City officials say this year’s Herculaneum budget invests heavily in the future with upgrades to infrastructure and city services.
The Herculaneum Board of Aldermen recently approved its 2026-2027 fiscal year budget, which started July 1 and runs through June 30, 2027, and projects the city to bring in $14,004,600 and spend $13,572,300, a surplus of $432,300.
Herculaneum City Administrator Logan Jaskiewicz said one of the city’s goals this year is to keep building on the momentum they’ve created in the past few years.
“Our plan is to continue being responsible with the city’s resources while still investing in the projects and improvements that will benefit our residents and keep Herculaneum moving forward,” Jaskiewicz said. “At the end of the day, our goal is to keep moving Herculaneum forward by improving our infrastructure, supporting responsible growth and making smart investments that enhance the quality of life for our residents.”
Jaskiewicz said one of the city’s major focuses has been infrastructure. Planned improvements for this year include concrete replacement on Westchester Drive; storm drain repairs and concrete slab replacement in the Prairies; and asphalt overlays on Hill Street.
“We’ve also remained committed to improving our parks and recreational amenities. We’re especially excited about the continued improvements to Kade’s Playground, including the upcoming Phase 3 expansion, which will provide even more opportunities for families to enjoy our parks.”
Jaskiewicz said the Little Tikes playground expansion project will convert an open grassy slope into a space designed for younger children to explore safely and play at their own pace away from older children. The space will be within the playground’s existing fence and will include shade structures. The city also will add tables to the pavilion and staining the pavilion and the garage at the playground.
A proactive approach
Jaskiewicz said the city released a five-year plan earlier this year that officials hope to use as a roadmap for what changes are necessary in the future instead of having a reactive approach and waiting until things go wrong.
He said one of the biggest proactive infrastructure investments dollar-wise will be in the city’s sewer system, with approximately $3.5 million in improvements planned.
He said the city plans to finance the project through a lease-purchase agreement with First State Community Bank, which allows the city to make critical infrastructure improvements while spreading the cost over time.
“This financing method helps us address major infrastructure needs without placing the full financial burden on our residents all at once,” he said. “These investments will also help ensure the city continues to meet state and federal environmental regulations while preparing our utility system to support future residential and commercial growth.”
Jaskiewicz said the improvements will focus on modernizing and strengthening the city’s wastewater system. Planned upgrades include improvements to pump stations; replacement of aging equipment; rehabilitation of critical infrastructure; and other system enhancements designed to improve reliability, efficiency and long-term performance.
He said for most residents, the improvements won’t be highly visible because much of the work is taking place behind the scenes.
“That’s exactly what makes them so important,” Jaskiewicz said. “A reliable sewer system is something most people don’t think about until there’s a problem. By making these investments now, we’re reducing the likelihood of costly failures, improving service reliability and ensuring our infrastructure is ready to serve the community for decades to come.
“While these projects may not be as noticeable as a new park or a resurfaced road, they’re some of the most important investments we can make to protect public health, support economic development and provide the reliable utility services our residents expect.”
Equipment upgrades
The city plans to purchase two new police vehicles; a new fire station alert system; computers to replace older models at City Hall and the Fire Department; a new truck for the Sewer Department; a new UV disinfection system at the wastewater treatment plant; a new zero-turn mower; and a milling attachment to allow crews to perform more road maintenance in-house.
He said the city also is planning for the future by completing a survey and site plans for a new salt storage facility west of I-55, which he said will improve winter operations and allow the city to better serve residents during snow and ice events.
Jaskiewicz said the city plans to spend around $4,715,700 on capital improvements this year. He said approximately $611,700 of that will be for buildings and equipment and around $4,104,000 will be for infrastructure.
Jaskiewicz said the city started this fiscal year with $2,321,964 in general fund reserves and the new budget projects the city ending with $2,372,764 in reserve funds.
Jaskiewicz said the city tries to maintain about 25-50 percent of its general fund in its reserve funds. This year’s projected total general fund will amount to $4,447,500 putting the reserve funds at about 53.4 percent.
Jaskiewicz said the city anticipates revenue increasing slightly this year based on continued residential growth with new housing developments, the addition of new commercial businesses, such as the new McDonald’s, and the completion of the I-55 widening project to three lanes through Herculaneum.
“These investments are expected to increase traffic, improve accessibility and support additional commercial activity, all of which should have a positive impact on the city’s sales tax base and overall economic growth,” Jaskiewicz said. “While we remain optimistic, we will continue to monitor revenues closely and maintain a conservative approach to budgeting.”
Jaskiewicz said the city has 34 full-time employees and five part-time employees, with the city planning to hire an additional street department employee this year. He said the city will spend about $2,195,700 for salaries, $558,500 for employee health insurance and $556,100 for retirement benefits.
Jaskiewicz said the city has seen an increase in the cost of employee benefits since last year.
“Most of those costs have gone up by a little over 10 percent, with retirement increasing slightly more because we’re part of the LAGERS Tier 6 retirement program,” he said. “While those increases certainly impact our budget, they’re part of making sure we continue to offer competitive benefits that help us attract and retain quality employees who provide the services our residents rely on every day.”