City Council
Regular MeetingDeKalb, IL · June 1, 2016
Minutes
MINUTES
JOINT CITY COUNCIL AND FINANCE ADVISORY COMMITTEE
CITY OF DEKALB
JUNE 1, 2016
The Joint City Council and Finance Advisory Committee meeting of June 1, 2016 was
called to order at 5:30 p.m. by Mayor Rey.
Roll Call
City Council members present were: Alderman David Jacobson (arrived at 5:37 p.m.),
Alderman Bill Finucane, Alderman Michael Marquardt, Alderman Bob Snow, Alderman
Kate Noreiko, Alderman Anthony Faivre (arrived at 5:37 p.m.), and Mayor John Rey.
Finance Advisory Committee members present were: Tom Teresinski, Connie Golden,
Lynn Neeley (arrived at 5:32 p.m.), Mike Verbic, David Conlin, Ron Partch (arrived at 5:34
p.m.), and Chairman Mike Peddle.
Others present were: City Manager Anne Marie Gaura, Finance Director Cathy Haley,
Fire Chief Eric Hicks, Police Chief Gene Lowery, Assistant City Manager Patty
Hoppenstedt, Public Works Director Tim Holdeman, Community Development Director
Ellen Divita, and Deputy City Clerk Carri Parker.
Mayor Rey summarized his opening remarks by stating the intent of the meeting is to
bring to the public the issues that have surfaced from prior discussions with a goal of
moving to a consensus on the FY16.5 budget. With the public hearing and first reading
of the budget scheduled for June 13, 2016 and the second reading and final passage of
the FY16.5 budget scheduled for June 27, 2016.
Discussion on Long-term Funding Option
City Manager Gaura summarized how beneficial this software demonstration is to assist
in financial forecasting and how it could be the key part in the Public Works Capital
Improvement Plan. This program will determine what the City’s revenue needs are and
how it could model the revenue sources. She added that the software is not in the FY16.5
budget.
Public Works Director Holdeman added that this financial tool will be a key part of the
Street, Fleet and Facilities master plan. This software will allow staff to balance the
priority of the City’s needs. He then introduced Kyle Stevens from Hawksley Consulting
(MWH Engineering Firm).
Chairman Peddle asked how this software relates to the Enterprise Resource System
(ERP). Finance Director Haley stated it would be a separate software program. Mr.
Stevens presented the financial software.
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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After the presentation, a discussion ensued with regard to using the entire budget, who
their current customers are, how different scenarios can be used in real-time to project
the financial forecast, advantages, cost of the program and if this program would be
effective for the City.
The software presented was not approved as no vote was needed. It was suggested to
look at it in the future for FY17.
Committee Member Teresinski left the meeting at 6:07 p.m.
Committee Member Teresinski returned to the meeting at 6:08 p.m.
Approval of Recommendations Regarding FY2016.5 Policy Issues
Financial Policy change regarding Transferring of Funds to Capital
MOTION
Chairman Peddle motioned to leave the policy as is and if the Council decided to do a
one-time transfer based on the City’s needs for FY16.5 they may do so. Motion was
second by Committee Member Golden.
The City Council and Finance Advisory Committee discussed the motion on the
importance of change.
VOTE
Motion carried on a 14-0 roll call vote.
City Council members: Aye: Jacobson, Finucane, Marquardt, Snow, Noreiko, Faivre and
Rey. Nay: none.
Finance Advisory Committee: Aye: Teresinski, Golden, Neeley, Verbic, Conlin, Partch
and Peddle.
Mayor Rey declared the motion passed.
Ambulance Fee Increase
MOTION
Chairman Peddle motioned to increase the Ambulance Fees as proposed. Motion was
second by Committee Member Neeley.
A discussion ensued between the Council and Committee about the fee and how it will
affect residents. Mayor Rey added that the increase in the Ambulance Fees is not in the
current purposed FY16.5 budget.
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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VOTE
Motion carried on a 13-1 roll call vote.
City Council members: Aye: Finucane, Marquardt, Snow, Noreiko, Faivre and Rey. Nay:
Jacobson.
Finance Advisory Committee: Aye: Teresinski, Golden, Neeley, Verbic, Conlin, Partch
and Peddle.
Mayor Rey declared the motion passed.
Gaming Fee Increase
Finance Director Haley introduced the Gaming License Fee increase. She explained the
handout stating that fees could be increased by different scenarios. She added that not-
for-profit establishments can have a tiered fee schedule.
The City Council and Finance Advisory Committee discussed the fee increase and how
it would affect the non-profit organizations, the increase amount, the individual amounts
that the establishments are receiving.
MOTION
Chairman Peddle motioned to revise the Video Gaming license to $500 per new
application and $250 per machine annually. Motion was seconded by Committee
Member Partch.
City Manager Gaura added that all of these fee increases were not in the FY16.5 budget.
VOTE
Motion carried on a 12-0-1 roll call vote.
City Council members: Aye: Finucane, Snow, Noreiko, Faivre and Rey. Nay: Marquardt.
Abstained: Jacobson.
Finance Advisory Committee: Aye: Teresinski, Golden, Neeley, Verbic, Conlin, Partch
and Peddle.
Mayor Rey declared the motion passed.
Other Items
Budget change in vehicle purchase
Alderman Noreiko stated her concerns with the projection for FY20. She asked for further
consideration on the transfer from the General Fund and recommended deferring the
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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purchase of one police vehicle and one ambulance and placing them on top of the priority
list for FY17. She added that she would like to tie the new ERP software into the hiring
of the IT Director. Finance Director Haley mentioned that by dropping down to one vehicle
each, the fund reserve over the next five years would go from 20.34% to 20.82%.
Handout – Committee Member Teresinski’s Recommendations
Committee Member Teresinski provided a handout stating it was a draft budget
recommendation for the Finance Advisory Committee’s consideration.
1. Reduce the $620K deficit in FY16.5 by $400K ($800K full year) to keep the 25%
balance in the end of the 5th year.
Finance Director Haley stated that the $620K is the current transfer to Fleet and
Equipment.
Committee Member Teresinski stated this $400K reduction could be done by reducing
operational expenditures in the General Fund.
Alderman Jacobson left the meeting at 7:01 p.m.
2. Freeze hiring at FY15 levels until organic growth exceeds 3% (total compensation
eats up at least 1%) per annum basis.
Committee Member Verbic stated that the City needs to look at the budget to acquire a
competitive edge against other surrounding cities, but it would be hard to achieve. He
used lowering sales tax by 1% as an example. He recommended a 2.5% decrease in
expenses for FY16.5 and see what the decreases of expenses would be in the future to
establish this competitive edge.
Chairman Peddle doesn’t think reducing the sales tax would increase the competitive
edge. He stated that if you look at the budget in the last years, the City is less than
previous years. He acknowledges there is a revenue problem. If the City got rid of the
Police Department and Fire Department the pension costs will still be going up and eating
a substantial amount of money.
Committee Member Teresinski mentioned that the City has been looking for revenue
opportunities. He pointed out that there are not much more that have not been used. He
stated that there needs to be discussion about ways to increase growth.
Police Chief Lowery left the meeting at 7:06 p.m.
Alderman Jacobson returned to the meeting at 7:06 p.m.
Police Chief Lowery returned to the meeting at 7:09 pm.
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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Chairman Peddle recommended that the City needs to be taxing for the full pension costs.
He suggested that the City cannot continually reduce the amount in the budget that
provides services for the residents. He summarized that the City should not spend
beyond its means.
Alderman Jacobson stated that he agreed with everything of Chairman Peddle. He
mentioned there needs to be cuts made with constructive conversations with staff. He
added that some of the frivolous stuff needs to be cut and he has been asking for a
meeting and to have discussions and have not received the answers. He added that the
items need to be on the agenda for discussion.
Mayor Rey restated his expectations of the meeting he had stated at the beginning for
the benefit of Alderman Jacobson.
Alderman Jacobson continued to state that he has requested these meetings and that
staff has not been forthright with their answers. He added that if staff put all of the
outsourced staff in the numbers there are well over 250 employees.
Alderman Marquardt suggested that it’s cheaper to have the services outsourced rather
than fill the positions with staff members.
Committee Member Partch left the meeting at 7:23 p.m.
Committee Member Partch returned to the meeting at 7:25 p.m.
Alderman Jacobson stated that the EPI study of 2013 states that staff had increased by
30%.
City Manager Gaura responded that according to the EPI study, City staff was on the low
end. She also added that she did not see anywhere in the EPI that the City was
overstaffed by 30%. She added that the City has employed professional individuals and
is very proud of them. She stated that the technology within the City is lacking
significantly. She asked the Mayor and Council to think about the level of service that
they want to provide to the community.
Committee Member Neeley stated that the fleet issues have not happened in the last
couple of years but within the last 20 years. She mentioned that the Committee needs to
help and assist in the budget discussions through constructive suggestions and solutions
to help this long term problem that the City are all a part of as a community.
Committee Member Teresinski agreed 100% with Committee Member Neeley. He stated
by not dealing with the revenue problem it can cause greater harm. He added there
needs to be a five year comprehensive meeting to discuss how to grow the community.
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June 1, 2016
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Chairman Peddle stated that the Council or Committee cannot do a motion as it is not on
the agenda but we can do a straw poll without formal motions, etc. so the Council does
get the feedback from the Finance Advisory Committee. He pointed out that the last
recommendation on the handout had previously been voted on.
Chairman Peddle asked for a straw poll to reaffirm the Committee’s recommendation of
the 25% fund balance.
Finance Advisory Committee straw poll carried on a 7-0 vote. Aye: Teresinski, Golden,
Neeley, Verbic, Conlin, Partch and Peddle.
Committee Member Teresinski suggested that staff keep $1MM in road repairs for TIF
areas in place for another year. City Manager Gaura mentioned that staff has not started
the FY16 project. She stated because of the timing of the budget, it will be hard to
complete it. Finance Director Haley confirmed that the funds can be carried over to the
FY16.5 budget.
Committee Member Verbic mentioned that he would like to see the $500K for the
purchase of a building downtown be put into City streets. Chairman Peddle stated that
would be a FY17 issue and that the Finance Advisory Committee can discuss it at that
time.
Chairman Peddle asked for a straw poll to keep $1MM in road repairs for TIF areas in
place for another year for FY17.
Finance Advisory Committee straw poll carried on a 5-2 vote. Aye: Teresinski, Golden,
Neeley, Verbic and Peddle. Nay: Conlin and Partch.
Chairman Peddle asked for a straw poll to reiterate the need for a five year
comprehensive financial plan that covers both the revenue and expenditure side with
appropriate comparable.
Finance Advisory Committee straw poll carried on a 7-0 vote. Aye: Teresinski, Golden,
Neeley, Verbic, Conlin, Partch and Peddle.
Committee Member Verbic requested an estimate of personnel costs per full-time
employee (FTE).
Alderman Jacobson requested to add to that estimate an internal calculation of
outsourced responsibilities and their related FTEs.
Chairman Peddle asked for a straw poll to reiterate the need for a five year
comprehensive financial plan be a precursor to increasing additional taxes the City
controls.
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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Finance Advisory Committee straw poll carried on a 5-2 vote. Aye: Teresinski, Neeley,
Verbic, Conlin and Peddle. Nay: Golden and Partch.
Committee Member Teresinski stated for the Airport that until a full year actual is
balanced, he supports a transfer of $200K per fiscal year. He added that if it ends up
being a loan that those funds must be restricted to the General Fund.
Finance Director Haley clarified that if FY16 ends up with a negative cash balance and
it’s shown as a loan it can be shown in the restricted fund balance in the General Fund.
Chairman Peddle asked for a straw poll to support a transfer of $200K per fiscal year to
the Airport, under the assumption that if it becomes a loan that it is restricted to the
General Fund.
Finance Advisory Committee straw poll carried on a 7-0 vote. Aye: Teresinski, Golden,
Neeley, Verbic, Conlin, Partch and Peddle.
Committee Member Teresinski suggested that there be a hiring freeze at the FY15 level
of 199 FTE head count.
Chairman Peddle asked for a straw poll to support a hiring freeze at the FY15 level of 199
FTE head count.
Finance Advisory Committee straw poll carried on a 4-3 vote. Aye: Teresinski, Verbic,
Conlin and Peddle. Nay: Golden, Neeley and Partch.
Chairman Peddle clarified that it is the headcount not the dollar amount for the hiring
freeze.
Chairman Peddle asked for a straw poll to support that the HR Director and IT Director
are part of the 199 FTE count based on the FY15 Budget.
Finance Advisory Committee straw poll carried on a 4-3 vote. Aye: Teresinski, Verbic,
Conlin and Partch. Nay: Golden, Neeley and Peddle.
City Manager Gaura added that the HR Director position has been offered and the
individual will be starting in a couple weeks.
Chairman Peddle clarified that the positions could be replaced with any other positions
needed.
Chairman Peddle summarized the suggestion of the General Fund transfer for Fleet and
software that it be reduced by $400K for half a year and $800K for a full year.
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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Chairman Peddle asked for a straw poll to support the General Fund transfer for Fleet
and software that it be reduced by $400K for half a year and $800K for a full year.
Finance Advisory Committee straw poll carried on a 5-2 vote. Aye: Teresinski, Neeley,
Verbic, Conlin and Peddle. Nay: Golden and Partch.
Alderman Faivre left the meeting at 7:54 p.m.
Alderman Faivre returned to the meeting at 7:56 p.m.
Alderman Snow commented on the reference from Alderman Jacobson of needlessly
added positions in the past few years. He went through an analysis of the previous
Council meetings showing the changes that the Council made in the course of the years
outside of the budgeted positions. He added that these changes did not affect the
expenses or it was the case of a need for the City. He specified that Alderman from Ward
1 voted in favor for all of these changes.
Alderman Marquardt left the meeting permanently at 7:56 p.m.
Mayor Rey asked Alderman Marquardt if he agreed with Alderman Noreiko’s suggestion
on the change in the Fleet, and he agreed that he would like to see two vehicles replaced.
Mayor Rey asked for clarification on a couple of items:
1. Mayor Rey clarified with Alderman Noreiko that her motion is to reduce the transfer
to Fleet and Equipment to defer the replacement of one ambulance and one squad
car. These would become prioritized in FY17. Motion seconded by Alderman
Finucane for the sake of discussion.
Motion and seconded was withdrawn based on discussion on what type of vote
can take place. Committee Member Neeley confirmed that if one ambulance and
one police vehicle were deferred for FY16.5, they would then be at the top of the
queue for FY17. City Manager Gaura agreed.
Mayor Rey confirmed that the straw poll was 2 yays, 4 nays.
NOTE: Deputy City Clerk Parker did review the tape of the meeting and the straw
poll did not take place.
2. Defer the ERP software until the IT Director is on board.
Alderman Jacobson confirmed that there was a recommendation not to hire the IT
Director. Several individuals unanimously stated no.
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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Chairman Peddle stated it makes sense to have the ERP system and hiring of the
IT Director as they go hand in hand.
Alderman Jacobson stated he would like all software expenses on hold until the
hiring of the IT Director.
Assistant City Manager Hoppenstedt stated that the HR software does not require
the expertise of an IT Director as the software is specifically for HR Departments.
A discussion ensued between Council and staff on the software needs of the City.
Alderman Jacobson clarified his suggestion of the freeze of software expenses to
only the ERP software until the IT Director was hired.
Police Chief Lowery communicated that due the OSSI software in calendar year
2015, the Police Department was able to decrease its overall overtime by over
4,000 hours. This was a direct result of the police staff looking at staffing and
aligning staffing with demands for services in the street tracked by the OSSI
software.
Alderman Noreiko commented that she would support the new software requests
in FY16.5 if the IT Director was hired as well.
Chairman Peddle stated he supported the IT Director being hired only before the
purchase of the ERP software.
City Manager Gaura requested a five to ten minute break to discuss the changes with
Finance Director Haley. Mayor Rey accepted and stated the meeting would reconvene
at 8:30 p.m.
Alderman Finucane left the meeting at 8:14 p.m.
Meeting break at 8:15 p.m.
The meeting resumed at 8:32 p.m.
Alderman Finucane left the meeting at 8:32 p.m.
Mayor Rey called the meeting to order and stated there were two modifications to FY16.5.
1. To defer the ERP software until IT Director is onboard (consensus)
2. Clarify the transfer to the Fleet and Equipment Fund from General Fund
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June 1, 2016
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1. Alderman Noreiko’s recommendation is to only reduce the transfer by one
ambulance and one police squad
i. Alderman Snow stated that if there is a need for the vehicles for the
services the City provides that the Council needs to listen to the
professionals and leave things as is.
ii. Alderman Finucane mentioned that the $400K is too aggressive. He
added that in line with Alderman Noreiko, the City could reduce the
overall expenditures by $200K.
2. FAC recommends to reduce the purposed transfer by $400K (Supported
by: Faivre, Jacobson)
Finance Director Haley confirmed that on June 13th, she will bring four different scenarios
based on the recommendations and discussions from tonight’s meeting. Alderman
Finucane agreed.
Public Participation
Michael Haji-Sheikh stated he does not like that public participation is at the end of the
meeting. He questioned where in the code it states that both sides can vote together. He
added to not forget there are savings in the budget. And take the FAC advice as he
agrees a lot with what they are wanting to do.
Lynn Fazekas stated it would have been more helpful to comment at the beginning of the
meeting instead of the end. She said residents will state that services have been affected.
By adding a couple million in staffing cost per year. Staff are wanting the same amount
of people and contractors as it was when our population was up and NIU enrollment was
high. She questioned why items that were just discussed are on the agenda. She added
that two alderman can ask for an item on the agenda and three alderman can ask for a
special meeting. She mentioned the EPI report from 2013 was never distributed to the
public, if staff is going to be using it then release it.
Dwayne Brown stated he is encouraged by this meeting as the numbers thrown around
are a lot more sustainable. He agreed with a hiring freeze. He stated the City is a $1.5M
less in property taxes and the expenditures have not decreased. He mentioned that last
week he spoke about the pensions, the state has a new law and the pensions have to be
funded by 90% by the Cities. He mentioned that the City is unable to sustain the level of
the pension funding without increasing the rates. He added that he liked the sound of
spreading out the fleet replacement. He ended with saying that things are sounding good.
Joint City Council and Finance Advisory Committee Meeting
June 1, 2016
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Confirm Next Meeting Date and Time
Public Hearing at the next City Council meeting on June 13, 2016 and will entertain the
first reading of the FY16.5 budget.
Adjournment
Mayor Rey requested a motion to adjourn, moved by Committee Member Verbic and
seconded by Alderman Noreiko. The meeting adjourned at 8:54 p.m.
__________________________________________
CARRI PARKER, Deputy City Clerk
Approved by City Council June 27, 2016.
Approved by Finance Advisory Committee July 12, 2016.
Agenda
AGENDA
Joint City Council & Finance Advisory Committee Meeting
Wednesday June 1, 2016
5:30 p.m.
City Hall Council Chambers (Second Floor)
A. Call to Order
B. Roll Call for Attendance
C. Discussion on Long-term Funding Option
D. Approval of Recommendations regarding FY2016.5 Policy Issues
1. Financial Policy change regarding Transferring of Funds to Capital
i. Leave policy as is and do a one-time transfer depending on
City needs.
ii. Change policy to have a standard transfer depending on
reserve levels.
2. Revenue Increases
E. Other Items
F. Public Participation
G. Next Meeting Date and Time
H. Adjournment
The Finance Advisory Committee’s role (as listed in Chapter 54-11) is to provide
well-reasoned, financially sound recommendations to the Council. Meetings and
reporting shall be on a project-by-project basis or as otherwise assigned by the
City Council. The Finance Advisory Committee shall work in cooperation with the
City Council and the City Manager to analyze the City’s financial policies, long
term financial stability, options for greater efficiencies and possible revenue and
expenditure modifications.
DATE: May 27, 2016
TO: Honorable Mayor John Rey
City Council
Finance Advisory Committee
FROM: Anne Marie Gaura, City Manager
Cathy Haley, Finance Director
Tim Holdeman, Public Works Director
SUBJECT: Financial Analysis and Management System
Staff is preparing to develop a 5-year capital improvement program to be rolled out as
part of the FY2017 budget. During that process staff encountered a financial analysis
and decision making tool that we believe would benefit the City. In light of the
discussions regarding long-term financial analysis during the recent Joint City Council
and Finance Advisory Committee Meeting, the consultants were asked to demonstrate
their Financial Analysis and Management System (FAMS-XL) model.
Unlike the static 5-year financial forecast included in the FY2016.5 budget document,
this tool will look at all O&M costs within the General Fund, all current revenue streams
along with the Capital Plan being generated for Fleet, Equipment and Infrastructure to
incorporate a 10 year fluid plan based on policy decisions made by the City Council.
This plan will incorporate our 25% reserve fund balance policy as a goal to meet
continually each year. The attached sheet describes the model and how it is used to
assist communities in evaluating alternative revenue and expense scenarios to assist in
budget decisions.
Staff recommends the allocation of $75,000 be incorporated in to the FY2016.5 Fleet &
Equipment Fund budget for the purpose of hiring a company to assist in developing and
implementing this financial analysis tool for the City similar to the one that will be
demonstrated by Burton and Associates at the June 1, 2016 joint budget meeting. A
Request for Proposal (RFP) process will be conducted. The selection process could be
completed in three months, and a consultant could be onboard by the end of the year.
Data gathering, input and analysis is anticipated to take three to four months. Staff
would expect to be able to conduct workshops approximately one year from now in
preparation for the FY2018 budget.
Page |2
Solving the General Fund Crisis
A New Paradigm for Local Government History of Assessed Property Valuations
Since the global financial collapse in 2008, the U.S. and $250
$200
the world entered what some call a ‘new economy’. It’s
Millions
$150
a place where what used to work doesn’t and where $100
$50
everything is harder than it once was. $0
1998 2001 2004 2007 2010
Historically stable revenue streams from property tax, History of Ad Valorem Tax Revenes
$1.2
and economic growth fueled by active debt markets $1.0
came to a halt. The new economy is one with lower tax Millions
$0.8
$0.6
receipts, high demand for public services, and fewer $0.4
$0.2
opportunities for growth. Our clients asked for $0.0
1998 2001 2004 2007 2010
solutions, and we answered with our FAMS-XL model
tailored for the complexity of general funds.
Uniquely Yours Solutions that Work The Buy-in is Built-in
The general fund is a complex network Our structured approach helps focus Solving local government funding
of reporting entities from police the evaluation upon cost reductions issues requires a lot of agreement
departments, to public works, to parks first, diversified revenue sources from a lot of stakeholders. Our
and recreation and more. No two second and increases to current specially adapted version of FAMS-XL
communities are the same, and so our revenue sources third. The effect allows you to test all the ideas in a live
model is built with the ability to quickly upon tax payers is always in focus, setting with all stakeholders present
customize everything from the names and our model accounts for impacts in and instantly evaluate the results
of the funds, to the way the revenues property tax, sales tax, and fees together. It’s an approach that satisfies
flow into and among them, to the way altogether into a comprehensive cost the curiosities of everyone involved
you manage and report. impact for residents and businesses. and it often leads to consensus.
3
Urban Infrastructure Planning
The Infrastructure Challenge. A severe
Cash In vs. Cash Out Cash In Cash Out w/o Cash Funded CIP Cash Out
$200
$180
consequence of the global financial meltdown has
Millions
$160
been the neglect of urban infrastructure renewal $140
and replacement. In many local communities, $120
$100
historical levels of capital spending were drastically 13 14 15 16 17 18 19 20 21 22 23
curtailed as property values declined and property Unrestricted Reserves
$50
Current Plan Last Plan Target
tax and other general fund revenues dramatically $40
$30
declined. As a result, urban decline is at its highest $20
Millions
$10
level in years in many communities. $0
-$10
-$20
-$30
12 13 14 15 16 17 18 19 20 21 22 23
Integrated Capital and Evaluate Alternative
Financial Planning Revenue/Funding Sources Sole Source Contracts
Our FAMS-XL Financial Sustainability Property taxes have proven to be a We have assisted 14 locals
modeling process integrates the volatile funding source in times of government clients since we initiated
development of urban infrastructure economic recession. We help our this practice three year ago. In each
capital plans with the development a clients evaluate alternative case we have negotiated sole source
ten year financial plan to ensure that revenue/funding sources that diversify contracts, because 1) there simply is
infrastructure capital plans are sources of funding during times of no other comparable modeling process
implementable. In interactive work economic instability. You can’t simply available in the general fund/urban
sessions with governing boards and “sell” constituents on a new revenue infrastructure space, and 2) the
their constituents we are able to gain source (that is usually perceived as a modeling is done on a compatible
consensus as to the diagnosis of the new tax); you must first “make the platform with the FAMS-XL modeling
continuation of the status quo and case” for the need for additional that we use for our utility clients,
solutions that address the problems revenue, which has been a successful solidifying the continuity of our client
and are financially sustainable. approach to assisting our clients in relationship into the future.
diversifying their portfolio of revenue
and funding sources. 4
Other General Government Services
Offering Complete Solutions. This practice
area has been an outgrowth of being the go-to
consultant for our clients for complete solutions
beyond the utility services with which we began our
relationships with many clients. Their confidence
in the transparency and the ease of understanding
PROVIDING SOLUTIONS
of our analysis has lead to the growth of a diverse THROUGH CLEAR VISION
General Fund practice, not only with existing utility
clients, but with new clients obtained through the
competitive process. Public Resources
Integrated Sustainability
Special Assessments Integrated Analyses Management
A popular diversified revenue source The span of the analyses that we We have developed an approach in
has been special non ad valorem conduct has grown to include which we can integrate any or all of
assessments. We develop special integration of multiple funds in a total the initiatives/programs of a utility
assessment programs for fire rescue, government modeling solution. For enterprise fund or General Fund with
stormwater, sanitation, street lighting several clients we are modeling as our FAMS-XL models to demonstrate
and roads. These assessment many as ten enterprise and special the long term consequences of each
programs are often developed after we revenue funds integrated with the initiative/program. Programs which
have determined that they will be a General Fund. This allows us to are commonly included are asset
solution to ensure financial ensure that each fund is financially management, master plan
sustainability through our General sustainability and to also see the development, business process
Fund Financial Sustainability impacts fund to fund of inter-fund evaluations, organizational
modeling. The assessment revenues transfers, loans and subsidies. development, productivity
relieve the General Fund of the improvement. etc.
funding of the subject services.
RETURN TO AGENDA
5
DeKalb
January 2015 - December 2015
VGT NTI Tax Rate Municipality Game Owner Business
Establishment Count Amount Played Amount Won Net Wager Funds In Funds Out NTI (30%) State Share Share Share Owner Share
DeKalb Columbus Club, Inc. 3 $645,507.23 $586,796.71 $58,710.52 $202,180.00 $143,469.48 $58,710.52 $17,613.16 $14,677.63 $2,935.53 $20,548.68 $20,548.68
DeKalb Lodge No. 586 Loyal Order of Moose 4 $1,865,786.14 $1,725,182.53 $140,603.61 $574,460.00 $433,856.37 $140,603.63 $42,181.09 $35,150.91 $7,030.18 $49,211.27 $49,211.27
DeKalb Lodge No. 765 Elks 3 $765,493.31 $704,537.50 $60,955.81 $214,418.00 $153,462.19 $60,955.81 $18,286.74 $15,238.95 $3,047.79 $21,334.53 $21,334.53
DeKalb Post #66 of the American Legion 4 $909,664.99 $822,432.43 $87,232.56 $301,792.00 $214,559.44 $87,232.56 $26,169.77 $21,808.14 $4,361.63 $30,531.40 $30,531.40
Five Step Holdings LLC/Chicago Golf & Tiki Tees 3 $143,254.84 $129,219.93 $14,034.91 $46,869.00 $32,834.09 $14,034.91 $4,210.47 $3,508.73 $701.75 $4,912.22 $4,912.22
Frieden USA Inc./Ray's Chicago BBQ 5 $891,216.53 $812,815.85 $78,400.68 $261,955.00 $183,554.32 $78,400.68 $23,520.20 $19,600.17 $3,920.03 $27,440.24 $27,440.24
Haymaker Enterprises, Inc./Fatty's 3 $1,085,469.19 $994,090.99 $91,378.20 $336,600.00 $245,221.80 $91,378.20 $27,413.46 $22,844.55 $4,568.91 $31,982.37 $31,982.37
Knowlton & Drury, Inc./Kj's Bar 5 $3,533,111.98 $3,229,978.44 $303,133.54 $1,055,343.00 $752,209.46 $303,133.54 $90,940.06 $75,783.39 $15,156.68 $106,096.74 $106,096.74
Mardi Gras Lanes, Inc./Bowling Alley 5 $5,445,904.00 $5,064,817.85 $381,086.15 $1,572,715.00 $1,191,628.50 $381,086.50 $114,325.95 $95,271.63 $19,054.33 $133,380.28 $133,380.28
Mark Thompson/Lord Stanleys bar 5 $2,352,660.76 $2,146,059.36 $206,601.40 $858,721.00 $652,119.55 $206,601.45 $61,980.44 $51,650.36 $10,330.07 $72,310.51 $72,310.51
Molly's SSK, Inc. 3 $740,313.84 $685,483.08 $54,830.76 $256,862.00 $202,031.22 $54,830.78 $16,449.23 $13,707.70 $2,741.54 $19,190.77 $19,190.77
MT Nest, L.L.C./Hometown Sports Bar 4 $1,294,231.19 $1,192,805.61 $101,425.58 $418,953.00 $317,527.52 $101,425.48 $30,427.64 $25,356.37 $5,071.27 $35,498.92 $35,498.92
Shelby's - DeKalb, LLC 5 $2,903,096.60 $2,670,814.53 $232,282.07 $755,974.00 $523,691.93 $232,282.07 $69,684.62 $58,070.52 $11,614.10 $81,298.72 $81,298.72
Sullivan's Tavern, INC. 5 $3,890,778.87 $3,562,022.83 $328,756.04 $1,132,229.00 $803,472.96 $328,756.04 $98,626.81 $82,189.01 $16,437.80 $115,064.61 $115,064.61
* Twin Tavern & Discount Liquors, Inc. 3 $3,460.17 $2,939.83 $520.34 $1,430.00 $909.66 $520.34 $156.10 $130.09 $26.02 $182.12 $182.12
UNIVERSAL RESTAURANT GROUP, INC./O'Leary's Irish Pub 4 $1,190,549.47 $1,091,436.76 $99,112.71 $407,085.00 $307,972.27 $99,112.73 $29,733.82 $24,778.18 $4,955.64 $34,689.46 $34,689.46
* License was received on December 28, 2015
Machine/
City
Application
Per Machine Cost DeKalb $25/$25
VGT Batavia n/a
Establishment Count $25 $50 $100 $250 $500 $1,000 Belvidere n/a
DeKalb Columbus Club, Inc. 3 $75 $150 $300 $750 $1,500 $3,000
DeKalb Lodge No. 586 Loyal Order of Moose 4 $100 $200 $400 $1,000 $2,000 $4,000 Bloomington
$60/$500
DeKalb Lodge No. 765 Elks 3 $75 $150 $300 $750 $1,500 $3,000 Carbondale $25/
DeKalb Post #66 of the American Legion 4 $100 $200 $400 $1,000 $2,000 $4,000
Carpentersvill $250 first $50
Five Step Holdings LLC/Chicago Golf & Tiki Tees 3 $75 $150 $300 $750 $1,500 $3,000
e after/
Frieden USA Inc./Ray's Chicago BBQ 5 $125 $250 $500 $1,250 $2,500 $5,000
Champaign n/a
Haymaker Enterprises, Inc./Fatty's 3 $75 $150 $300 $750 $1,500 $3,000
Charleston $25/
Knowlton & Drury, Inc./Kj's Bar 5 $125 $250 $500 $1,250 $2,500 $5,000
tiered $100-
Mardi Gras Lanes, Inc./Bowling Alley 5 $125 $250 $500 $1,250 $2,500 $5,000 Crystal Lake
$500
Mark Thompson/Lord Stanleys bar 5 $125 $250 $500 $1,250 $2,500 $5,000
Molly's SSK, Inc. 3 $75 $150 $300 $750 $1,500 $3,000
Elk Grove
$1,000/
MT Nest, L.L.C./Hometown Sports Bar 4 $100 $200 $400 $1,000 $2,000 $4,000 Village
Shelby's - DeKalb, LLC 5 $125 $250 $500 $1,250 $2,500 $5,000 Hanover Park
Sullivan's Tavern, INC. 5 $125 $250 $500 $1,250 $2,500 $5,000 $500/$500
Twin Tavern & Discount Liquors, Inc. 3 $75 $150 $300 $750 $1,500 $3,000 Hoffman
$100/
UNIVERSAL RESTAURANT GROUP, INC./O'Leary's 4 $100 $200 $400 $1,000 $2,000 $4,000 Estates
$1,625 $3,250 $6,500 $16,250 $32,500 $65,000 Macomb n/a
Rolling
$1,000/$500
Meadows
Not for Profits Romeoville n/a
St.Charles n/a
Streamwood
$100/
Sycamore
Wheaton none
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