 21, 2025

EXCLUSIVE: Budget 'Wish List' and TIF Maneuvers Raise Red Flags in LaSalle's 2024 Appropriations

LaSalle, IL — March 21, 2025

A detailed review of the City of LaSalle's Finance Committee meeting held on June 18, 2024, reveals a troubling pattern of budgeting tactics, legal gray areas, and structural financial instability that could spell long-term trouble for the city and its residents.

Confirmed Deficit in the General Fund

Finance Director John Duncan confirmed that the General Fund is $1.1 million in the red. Rather than address the shortfall through spending cuts or increased revenue, the city plans to burn through remaining reserves to temporarily stay afloat.

Disappearing Transfers Raise Questions

In FY2023, the city transferred $2 million from the Water, Sewer, and TIF funds to cover the cost of the Public Works Garage. This year, that figure was inexplicably reduced to $250,000, with no clear explanation of repayment or fund replenishment.

TIF Law at Risk

Perhaps most concerning is Duncan’s claim that "TIFs can be transferred back and forth", effectively treating restricted redevelopment funds like interchangeable checking accounts. This directly undermines Illinois TIF law, which mandates that funds be used within the designated district for specific redevelopment goals.

Utility Funds in the Crosshairs

The Water Fund faces a $475,000 tower maintenance contract, which Duncan admits will put the fund "significantly in the hole." Meanwhile, if grants fail to materialize, the Sewer Fund faces a projected $1.9 million deficit.

Grant Dependence Without Guarantees

Multiple projects have already been initiated or budgeted based on grants not yet awarded. This practice, openly acknowledged by Duncan, exposes the city to the risk of unfunded liabilities if expected grant money doesn’t come through.

Off-Book Funds Quietly Integrated

The historically opaque LPAC Fund, which handles Celebrate LaSalle and Celebration of Lights, was quietly absorbed into city accounting software in 2024. No records or reconciliation of past revenue/expenditures were presented.

Library Fund Unclear and Under-Scrutinized

Despite receiving significant Carus trust donations, the Library Fund remains murky. Duncan noted that the library often does not account for grants or donations and that he was still waiting on financial figures during the budget meeting.

“Wish List” Budgeting Confirmed

Duncan repeatedly described the appropriations as a "wish list", rather than a disciplined financial plan. Appropriated funds are not necessarily backed by verified revenue or projected need.

Legal and Ethical Exposure

Unclear handling of interfund transfers, potential misuse of TIF and utility funds, and shaky grant forecasting all point toward serious financial mismanagement. The city may be in violation of the Illinois TIF Act, Budget Law, and possibly the Open Meetings Act, based on confusion over public hearing requirements.

Key Red Flags Identified

•  $1.1M General Fund deficit being concealed with reserve drawdown

•  Unexplained $1.75M drop in interfund transfers year-over-year

•  TIF funds used across districts, violating state law

•  Water and Sewer funds put at risk for general government spending

•  Grant-funded projects launched before grant awards are secured

•  Celebration funds retroactively folded into city books with no audit trail

•  Library trust money untracked or unaccounted for

•  Budget strategy built on hopes, not hard numbers

As the city approaches the April 2025 election, these red flags demand scrutiny from voters, watchdogs, and possibly higher regulatory authorities.

This isn’t just sloppy accounting — it’s a warning sign of governance under strain.