Facing ongoing budgetary pressures, the Delavan City Council has taken decisive steps to rein in spending and reassess financial commitments, approving new oversight measures and revising the structure of a proposed tax increment financing (TIF) agreement during its most recent meeting.

In a unanimous vote, the council adopted stricter controls on city expenditures, requiring additional layers of approval for nearly all purchases. Under the new policy, any city expenditure under $5,000 must now receive prior approval from City Administrator Brian Baylor or Mayor Adam White in Baylor’s absence. Purchases exceeding $5,000 will require full council approval before any funds are spent.

Officials indicated the move is aimed at increasing transparency and accountability as the city works to address persistent financial shortfalls.
“This is about tightening up our processes and making sure every dollar is carefully reviewed,” council members noted during discussion.

The council also revisited a proposed TIF agreement with Tarter Brothers Mechanical, which is seeking assistance for exterior improvements at its property at 117 E. 4th Street. While Hometown Consulting had recommended a forgivable loan structure—consistent with past TIF agreements—the council ultimately rejected that approach.

Ward 1 Alderman Joshua Lusher voiced strong opposition to continuing the use of forgivable loans, arguing they may have contributed to the city’s current financial challenges.

“I think we should give a low-interest loan, not forgivable,” Lusher said. “I think this forgivable stuff’s part of the reason why we’re in financial trouble.”

The council agreed, amending the agreement to be a repayable loan with a 3% interest rate over a three-year term. Payments will begin 90 days after the completion of the project. The revised terms mark a shift in how the city intends to structure future economic development incentives, placing greater emphasis on repayment and fiscal responsibility.

Later in the meeting, the council entered into a closed executive session following a motion by Alderman Lusher to discuss personnel matters. The session lasted more than 30 minutes and focused on undisclosed issues.

The extended discussion prompted speculation among those in attendance, particularly in light of recent administrative turnover. Since the last time the council convened in executive session for personnel matters, two high-ranking officials—City Attorney William Connor and Interim City Administrator Eric Diekhoff—have resigned from their positions.

No actions or announcements were made following the closed session, leaving observers uncertain about whether additional staffing changes may be forthcoming.

As the city continues to navigate financial constraints, the council’s recent actions signal a more cautious and deliberate approach to both spending and development incentives.