Committee of the Whole Meeting

Committee of the Whole Meeting - Apr 08 2025 Agenda Tuesday, April 8, 2025 at 6:15 PM Council Chambers Page 1. Meeting Opening 1.1 Call to Order 1.2 Roll Call 1.3 Public Comments on Agenda Topics 2. Consent Agenda 2.1 Approve Minutes of Previous Committee of the Whole March 11, 2025 3. Old Business 4. New Business 4.1 CMT Engineering Updates 4.2 Village Manager Update and Draft April 2025 Supplemental 3 - 20 Transfer Ordinance/FY 2026 Draft Budget Presentation Draft Budget 2026.pdf Draft April Transfer Ordinance summary 04- 09-25.pdf 4.3 Public Property & Recreation Committee Discussion 4.4 Public Comments Village Business 5. Next Scheduled Meeting Page 1 of 20  5.1 Committee of the Whole Meeting 6:05 PM May 13, 2025 6. Closed / Executive Session 6.1 Personnel under 2(c)(1) 6.2 Collective Negotiating Matter (2)(c)(2) 6.3 Litigation under 2(c)(11) 6.4 Setting the price for sale of public property (2)(c)(6). 6.5 Review of Executive Session Minutes 5 ILCS 120/2(c)(21) 6.6 Purchase or lease of real property for the use of the public body, including meetings held for the purpose of discussing whether a particular parcel should be acquired 2(c)(5) 7. Adjournment 7.1 Adjourn Meeting Page 2 of 20  Fiscal Year 2026 Fiscal YearDRAFT Proposed 2016Budget Budget Page 3 of 20  Fiscal Year 2026 Proposed Budget Outline  Fund Structure  Budget Process  Budget Goals  Fiscal Year 2026 Proposed Budget Overview Page 4 of 20  Fund Structure The financial transactions of the Village are reported in individual funds. A Fund is a fiscal and accounting entity with a self-balancing set of accounts that records transactions that are segregated for the purpose of carrying on specific activities or attaining certain objectives. Funds are organized into three categories: governmental, proprietary, and fiduciary funds. This presentation will focus on the Village’s three Major Funds. Governmental Funds General Fund Proprietary Fund Electric Fund Water and Sewer Fund Village of Chatham Governmental Proprietary Fiduciary Funds Funds Funds Special Capital General Permanent Enterprise Revenue Projects Trust Fund Fund Funds Funds Fund Fund Page 5 of 20  Budget Process  February 2024 During the month of February 2025, the Village Manager along with the Village President review upcoming budget goals. Estimates for revenues, personnel service, debt service electric, water and sewer expenses are completed. Most preliminary budget numbers input for all other operating line items are estimated starting at the prior year budget numbers the Fiscal Year 2026 budget amounts.  March 2025 During the month of March 2025, the preliminary budget results are reviewed with Village Manager and Budget materials assembled. These include the recommended budget along with fund summaries, department operation details and other information.  April 2025 In early April, the Village Management team conducts final meetings to discuss the Fiscal Year 2026 Budget.  April 8, 2025 At the April 8, 2025 Board Meeting, a PowerPoint is presented that includes a summary of items included in the Fiscal Year 2026 Budget. Also copy of the draft budget ordinance will be made available to the public in the Utility Office.  April 9-18, 2025 During this time, the Village board has the option to meet with Village management team to discuss the budget.  April 22, 2025 At the April 22, 2025 Board Meeting, as required by State Statute, a public hearing is held to allow the public a final opportunity to provide input regarding the budget. The Annual Appropriation Ordinance is then voted on by the board. It is made available on Village website once approved. Page 6 of 20  Budget Goals  Customer Service – Provide outstanding customer service for our residents, business community and visitors.  Performance – Provide efficient and streamlined services and processes for the community that are sustainable and which effectively utilize technology.  Economic Development – Continue economic development efforts to provide financial stability by attracting new businesses to the area.  Quality of Life – Make Chatham a place where people want to live, work, and play and create a legacy where people want to stay in the community after they “grow-up” and raise their own children. Page 7 of 20  Village of Chatham Fiscal Year 2026 Proposed Budget Overview - Revenues General Fund $8,259,899 Capital Projects Fund $1,221,230 Yard Waste Fund $378,130 Water and Sewer Fund Police and Public Works Village of Chatham Fiscal Year 2018 General 25.62% Proposed Fund Capital Projects Fund Utility Tax Fund Budget Overview $17,440 27.07% 4.00% Police Pension Fund $890,863 Yard Waste Fund 1.24% Cemetery Perpetual Care Fund $18,860 Police and Public Works Electric Fund Utility Tax Fund Veteran's Memorial Fund $540 0.06% 36.92% Police Pension Fund Motor Fuel Tax Fund $642,861 2.92% Cemetery Perpetual Care Fund Electric Fund $11,264,649 0.06% Veteran's Memorial Fund Page 8 of 20 Water and Sewer Fund $7,816,125 Motor Fuel Tax Fund 0.002% 2.11% TOTAL $30,510,597  Village of Chatham Fiscal Year 2026 Proposed Budget Overview - Expenditures General Fund $9,282,422 Capital Projects Fund $702,094 Yard Waste Fund $366,700 Water and Sewer Fund Village of Chatham Fiscal Year 2018 General 25.23% ProposedFund Capital Projects Fund Police and Public Works 27.12% 2.05% Budget Overview $60,000 Utility Tax Fund Yard Waste Fund 1.07% Police Pension Fund $890,863 Police and Public Works Cemetery Perpetual Care Utility Tax Fund $95,398 0.18% Fund Electric Fund Police Pension Fund Veteran's Memorial Fund $1,200 37.82% 2.60% Motor Fuel Tax Fund $1,246,446 Cemetery Perpetual Care Fund 0.28% $12,944,817 Electric Fund Veteran's Memorial Fund 0.004% Page 9 of 20 Water and Sewer Fund $8,636,052 Motor Fuel Tax Fund 3.64% TOTAL $34,226,012  FY 2026 Revenue vs Expenditure Summary • The budgeting for revenues is very conservative and the budgeting for expenditures is often slightly overestimated in order to be fiscally responsible. • Typically, all funds end up close to breaking even at the end of the year or have a slight surplus to build up a 3 months cash reserve to have on hand in case of emergency. • The total appropriation of the major funds General, Electric and Water/Sewer, for fiscal year 2026 is greater than the estimated revenues for fiscal year 2026. The deficiency is attributable to expenditures intended to be financed with restricted cash, issuance of debt, and fund reserves if sufficient cash is not produced by annual revenues. • Also, some expenditures are contingent on the fund’s revenue performance. The department head and finance department will continue to monitor the fund’s revenues throughout the year to determine if certain expenditures are possible. • The following are items that are included in the appropriation that if incurred will likely be funded by fund reserves, issuance of debt, or restricted cash.  Capital Projects  Transfer $500,000 more to the Capital Projects Fund to be used for future year’s projects  Estimated liability related to accrued benefits – Approx. $1,023,800  Potential financed items – vehicles in current and future years totaling approx. $520,300  All of these items together total to approx. $2.04 million to lessen the deficit due to their nature and funding sources if incurred Page 10 of 20  Revenue vs. Expenditure History Trend & 2026 Budget Estimated 45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 FY 2022 Actual FY 2023 Actual FY 2024 Actual FY 2025 Projected FY 2026 Budget Estimated Budgeted Revenues Budgeted Expenditures Actual Revenues Actual Expenditures Page 11 of 20  Village of Chatham Fiscal Year 2026 Proposed Budget Overview Three Major Funds  General Fund  Electric Fund  Water and Sewer Fund Page 12 of 20  General Fund – Budget Highlights Administration Department  Only difference in Administrative Department for FY 2026 include salary adjustments and some IT upgrades (computers, phones, internet)  Remaining FY2026 amount for McClure State Grant – approx. $86,657 • Grant has been extended for FY 2026, part of it was used in FY 2024 for the building demolition on the square  For the Fiscal Year 2026 Budget the Village is transferring $500,000 from the General Fund to the Capital Projects Fund to fund a Capital Plan for the Village’s Governmental Fund Departments for the current and future fiscal years.  Continue to progress toward the redevelopment of the Village Square as indicated in the Village's Capital Improvement and Comprehensive Plans and in coordination with the economic development plan. Anticipated current year expenditures for architectural, engineering, and development costs are funded with current and future grants intended for that purpose and potentially along with reserved capital funds. Page 13 of 20  Capital Projects Fund – Budget Highlights  Administration  A DCEO Grant will continue to fund an estimated $625,000 for the architectural, engineering and development costs of the revitalization of the Square project in FY 2026 through the capital projects fund Page 14 of 20  General Fund – Budget Highlights Parks Department  Bike path repairs - $50,000  CCFL Concrete Project - Village contribution $33,000 (1/3 of $109,000 estimate)  Concession repairs to finish from FY 2025 - $5,000  Village of Chatham sign upgrades - $30,000  New 1-Ton Truck to be financed - $70,000 Street Department  Experimental Bristol Rd project - $181,150  Parking lot and street striper - $5,500  Hotbox - $40,000 Page 15 of 20  General Fund – Budget Highlights Police Department  New 2-year union contract passed with salary and benefit adjustments  2 new police vehicles  $45,150 per car  Approximately $25,000 each for vehicle’s equipment plus install  Shields – $7,500  Gun replacements - $20,000 Page 16 of 20  Electric Fund – Budget Highlights Electric Department  New union contract to be passed for FY 2026 budget  Additional lineman  Electric System Assessment Consulting - $200,000  Meter Reading software upgrade - $30,000 split Electric/Water  Locator device - $15,000  2 Truck tool boxes - $1,600 each  Note: An Electric Rate increase will be implemented early FY 2026 Page 17 of 20  Water and Sewer Fund – Budget Highlights Water & Sewer Department  Meter Reading software upgrade - $30,000 split Electric/Water  Water System Audit - $15,000  Ground Tank Valve Repair - $4,175  New Utility Truck to be financed - $60,000  Note: A sewer rate increase will be implemented early FY 2026 Page 18 of 20  Other Budget Highlights Yard Waste, Recycling and Refuse Program  The Yard Waste Supplies and Services line item includes costs of contracting out costs of leaf pickup, branch pickup, and clean-up. Cemetery Perpetual Care Fund  At some point, the Village plans to upgrade the road within the cemetery. The Village also plans to begin allocating 80% of funds received on lot sales to use for the cemetery care to build up funds to construct a mausoleum for cremations Motor Fuel Tax Fund  MFT Fund Projects  Annual Operating Expenses - $464,450  Plummer Blvd Overlay - the MFT Rebuild IL funds will be used in FY 2026 for the resurfacing of Plummer Blvd from the west starting at Ptarmigan to the east ending at the bridge over Polecat Creek - $757,895 Page 19 of 20  Draft April Transfer Ordinance Summary Actual Estimated Estimated April 8, 2025 Proposed Expenditures Expenditures Available at Account Description Budget Change Revision as of 03/27/2025 at Fiscal Year End Fiscal Year End Notes GENERAL FUND Administration Department Engineering expense exceeded budgeted amount due to extra engineering services provided throughout the year for multiple projects mostly 100-101-415 Professional Services - Administration 201,759.00 100,000.00 301,759.00 222,420.32 222,420.32 26.29% having to do with ARPA projects in FY 2025. Legal expenses are currently projected to come in under budget and would allow for a transfer to other 100-101-415 Legal Expenses - Administration 144,068.00 -40,000.00 104,068.00 56,307.13 56,307.13 45.89% items to balance the Administration budget. Salaries are currently projected to come in under budget and would allow for a transfer to other items to 100-101-410 Salaries - Administration 349,100.00 -60,000.00 289,100.00 246,909.34 269,355.64 6.83% balance the Administration budget. Administration Budget is balanced by transfers General Fund Administration Department Total of Line Items Changed 694,927.00 0.00 694,927.00 525,636.79 548,083.09 between department line items. Parks Department Uniforms and supplies expense exceeded budget for the year due to the purchase of signs and more safety 100-301-450 Uniform & Supplies - Parks 5,889.00 1,000.00 6,889.00 5,312.20 5,795.13 15.88% boots compared to prior years' expenses. Salaries are currently projected to come in under budget and would allow for a transfer to other items to 100-301-410 Salaries - Parks 402,300.00 -1,000.00 401,300.00 365,832.40 399,089.89 0.55% balance the Parks budget. Parks Budget is balanced by transfers between General Fund Parks Department Total of Line Items Changed 408,189.00 0.00 408,189.00 371,144.60 404,885.02 department line items. Streets Department Buildings and grounds expense exceeded budget due to lightning strike damage to a street stoplight. 100-401-420 Building & Grounds Maintenance - Streets 217,060.00 25,000.00 242,060.00 224,078.07 239,448.80 1.08% Insurance proceeds covered most of this expense. IT expense exceeded budget due to a camera system 100-401-436 IT - Streets 12,020.00 4,000.00 16,020.00 15,623.51 15,623.51 2.47% that was not originally budgeted for FY 2025. Street maintenance is currently projected to come in under budget and would allow for a transfer to other 100-401-455 Street Maintenance - Streets 50,000.00 -25,000.00 25,000.00 3,645.60 3,645.60 85.42% items to balance the Streets budget. Salaries are currently projected to come in under budget and would allow for a transfer to other items to 100-401-410 Employee Salaries-Streets 342,300.00 -4,000.00 338,300.00 292,751.51 319,365.28 5.60% balance the Streets budget. Streets Budget is balanced by transfers between General Fund Streets Department Total of Line Items Changed 621,380.00 0.00 621,380.00 536,098.69 578,083.20 department line items. YARD WASTE FUND Yard waste contract services expense is expected to exceed budget due to one of the Spring yard waste collection doing one pick up in April and one in May instead of doing two in May. The cost for that April 120-401-422 Yard Waste Supplies Expense - Yard Waste 228,000.00 15,000.00 243,000.00 214,000.00 229,000.00 5.76% pickup needs to be budgeted in the FY 2025 budget. Clean-up expenses are currently projected to come in under budget and would allow for a transfer to other 120-401-421 Clean-up & Beautification - Yard Waste 35,000.00 -15,000.00 20,000.00 19,853.90 19,853.90 0.73% items to balance the Yard Waste budget. Yard Waste Budget is balanced by transfers between Yard Waste Fund Total of Line Items Changed 263,000.00 0.00 263,000.00 233,853.90 248,853.90 department line items. WATER AND SEWER FUND Tools expense exceeded budget due to a few extra tools that needed to be purchased for the water department. A small transfer is being made to make 700-701-445 Equipment purchases-Water & Sewer 118,464.00 4,000.00 122,464.00 115,676.61 115,676.61 5.54% up this difference. Salaries are currently projected to come in under budget and would allow for a transfer to other items to 700-701-410 Salaries - Water & Sewer 778,000.00 -4,000.00 774,000.00 630,983.05 630,983.05 18.48% balance the Water and Sewer Fund Budget. Water Budget is balanced by transfers between Water and Sewer Fund Total of Line Items Changed 896,464.00 0.00 896,464.00 746,659.66 746,659.66 department line items. Page 20 of 20