Finance Advisory Committee

Fiscal Year 2020 Proposed Budget January 1, 2020 to December 31, 2020  Mission Statement Deliver high quality municipal services to those who live, work, learn in or visit our community. A mission statement is a short description of the reason an organization or program exists. Mission statements help guide decisions about priorities, responsibilities, and actions, and as such are at the core of a strategic plan.  PROPOSED BUDGET: JANUARY 1, 2020 TO DECEMBER 31, 2020 Mayor Jerry Smith City Clerk Lynn Fazekas City Council Alderman Carolyn Morris, Ward One Alderman Bill Finucane, Ward Two Alderman Tracy Smith, Ward Three Alderman Greg Perkins, Ward Four Alderman Scott McAdams, Ward Five Alderman Mike Verbic, Ward Six Alderman Anthony Faivre, Ward Seven City Manager Bill Nicklas Assistant City Manager/Finance Director Raymond Munch Executive Team John Petragallo, Interim Police Chief Jeff McMaster, Fire Chief Bryan Faivre, Director of Utilities & Transportation Andy Raih, Director of Streets & Facilities Dan Olson, Principal Planner Dawn Harper, Chief Building Official Accounting Staff Robert Miller, Senior Accountant Susan Hauman, Accountant Aerial cover photo courtesy of Transit Manager and amateur drone photographer Marcus Cox. City of DeKalb 1 Proposed Budget  This page has been intentionally left blank. City of DeKalb 2 Proposed Budget Section One Transmittal Letter City of DeKalb 3 Proposed Budget  This page has been intentionally left blank. City of DeKalb 4 Proposed Budget DATE: November 13, 2019 TO: Honorable Mayor Jerry Smith DeKalb City Council FROM: Bill Nicklas, City Manager Raymond Munch, Assistant City Manager and Finance Director RE: Letter of Transmittal, Proposed Fiscal Year 2020 Budget The Annual Budget for Fiscal Year 2020 extends from January 1, 2020, through December 31, 2020. This budget document compiles the numerical and narrative budgets for each General Fund department and each of the City’s capital funds, special funds, and bond funds in one volume for easy reading and reference. All City funds are balanced. The General Fund General Fund Revenues Most residents and businesses encounter City government through one of the City’s General Fund departments. The proposed 2020 General Fund expenditure budget totals $38,137,816. These expenditures are balanced by $38,267,257 in anticipated General Fund revenues. The revenues and expenditures reflect pension contributions for Fire and Police passing through the General Fund. The estimated General Fund operating reserve or starting fund balance as of January 1, 2020, is $9,423,944 or 26.01% of the budgeted 2019 General Fund expenditures of $36,231,435. In other words, the fund balance was increased by $2,021,087 in FY2019. The FY2020 year-end reserve balance is projected to be $9,553,385 or 25.05% of the FY2020 General Fund expenses of $38,137,816. The City’s estimated equalized assessed valuation (EAV) for 2019 is $592,785,395, which is $44,837,708 more than the 2018 rate-setting EAV of $547,947,687 or an increase of 8.18%. The increase in EAV is owing to new construction values of $526,098 in 2019; a conservative estimate of the re-assessment activity of the past year; the one-time recapture of $14,762,821 in EAV upon the closing of TIF #2 as of December 31, 2019; and the one-time recapture of new EAV from TIF #1 properties that will lie within TIF #3 as of January 1, 2020, which amounts to $5,157,067 in EAV. In effect, the base EAV of parcels “ascending” to TIF #3 from TIF #1 is reset from the 1985 EAV to the 2017 EAV. City of DeKalb 5 Proposed Budget The City’s Five-Year Financial Plan (2018-2022) identifies two overarching goals for the General Fund: a) Holding the Municipal tax rate under 1.5%; and b) Raising the General Fund Balance to a threshold at or above 25% of the annual General Fund expenditures and sustaining that level of reserve funds. The proposed 2019 Corporate property tax levy (payable in 2020) of $6,759,723 includes $6,269,649 for Fire and Police pensions and an additional $490,075 which the City collects to cover the Library’s general obligation bond payment. The proposed 2019 Corporate levy of $6,759,723, divided by the estimated city-wide EAV in 2019 of $592,785,395 yields a Corporate tax rate of $1.1403%, which is 4% lower than the City rate in 2018. If the Council targeted last year’s Corporate property tax rate of 1.1883%, the additional property tax revenue of $283,907 would raise the operating reserve further above the 25% of operating expenses threshold. The proposed 2019 tax levy will not cover the City’s statutory Police and Fire pension obligations totaling $7,397,938, so the balance will need to be covered by other General Fund revenues, as depicted in the table below: Actual Pension Levy Funding and Pension Obligations 2018 Actuarial 2018 Levy Difference* % Difference Obligation Funding Fire Pension $ 3,503,332 $ 3,220,517 $ 282,815 8.07% Police Pension $ 3,079,438 $ 2,796,623 $ 282,815 9.18% Total $ 6,582,770 $ 6,017,140 $ 565,630 8.59% 2019 Actuarial 2019 Levy Difference* % Difference Obligation Funding Fire Pension $ 3,920,907 $ 3,322,914 $ 597,993 15.25% Police Pension $ 3,477,031 $ 2,946,735 $ 530,296 15.25% Total $ 7,397,938 $ 6,269,649 $ 1,128,289 15.25% *To be paid from General Fund revenues other than property taxes The “ramp” in annual Fire and Police funding increases is apparent in the table, above, and is not sustainable in terms of general revenue. Without relief, the “ramp” makes the annual General Fund reserve target of 25% untenable over time without dramatic spending reductions, as in 2019, or as yet undetermined revenue increases, or both. Additionally, the 2019 Corporate levy does not cover the projected FICA contributions of $539,353 or the IMRF pension obligations totaling $647,050. It goes without saying that no property tax revenues will be available for general operations outside the pension and debt obligations. City of DeKalb 6 Proposed Budget Pending changes in the state-wide pension funding landscape may bring some relief from the steep ramp in annual pension funding obligations in the next several years. Several key factors impact the annual pension calculations that are beyond the City’s control: • The actuarial cost method which determines the actuarial accrued liabilities. The Illinois Pension Code uses a closed amortization period that relies on an arbitrary date of 2040 as the point in time when all funds must be 90% funded. This builds in increasing levels of contribution and volatility as the end of the amortization period approaches. • The fact that there are more than 650 Police and Fire investment funds that are individually managed with varying success, with an estimated shortfall of as much as 200 basis points, or 2%, per year in investment returns. A breakthrough occurred on October 10, 2019, when the Governor’s Pension Consolidation Feasibility Task Force, in conjunction with the Illinois Municipal League, presented its report. Among the Task Force recommendations was the mandatory consolidation of the 650 state-wide Fire and Police Pension Funds into two separate statewide funds operating much like the Illinois Municipal Retirement Fund (IMRF) which currently has a funding level of 90%. The two statewide funds would handle the resulting investment pools through equal labor/management governing boards. The 650 pension groups would retain decision-making over the award of pensions. This will greatly reduce the annual costs of financial management with the consolidation of the investing, auditing and actuary services into the two statewide funds. Legislation addressing this consolidation proposal was filed in the Illinois Senate on October 28, 2019 and is expected to be considered during the Fall veto session. Reform of the actuarial cost method will be the next step and will not likely be considered by the State legislature until the regular session in the spring of 2020. This means the City will need to absorb significant pension funding increases for another fiscal year. Nevertheless, encouraging collaboration involving the Associated Firefighters of Illinois, the Illinois Municipal League, and leaders on both sides of the State legislative aisles is at work on the pension question. All General Fund revenues including property taxes; sales and use taxes; intergovernmental revenues, including state-shared income tax; gross receipts taxes (e.g. municipal utility taxes); services charges; licenses and permits; fines; and other income are projected to increase by $411,085 when compared to the FY2019 Budget. State shared revenues, in particular, are projected to increase in FY2020 as a result of strong income tax returns fueled by low unemployment in Illinois and an increase in use tax receipts generated by the taxation of internet retail sales. Most local revenues are projected to remain level to modestly increase in the coming year. The graphic on the following page identifies the sources of General Fund revenues and their relative shares of the overall General Fund revenues: City of DeKalb 7 Proposed Budget General Fund Expenses General Fund operating expenditures continue to be constrained to match general revenues. Personnel expenses inclusive of salaries and wages, FICA, Medicare, pension, and benefit costs account for 81% of the overall General Fund budget. The Proposed FY2020 General Fund Budget contains five fewer full-time staff positions and four fewer part-time staff positions than the FY2019 Budget. These reductions impacted management and non-bargaining positions. Overall, the FY2020 General Fund Budget contains 192 full-time positions and 40 part-time positions. This is the lowest staffing level the City has seen since FY2013. Aside from conventional departmental spending, which is broken down on the following chart, other significant General Fund expenditures include the following: • Tax Sharing Agreements - $1,750,000 • Debt Service - $1,662,007 • Software Maintenance - $342,315 • Other Contracted Services - $281,749 • Vehicle Fuel - $257,425 • Legal Services - $195,000 City of DeKalb 8 Proposed Budget Three notable increases that are beyond our control for FY2020 are the increases in Fire and Police pensions, IMRF pensions, and health insurance premiums. Those three budget lines in the General Fund account for a $1,194,951 increase over FY2019. If we back out those cost increases, then General Fund budgeted, discretionary expenditures will decrease by $64,307, or 0.17%, in 2020, against an increase of $411,085, or 0.04%, in General Fund revenues, when compared to the FY2019 Budget. Capital Program Streets In recent years, the City Council has pledged its commitment to capital infrastructure improvements. This commitment honors the deep community concern about failing streets in particular. The ability to maintain this commitment is based, in part, on prudent fiscal measures to segregate capital funds from operational funds and to appropriately match such funds with uses that reflect community expectations. The City’s Five-Year Financial Plan provides a “Streets and Fleet” analysis that anticipates annual allocations to address the deterioration in both capital categories. The City owns and maintains about 130 centerline miles of roads, of which 74.8% (97.3 miles) are residential streets. As of January 2019, approximately 25 miles of DeKalb roads (mostly residential) needed immediate maintenance to prevent rapid degradation. In 2019, only 2.75 centerline miles received such maintenance. At this pace, the road mileage needing urgent maintenance is growing much faster than the funds available to maintain good or very good pavement ratings (i.e. a PCI rating above 70). The average street maintenance expenditures required to keep pace total about $3.7 million per year. City of DeKalb 9 Proposed Budget It is expected that the recent 19 cent increase in the State motor fuel tax will generate about $500,000 in additional MFT revenue for the City in FY2020, for a total MFT budget of about $1.6 million. The proposed FY2020 Budget includes an additional $690,000 from an assumed 4 cent increase in the local fuel tax that would bring the overall local fuel tax to 9.5 cents per gallon (7 cents for road improvements, 1 cent for fleet replacement, and 1.5 cents for airport funding). The budgeted expenditures attack the longer list of degraded streets and alleys that would fill out the $3.7 million in annual street maintenance spending needed to hold our own. It also reduces the list of aging vehicles and equipment in critical condition, presently valued at about $4.3 million. The proposed FY2020 street improvement program totals $2,480,000 (versus $1,707,421 in FY2019), including engineering design and construction management. Several highlights are listed below: • The reconstruction of Twombly Road from Edens Garden to Annie Glidden, including sidewalk installation on the north side. The DeKalb share is $750,000 and the DeKalb Township share is $300,000. DeKalb County will perform design engineering at no cost to the City. It is anticipated that $375,000 of this project will be completed in FY2020, with the balance completed in 2021. • The re-surfacing of North Seventh Street from Lincoln Highway to Sycamore Road ($350,000); • The re-surfacing of North Thirteenth Street from Clark Street to Sycamore Road ($135,000); • The re-surfacing of North Fourteenth Street from Clark Street to Dresser Road ($165,000); • The resurfacing of Normal Road from Hillcrest Drive to Dresser Road ($150,000); • The resurfacing of Taylor Street from First Street to Lions Park ($185,000); • Aggressive crack-filling and Class D patching on Macom Drive ($100,000); and • Maintenance of various alley surfaces ($115,000). • Project design and engineering supervision: $125,000. Fleet The City’s fleet of Fire, Police, Public Works, and other vehicles includes about 170 units of varying description and function. The average age of the overall fleet increased from 5.7 years to 11 years between 2006 and 2017. This trend was a consequence of allowing vehicles to age beyond their useful life before replacing them, due to a lack of replacement funding. In 2018, it was estimated that more than one-half of the overall fleet was beyond its useful life. By 2019, the total fleet replacement value was over $12 million and the annual maintenance cost on that fleet has risen to over $300,000. Replacing those vehicles rated in declining or critical condition would cost approximately $4.3 million. City of DeKalb 10 Proposed Budget Because it is unrealistic to hope to replace all of these declining vehicles at once, a 4-year accelerated replacement initiative is proposed. This does not keep pace with annual depreciation but does aggressively reduce the backlog. Leasing programs will also be investigated in 2020. The following fleet replacements are budgeted in 2020 for a total of $1,145,000 versus $55,000 (funded by restricted police forfeiture funds) in FY2019: • Police: Replace three squad cars with three Ford Explorer Utility Squad Cars at $55,000 each or $165,000 in total; • Fire: Replace a 2005 International Navistar ambulance at $150,000 and a 2001 Pierce Saber Engine at $550,000; • Public Works (non-Water Fund): Replace a 2001 Sterling Dump Truck at $150,000; a 2001 Ford 4x4 one-ton dump truck at $70,000; and a 1998 Chevy 4x4 pickup at $40,000; and, • Community Development – Building Division: Replace a 2002 Chevy Blazer at $20,000. Citywide Fund Balances The proposed FY2020 Budget contains twenty-eight (28) principal funds with estimated FY2020 revenues totaling $103,007,448 and projected FY2020 expenditures totaling $101,864,270. The fund balances for all funds are projected to be positive at the end of FY2020, with both the General Fund and the Water Fund meeting their fund balance requirements. Fund balances for all City funds are detailed in Section 3 of the budget document. Conclusion The preparation of the annual City Budget involves many authors. The City Manager is especially grateful to Assistant City Manager, Ray Munch, for his leadership and unselfish service. Senior Accountant Bob Miller and Accountant Susan Hauman are also to be commended for their diligent and careful assistance. All City department heads and directors have worked on numerical forecasting and narratives that bring the dreary science alive to the reader. It is our shared hope that the 2020 City Budget will be a reliable and user-friendly guide to the City’s services in 2020. City of DeKalb 11 Proposed Budget  This page has been intentionally left blank. City of DeKalb 12 Proposed Budget Section Two Organizational Overview City of DeKalb 13 Proposed Budget  This page has been intentionally left blank. City of DeKalb 14 Proposed Budget City Introduction ______________________________________________________________________________ City Overview The City of DeKalb is an urban community with a vital commercial base placed in a rural setting. It is located approximately 60 miles west of Downtown Chicago. The City’s current land area is 15.55 square miles, all of which is located within DeKalb County. Neighboring communities include Sycamore, Malta, and Cortland. The City’s current official population is 44,030 as of the 2010 Census. The City of DeKalb was incorporated in 1856 and since that time has continued to expand as new residents move farther west of the Chicago area to find quality affordable housing in a congestion-free community with a premium quality of life. The regional road system serving the City includes Annie Glidden Road, Peace Road, State Routes 23 & 38, and two direct links to I-88. The DeKalb Taylor Municipal Airport is designed to accommodate private aircraft from small general aviation to large corporate aircraft. DeKalb’s downtown is the heart of the community, playing host to numerous events and providing unique dining, shopping and entertainment alternatives. The community offers excellent City services, easy mobility around the community, and access to cultural, sports and educational activities. Home to Northern Illinois University, which hosts approximately 16,609 students and nearly 3,344 faculty and staff, DeKalb is an integral part of the larger metropolitan area. NIU’s operations, capital projects and visitor spending generate over $413 million in local economic impact. The marriage of community and university provides DeKalb with a solid foundation as a regional hub abundant in major retailing opportunities. DeKalb Community School District serves the City of DeKalb with seven elementary schools, two middle schools, and one High School. Kishwaukee Community College in nearby Malta, Illinois, has an enrollment of about 3,100 students and offers a wide variety of educational offerings from two-year associate degrees to occupational certificates for persons of all ages. Council-Manager Form of Government The council-manager form of government is the system of local government that combines the strong political leadership of elected officials in the form of a council or board, with the strong managerial experience of an appointed local government manager. The form establishes a representative system where all policy is concentrated in the elected board and the board hires a professionally trained manager to oversee the delivery of public services. Under the council-manager form, those duties not specifically reserved by the elected body pass to the City Manager and the professional staff. Home Rule Authority The City of DeKalb is a home rule unit by virtue of the provisions of the Constitution of the State of Illinois of 1970. Home rule allows a community to take actions not specifically prohibited by the state statutes. Conversely, a non-home rule community can only undertake those actions specifically allowed for in the state statutes. Home rule enables a municipality or county to establish its own system of self-governance without receiving a charter from the state. Home rule shifts much of the responsibility for local government from the state legislature to the local community. The most significant powers granted to a City of DeKalb 15 Proposed Budget home rule community include the ability to enact its own police power relating to the health, safety, morals, and general welfare of the community, to issue bonds without referendum and exemption from property tax caps under the Property Tax Extension Law Limit (PTELL). Equalized Assessed Value (EAV) The equalized assessed value, or EAV, is the result of applying the state equalization factor to the assessed value of a parcel of property. Tax bills are calculated by multiplying the EAV (after any deductions for exemptions) by the tax rate. The City of DeKalb assessed valuation is determined by the township. The chart provided below displays the EAV comparison for tax levy years 2008-2018 for the City of DeKalb as reported in the FY2018 Comprehensive Annual Financial Report. % Increase Tax Year EAV Rate per $100 Property Tax Revenue (Decrease) 2008 $645,855,095 3.53% 0.6000 $3,765,927 2009 $643,916,597 -0.30% 0.6000 $4,160,967 2010 $608,332,947 -5.53% 0.6500 $4,107,807 2011 $582,504,715 -4.25% 0.6899 $4,127,590 2012 $533,805,903 -8.36% 0.7205 $4,161,753 2013 $485,923,623 -8.97% 0.7952 $4,203,106 2014 $464,966,381 -4.31% 0.9809 $4,231,993 2015 $468,077,742 0.67% 1.0245 $5,049,737 2016 $503,861,829 7.64% 1.1942 $5,523,531 2017 $529,629,464 5.11% 1.2021 $6,153,901 2018 $547,947,687 3.46% 1.1883 $6,510,857 Community Characteristics The following statistical data and graphics provide a demographic profile of the community. Data presented in this section was collected from the 2013-2017 America Community Survey 5-Year Estimates. • Total Population: 43,141 • Median resident age: 24.7 • Median household income $41,009 • Median home value: $149,800 • Median Year Homes were built: 1976 • Total housing units: 17,070 City of DeKalb 16 Proposed Budget The Land Use chart below displays the breakdown of the City of DeKalb’s land use. The two largest sections include Single-Family Residences (19%) and Vacant/Agriculture (19%). Single-Family City of DeKalb Land Use Residential Two-Family Right of Way 19% Residential 15% 1% Multi-Family Vacant/Agricultural Residential 18% 3% Commercial 4% Light Industrial 8% Transportation/Utilities 9% Heavy Industrial Open Space Public 3% 8% 12% The City Resident Demographics chart below represents the age distribution of DeKalb residents. Grey represents the male population while green represents the female population. City Resident Demographics 12,000 10,000 8,000 6,000 4,000 Female 2,000 Male 0 85 years and older 10 to 14 years 15 to 19 years 20 to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years 65 to 69 years 70 to 74 years 75 to 79 years 80 to 84 years 5 to 9 years under 5 years City of DeKalb 17 Proposed Budget  The charts below provide a snapshot City Population 1980 - 2017 of additional demographics of the City, including population, population by 50,000 44,030 43,141 race, and educational attainment. The 39,018 City’s population rose steadily 40,000 33,099 34,925 between 1980 and 2010. In more 30,000 recent years, it is estimated that the population has slightly declined. 20,000 10,000 0 1980 1990 2000 2010 2017 DeKalb is a diverse, welcoming community. While 66% of the Population by Race Identified by population identifies as White, 13% Asian Two or more 3% identify as African American and 13% Hispanic or 5% Latino identify as Hispanic or Latino. 13% African American 13% White 66% Less than The City maintains a highly educated Educational Attainment Grade 9 workforce. About 37% of all City Graduate or 3% residents ages 25 and up have a Professional Grade 9-12 Degree 4% bachelor’s degree or higher. 15% High School Grad/GED 22% Bachelor's Degree 22% Associate's Some College Degree 24% 10% City of DeKalb 18 Proposed Budget DeKalb 2025 Strategic Plan: An Introduction to the City’s Mission, Core Values and Vision Statements On February 22, 2016, City Council approved and adopted the DeKalb 2025 Strategic Plan to be a 10-year guide for City operations. The plan envisions DeKalb in 2025. It also attempted to set the direction for City policy, budgeting, and program development for a 10-year period. Many things have changed since 2016. What has remained constant is a community expectation to receive good municipal services at a reasonable cost. The following information summarizes the City’s Mission Statement, Core Values and Vision Statements developed during the 2016 planning process, which retain relevance today. City of DeKalb 19 Proposed Budget Mission Statement A mission statement is a short description of the reason an organization or program exists. Mission statements help guide decisions about priorities, responsibilities, and actions, and as such are at the core of a strategic plan. Following is the mission of DeKalb City government developed as part of this collaborative community planning process: Deliver high-quality municipal services to those who live, work, learn in or visit our community. Core Values Core values are beliefs or convictions that guide and direct behavior and support purpose and vision. The City of DeKalb will utilize the following core values to guide its actions, shape the culture of city government, and form the basis of its standards-based performance review process. • Integrity: The state of being honest, fair, and ethical in every situation, even if it’s unpopular. • Professionalism: Serving with the highest level of respect, skill, and judgment in each situation. • Excellence: The expectation of engaging in outstanding levels of performance. • Service: Providing City services at the highest level for the advancement of the community. • Collaboration: Working together to benefit from the resources, knowledge, wisdom and understanding of others. • Accountability: Taking responsibility for our decisions and actions while doing everything possible to achieve the desired results. Vision Statements Vision statements complement the mission by describing the future state of the community if the mission were fully realized. DeKalb's vision statements, which are complemented in the plan with detailed goals, strategies and actions, are as follows: Vision of a Sense of Place DeKalb is proudly known as a welcoming, safe, and vibrant city offering economic, educational, social, cultural, and recreational opportunities for everyone. Vision of Community Vitality and a Vibrant Downtown DeKalb’s neighborhoods, the downtown, and NIU’s campus are interconnected in a dynamic interplay of energy and creativity that retains and attracts businesses with living-wage jobs. Vision of Inclusiveness Diversity is valued and celebrated, with all people treated with dignity, equity and respect. Vision of Accessibility DeKalb’s diverse and integrated transportation network provides a wide variety of local and regional transportation options in an efficient and user-friendly manner. Vision of Efficient, Quality, Responsive Services Through sound fiscal stewardship and collaboration with community stakeholders, City government identifies and coordinates the resources needed to sustain a vibrant DeKalb. City of DeKalb 20 Proposed Budget Woven together, DeKalb’s overall vision statement reads as follows: DeKalb is proudly known as a welcoming, safe, and vibrant city offering economic, educational, social, cultural, and recreational opportunities for everyone. DeKalb’s neighborhoods, the downtown, and NIU’s campus are interconnected in a dynamic interplay of energy and creativity that retains and attracts businesses with living-wage jobs that can support workers and their families. Diversity is valued and celebrated, with all people treated with dignity, equity, and respect. DeKalb’s diverse and integrated transportation network provides a wide variety of local and regional transportation options in an efficient and user-friendly manner. Through sound fiscal stewardship and collaboration with community stakeholders, City government identifies and coordinates the resources needed to sustain a vibrant DeKalb. 2019-2020 Strategic Planning Session While the City continues to place value in the DeKalb 2025 Strategic Plan, an ever-changing fiscal climate has forced the City to change course in certain areas. This has resulted in the delay or deferral of many of the projects identified in the plan. In 2018, the City Council participated in a goal-setting retreat aimed at sharpening their focus in the near-term given the City’s fiscal challenges. That process will continue throughout the life of the Strategic Plan in order to ensure the City remains goal driven. In August of 2019, the City Council and Finance Advisory Committee took part in a day-long planning session aimed at providing direction for the City in both the short- and long-term. The Northern Illinois University Center for Governmental Studies led several sessions with the goal of establishing community priorities. The following community priorities were identified through this process:  Infrastructure (Streets & Fleet)  Downtown Redevelopment  Industrial Park Development  Residential Development  Collaboration and Integration with NIU  Comprehensive Planning  Taxes & Revenues  Establishing Core Service Levels  Promoting Scholastic Achievement  Embracing Changing Demographics These priorities will assist City leadership in their FY2020 financial planning and beyond. City of DeKalb 21 Proposed Budget  Organizational Chart _______________________________________________________________________________________________ Residents of DeKalb Mayor City Clerk City Council City Attorney City Manager (Contracted) Executive Assistant Assistant City Manager City Managers Community Police Chief Fire Chief Public Works Office Development Director of Director of Administration Administration Human Resources Utilities and Streets and Principal Planner Transportation Facilities Information Chief Building Patrol Operations Utilities Division Street Division Technology Official Community City Engineer Investigation Finance Airport Services (Contracted) Coordinator Special Services/ Transit Communications City of DeKalb 22 Proposed Budget  Official Ward Map RICH RD B AV ST 1S W BETHANY RD T E BETHANY RD BETHANY RD BETHANY RD N DEKAL PEACE RD WARD 1 N ANNIE GLIDDEN RD W DRESSER RD BAR BER TWOMBLY RD G RE JOHN HUBER PKWY E NE RD W HILLCREST DR WARD 3 RD CO NORMAL RD N 1ST ST E PE UN WARD 2 AC RD RM R E FA TY N N 14TH ST MO LUCINDA AV E CA LIND SY WARD 7 WARD N 7TH ST RD ST NP 6 PLEASAN T ST STATE ST W LINCOLN HWY N 4TH L UNION PACIFIC RAILROAD EL INC UNION OL PACIF NH IC WY RAILR OAD S ANNIE GLIDDEN RD SOUTH MALTA RD W TAYLOR ST E TAYLOR ST STAT E RT WARD 5 E 38 WL INC S 7TH ST OL N S 4TH ST HW Y WARD 4 S PEACE RD FAIRVIEW DR E FAIRVIEW DR FAIRVIEW DR I88 WES T BOUND I88 EASTBOUND DR HARVESTORE GURLER RD E GURLER RD GURLER RD ST STATE RTE 23 CREGO RD ST S1 Mayor: Jerry Smith, 139 Buena Vista Dr., 815-748-2099 Ward 4: Greg Perkins, 152 Devonshire Dr., 815-751-0745 Ward 1: Carolyn Morris, 1363 Omega Circle Dr., 267-221-7693 Ward 5: Scott McAdams, 207 Chamberlain Dr., 708-341-8333 Ward 2: Bill Finucane, 305 River Dr., 815-758-2820 Ward 6: Mike Verbic, 688 Magnolia St., 815-756-0769 Ward 3: Tracy Smith, 612 N. 7th St., 815-739-2126 Ward 7: Anthony Faivre, 1516 Farmstead Ln., 815-981-2028 0 0.25 0.5 23 1 1.5 2 City of DeKalb I Miles Proposed Budget  This page has been intentionally left blank. City of DeKalb 24 Proposed Budget Section Three Budget Overview City of DeKalb 25 Proposed Budget  This page has been intentionally left blank. City of DeKalb 26 Proposed Budget DeKalb’s Budget Process The budget process is a comprehensive mechanism for developing each year’s financial plan. This process includes input and feedback from the City Council, the Finance Advisory Committee, City staff, and members of the public. According to the Government Finance Officers Association, the budget is a statement of priorities for the community that: 1) Communicates to stakeholders what services they can expect and how their tax dollars are being spent. 2) Defines how the local government allocates its resources to achieve what is important to the community. 3) Translates policies into action. In DeKalb, these principles guide the process of budget development. Consistent with the City’s Budget Policy (see pp. 215-216), the preparation of the annual City budget begins after the first two fiscal quarters and as the draft audit for the prior fiscal year is complete. In 2019, the typical inaugural meeting with the Finance Advisory Committee took the form of an unprecedented joint budget planning session with the City Council on August 16, 2019, which was facilitated by the NIU Center for Governmental Studies. In this joint meeting, which identified emerging fiscal revenue and spending trends since the close of the prior fiscal year, some key priorities and concerns were established for the FY2020 Budget. These priorities and concerns became the focus of the early budget meetings between the City Manager’s Office and our department heads, and subsequently between department heads and their staffs. For FY2020 as in recent years, priorities are reached by analyzing past data and the anticipation of future needs. Once a budget request draft is ready, it is reviewed by the City Manager’s Office and the Finance Department. Together, the executive leadership reviews major operational changes, discusses objectives, and reviews other requests. An effort is made to accomplish the City goals in the most efficient way possible. This might include combining resource requests across departments to ensure fiscal responsibility. Unjustified items or requests are removed from the budget during this process. Concurrently, other budget document items are being updated by staff. This includes statistics and other items that help show a complete picture of the City’s fiscal plan for the upcoming year. After revenue and expenditure estimates are finalized, the full draft budget is then reviewed during meetings with the City Council and Finance Advisory Committee. If necessary, further revisions are made. Finally, the recommended budget is offered for comment at a public hearing with subsequent adoption by the Mayor and the City Council. The City of DeKalb Budget is the culmination of strategic financial and operational planning. This document reflects sound decision-making and recommendations for the City’s future. The budget will be monitored, reviewed, and referenced throughout the year. City of DeKalb 27 Proposed Budget DeKalb’s Fund Structure and Basis for Budgeting Fund Structure The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are portrayed as a separate set of self-balancing accounts that comprise its assets, liabilities, equities, revenues, and expenditures. The various funds are grouped by type in the financial statements. Within each fund type exists one or more funds. The City has three types of funds: Governmental Funds, Proprietary Funds, and Fiduciary Funds. Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City’s expendable financial resources and the related liabilities (other than those in proprietary funds) are accounted for through governmental funds. • The General Fund is the general operating fund of the City. It is used to account for all financial resources traditionally associated with governments that are not required to be accounted for in another fund. • Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted by law or administrative action to expenditures for specified purposes. • Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs other than capitalized leases and compensated absences which are paid from the governmental funds. The City has two Debt Service Funds: General Fund Debt Service and TIF Debt Service. • Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed through proprietary funds or fiduciary funds) or the purchase of large capital fleet and equipment. Proprietary Funds are for those services for which the City charges customers a fee. There are two types of proprietary funds: enterprise and internal service. Enterprise funds encompass the same functions reported as business-type activities in the government-wide statements. Enterprise fund services are primarily provided to customers external to the City organization and include the water utility division and the airport. Internal service funds provide services and charge fees to customers within the City organization such as the insurance funds. • Enterprise Funds are used to account for operations that are financed and operated in a manner similar to a private business enterprise. The intent of the City in using this type of fund is to determine that the costs (expense, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. • Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations and other governments. • Trust and Agency Funds consist of resources received and held by the City as trustee or agent to be expended or invested in accordance with the conditions of the trust or in its agency capacity. Pension Trust Funds are accounted for in essentially the same manner as Proprietary funds. City of DeKalb 28 Proposed Budget In determining if any agencies or entities which comprise the City for financial reporting purposes, the criteria of oversight responsibility for such agencies or entities, special financing relationships, and scope of public service provided by the agencies or entities are used. Oversight responsibility is determined by the extent of financial interdependency, control over the selection of the governing authority and management, ability to significantly influence operations and accountability for fiscal matters. Based on these criteria, there is one agency that is included in the financial statements of the City as a Component Unit. This component unit of the City is the DeKalb Public Library. Basis for Budgeting Fund Basis of Accounting Budgets for the governmental fund types (General Fund, Special Revenue Funds, etc.) is adopted on a basis consistent with “Generally Accepted Accounting Principles” (GAAP), utilizing the modified accrual basis of accounting. Revenues are recognized when they become measurable and available. Expenditures are recognized when the liability has been incurred, with the exception that principal and interest payments on general long-term debt are recognized when due. The proprietary fund types are budgeted on a basis consistent with GAAP, utilizing the accrual basis of accounting, except for capital outlay and debt principal which is budgeted as an expenditure. The Comprehensive Annual Financial Report (CAFR) shows the status of the City’s finances on the basis of GAAP and on a budgetary basis. In most cases this conforms to the way the City prepares its budget. Exceptions are as follows: • Capital outlay within the Enterprise Funds is recorded as assets on a GAAP basis and expended on a Budget basis. • Debt principal payments are recorded as reductions of liabilities on a GAAP basis and expended on a Budget basis. • Depreciation is recorded as an expense on a GAAP basis and not expended on a Budget basis. • Debt financing is recorded as increases of liabilities on a GAAP basis and revenue on a Budget basis. It is critical that adequate fund balance reserves are kept to meet unexpected operating or capital demands and to cover any unanticipated revenue shortfalls. Internal Controls The City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management. Budgetary Control Budgetary controls are maintained to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the governmental, proprietary and fiduciary funds are included in the annual appropriated budget. The budgetary level of control, the level at which expenditures cannot exceed the appropriated amount, is exercised at the fund level. City of DeKalb 29 Proposed Budget Current City Funds Department/Budget Fund Type Fund Name Fund No. Description Responsibility Legislative; City Manager's The City's chief operating fund. It accounts for all Office; Public Works; Community General General 100 financial resources except those required to be Development; Finance; Fire; accounted for in another account. Police; Information & Technology Accounts for the provision of transportation and planning services to the DeKalb metropolitan area, Transportation 200 Public Works - Engineering including acting as the fiscal and staffing agent for the management of DSATS. Accounts for the use of the City's share of state Finance; Public Works - Streets; Motor Fuel Tax 210 gasoline taxes. State law requires the MFT to be Public Works - Engineering used for the City street maintenance and operations. Accounts for the costs of maintaining various public Heritage Ridge SSA #3 223 areas (street islands and detention basins) as well as Public Works; Finance a stylized street lighting system and entrance sign. Accounts for the costs of maintaining public areas as Knolls Subdivision SSA#4 224 well as a stylized street lighting system and entrance Public Works; Finance sign. Accounts for the costs of street lighting placed upon Greek Row SSA#6 226 Public Works; Finance private property in the neighborhood. Accounts for the costs of maintenance of the Common Facilities as well as the implementation Heartland Fields SSA#14 234 Public Works; Finance Special Revenue and continuation of a mosquito abatement and snow removal services. Accounts for the costs of repaying a loan from the 924 Greenbrier SSA#28 248 City's Water Fund for the installation of a fire Public Works; Finance sprinkler system. Central Area Tax Increment Accounts for the revenues and expenditures in the 260 Community Development Financing #1 Central Area TIF #1. Accounts for the revenues and expenditures in the Tax Increment Financing #2 261 Community Development Tax Increment Financing #2 area. Central Business Tax Increment Accounts for the revenues and expenditures in the 262 Community Development Financing #3 Tax Increment Financing #3 area. Community Development Block Accounts for the funds received from HUD through 280 Community Development Grant CDBG used on eligible projects within the City. Accounts for funds received from CDAP and acts as a Housing Rehabilitation 285 Community Development pass-through for certain funds in the CDBG fund. Accounts for the funds received for the Fire Department; Finance; Foreign Fire Insurance Tax 290 maintenance, benefit, and use of the Fire Foreign Fire Tax Board Department. City of DeKalb 30 Proposed Budget Current City Funds Department/Budget Fund Type Fund Name Fund No. Description Responsibility Accounts for the payments to debt service within the General Fund Debt Service 300 Finance General Fund. Debt Service Tax Increment Financing Debt Accounts for the payments to debt service within the 375 Finance Service Central Area TIF #1 , TIF #2 and TIF #3. Accounts for the cost of capital projects such as Capital Projects 400 Public Works; Finance street maintenance. Capital equipment replacement fund for City vehicle Capital Projects Fleet Replacement 410 fleet. Note: This fund has merged with fund 420 Public Works; Finance starting with the FY18 Budget. Capital equipment replacement fund for general City Capital Equipment Replacement 420 Finance equipment and fleet replacement. Accounts for the provision of Water services to Water 600 Public Works - Water; Finance customers within the City. Accounts for the expenses of New Water Main Water Construction 610 Public Works - Water; Finance construction related to impact fee revenue. Accounts for the capital portion of the Water Fund Enterprise Water Capital Fund 620 Public Works - Water; Finance related to maintenance of existing assets. Accounts for the provision of aviation services to Airport 650 Public Works - Airport; Finance customers of DTMA. Accounts for the provision of refuse disposal and Refuse & Recycling 680 Public Works; Finance recycling services to customers of the City. Accounts for significant changes in Workers Workers Compensation / 700 Compensation costs and Property & Liability Finance Property & Liability Insurance Insurance costs. Accounts for significant changes in employee Health Health Insurance 710 Finance Internal Service Insurance costs. Accounts for significant changes in Property & Property & Liability Insurance 720 Liability Insurance costs. Note: This fund has merged Finance with fund 700 starting with the FY18 Budget. Accounts for the accumulation of resources to be Police Pension 830 used for the retirement annuity payments to sworn Finance police officers. Accounts for the accumulation of resources to be Fiduciary Fire Pension 850 used for the retirement annuity payments to Finance firefighters. Accounts for the City's financial responsibility to the DeKalb Public Library 900 Finance DeKalb Public Library. City of DeKalb 31 Proposed Budget Budget Sections To facilitate comprehension of the budget document, each section is outlined below. Section One –Transmittal Letter The Transmittal Letter provides a general summary of the budget, along with the views, recommendations and projections of the City Manager and the Finance Director. Section Two – Organizational Overview This section gives an overview of the City, including general information, statistics and maps. Section Three – Budget Overview This section provides information about the way the budget is developed and the format of the budget document. It also provides an overview of the budget, which is detailed in Section Four. Section Four – General Fund Summary and Detail This section provides more in‐depth financial and organizational information at the fund and department level including strategic goals, accomplishments and priorities. Section Five – Special Revenue Funds This section provides in-depth financial and organizational information at the fund level for the City's special revenue funds. Section Six – Debt Service Funds This section provides in-depth financial and organizational information at the fund level for the City's debt service funds. Section Seven – Capital Project Funds This section provides in-depth financial and organizational information at the fund level for the City's fiduciary funds. Section Eight – Enterprise Funds This section provides in-depth financial and organizational information at the fund level for the City's enterprise funds. Section Nine – Internal Service Funds This section provides in-depth financial and organizational information at the fund level for the City's internal service funds. Section Ten – Fiduciary Funds This section provides in-depth financial and organizational information at the fund level for the City's special revenue funds. Appendix The appendix houses various additional documents that help readers comprehend the budget. These items include the City’s capital outlay, its financial policies and a glossary. City of DeKalb 32 Proposed Budget  2020 Budget Calendar Date Responsible Party Action August 16, 2019 City Council, Finance Advisory FY2019 Strategic Goal Setting and Budget Committee & Staff Planning Workshop October 21, 2019 Finance Advisory Committee Consideration of Property Tax Levy & Capital Funding October 28, 2019 City Council Consideration of Property Tax Levy & Capital Funding November 12, 2019 City Council Estimated 2019 Property Tax Levy to Determine if Truth in Taxation Notice is Required November 15, 2019 Staff Anticipated Public Release of FY2020 Proposed Budget November 18 & 20 City Council & Finance FY2020 Proposed Budget Review Advisory Committee November 25, 2019 City Council Public Hearings – 2019 Property Tax Levy & FY2020 Annual Budget First Reading – 2019 Property Tax Levy & FY2020 Annual Budget December 9, 2019 City Council Second Reading – 2019 Property Tax Levy & FY2020 Annual Budget December 31, 2019 Staff Last Day to File FY2020 Annual Budget & 2019 Property Tax Levy with the County January 1, 2020 Fiscal Year 2020 Begins City of DeKalb 33 Proposed Budget Fund Balance Projections CITY OF DEKALB PRELIMINARY FUND BALANCE SUMMARY PROJECTED FY 2020 BUDGET FUND NAME 12/31/2019 REVENUES EXPENSES 12/31/2020 100 - General Fund 9,423,944 38,267,257 38,137,816 9,553,385 200 - Transportation Fund 1,973,563 10,793,722 9,821,533 2,945,752 ** 210 - Motor Fuel Tax Fund 2,014,330 1,744,745 1,680,000 2,079,075 ** 223 - Special Service Area #3 2,664 1,010 1,500 2,174 ** 224 - Special Service Area #4 3,100 5,510 4,500 4,110 ** 226 - Special Service Area #6 3,424 16,410 16,400 3,434 ** 234 - Special Service Area #14 5,056 2,510 3,000 4,566 ** 248 - Special Service Area #28 0 8,714 8,704 10 ** 260 - TIF District #1 3,970,470 7,380,074 10,200,384 1,150,160 ** 261 - TIF District #2 0 0 0 0 ** 262 - TIF District #3 0 4,821,726 4,315,000 506,726 280 - CDBG Fund 0 600,000 600,000 0 ** 285 - Housing Rehab Fund 58,439 250 50,352 8,337 ** 290 - Foreign Fire Insurance Tax 61,810 55,000 54,682 62,128 300 - Debt Service Fund (2,574) 1,756,007 1,753,432 1 375 - TIF Debt Service Fund 0 1,195,000 1,195,000 0 400 - Capital Projects Fund 528,991 1,652,583 1,635,000 546,574 420 - Capital Equipment Replacement Fund 649,603 556,750 1,161,667 44,686 * 600 - Water Fund 2,810,865 5,546,804 6,336,226 2,021,443 ** 610 - Water Construction Fund 1,150,211 10,000 500,000 660,211 * 620 - Water Capital Fund 1,171,847 1,836,200 1,600,000 1,408,047 * 650 - Airport Fund 80,774 1,267,110 1,347,746 138 680 - Refuse & Recycling Fund 232,051 2,059,916 2,264,913 27,054 700 - Worker's Comp / Liability Insurance Fund 1,141,161 918,159 1,048,928 1,010,392 710 - Health Insurance Fund 43,268 6,761,864 6,602,341 202,791 830 - Police Pension Fund 35,896,279 6,197,214 4,051,404 38,042,089 850 - Fire Pension Fund 29,669,400 6,586,486 4,349,515 31,906,371 ** 900 - DeKalb Library 19,311,572 2,966,427 3,124,227 19,153,772 110,200,248 103,007,448 101,864,270 111,343,426 * Cash & Cash Equivalents ** Restricted Dollars The City has a Fund Balance Policy, within its Financial Policies for the City, policy #01-02. This policy was established to assist staff in creating a solid foundation for the financial management of the City. These policies are reviewed annually during the budget process with the City Council. City of DeKalb 34 Proposed Budget Revenues and Expenditures The chart below provides a quick summary of revenue and expenditure trends (actuals), for all City funds for fiscal years 2016 to 2019 Estimate. 5 Year Revenue & Expenditure Trend - All Funds 100,000,000 90,000,000 Total Revenues 80,000,000 Total Expenditures 70,000,000 60,000,000 * The City changed their fiscal year ending 50,000,000 from June 30th to 40,000,000 December 31st. 30,000,000 20,000,000 10,000,000 0 2016 2016.5* 2017 2018 2019 Actual Actual Actual Actual Estimate General Fund The chart below provides a quick summary of revenue and expenditure trends for the General Fund for fiscal years 2016 to 2019 Estimate. 5 Year Revenue & Expenditure Trends - General Fund 40,000,000 Total Revenue, exlcuding 35,000,000 transfers Total Expenditures, 30,000,000 excluding transfers 25,000,000 20,000,000 * The City changed their fiscal year ending from June 15,000,000 30th to December 31st. 10,000,000 5,000,000 0 2016 2016.5* 2017 2018 2019 Actual Actual Actual Actual Estimate City of DeKalb 35 Proposed Budget The City’s policy states unassigned fund balance will be maintained at a minimum level equal to 25% of annual expenditures. The City’s fund balance had dropped down to 1% in 2010. Since that time the City has been working hard to get fund balance reserves back up to 25% of annual expenditures. FY2019 estimates for the General Fund show a surplus of $2,021,087 ending the year with a fund balance of 26.01% of annual expenditures. The FY2020 budget shows a surplus of $129,441, leaving reserves at 25.05% at the end of the fiscal year. Even though the City has a budget surplus for FY2020, the fund balance will diminish slightly from the prior year, mostly due to the rising cost of police and fire pensions, which increased $815,167 over FY2019. Water Funds Revenue estimates for FY2019 are $6,855,619, which is about $1,100,000 less than budgeted, due to loan proceeds for a watermain project coming in less than anticipated. This deficit will be a direct decrease in the expenditure anticipated for that watermain project, since the loan proceeds were determined by the project costs. Expenditure estimates for FY2019 are $6,625,386, which is about $1,500,000 less than budget. FY2019 estimates show a surplus of $230,233. The purpose of these reserves in the Water Fund is to supplement revenues during uneven cash flow or unexpected drop in revenues, as well as for the replacement, repair, and maintenance of equipment, or any unplanned capital improvements. Water Operating Fund: The unrestricted net assets of the Water Fund will be maintained at a minimum level equal to 25% of the annual budgeted operational expenses. Net position above 25% will be transferred annually to the Water Capital Fund for use in funding the Water Capital plan. Water Construction Fund: This revenue is from impact fees and is restricted for any new water main infrastructure in the City of DeKalb. Water Capital Projects Fund: This fund will be used to account for all capital revenues and expenditures to Water Capital as approved by City Council in the annual budget. Capital projects include existing water infrastructure for water mains, wells, treatment plants, pumping systems and water towers. Additionally, Water Division equipment and fleet that exceed $10,000 with a useful life exceeding one year would be accounted for through this fund and be subject to the same annual budget approval by Council. Airport Fund This fund accounts for the operating and maintenance expenses of the Airport as well as all the capital portion for the City’s local matching funds for the various grant projects included in the FY2020 budget. This fund has been supported over the years with transfers from the General Fund. In FY2017, 1.5 cents of the local gas tax was moved to support the Airport Fund due a change is legislation. In FY2018, this fund showed a surplus of revenues exceeding expenditures of $784,149. FY2019 estimates have the fund at a surplus of $48,151. The intention is to try have this fund be a “true” enterprise fund that can stand on its own. Staff has been and will continue to review current fees being charged at the Airport. Motor Fuel Tax Fund This fund accounts for capital improvements to the City’s streets and sidewalks. The fund balance is projected to increase by $39,745 during FY2020 due to less planned improvements in connection with the street resurfacing program and sidewalk maintenance. This surplus will be a direct increase in the Motor Fuel Tax Fund’s cash reserves. Tax Increment Financing (TIF) Funds In FY2019, the City maintained two TIF funds, the Central Area TIF and TIF #2. The City terminated TIF #2 on December 31, 2019, at the conclusion of its 23-year lifespan in accordance with the TIF Act. The Central Area TIF is due to expire at the end of FY2021. With the end of both TIFs in sight, the City created TIF #3 in 2019. This TIF district overlays the City’s Central City of DeKalb 36 Proposed Budget Business District, including a number of parcels formerly within the Central Area TIF. TIF #3 will begin collecting incremental property tax revenue in FY2020. According to the City’s fund balance policy these funds should be self- supporting and should maintain a fund balance equivalent to meet the planned improvements identified in a multi-year capital schedule. The FY2020 Budget includes $14.5 million in planned expenditures between the Central Area TIF and TIF #3, with a projected fund balance of over $1.5 million at the end of FY2020. Refuse & Recycling Fund This fund is used to pay costs associated with the City’s refuse disposal. The budget for FY2020 shows a deficit of $204,997, which can be accounted for by the transfer to the General Fund for administrative (billing and collection) costs associated with refuse. Workers Compensation & Property Liability Fund This fund is used to pay costs associated with our Workers Compensation Liability Insurance coverage and for costs incurred as a result of accidents involving City property or employees. The City’s current fund balance policy states a $1,000,000 reserve fund balance should be maintained to cover annual premium costs and assist in funding deductible claims that come throughout the year. Ending fund balance for FY2020 is projected to be $1,010,392, which is within the range of the City’s policy. Average worker’s compensation claims over the last four years have averaged less than $260,000 which is well below budgeted dollars in those years. The worker’s compensation claims budget for FY2020 totals $400,000 to account for this average. The average property liability claims over the last four years have averaged less than $100,000. The FY2020 budget for property liability claims is $110,000, which should be sufficient based on that average. City of DeKalb 37 Proposed Budget Revenue Budget Summary ‐ All Funds 2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED FUND DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 100 GENERAL FUND 35,716,047 36,017,347 37,856,172 38,252,522 38,267,257 200 TRANSPORTATION FUND 3,457,693 3,778,615 11,291,333 10,352,409 10,793,722 210 MOTOR FUEL TAX FUND 1,168,927 1,322,700 1,161,757 1,215,000 1,744,745 223 SPECIAL SERVICE AREA #3 1,000 1,001 1,010 1,010 1,010 224 SPECIAL SERVICE AREA #4 5,499 5,494 5,510 5,510 5,510 226 SPECIAL SERVICE AREA #6 14,006 15,684 18,010 16,410 16,410 234 SPECIAL SERVICE AREA #14 2,501 2,502 2,510 2,510 2,510 248 SPECIAL SERVICE AREA #28 0 0 0 0 8,714 260 TIF FUND #1 (CENTRAL AREA) 6,908,808 10,738,318 7,489,311 7,464,311 7,380,074 261 TIF FUND #2 1,407,250 1,478,100 1,526,644 1,536,644 0 262 TIF FUND #3 0 0 0 0 4,821,726 280 CDBG FUND 279,328 156,672 979,230 979,230 600,000 285 HOUSING REHAB FUND 61 1,684 1,050 275 250 290 FOREIGN FIRE INSURANCE TAX 50,459 54,758 48,000 55,000 55,000 300 DEBT SERVICE‐GENERAL FUND 1,856,439 1,891,510 1,892,827 5,902,233 1,756,007 375 DEBT SERVICE ‐ TIFS 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 400 CAPITAL PROJECTS FUND 564,463 642,615 614,719 895,000 1,652,583 410 FLEET REPLACEMENT FUND 412,333 0 0 0 0 420 CAPITAL EQUIP REPLACEMENT FUND 171,340 517,399 447,397 463,000 556,750 600 WATER FUND 7,089,495 6,439,978 7,086,443 5,964,662 5,546,804 610 WATER NEW CONSTRUCTION FUND 35,262 5,866 20,000 4,757 10,000 620 WATER CAPITAL FUND 2,270,811 1,357,964 850,000 886,200 1,836,200 650 AIRPORT FUND 1,847,670 2,265,149 1,233,535 1,226,256 1,267,110 680 REFUSE & RECYCLING FUND 2,160,482 2,058,770 2,009,674 2,010,112 2,059,916 700 WORK COMP/LIAB INSURANCE FUND 811,111 949,041 898,159 933,059 918,159 710 HEALTH INSURANCE FUND 5,670,937 6,420,160 6,298,226 6,215,498 6,761,864 720 LIABILITY & PROPERTY INSURANCE 361,250 0 0 0 0 830 POLICE PENSION FUND 7,399,364 1,607,706 5,709,437 6,110,587 6,197,214 850 FIRE PENSION FUND 6,674,039 1,591,719 6,532,588 6,366,530 6,586,486 900 DEKALB PUBLIC LIBRARY FUND 7,984,376 2,924,065 2,854,004 2,843,004 2,966,427 TOTAL REVENUE ‐ ALL FUNDS 95,398,951 83,438,017 98,019,946 100,894,129 103,007,448 City of DeKalb 38 Proposed Budget  TOP TEN REVENUE SOURCES AS A PERCENTAGE OF TOTAL REVENUES Refuse & Recycling Fees Ambulance Services 2.2% 2.1% Home Rule Sales Tax Restaurant and Bar Tax 6.9% 2.1% Municipal Utility Tax 2.7% Grant Revenue State Income Tax 9.7% 4.9% Water Service 5.8% State Sales Tax Property Tax 5.8% 14.9% 5 Year Trend - Top Revenue Sources Sales Tax (Home Rule) 18,000,000 Grant Rev 16,000,000 Property Tax State Inc Tax 14,000,000 Water Service 12,000,000 * The City changed 10,000,000 their fiscal year ending from June 30th to 8,000,000 December 31st. 6,000,000 4,000,000 2,000,000 0 2015 Actual 2016 Actual 2016.5* 2017 Actual 2018 Actual 2019 Actual Projected City of DeKalb 39 Proposed Budget Expenditure Budget Summary ‐ All Funds 2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED FUND DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 100 GENERAL FUND 35,871,371 37,688,298 37,007,172 36,231,435 38,137,816 200 TRANSPORTATION FUND 3,457,693 3,745,091 10,544,859 8,412,371 9,821,533 210 MOTOR FUEL TAX FUND 900,187 2,031,033 2,297,000 1,997,973 1,680,000 223 SPECIAL SERVICE AREA #3 1,700 815 1,500 1,500 1,500 224 SPECIAL SERVICE AREA #4 4,655 3,119 4,500 4,500 4,500 226 SPECIAL SERVICE AREA #6 18,487 10,736 18,000 13,000 16,400 234 SPECIAL SERVICE AREA #14 1,148 1,100 3,000 3,000 3,000 248 SPECIAL SERVICE AREA #28 0 0 0 0 8,704 260 TIF FUND #1 (CENTRAL AREA) 8,131,413 7,228,822 12,181,993 7,867,156 10,200,384 261 TIF FUND #2 653,709 9,423,617 359,739 2,189,732 0 262 TIF FUND #3 0 0 0 0 4,315,000 280 CDBG FUND 279,328 156,672 979,230 979,230 600,000 285 HOUSING REHAB FUND 1,359 338 54,924 9,412 50,352 290 FOREIGN FIRE INSURANCE TAX 44,384 47,743 46,472 55,472 54,682 300 DEBT SERVICE‐GENERAL FUND 1,887,954 1,888,826 1,885,829 5,898,734 1,753,432 375 DEBT SERVICE ‐ TIFS 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 400 CAPITAL PROJECTS FUND 614,805 377,833 800,000 810,000 1,635,000 410 FLEET REPLACEMENT FUND 412,333 0 0 0 0 420 CAPITAL EQUIP REPLACEMENT FUND 663,338 587,182 202,161 152,196 1,161,667 600 WATER FUND 7,357,576 6,529,354 6,219,281 5,676,260 6,336,226 610 WATER NEW CONSTRUCTION FUND 0 0 0 0 500,000 620 WATER CAPITAL FUND 1,568,494 1,124,569 1,911,977 949,126 1,600,000 650 AIRPORT FUND 1,357,271 1,481,000 1,217,629 1,178,105 1,347,746 680 REFUSE & RECYCLING FUND 2,132,643 2,086,409 1,988,452 1,983,256 2,264,913 700 WORK COMP/LIAB INSURANCE FUND 1,018,882 1,131,658 1,050,852 1,040,718 1,048,928 710 HEALTH INSURANCE FUND 5,889,726 6,248,370 6,670,950 6,617,622 6,602,341 720 LIABILITY & PROPERTY INSURANCE 361,250 0 0 0 0 830 POLICE PENSION FUND 3,319,368 3,435,210 3,882,858 3,593,031 4,051,404 850 FIRE PENSION FUND 3,512,676 3,629,925 3,798,304 3,964,801 4,349,515 900 DEKALB PUBLIC LIBRARY FUND 3,004,352 2,689,918 2,833,804 2,814,904 3,124,227 TOTAL REVENUE ‐ ALL FUNDS 83,544,102 92,740,838 97,152,886 93,635,934 101,864,270 City of DeKalb 40 Proposed Budget  CITY OF DEKALB FY2020 BUDGET Revenues by Category Property Sales & Use Gross Licenses & Intergovern Service Other Taxes Taxes Receipts Permits mental Charges Fines Income Transfers In FUND TOTALS General 6,269,649 15,764,982 3,611,000 868,500 5,475,534 3,341,500 688,500 1,439,592 808,000 38,267,257 Transportation 0 0 0 0 8,632,222 0 0 2,161,500 0 10,793,722 Motor Fuel Tax 0 0 0 0 1,679,745 0 0 65,000 0 1,744,745 Heritage Ridge SSA#3 1,000 0 0 0 0 0 0 10 0 1,010 Knolls SSA#4 5,500 0 0 0 0 0 0 10 0 5,510 Greek Row SSA#6 16,400 0 0 0 0 0 0 10 0 16,410 Heartland Fields SSA#14 2,500 0 0 0 0 0 0 10 0 2,510 Greenbrier SSA#28 8,704 0 0 0 0 0 0 10 0 8,714 Tax Increment Financing #1 7,280,074 0 0 0 0 0 0 100,000 0 7,380,074 Tax Increment Financing #2 0 0 0 0 0 0 0 0 0 0 Tax Increment Financing #3 546,476 0 0 0 0 0 0 250 4,275,000 4,821,726 CDBG 0 0 0 0 600,000 0 0 0 0 600,000 Housing Rehabilitation 0 0 0 0 0 0 0 250 0 250 Foreign Fire Insurance Tax 0 0 0 0 0 0 0 55,000 0 55,000 General Debt Service 0 49,000 0 0 0 0 45,000 0 1,662,007 1,756,007 TIF Debt Service 0 0 0 0 0 0 0 0 1,195,000 1,195,000 Capital Projects 0 1,216,250 0 0 0 0 0 250,000 186,333 1,652,583 Capital Equip Replacement 0 173,750 0 0 0 0 0 383,000 0 556,750 Water 0 0 0 31,500 0 5,490,600 0 16,000 8,704 5,546,804 Water Construction 0 0 0 10,000 0 0 0 0 0 10,000 Water Capital 0 0 0 0 0 385,000 0 1,200 1,450,000 1,836,200 Airport 0 270,250 0 0 36,550 500,000 0 409,310 51,000 1,267,110 Refuse & Recycling 0 0 0 0 0 2,059,916 0 0 0 2,059,916 Workers Compensation/Liability 881,659 0 0 0 0 0 0 36,500 0 918,159 Health Insurance 4,887,065 0 0 0 0 1,874,549 0 250 0 6,761,864 Police Pension 3,446,287 0 0 0 0 620,927 0 2,130,000 0 6,197,214 Fire Pension 3,951,651 0 0 0 0 504,835 0 2,130,000 0 6,586,486 DeKalb Public Library 2,265,717 0 0 0 77,610 0 34,300 588,800 0 2,966,427 GRAND TOTAL: REVENUES 29,562,682 17,474,232 3,611,000 910,000 16,501,661 14,907,327 767,800 9,766,702 9,636,044 103,007,448 City of DeKalb 41 Proposed Budget  CITY OF DEKALB FY2020 BUDGET Contractual Other Debt Permanent Transfers FUND Expenditures by Category Personnel Commodities Services Services Services Equipment Improvement Out TOTALS General 30,790,624 1,022,886 4,384,966 0 0 40,000 0 1,899,340 38,137,816 Transportation 259,991 1,000 9,250,542 0 0 285,000 0 25,000 9,821,533 Motor Fuel Tax 0 125,000 1,180,000 0 0 375,000 0 0 1,680,000 Heritage Ridge SSA#3 0 0 1,000 0 0 0 0 500 1,500 Knolls SSA#4 0 0 4,000 0 0 0 0 500 4,500 Greek Row SSA#6 0 0 15,900 0 0 0 0 500 16,400 Heartland Fields SSA#14 0 0 2,500 0 0 0 0 500 3,000 Greenbrier SSA#28 0 0 0 0 0 0 0 8,704 8,704 Tax Increment Financing #1 0 0 75,347 3,640,037 0 1,000,000 0 5,485,000 10,200,384 Tax Increment Financing #2 0 0 0 0 0 0 0 0 0 Tax Increment Financing #3 0 0 3,795,000 0 0 505,000 0 15,000 4,315,000 CDBG 0 150 319,850 0 0 200,000 0 80,000 600,000 Housing Rehabilitation 0 0 50,352 0 0 0 0 0 50,352 Foreign Fire Insurance Tax 0 15,450 2,732 0 0 36,500 0 0 54,682 General Debt Service 0 0 1,900 0 1,751,532 0 0 0 1,753,432 TIF Debt Service 0 0 0 0 1,195,000 0 0 0 1,195,000 Capital Projects 0 0 175,000 0 0 1,460,000 0 0 1,635,000 Capital Equip Replacement 0 0 0 0 16,667 1,145,000 0 0 1,161,667 Water 2,512,300 479,000 757,441 0 826,485 0 0 1,761,000 6,336,226 Water Construction 0 0 0 0 0 0 500,000 0 500,000 Water Capital 0 0 0 0 0 570,000 1,030,000 0 1,600,000 Airport 375,376 460,750 387,869 0 67,701 56,050 0 0 1,347,746 Refuse & Recycling 0 0 1,904,913 0 0 0 0 360,000 2,264,913 Workers Compensation/Liability Insurance 0 0 1,048,928 0 0 0 0 0 1,048,928 Health Insurance 302,015 0 6,300,326 0 0 0 0 0 6,602,341 Police Pension 3,960,527 0 90,877 0 0 0 0 0 4,051,404 Fire Pension 4,256,255 0 93,260 0 0 0 0 0 4,349,515 DeKalb Public Library 1,567,949 169,660 375,414 0 869,154 142,050 0 0 3,124,227 GRAND TOTAL: EXPENDITURES 44,025,037 2,273,896 30,218,117 3,640,037 4,726,539 5,814,600 1,530,000 9,636,044 101,864,270 City of DeKalb 42 Proposed Budget Revenues by Category: All Funds Fines Transfers In 0.75% Gross Receipts 9.35% 3.51% Intergovernmental 16.02% Service Charges Fines 14.35% Licenses & Permits Gross Receipts 0.88% Intergovernmental Licenses & Permits Other Income Property Taxes Sales & Use Taxes Other Income 16.96% Sales & Use Taxes 9.48% Service Charges Transfers In Property Taxes 28.70% Expenditures by Category: All Funds Debt Services Transfers Out 4.64% 9.46% Permanent Improvement 1.50% Personnel Equipment 43.22% 5.71% Personnel Commodities Other Services Contractual Services 3.57% Other Services Equipment Permanent Improvement Debt Services Transfers Out Contractual Services 29.67% Commodities 2.23% City of DeKalb 43 Proposed Budget  Revenues by Category: by Fund Type Sales & Use Licenses & Intergovern Service Property Taxes Gross Receipts Fines Other Income Transfers In FUND TOTALS Taxes Permits mental Charges General Fund 6,269,649 15,764,982 3,611,000 868,500 5,475,534 3,341,500 688,500 1,439,592 808,000 38,267,257 Special Revenue Funds 7,860,654 0 0 0 10,911,967 0 0 2,382,050 4,275,000 25,429,671 Debt Service Funds 0 49,000 0 0 0 0 45,000 0 2,857,007 2,951,007 Capital Projects 0 1,390,000 0 0 0 0 0 633,000 186,333 2,209,333 Enterprise Funds 0 270,250 0 41,500 36,550 8,435,516 0 426,510 1,509,704 10,720,030 Internal Service Funds 5,768,724 0 0 0 0 1,874,549 0 36,750 0 7,680,023 Fiduciary 9,663,655 0 0 0 77,610 1,125,762 34,300 4,848,800 0 15,750,127 TOTAL REVENUES 29,562,682 17,474,232 3,611,000 910,000 16,501,661 14,777,327 767,800 9,766,702 9,636,044 103,007,448 Fiduciary 15.29% General Fund Debt Service Funds 37.15% 2.86% Internal General Fund Service Funds 7.46% Enterprise Funds Capital Projects Internal Service Funds Debt Service Funds Fiduciary Special Revenue Funds 10.25% Enterprise Funds Capital Projects 10.41% 2.14% City of DeKalb 44 Proposed Budget  Expenditures by Category: By Fund Type Contractual Permanent Personnel Commodities Other Services Debt Services Equipment Transfers Out FUND TOTALS Services Improvement General Fund 30,790,624 1,022,886 4,384,966 0 0 40,000 0 1,899,340 38,137,816 Special Revenue Funds 259,991 141,600 14,697,223 3,640,037 0 2,401,500 0 5,615,704 26,756,055 Debt Service Funds 0 0 1,900 0 2,946,532 0 0 0 2,948,432 Capital Projects 0 0 175,000 0 16,667 2,605,000 0 0 2,796,667 Enterprise Funds 2,887,676 939,750 3,050,223 0 894,186 626,050 1,530,000 2,121,000 12,048,885 Internal Service Funds 302,015 0 7,349,254 0 0 0 0 0 7,651,269 Other Funds 9,784,731 169,660 559,551 0 869,154 142,050 0 0 11,525,146 TOTAL EXPENDITURES 44,025,037 2,273,896 30,218,117 3,640,037 4,726,539 5,814,600 1,530,000 9,636,044 101,864,270 Other Funds 11.30% Debt Service Funds General Fund 2.89% 37.52% Internal Service Funds 7.50% General Fund Enterprise Funds Capital Projects Special Revenue Funds Special Revenue Funds Internal Service Funds 26.23% Other Funds Capital Projects Enterprise Funds 2.74% 11.81% City of DeKalb 45 Proposed Budget  This page has been intentionally left blank. City of DeKalb 46 Proposed Budget Section Four General Fund Detail ▪▪ Revenues and Expenditures ▪▪ Legislative ▪▪ City Manager’s Office ▪▪ Human Resources Department ▪▪ Finance Department ▪▪ Information Technology Department ▪▪ Police Department ▪▪ Fire Department ▪▪ Public Works Department ▪▪ Community Development Department ▪▪ General Fund Support City of DeKalb 47 Proposed Budget  This page has been intentionally left blank. City of DeKalb 48 Proposed Budget General Fund Revenue _____________________________________________________________________________________ General Fund revenues are primarily responsible for funding the City services that citizens interact with most often. Revenues are derived from numerous sources that can be placed into one of nine categories, as seen in the chart below. The FY2020 Budget includes $38.27 million in General Fund revenues. General Fund Revenue Summary FINES OTHER INCOME TRANSFERS IN SERVICE 2% 4% 2% CHARGES PROPERTY TAXES 9% 16% INTERGOVERNMENTAL REVENUES 14% LICENSES & PERMITS 2% GROSS RECEIPTS SALES & USE TAXES TAXES 10% 41% Sales & Use Taxes The revenue category Sales & Use Taxes includes various taxes applied toward the consumptions of goods and services. This is the largest source of General Fund revenue, accounting for 41% of total General Fund revenues. Included in this category are the following: • Home Rule Sales Tax: The City imposes a 1.75% Home Rule Sales Tax on sales of general merchandise. The tax is not collected on sales of food, drugs, or tangible personal property that is required to be licensed or registered with the State of Illinois. The amount of Home Rule Sales Tax collected over the last several years has remained fairly constant at $6.50 million. The FY2020 budget for Home Rule Sales Tax is $6.56 million which is a modest increase to the estimated $6.50 million to be collected in FY2019. • State Sales Tax: The Illinois Department of Revenue collects a 6.25% tax on the sale of general merchandise and distributes 1% to the municipality where the sale occurred and 0.25% to DeKalb County. State Sales Tax has been fairly stable over the last few years, with collections between $5.30 million and $5.40 annually. The FY2020 budget for State Sales Tax is $5.50 million which is a modest increase to the estimated $5.45 million to be collected in FY2019. • Restaurant & Bar Tax: The City collects a 2% tax on prepared food and beverage and packaged liquor sales. This tax is administered at the local level. The FY2020 Budget includes $1.95 million in Restaurant & Bar Tax revenue, a modest increase to the estimated $1.94 million to be collected in FY2019. City of DeKalb 49 Proposed Budget  • Local Use Tax: Use taxes are imposed on the privilege of using, in the State of Illinois, any item of tangible personal property that is purchased anywhere at retail, including online purchases. This revenue source is collected by the State and forwarded to the City on a per capita basis. This tax has been trending up over the last four years as a result of the increased collection of sales taxes on internet purchases. Projected revenue for FY2020 is $1.44 million based on the IML projection of $32.75 per capita. • Hotel/Motel Tax – The City imposes a 7.5% tax on the use of hotel/motel rooms in the City. Of this 7.5%, a 1% portion is directed to the Debt Service Fund. The remaining 6.5% is General Fund revenue. The FY2020 Budget includes $300,000 in Hotel/Motel Tax revenue for the General Fund. That amount is projected to increase once the new Home2 Suites is completed. Property Taxes This revenue is derived from a tax levy on real estate within the corporate limits of the City of DeKalb. Property Taxes account for 16% of General Fund revenues in FY2020. The City of DeKalb is a home rule community and is not regulated by the Property Tax Extension Limitation Law (PTELL). For FY2020 (tax levy year 2019), the City estimates a 4.73% increase in the tax levy in order to capture new EAV growth in the City and to recover TIF EAV returning to the regular tax rolls. It is anticipated that the 2019 tax levy will generate $6,269,648 in General Fund revenue, all of which will go toward the funding of Fire and Police pension funds. Intergovernmental Revenue The FY2020 Budget includes $5.48 million in Intergovernmental Revenue, which represents 14% of total General Fund revenues. Much of this revenue comes from the City’s per capita share of State Income Tax revenue. State Income Tax for FY2020 is budgeted at $4.68 million. This state-shared revenue has increased by nearly $500,000 in the past few years as a result of improving employment rates in Illinois. Other revenues in this category include Video Gaming Tax, Personal Property Replacement Tax, State and Federal Grants, and Other Shared Revenues. Gross Receipts Taxes Revenues included in Gross Receipts Taxes include Municipal Utility Tax, Telecommunications Tax, and Franchise Tax. Of the $3.61 million to be collected in FY2020, Municipal Utility Tax accounts for $2.60 million. This tax is collected on electric and natural gas utilities services in the City and has experienced modest increases over the past several years. Over the same period, Telecommunications Tax and Franchise Tax revenues have declined as a result of consumers abandoning land-line phone service in favor of wireless devices and “cutting the cord” from traditional cable TV. Service Charges The FY2020 Budget includes $3.34 million in revenue resulting from Service Charges. This represents 9% of total General Fund revenues. Of the revenues included in this category, Fire Services and Ambulances Services account for most of that revenue. The City charges Northern Illinois University and the DeKalb Fire Protection District for fire and emergency medical services to their residents. These services are estimated to generate $1.04 million in revenue for FY2020 based on current intergovernmental agreements. The City also charges users (or their insurance) for City-provided ambulance services. This revenue has increased significantly in FY2019 and will again in FY2020 as a result of an increase in the rate charged in the beginning of FY2019 and an overall increase in ambulance transports. The FY2020 Budget includes $2.00 million in Ambulance Service revenue. City of DeKalb 50 Proposed Budget Other Income In FY2020, $1.44 million, which is 4% of General Fund revenue, comes from Other Income. This revenue category is comprised of various small revenue sources that include Investment Interest, the annual TIF Surplus, Refunds and Reimbursements, and other Miscellaneous Revenue. Refunds and Reimbursements account for $546,000 and include revenues such as School District 428 funding for School Resource Officers. Licenses & Permits This General Fund revenue category includes a number of locally issued licenses and permits that will generate $868,500 in FY2020. This represents just 2% of General Fund revenue. The largest sources of revenue in this category are Building Permits, Liquor Licenses, and Crime Free Housing Registration. It is anticipated that Building Permit revenue will increase in FY2020 as compared to FY2018 and FY2019 as a result of new development activity in the central business district and our industrial business centers. Transfers In Transfers from other City funds into the General Fund account for $808,000 in “revenue” in the FY2020 Budget. These include transfers from Transportation, TIF, and CDBG Funds to reimburse General Fund expenses related to these programs; a Water Fund transfer for payment in lieu of taxes (PIOLT); and a Refuse & Recycling Fund transfer to cover the administrative cost of managing monthly refuse billing. Fines Fines issued by Police and Code Compliance personnel account for $688,500 in General Fund revenue in the FY2020 Budget. Much of this revenue is derived from Court Fines, Parking Fines, and Administrative Tow Fees. Overall, these revenues have remained level over the period of FY18 to FY2020 City of DeKalb 51 Proposed Budget General Fund Expenditures _____________________________________________________________________________________ The mission of the City of DeKalb is to deliver high quality municipal services to those who live, work, learn in, and visit our community. General Fund expenditures represent the costs associated with providing those services. Expenditures are broken down into five categories, each containing numerous individual account lines. The FY2020 Budget includes $38.26 million in General Fund expenditures. General Fund Expenditure Summary EQUIPMENT CONTRACTUAL TRANSFERS OUT 0% SERVICES 5% 11% COMMODITIES 3% PERSONNEL 81% Personnel Personnel costs account for 81% of total General Fund expenditures, or $30.79 million for FY2020. This expenditure category includes salaries and wages, overtime, employer pension contributions, and employer health insurance costs. Employee wages have remained fairly level since FY2017, largely due to staffing reductions. In FY2019, it is estimated that General Fund full-time wages decreased by more than $700,000 after the City Manager eliminated several management positions. At the same time, it is estimated that overtime increased by $265,000 due to an increased demand for services by the Fire and Police Departments. Even with the management staffing reductions, FY2020 personnel costs will rise by nearly $1.00 million for the reasons detailed below. • Fire and Police Pensions: The rising costs associated with public safety pensions continue to impact the General Fund. In FY2020, the actuarially determined City contribution for the Fire and Police Pension Funds is $7.40 million, which is an increase of $814,627 from FY2019. • IMRF Pensions: The Illinois Municipal Retirement Fund (IMRF) reduced its assumed rate of return in FY2019, resulting in higher contribution costs for most member entities. The City’s General Fund contribution to IMRF increases from 12.00% of salary to 14.89% of salary. This results in an FY2020 contribution amount of $647,050, an increase of $155,624 over the FY2019 estimate. City of DeKalb 52 Proposed Budget  • Health Insurance: The cost of health insurance premiums will increase in FY2020 after the City experienced significant claims history in the previous year. Premium costs for the City’s PPO plan increased by about 10%, while HMO premiums fell about 0.40%. This results in an annual increase of $269,699 in FY2020. Total General Fund expenditures for FY2020 are budgeted at $4.33 million. Contractual Service Services provided to the City by others are classified as Contractual Services and represent $4.38 million, or 11% of General Fund expenditures. This category includes expenditures such as: maintenance of buildings, equipment, software, and vehicles; engineering services; legal services; training and travel expenses; and utilities. Also included in this category is $1.75 million in payments to other government agencies through tax sharing agreements. Notable FY2020 expenditures in Contractual Services include: • Maintenance – Vehicles: Because the City lacked the capital needed to properly address fleet replacement over the past decade, costs associated with vehicle maintenance are rising sharply. In FY2020, the General Fund vehicle maintenance budget will rise to $147,729, an increase of $23,405. Note that this amount only includes repairs made by others and not repairs made in-house by City mechanics. • Maintenance – Software: The FY2020 Budget shows $342,315 for software maintenance. This is a newly created account line for FY2020. In prior years, these costs were spread across various account lines; however, staff felt it was appropriate to show the total recurring cost of computer software licenses and agreements in one budget line. A notable decrease in account “63800 – Contracted Services” was a result of this change. • Snow Removal Services: In FY2019, the City Council approved a service reduction related to removal of snow on arterial and downtown sidewalks. As a result of public demand, these services have been restored in FY2020 at a total cost of $80,000. Transfers Out Any transfer of funds from the General Fund to other City funds is represented in this category. Transfers Out in FY2020 total $1.90 million, or 5% of General Fund expenditures. Much of this amount funds the City’s bond payments through a transfer to the Debt Service Fund (Fund 300) in the amount of $1.66 million. Other transfers include a $186,333 transfer to the Capital Projects Fund (Fund 400). This amount reflects the amount the City will receive in surplus payment upon close out of TIF Fund #2 (Fund 261) at the end of FY2019. Also, a transfer of $51,000 to the Airport Fund (Fund 650) is anticipated. Commodities Items purchased for use by the City are categorized as Commodities. The FY2020 Budget for this category is $1.02 million, or 3% of the General Fund budget. The three largest expenditures in this category are: • Supplies/Parts – Vehicles: As previously noted, the cost to maintain our aging fleet is significant. In FY2020, $167,222 is budgeted for vehicles parts and supplies. These purchases typically represent the material costs for the City mechanics to repair and maintain fleet vehicles. Staff labor time is not accounted for in this line item. • Ice/Snow Control Supplies: In FY2020, the City has budgeted $100,000 for road salt and an additional $21,500 for related supplies such as sidewalk salt, shovels, and other equipment. This represents less than one-half of the City’s total road salt expenditure as the Motor Fuel Tax Fund supports an additional $125,000 in road salt purchases. City of DeKalb 53 Proposed Budget  • Fuel, Oil, & Lubricants: The City has budgeted $257,425 for fuel and related purchases in FY2020. Staff has managed to reduce overall fuel consumption in recent years; however, the City will bear some additional cost in FY2020 as a result of the State Motor Fuel Tax Increase from which the City is not exempt. Equipment In FY2020, the City has budgeted $40,000 for capital equipment outlay in the General Fund budget. This represents less than 1% of the total General Fund budget. Items in this category are capital items with a value of more than $5,000 but less than $10,000. Items with a value in excess of $10,000 are budgeted in the Capital Equipment Replacement Fund (Fund 420). City of DeKalb 54 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET GENERAL FUND REVENUES ‐ SUMMARY ESTIMATED REVENUES 100‐00‐00‐30100 PROPERTY TAX ‐ CORPORATE 817,910 0 0 0 0 100‐00‐00‐30120 PROPERTY TAX ‐ IMRF 71,962 0 0 0 0 100‐00‐00‐30140 PROPERTY TAX ‐ FIRE PENSION 2,612,994 3,152,986 3,216,521 3,216,521 3,322,914 100‐00‐00‐30150 PROPERTY TAX ‐ POLICE PENSION 2,020,666 2,716,072 2,800,619 2,800,619 2,946,735 100‐00‐00‐31100 STATE SALES TAX 5,348,970 5,425,742 5,601,709 5,454,000 5,508,000 100‐00‐00‐31200 HOME RULE SALES TAX 6,508,901 6,540,840 6,743,880 6,500,000 6,565,000 100‐00‐00‐31300 LOCAL USE TAX 1,138,904 1,293,403 1,189,691 1,373,736 1,441,982 100‐00‐00‐31400 HOTEL/MOTEL TAX 275,007 271,256 319,515 267,000 300,000 100‐00‐00‐31500 RESTAURANT & BAR TAX 1,966,938 1,944,235 2,066,514 1,945,000 1,950,000 100‐00‐00‐31700 MUNICIPAL UTILITY TAX 2,472,309 2,636,104 2,554,774 2,558,000 2,596,000 100‐00‐00‐31750 TELECOMMUNICATIONS TAX 672,303 616,205 650,559 555,000 540,000 100‐00‐00‐31800 AUTO RENTAL TAX 19,150 20,355 21,777 22,100 22,500 100‐00‐00‐31900 FRANCHISE TAX 499,384 468,895 506,875 470,000 475,000 100‐00‐00‐31950 MISCELLANEOUS TAXES 0 0 50,000 0 0 100‐00‐00‐32200 LIQUOR LICENSES 242,123 219,476 252,144 225,000 230,000 100‐00‐00‐32300 ROOMING HOUSE LICENSES 15,200 12,150 18,258 13,000 13,500 100‐00‐00‐32350 FIRE LIFE SAFETY LICENSES 20,950 24,050 22,440 20,500 21,000 100‐00‐00‐32400 AMUSEMENT LICENSES 4,350 2,350 3,119 4,500 4,500 100‐00‐00‐32450 OTHER LICENSES 46,685 94,614 75,000 62,000 65,000 100‐00‐00‐32500 BUILDING PERMITS 359,215 171,318 367,181 220,000 325,000 100‐00‐00‐32700 PARKING PERMITS 1,770 1,970 3,800 1,500 1,500 100‐00‐00‐32900 OTHER PERMITS 17,475 13,545 28,951 13,000 15,000 100‐00‐00‐33100 FEDERAL GRANTS 16,425 74,008 0 1,757 0 100‐00‐00‐33150 FEDERAL PASS‐THROUGH GRANTS 45,102 30,370 0 65,000 0 100‐00‐00‐33200 STATE GRANTS 0 4,675 0 0 0 100‐00‐00‐33400 FIRE GRANTS 11,654 25,338 0 35,000 20,000 100‐00‐00‐33450 POLICE GRANTS 8,500 12,500 0 15,000 7,500 100‐00‐00‐33500 STATE INCOME TAX 4,044,119 4,216,580 4,347,082 4,447,851 4,680,389 100‐00‐00‐33600 PERSONAL PROPERTY REPLACEMENT TAX 173,727 137,176 140,434 175,905 190,645 100‐00‐00‐33650 VIDEO GAMING TAX 197,706 230,416 250,880 250,000 256,000 100‐00‐00‐33700 TOWNSHIP ROAD & BRIDGE TAX 143,356 149,073 148,621 149,000 152,000 100‐00‐00‐33900 OTHER SHARED REVENUES 165,358 173,995 169,010 167,500 169,000 100‐00‐00‐34100 ADMINSTRATION FEES 137,508 139,788 139,128 141,276 144,000 100‐00‐00‐34200 POLICE SERVICES 6,832 33,326 10,200 45,000 45,000 100‐00‐00‐34240 BACKGROUND CHECK FEES 2,107 1,500 0 3,000 2,500 100‐00‐00‐34250 FIRE SERVICES 949,828 1,032,778 1,024,080 1,050,000 1,042,000 100‐00‐00‐34260 AMBULANCE SERVICES 1,023,981 1,261,534 1,618,872 2,250,000 2,000,000 100‐00‐00‐34500 FUEL SALES 76,393 106,784 107,100 50,000 55,000 100‐00‐00‐34700 CRIME FREE REGISTRATION FEE 167,750 191,727 195,000 193,000 193,000 100‐00‐00‐34750 ZONING FEES 10,925 16,125 12,240 17,500 18,000 100‐00‐00‐34760 PLAN REVIEW FEES 0 6,120 0 30,000 30,000 100‐00‐00‐34780 INSPECTION FEES 5,100 1,500 5,100 5,000 5,000 100‐00‐00‐35100 COURT FINES 299,554 224,516 317,220 195,000 195,000 100‐00‐00‐35200 DUI FINES 29,882 22,471 40,800 20,000 21,500 100‐00‐00‐35250 ANTI‐CRIME ACTIVITIES 8,192 27,083 19,921 7,500 10,000 100‐00‐00‐35260 CRIME LAB 16,660 7,469 16,669 2,000 2,500 100‐00‐00‐35300 PARKING FINES 58,944 147,990 127,438 140,000 145,000 100‐00‐00‐35350 ELECTRONIC CITATION FINES 0 0 0 0 0 100‐00‐00‐35400 FALSE ALARM FINES 4,100 5,800 29,682 35,000 35,000 100‐00‐00‐35500 MAIL‐IN FINES 50,150 48,923 61,200 95,000 85,000 100‐00‐00‐35700 ADMINISTRATIVE TOW FINES 139,540 144,744 196,348 155,000 158,000 100‐00‐00‐35750 TOW FINES 1,600 2,800 2,244 500 1,500 City of DeKalb 55 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 100‐00‐00‐35800 ABATEMENT FINES 0 2,350 5,100 1,250 2,500 100‐00‐00‐35850 CRIME FREE HOUSING FINES 145 0 0 0 0 100‐00‐00‐35900 OTHER FINES 24,600 65,163 28,560 32,500 32,500 100‐00‐00‐35950 POLICE FORFEITURES 32,644 15,003 35,700 26,750 25,000 100‐00‐00‐37100 INVESTMENT INTEREST 102,079 214,063 120,600 275,000 220,000 100‐00‐00‐37500 GAIN/LOSS ON INVESTMENTS 0 7,856 0 0 0 100‐00‐00‐38100 MISCELLANEOUS REVENUE 39,163 31,637 66,000 35,000 35,000 100‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 358,380 387,890 385,764 385,764 546,070 100‐00‐00‐38400 DONATIONS / CONTRIBUTIONS 20,000 0 5,100 6,500 5,000 100‐00‐00‐38600 SALES OF SURPLUS PROPERTY 5,100 1,362 0 1,050 1,000 100‐00‐00‐38850 TIF PROPERTY TAX SURPLUS 251,286 257,651 773,533 1,140,288 297,271 100‐00‐00‐38860 TIF SALES TAX SURPLUS 365,640 279,311 273,837 273,837 287,751 100‐00‐00‐39200 TRANSFER FROM MASS TRANSIT FUND 10,570 0 47,508 19,444 25,000 100‐00‐00‐39210 TRANSFER FROM MFT FUND 0 0 0 0 0 100‐00‐00‐39223 TRANSFER FROM SSA #3 FUND 500 500 500 500 500 100‐00‐00‐39224 TRANSFER FROM SSA #4 FUND 500 500 500 500 500 100‐00‐00‐39226 TRANSFER FROM SSA #6 FUND 500 500 500 500 500 100‐00‐00‐39234 TRANSFER FROM SSA #14 FUND 500 500 500 500 500 100‐00‐00‐39260 TRANSFER FROM TIF #1 FUND 678,576 100,000 100,000 50,000 15,000 100‐00‐00‐39261 TRANSFER FROM TIF #2 FUND 113,198 60,000 0 0 0 100‐00‐00‐39262 TRANSFER FROM TIF #3 FUND 0 0 0 0 15,000 100‐00‐00‐39280 TRANSFER FROM CDBG FUND 25,326 55,986 90,000 90,000 80,000 100‐00‐00‐39285 TRANSFER FROM REHAB FUND 0 0 4,074 4,074 0 100‐00‐00‐39400 TRANSFER FROM CAPITAL PROJ FUND 209,181 0 0 0 0 100‐00‐00‐39600 TRANSFER FROM WATER FUND 316,000 310,400 321,800 321,800 311,000 100‐00‐00‐39680 TRANSFER FROM REFUSE FUND 104,000 124,000 124,000 124,000 360,000 100‐00‐00‐39700 TRANSFER FROM WORK COMP FUND 130,000 0 0 0 0 TOTAL GENERAL FUND REVENUES 35,716,047 36,017,347 37,856,172 38,252,522 38,267,257 City of DeKalb 56 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET GENERAL FUND EXPENDITURES ‐ SUMMARY PERSONNEL 41100 WAGES ‐ FULL‐TIME 15,102,364 15,380,031 15,330,042 14,601,663 15,301,040 41200 WAGES ‐ PART‐TIME 687,579 650,713 630,278 520,367 571,285 41300 WAGES ‐ OVERTIME 1,134,030 1,261,327 1,223,276 1,526,458 1,224,195 41400 LONGEVITY PAY 134,439 133,161 143,031 142,866 133,263 41500 CLOTHING ALLOWANCE 118,402 113,574 114,841 110,515 115,222 41550 CAR ALLOWANCE 22,037 16,810 18,070 6,154 2,700 41600 WELLNESS BONUS 5,250 5,700 7,500 5,550 7,200 41650 EDUCATION BONUS 4,500 5,750 5,125 5,125 5,125 42100 EMPLOYER PORTION FICA 533,177 533,371 541,522 486,130 539,353 42200 EMPLOYER PORTION IMRF 693,009 671,637 536,968 491,426 647,050 42300 EMPLOYER CONTRIB/PENSION 5,451,569 6,450,564 6,582,771 6,582,771 7,397,938 42500 EMPLOYEE HEALTH INSURANCE 3,707,726 4,031,702 4,064,176 4,064,179 4,333,878 42600 WORKER'S COMPENSATION 512,375 512,375 512,375 512,375 512,375 PERSONNEL 28,106,457 29,766,715 29,709,975 29,055,579 30,790,624 COMMODITIES 51000 BOARDS & COMMISSIONS 4,090 4,039 8,235 4,360 7,185 51300 SUPPLIES/PARTS‐BUILDINGS 26,162 15,645 30,568 20,668 26,768 51410 SUPPLIES/PARTS‐STREETS 26,436 22,891 30,500 40,000 37,000 51430 SUPPLIES/PARTS‐STORM SEWERS 15,681 8,342 17,500 9,000 23,500 51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 8,300 51600 SUPPLIES/PARTS‐TECHNOLOGY 43,697 26,188 26,960 25,000 25,000 51700 SUPPLIES/PARTS‐VEHICLES 140,033 116,079 177,730 122,353 167,222 51997 STREETLIGHTS, PARTS 7,793 17,357 17,000 9,000 15,000 51998 TRAFFIC & STREET SIGNS 20,805 26,030 20,000 30,000 30,000 51999 SUPPLIES/PARTS‐TRAFFIC SIGNALS 13,520 15,382 34,000 30,000 34,000 52000 OFFICE SUPPLIES 18,822 16,762 22,051 15,547 23,569 52500 JANITORIAL SUPPLIES 17,848 15,851 16,300 14,300 16,300 52600 PATROL SUPPLIES & EQUIPMENT 113,669 69,565 62,474 62,474 70,223 52700 INVESTIGATION SUPPLIES & EQUIPMENT 13,165 10,388 8,445 8,195 9,250 52800 FIREFIGHTING SUPPLIES & EQUIPMENT 41,709 34,433 41,850 41,850 30,700 52900 AMBULANCE SUPPLIES & EQUIPMENT 24,298 43,014 34,300 19,422 34,300 53099 ACTIVITIES & SUPPLIES 1,186 526 800 500 3,225 53100 ICE/SNOW CONTROL SUPPLIES 3,733 118,341 120,500 191,332 121,500 53300 SMALL TOOLS & EQUIPMENT 10,561 9,427 10,050 10,000 11,800 54000 UNIFORMS/PROTECTIVE CLOTHING 31,178 25,913 31,891 39,477 34,580 55000 FUEL, OIL, & LUBRICANTS 231,070 279,221 278,158 260,794 257,425 58110 DUI FINES EXPENDITURES 660 2,983 10,634 10,634 10,634 58120 ANTI‐CRIME EXPENDITURES 0 711 8,000 8,000 8,000 58130 CRIME LAB EXPENDITURES 3,196 0 4,150 4,150 1,000 58140 POLICE FORFEITURES EXPENDITURE 25,575 3,836 14,545 14,545 11,045 59999 COMMODITIES 6,742 5,643 5,084 5,360 5,360 COMMODITIES 841,629 888,567 1,031,725 996,961 1,022,886 CONTRACTUAL SERVICES 61100 MAINTENANCE‐GROUNDS 24,098 21,853 27,500 24,500 27,500 61300 MAINTENANCE‐BUILDINGS 59,316 58,385 68,950 62,150 81,700 61400 MAINTENANCE‐INFRASTRUCTURE 13,753 14,775 27,340 11,000 27,340 61420 MAINTENANCE‐STREETS 5,025 2,765 9,000 9,000 10,500 61430 MAINTENANCE‐STORM SEWERS 24,583 3,600 10,000 5,000 10,000 61450 MAINTENANCE‐SIDEWALKS 942 1,825 1,500 1,500 0 City of DeKalb 57 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 61500 MAINTENANCE‐EQUIPMENT 51,741 39,288 55,700 46,712 141,055 61599 WARNING SIRENS 6,480 6,480 6,600 6,480 6,600 61700 MAINTENANCE‐VEHICLES 100,429 121,432 124,324 145,229 147,729 61800 MAINTENANCE‐SOFTWARE 0 0 0 0 342,315 62099 PRINTED MATERIALS 49,471 39,221 51,423 39,645 35,953 62100 FINANCIAL SERVICES 37,530 32,247 32,688 33,580 33,369 62200 LEGAL SERVICES 185,854 179,736 196,070 195,655 195,000 62300 ARCHITECT/ENGINEERING SERVICES 134,463 103,131 128,000 128,000 131,200 62400 TECHNOLOGY SERVICES 29,550 9,302 8,394 3,225 19,820 62600 MEDICAL SERVICES 36,649 13,256 31,120 30,620 31,615 62700 HUMAN & SOCIAL SERVICES 151,500 144,500 144,500 144,500 150,000 62800 UNEMPLOYMENT INSURANCE SERVICES 32,338 4,588 7,300 10,000 10,000 62900 PERSONNEL RECRUITMENT SERVICES 31,667 29,273 50,480 20,000 40,876 63000 SPECIAL EVENT SERVICES 19,957 9,292 7,250 2,700 14,350 63100 FORESTRY SERVICES 42,346 12,329 57,000 57,000 90,000 63200 MOSQUITO ABATEMENT SERVICES 8,089 5,196 6,000 6,000 0 63300 NUISANCE ABATEMENT SERVICES 23,646 4,550 15,000 15,000 15,000 63400 SNOW REMOVAL SERVICES 18,020 48,088 10,000 12,300 80,000 63500 TOWING SERVICES 4,515 4,849 5,780 5,780 5,780 63600 WEATHER SERVICES 3,120 3,120 3,649 3,230 3,200 63700 DEVELOPMENTAL SERVICES 140,000 127,500 140,000 110,000 115,000 63750 DEMOLITION SERVICES 0 13,239 0 0 0 63800 CONTRACTED SERVICES 1,128,562 905,287 685,813 686,275 281,749 64000 UTILITIES 7,854 23,969 15,720 15,720 18,700 64100 ELECTRIC SERVICES 31,920 73,214 80,000 80,000 80,000 64500 TELEPHONE SERVICES 119,914 102,498 109,782 105,132 104,844 64600 CABLE/INTERNET SERVICES 0 0 0 0 1,500 65100 FREIGHT & POSTAGE 24,210 20,444 25,672 24,887 21,700 65200 MARKETING ADS & PUBLIC INFO 19,132 17,391 15,610 14,210 11,160 65300 LEGAL EXPENSES & NOTICES 15,715 18,602 25,180 20,978 23,883 65400 TAXES, LICENSES, & FEES 13,113 4,038 11,500 19,350 12,000 65500 RENTAL‐BLDG & EQUIP 250 672 1,400 1,150 1,400 66100 DUES & SUBSCRIPTIONS 54,276 49,127 32,931 25,938 30,318 66200 TRAINING/TRAVEL 137,515 121,440 188,417 130,890 169,810 66300 TRAVEL EXPENSES 0 0 3,000 2,500 2,500 66400 EDUCATION TUITION REIMBURSEMENT 25,910 24,068 0 0 0 68750 TAX SHARING AGREEMENTS 1,731,750 1,781,787 1,733,000 1,733,000 1,750,000 69200 SURETY BONDS 64,163 70,000 70,000 70,000 70,000 69700 SPECIAL PROJECTS 32,995 24,183 64,500 59,500 39,500 CONTRACTUAL SERVICES 4,642,361 4,290,540 4,288,093 4,118,336 4,384,966 EQUIPMENT 86000 EQUIPMENT 15,134 12,711 21,818 19,500 16,500 86100 TECHNOLOGY EQUIPMENT 28,370 16,871 18,800 18,000 18,000 86200 OFFICE FURNITURE & EQUIPMENT 8,965 6,409 3,058 1,550 0 86300 TELEPHONE & RADIO EQUIPMENT 45,976 44,658 56,876 56,776 5,500 87000 VEHICLES 136,329 0 0 0 0 EQUIPMENT 234,774 80,649 100,552 95,826 40,000 TRANSFERS OUT 91200 TRANSFER TO TRANSPORTATION FUND 11,370 0 0 0 0 91300 TRANSFER TO DEBT SERVICE FUND 1,756,998 1,801,827 1,801,827 1,889,733 1,662,007 91400 TRANSFER TO CAPITAL PROJECTS FUND 196,108 0 0 0 186,333 91410 TRANSFER TO FLEET FUND 81,674 0 0 0 0 91420 TRANSFER TO CAPITAL EQUIPMENT FUND 0 0 75,000 75,000 0 City of DeKalb 58 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 91650 TRANSFER TO AIRPORT FUND 0 610,000 0 0 51,000 91710 TRANSFER TO HEALTH INSURANCE FUND 0 250,000 0 0 0 TRANSFERS OUT 2,046,150 2,661,827 1,876,827 1,964,733 1,899,340 TOTAL GENERAL FUND EXPENDITURES 35,871,371 37,688,298 37,007,172 36,231,435 38,137,816 ESTIMATED REVENUES 35,716,047 36,017,347 37,856,172 38,252,522 38,267,257 EXPENDITURES 35,871,371 37,688,298 37,007,172 36,231,435 38,137,816 NET OF REVENUES/EXPENDITURES ‐ GENERAL FUND 100 (155,324) (1,670,951) 849,000 2,021,087 129,441 BEGINNING FUND BALANCE 7,402,850 9,423,944 ENDING FUND BALANCE 9,423,944 9,553,385 City of DeKalb 59 Proposed Budget Legislative _____________________________________________________________________________ Department Introduction The Legislative Department encompasses all activities of the City Council, which is the primary governing and policy-making body of the City. The City Council is elected for staggered four-year terms and is comprised of the Mayor, who is elected at-large, and seven Aldermen, who are elected by wards. The City Council conducts regular meetings and Committee of the Whole meetings on the second and fourth Mondays of each month. The City Clerk is also included in the Legislative Department. The City Clerk is elected at-large for a four- year term and is responsible for noting the voting record at City Council meetings, preparing minutes of City Council meetings, attesting the Mayor's signature, and applying the City Seal to ordinances, resolutions and agreements. All elected officials of the City are considered part-time and are compensated annually in an amount established by the DeKalb Municipal Code. The compensation of our elected officials for FY2020 is shown below: • Mayor $22,500 • Council Member $5,400 • City Clerk $8,000 The Legislative Department also includes funding for the DeKalb Municipal Band. The Band started in 1854 as the “DeKalb Silver Cornet Band” and it has existed continuously since that date making it the longest continuously serving municipal band in the State of Illinois. City of DeKalb 60 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 10‐10 ‐ LEGISLATIVE ‐ ELECTED OFFICALS EXPENDITURES 100‐10‐10‐41100 WAGES ‐ FULL‐TIME 0 0 0 0 0 100‐10‐10‐41200 WAGES ‐ PART‐TIME 63,915 63,150 64,885 64,885 64,885 100‐10‐10‐41300 WAGES ‐ OVERTIME 0 587 0 0 0 100‐10‐10‐42100 EMPLOYER PORTION FICA 4,891 4,873 5,225 5,225 5,225 100‐10‐10‐42200 EMPLOYER PORTION IMRF 0 86 0 0 0 100‐10‐10‐42500 EMPLOYEE HEALTH INSURANCE 0 0 0 0 0 100‐10‐10‐42600 WORKER'S COMPENSATION 0 0 0 0 0 100‐10‐10‐52000 OFFICE SUPPLIES 1,058 431 550 550 550 100‐10‐10‐53099 ACTIVITIES & SUPPLIES 0 0 0 0 200 100‐10‐10‐62099 PRINTED MATERIALS 657 0 240 250 200 100‐10‐10‐62200 LEGAL SERVICES 1,786 0 0 0 0 100‐10‐10‐62700 HUMAN & SOCIAL SERVICES 3,250 0 0 0 0 100‐10‐10‐63800 CONTRACTED SERVICES 0 0 0 0 0 100‐10‐10‐64500 TELEPHONE SERVICES 654 78 250 25 0 100‐10‐10‐65200 MARKETING ADS & PUBLIC INFO 400 0 0 0 0 100‐10‐10‐65300 LEGAL EXPENSES & NOTICES 844 3,269 2,500 3,500 4,500 100‐10‐10‐66100 DUES & SUBSCRIPTIONS 20,627 20,727 3,365 3,365 3,665 100‐10‐10‐66200 TRAINING/TRAVEL 11,319 9,357 9,720 8,000 11,420 100‐10‐10‐66300 TRAVEL EXPENSES 0 0 3,000 2,500 2,500 TOTAL EXPENDITURES 109,401 102,558 89,735 88,300 93,145 City of DeKalb 61 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 10‐11 ‐ LEGISLATIVE ‐ MUNICIPAL BAND EXPENDITURES 100‐10‐11‐53300 SMALL TOOLS & EQUIPMENT 0 0 0 0 0 100‐10‐11‐54000 UNIFORMS/PROTECTIVE CLOTHING 452 0 0 0 0 100‐10‐11‐59999 COMMODITIES 1,058 0 0 0 0 100‐10‐11‐63000 SPECIAL EVENT SERVICES 7,000 7,030 0 0 0 100‐10‐11‐63800 CONTRACTED SERVICES 48,525 43,250 38,250 38,250 43,250 TOTAL EXPENDITURES 57,035 50,280 38,250 38,250 43,250 City of DeKalb 62 Proposed Budget City Manager’s Office ______________________________________________________________________________ Department Introduction The City of DeKalb has operated under the Council-Manager form of government since 1961. Within this system of local government, the City Manager is the chief operating and administrative officer. All policymaking is performed by the elected Mayor and City Council (the “corporate authorities”), and the City Manager is responsible to the Council for the proper management and execution of all Council policies. The City Manager appoints and removes all officers, department heads, and employees of the City, with the exception of the City Clerk. The City Manager’s Office is responsible for coordinating the daily operations of all municipal departments. The City Manager has the authority to serve as acting department head during any department head vacancies or delegate such responsibilities. The authority of any department head or subordinate employee is derived from the authority of the City Manager and is subject to the oversight and supervision of the City Manager. The City Manager’s Office is also responsible for a broad range of administrative duties. These include records management, which involves preparing, maintaining and retaining many of the City’s records, such as City Council minutes, ordinances, resolutions, agreements, contracts, leases, bonds, deeds, easements, permits, and petitions, as well as assisting with administering the oaths of appointed and elected officials. The City Manager’s Office prepares ordinances and resolutions for City Council meetings; prepares and distributes City Council agendas as well as agendas for the TIF Joint Review Board, Finance Advisory Committee, Economic Development Commission and other volunteer committees. The Office is responsible for updates to the Municipal Code. The Office also serves as an appointed registrar for the County Clerk by registering voters and assists with accepting petitions from candidates for all City elections. The City Manager’s Office oversees the City’s mass communication and community engagement efforts, which include administration of the City’s website, social media platforms, employee intranet, and community e-newsletter. The Office staff manage all Freedom of Information Act (FOIA) requests except for those submitted to the Police Department and are responsible for coordination with department FOIA representatives to ensure responses are made to the requestors in a timely manner. The City Manager’s Office supports the work of the contracted City Attorney to prosecute all ordinance and code violations in court and in the administrative hearing process. The Office maintains all files related to current ordinance violations and administrative hearing cases, in addition to documenting and recording all liens or release of liens for properties within the City. The Office also maintains all files relating to pending City litigation in claims where the City Attorney represents the City's interest and coordinates the City's efforts in furtherance of such litigation. Office staff manage all primary interaction with the City's various insurers, including insurance renewal, claim submission, coordination of defense of claims, pre-litigation efforts to collect on damages owed to the City for property damage or subrogation related matters, and insurance coverage issues. The Office also conducts a preliminary review of all claims brought against the City, in evaluating whether to accept or reject such claims, or whether to submit them City of DeKalb 63 Proposed Budget to the City's insurers. The Office manages all bankruptcy filings, class action filings and related matters pertaining to City contractors, utility customers and other parties with whom the City has a contractual relationship. Further, the Office manages interaction with any state or federal agencies in any administrative or adjudicative proceedings. Staffing Level FY2018 FY2019 FY2020 FT 6 6 5 PT 2 1 1 Total 8 7 6 FY2019 Accomplishments Organizational Restructuring: On December 18, 2018, the Mayor and City Council tasked the newly appointed City Manager with the responsibility of reporting recommendations to stabilize the General Fund within 30 days of his effective start date of January 1, 2020. On January 28, the City Manager proposed a number of top management layoffs and froze a number of other top management positions that were approved by the Council. In the following months, the City Manager re-structured the Community Development and Public Works departments to sharpen management roles and leadership and ensure more responsive public service. As a result of these fiscal initiatives, and operational budget restraint across all operating departments, the City’s FY2019 Budget will end the year with a surplus, and the General Fund reserve balance will be restored to 25% of budgeted General Fund expenditures. More Transparent and Detailed Council Agenda Background: Beginning on January 14, 2019, persons interested in City Council proceedings were able to view an annotated Council Agenda with a brief summary of each item to come before the Council. Appointment of Fire Chief: On January 28, the City Council concurred in the City Manager’s recommendation to promote Deputy Chief Jeff McMaster to the position of Fire Chief, effective February 1, after serving in an interim capacity since the retirement of former Chief Eric Hicks in November of 2018. Appointment of Interim Police Chief: On May 28, the City Council concurred in the City Manager’s recommendation to promote Deputy Chief John Petragallo to the position of Interim Police Chief following the retirement of former Chief Gene Lowery. The appointment was effective on June 1. Transition to New Legal Counsel: The City Manager’s Office led the search for new City legal services upon the resignation of the former City Attorney, effective May 31, 2019. The search resulted in the Council’s appointment of the firm of Rosenthal, Murphey, Coblentz, and Donahue to perform the City’s legal services, effective June 1. Better Collaboration with Other Local Taxing Bodies: Following calls by other local taxing bodies in December 2018 to convene special meetings of the DeKalb TIF Joint Review Board (JRB), the new Administration convened three special meetings on January 25, February 1, and February 15, in addition to three quarterly JRB meetings on April 26, July 26, and October 25. The focus of the special meetings was to identify the principles and structure of the JRB going forward, and to ensure public accountability, fiscal accountability, and public transparency. As a result of these meetings, the City is now tracking monthly TIF expenditures for the JRB through monthly reports, and accounting for all City staff hours billed to the TIF program. Additionally, all JRB meetings are televised live. In the three quarterly meetings, much City of DeKalb 64 Proposed Budget was accomplished, including the orderly distribution of the TIF #2 surplus, support for the implementation of TIF #3, and routine reporting on the progress of the forensic TIF audit commissioned in May for both TIF #1 and TIF #2 for the period January 1, 2009 to December 31, 2018. The audit has been performed by Ernst & Young, LLP. The JRB also supported the Administration's recommendation to terminate TIF #1 at the end of 2021 instead of 2022, in lieu of a requirement to surplus TIF #3 funds over time. This initiative was approved by the Council on June 10. The City Manager’s Office also coordinated the TIF redevelopment program in 2019. Among the contributions was the negotiation, drafting, and implementation of a development agreement for the $3,000,000 redevelopment of the Mooney property, known as Agora Tower, and the $2,500,000 addition to the Egyptian Theatre, plus five Architectural Improvement Program grants totaling $48,500. Annie Glidden North (AGN) Steering Committee: The AGN Task Force was dissolved by the City Council on January 14. The AGN Steering Committee was organized on March 30 and included the City Manager. A status discussion involving about 30 AGN stakeholders was held on May 9 and, as a result, a renewed focus on the creation of a non-profit, community development corporation was pledged. A governing board for that corporation, “Opportunity DeKalb,” was organized in July and incorporation filings were made in the early Fall. The corporation’s program of work is in development. New City Hall: On May 28, the City Manager recommended and the Council unanimously approved a resolution to accept the transfer of the DeKalb Park District property at 164 E. Lincoln Highway (former Nehring/First National Bank building). Moving “city hall” from the present location at 200 S. Fourth Street to the downtown area will bring significant foot traffic to the downtown core during the regular workweek. The final transfer was approved by the Council on July 22 and by the Park Board on September 5. Related to this move, the Administration negotiated an intergovernmental agreement with the DeKalb Public Library Board to host Council and Plan Commission meetings in the Library’s Yasunas Room. This agreement was unanimously approved by the Council on July 22 and by the Library Board on August 14. Barb City Manor Lease: In May and June, the Administration negotiated a 10-year lease extension with Barb City Manor that was unanimously approved by the Council on June 24. Staff also worked closely with Barb City Manor to coordinate projects that would close out any remaining TIF #2 funds dedicated to facility improvements. Industrial Development: The Administration conducted negotiations with the Park 88 Group, LLC led by Mark Goode, to amend the 2004 development agreement. The purpose was to revise the original concept plan to recognize Park 88’s many successful parcel developments (e.g. Target, 3M) and feature the remaining developable parcels. The revised development plan and annexation agreement were unanimously approved by the Council on July 22. Since the spring of 2019, the City Manager has represented the City government in negotiations with two significant industrial prospects interested in the Chicago West Business Center, which is located south of I-88, between IL Rt. 23 and Crego Road. One is a food manufacturer hoping to develop a 1,222,400 square foot food distribution center and a 466,560 square foot packing center on approximately 106 acres north of Gurler Road, with later phases of development planned for the remaining acreage of the current Chicago West Business Center of 343 acres. The other is a knowledge-based company interested in developing on 300-400 acres immediately south of Gurler Road in what would be an extension of the Chicago West Business Center. City of DeKalb 65 Proposed Budget In anticipation of the food manufacturer’s commitment to DeKalb, the City Council reviewed and adopted amendments to the original Chicago West development and annexation agreements on October 28, to acknowledge the changed market interest just as they did with the Park 88 development. Landlord-Tenant Relations: In the fall of 2018, the community’s attention was drawn to a pattern of landlord neglect and cynical indifference to tenant health and safety at a number of large, multi-family rental properties owned by the Hunter management group. The Administration coordinated life-safety inspections with the collaboration of the Fire Department and legal services. The City’s Crime-Free Housing function was re-organized as a result and relocated to the Police Department from the Building Department so the staff can focus on its crime-free mission. Additionally, the Council directed the Administration to vigorously seek judgments brought against the offending property owners and managers and to enforce judgments through the courts if necessary. Sale of City Properties: On May 28, the Council authorized the City Manager to pursue marketing and real estate listing for the former City Hall Annex at 223 S. Fourth Street, and on August 12, the Council authorized the City Manager to pursue similar listings for seven additional properties. Since August, the City Council has accepted offers for five properties in the total amount of $219,800. Cannabis Dispensaries: The Administration prepared a Committee of the Whole presentation on August 12 and a regular Council meeting “Consideration” on September 9 to advance a local zoning and regulatory framework for the sale of recreational cannabis to adult users over 21 years of age in DeKalb. The Plan Commission recommended specific guidelines on October 9 and the Council polished and approved new guidelines over two meetings on October 28 and November 12. Syndeo: From July through September the Administration negotiated a ground lease with Syndeo Networks, Inc. for a portion of the City’s Airport maintenance property at 2200 Pleasant Street. On October 14 the Council approved the lease, authorizing Syndeo to build the City’s new data center as well as a hub for Syndeo’s fiber-optic network on the Airport property. Airport Upgrades: The Administration negotiated and the Council approved an agreement with the Daley Group on October 14 to help secure federal funds for nearly $9 million in Airport projects planned but not funded over the remaining two years of TIF #1. The consultancy will also pursue federal funding for DeKalb’s future transit center and food hub in the AGN neighborhood. New Debt Collection Process Implemented: On February 25 the City Council authorized an agreement with Municipal Collections of America (MCOA) to pursue outstanding accounts more expediently and with less cost. Under Illinois law, a collection fee can be added to debts placed for collection. If the debtor does not pay, MCOA receives no reimbursement. In addition, once a debt has been sent to collection, MCOA handles all payments and inquiries. Past due accounts include unpaid parking tickets, ambulance bills, and fines for local ordinance violations. FY2020 Initiatives 2020 Census Outreach: The City’s Complete Count Committee is committed to helping the Census Bureau get a complete count of the residents of DeKalb, beginning on April 1, 2020. For everyone that is counted, the City receives approximately $1,535 per capita according to the Illinois Department of Human Services. Maximum effort will be given to “hard to count” residents such as those who rent, children under 5, the homeless, low-income families, seniors, undocumented individuals, and others. City of DeKalb 66 Proposed Budget Relocation to New City Hall: The City’s administrative offices will be relocated to the Nehring building at 164 East Lincoln Highway in late January or early February. The City does not take possession until January 1, 2020, after which some internal improvements will be made, and the City’s IT Department will be busy making the transfer of the necessary infrastructure. Future Use of 200 S. Fourth Street Property: After the relocation of the City’s administrative offices, the City administration will bring options to market the former City Hall “block” to the City Council. Downtown Streetscape Upgrade and Reconfiguration. Preliminary concepts for making the downtown business district more “walkable” and a preferred destination for shopping, dining, renting and entertainment have been discussed with our downtown merchants and IDOT. Conceptual plans and funding options will be presented to the Council in late winter. Chicago West: The continuing market interest in this business park grows as DeKalb projects a more business-friendly posture. It is expected that considerable staff time will be devoted to the development of this area in 2020, and the coordination of that effort will fall to the City Manager’s Office. Park 88: The further development of infill lots suitable for large-scale distribution and manufacturing is expected and will be strongly encouraged. City of DeKalb 67 Proposed Budget  City Manager’s Office City Manager Executive Assistant Assistant City Manager Assistant Human Employment Management Resources Coordinator Analyst Director Intern - NIU Administrative Management Grant (PT) Assistant Intern (PT) City of DeKalb 68 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 15‐12 ‐ CITY MANAGERS OFFICE ‐ ADMINISTRATION EXPENDITURES 100‐15‐12‐41100 WAGES ‐ FULL‐TIME 510,591 436,486 399,808 351,681 400,198 100‐15‐12‐41200 WAGES ‐ PART‐TIME 30,589 30,504 21,936 18,685 15,485 100‐15‐12‐41300 WAGES ‐ OVERTIME 7,905 9,316 9,345 9,500 550 100‐15‐12‐41550 CAR ALLOWANCE 7,749 3,009 6,166 2,700 2,700 100‐15‐12‐42100 EMPLOYER PORTION FICA 36,908 33,606 35,418 32,500 31,263 100‐15‐12‐42200 EMPLOYER PORTION IMRF 78,783 65,362 59,496 48,500 60,307 100‐15‐12‐42500 EMPLOYEE HEALTH INSURANCE 78,554 77,652 63,563 63,563 52,705 100‐15‐12‐42600 WORKER'S COMPENSATION 1,074 1,074 1,074 1,074 1,074 100‐15‐12‐51000 BOARDS & COMMISSIONS 0 0 0 0 0 100‐15‐12‐52000 OFFICE SUPPLIES 3,036 509 1,200 500 1,250 100‐15‐12‐53099 ACTIVITIES & SUPPLIES 1,186 526 800 500 2,025 100‐15‐12‐61500 MAINTENANCE‐EQUIPMENT 3,445 313 300 0 0 100‐15‐12‐62099 PRINTED MATERIALS 7,542 2,314 3,450 3,000 1,770 100‐15‐12‐62200 LEGAL SERVICES 182,708 178,598 195,252 195,000 195,000 100‐15‐12‐62900 PERSONNEL RECRUITMENT SERVICES 0 0 0 0 0 100‐15‐12‐63000 SPECIAL EVENT SERVICES 10,526 1,741 5,150 1,500 2,400 100‐15‐12‐63800 CONTRACTED SERVICES 10,526 0 0 0 1,000 100‐15‐12‐64500 TELEPHONE SERVICES 5,126 3,928 5,160 2,750 2,400 100‐15‐12‐65100 FREIGHT & POSTAGE 106 14 150 150 150 100‐15‐12‐65200 MARKETING ADS & PUBLIC INFO 0 0 250 250 1,250 100‐15‐12‐65300 LEGAL EXPENSES & NOTICES 10,330 10,824 18,000 15,000 15,000 100‐15‐12‐66100 DUES & SUBSCRIPTIONS 7,911 2,790 4,170 2,500 2,740 100‐15‐12‐66200 TRAINING/TRAVEL 13,607 8,742 6,150 3,000 4,850 100‐15‐12‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐15‐12‐69700 SPECIAL PROJECTS 0 12,500 24,500 24,500 29,500 100‐15‐12‐86200 OFFICE FURNITURE & EQUIPMENT 625 1,133 500 500 0 TOTAL EXPENDITURES 1,008,827 880,941 861,838 777,353 823,617 City of DeKalb 69 Proposed Budget Human Resources ______________________________________________________________________________ Introduction The City Manager’s Office is also responsible for the human resource functions of the City. The purpose of Human Resources (HR) is to administer all aspects of personnel services, including recruitment, selection and retention, management of employee benefits programs, workers’ compensation administration, occupational health and wellness programs and participation in labor-management and contract administration for three bargaining units (AFSCME, FOP and IAFF). HR is responsible for establishing, administering and effectively communicating sound employment policies, rules and practices that treat employees with dignity, respect and equality. This occurs while maintaining the City’s compliance with all employment and labor laws, management directives and labor agreements. Additionally, HR administers personnel management systems and employee orientation and training. HR also works to attract potential employees by disseminating employment information to colleges, universities, municipalities and media as well as assisting prospective employees through the recruitment process. Staffing Level FY2018 FY2019 FY2020 FT 2 2 2 PT 3 1 1 Total 5 3 3 FY2019 Accomplishments Recruitment and Job Evaluation: HR processed the hiring and onboarding of new employees in several departments across the organization. HR continues to work with departments to help fill positions as they become open. The process includes the review and updating of job descriptions, job analysis to ensure proper placement of positions in the City’s salary ranges, and conducting market surveys to ensure competitiveness and internal equity. Public Safety Recruitment: As a result of entry-level Police Officer testing completed at the end of FY2018 and ongoing certified Police Officer recruitment, currently five new Police Officers have been hired in FY2019 to fill positions vacated by retirements. Testing for Telecommunicators was also performed in FY2019 with the hiring of three new Telecommunicators to fill open positions. BS&A HR Module Implementation: The HR module provided through BS&A Software was implemented during the second quarter of FY2019. The HR module allows for easier sharing of information, the ability to track current employee records and historical information in a central location, and enhanced headcount tracking and reporting. The employee self-service option allows employees to request changes to their personal information, check leave balances, etc. while reducing HR manual entry. Compliance and Regulatory: FY2019 brought many enacted and upcoming federal and state legislative changes that impact employment policies and practices. HR revised the City application and interview practices to ensure compliance with the amendments to the Equal Pay Act and reviewed current pay City of DeKalb 70 Proposed Budget practices to ensure adherence to the Illinois Minimum Wage Law and the Fair Labor Standards Act revised salary exemption. HR also updated the City’s CDL program to ensure compliance with all regulatory and training requirements. Labor Relations: The Fraternal Order of Police and City management representatives completed Interest- Based Bargaining (IBB) training and began the IBB process with a goal to reach a collaborative collective bargaining agreement. Labor-management meetings have continued between management and AFSCME to maintain communications and to cooperatively discuss and resolve concerns that may arise, and the City continues to work with IAFF to maintain a collaborative relationship and address labor-management matters as they arise. Health Insurance Committee: HR reestablished the employee Health Insurance Committee with representation across all bargaining and non-bargaining units. Quarterly meetings were held to increase employee communication, promote wellness initiatives, and educate employees about benefits options. FY2020 Initiatives Performance Evaluations: As part of the FY2019 budget, the on-line performance management program was eliminated as part of cost containment efforts. With major reorganizational activities occurring in FY2019, the City decided to temporarily suspend employee performance evaluations to ensure equity across the organization as many employees had new managers and ever-changing responsibilities. Based on employee and managerial feedback, HR spent time in FY2019 identifying a performance evaluation tool that set clear, relatable performance expectations for each employee and allowed two-way feedback regarding employee performance. After further internal review and approval by the City Manager, HR plans to roll out the new evaluation form in the first quarter of 2020 to allow managers and employees to collaboratively set goals and identify primary areas of responsibility. Illinois Cannabis Regulation and Tax Act and Employee Impacts: Effective January 1, 2020, the Illinois Cannabis Regulation and Tax Act amends the state’s Right to Privacy in the Workplace Act and makes it illegal for employers to discriminate against employees for use of “lawful products” including cannabis. HR will be reviewing and updating the Drug and Alcohol Usage Policy and educating supervisors and employees on how to spot signs of cannabis impairment and establishing procedures for documenting and reporting observations. City of DeKalb 71 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 15‐16 ‐ CITY MANAGERS OFFICE ‐ HR EXPENDITURES 100‐15‐16‐41100 WAGES ‐ FULL‐TIME 0 0 132,229 118,838 134,863 100‐15‐16‐41200 WAGES ‐ PART‐TIME 0 0 10,000 16,750 13,487 100‐15‐16‐41300 WAGES ‐ OVERTIME 0 0 0 0 0 100‐15‐16‐42100 EMPLOYER PORTION FICA 0 0 13,086 10,500 11,349 100‐15‐16‐42200 EMPLOYER PORTION IMRF 0 0 15,855 15,214 20,081 100‐15‐16‐42500 EMPLOYEE HEALTH INSURANCE 0 0 20,817 20,820 21,644 100‐15‐16‐42600 WORKER'S COMPENSATION 0 0 193 193 193 100‐15‐16‐51000 BOARDS & COMMISSIONS 0 0 2,235 360 1,435 100‐15‐16‐52000 OFFICE SUPPLIES 0 0 500 250 320 100‐15‐16‐62099 PRINTED MATERIALS 0 0 1,650 150 150 100‐15‐16‐62600 MEDICAL SERVICES 0 0 5,500 5,000 5,200 100‐15‐16‐62800 UNEMPLOYMENT INSURANCE SERVICES 0 0 7,300 10,000 10,000 100‐15‐16‐62900 PERSONNEL RECRUITMENT SERVICES 0 0 50,480 20,000 40,876 100‐15‐16‐63000 SPECIAL EVENT SERVICES 0 0 2,100 1,200 1,950 100‐15‐16‐64500 TELEPHONE SERVICES 0 0 1,200 750 720 100‐15‐16‐65100 FREIGHT & POSTAGE 0 0 275 275 250 100‐15‐16‐65300 LEGAL EXPENSES & NOTICES 0 0 0 0 600 100‐15‐16‐66100 DUES & SUBSCRIPTIONS 0 0 965 950 965 100‐15‐16‐66200 TRAINING/TRAVEL 0 0 5,625 2,300 7,800 TOTAL EXPENDITURES 0 0 270,010 223,550 271,883 City of DeKalb 72 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 16‐12 ‐ HUMAN RESOURCES EXPENDITURES 100‐16‐12‐41100 WAGES ‐ FULL‐TIME 178,929 144,261 0 0 0 100‐16‐12‐41200 WAGES ‐ PART‐TIME 61,537 64,525 0 0 0 100‐16‐12‐41300 WAGES ‐ OVERTIME 0 191 0 0 0 100‐16‐12‐41550 CAR ALLOWANCE 3,428 2,373 0 0 0 100‐16‐12‐42100 EMPLOYER PORTION FICA 18,230 15,679 0 0 0 100‐16‐12‐42200 EMPLOYER PORTION IMRF 32,932 26,938 0 0 0 100‐16‐12‐42500 EMPLOYEE HEALTH INSURANCE 16,796 19,268 0 0 0 100‐16‐12‐42600 WORKER'S COMPENSATION 193 193 0 0 0 100‐16‐12‐51000 BOARDS & COMMISSIONS 856 1,164 0 0 0 100‐16‐12‐52000 OFFICE SUPPLIES 1,055 439 0 0 0 100‐16‐12‐62099 PRINTED MATERIALS 940 527 0 0 0 100‐16‐12‐62100 FINANCIAL SERVICES 2,500 0 0 0 0 100‐16‐12‐62600 MEDICAL SERVICES 8,484 2,021 0 0 0 100‐16‐12‐62800 UNEMPLOYMENT INSURANCE SERVICES 32,338 4,588 0 0 0 100‐16‐12‐62900 PERSONNEL RECRUITMENT SERVICES 31,667 29,273 0 0 0 100‐16‐12‐63000 SPECIAL EVENT SERVICES 1,818 459 0 0 0 100‐16‐12‐64500 TELEPHONE SERVICES 1,506 1,164 0 0 0 100‐16‐12‐65100 FREIGHT & POSTAGE 51 0 0 0 0 100‐16‐12‐65300 LEGAL EXPENSES & NOTICES 0 600 0 0 0 100‐16‐12‐66100 DUES & SUBSCRIPTIONS 1,227 845 0 0 0 100‐16‐12‐66200 TRAINING/TRAVEL 9,349 4,592 0 0 0 100‐16‐12‐66400 EDUCATION TUITION REIMBURSEMENT 25,910 23,641 0 0 0 100‐16‐12‐86200 OFFICE FURNITURE & EQUIPMENT 0 367 0 0 0 TOTAL EXPENDITURES 429,746 343,108 0 0 0 City of DeKalb 73 Proposed Budget Finance Department ________ ___________________________________________________________________ Department Introduction The Finance Department is responsible for the administration of all fiscal operations and maintenance of all accounting records for the City as well as providing “front counter” customer service at City Hall during regular business hours. The Department is dedicated to maintaining a fiscally sound government organization that adheres to legal requirements and financial management principles, and apply such resources in a manner which is most beneficial to the residents and businesses of DeKalb. Routine responsibilities of the Department include the following: cash and investment management, budgeting, auditing, debt administration, bi-weekly payroll processes, accounts payable/accounts receivable, utility billing, local tax collection and regulation, property tax levy preparation, and the auditing of Illinois Motor Fuel Tax funds. The Department is dedicated to providing residents and businesses with exceptional government financial management. The Department's commitment to financial excellence has been recognized nationally by the Government Finance Officers Association (GFOA), which has presented the Department with the Certificate for Excellence in Financial Reporting for its Comprehensive Annual Financial Report (CAFR) and the Distinguished Budget Presentation Award. Staffing Level FY2018 FY2019 FY2020 FT 7 6 5 PT 2 2 2 Total 9 8 7 FY2019 Accomplishments Attained a 25% General Fund balance reserve level: The City has financial policies that have been incorporated within the budget document and are based on “Best Practices” formulated by the Government Finance Officers Association (GFOA). One of the policies is to attain and maintain a reserve level in the General Fund at 25% of annual expenditures. This was achieved in FY2016 and was maintained through the budget process for fiscal years 2016.5, and 2017. The City Council did not budget the required reserve level in 2019. However, through some extraordinary personnel adjustments and constrained department spending, it is projected that the reserve will be restored by the end of 2019 and in 2020. Conversion from an outdated Financial Software system to an Enterprise Resource Planning (ERP) system: The Finance staff completed the conversion to a new, true ERP system. This conversion has automated many financial practices previously done with Excel or Access, increased the level of customer service by having more on-line payment and inquiry capabilities for residents and business owners of the City, and created efficiencies between departments. This major initiative began in 2018 when the City upgraded the General Ledger application, Accounts Payable, Accounts Receivable, Utility Billing, Licensing, Tax Collections, and Cash Receipting as well as streamlined several current practices. In 2019, the final stages of the conversion included Payroll and several Human Resource applications, and were completed. City of DeKalb 74 Proposed Budget Credit Card payment upgrade: The City implemented an online payment solution in tandem with the ERP conversion noted above. With this system, the chosen vendor processes the payments, updating our software applications in real-time, thus giving our customer support staff the most current information to provide a higher level of service to our customers. This first step allows us to accept online payments (credit card & ACH) and phone payments for our utility billing customers. The City also rolled out an online payment solution for our administrative hearing cases and parking tickets. Once again, this solution updates our software application in real-time. Department Re-Organization: In order to meet the fiscal challenges facing the City in 2019, the City Manager implemented a reorganization of the Finance Department. This included the elimination of the Director and Assistant Director positions. The Department now operates under the oversight of the Assistant City Manager, with operating assistance from the Senior Accountant. Forensic TIF Audit: In 2019, at the request of several local taxing districts, the City agreed to a forensic audit of tax increment financing funds. Finance staff worked with auditors from Ernst & Young to gather historical records for the City’s two TIF funds for the period 2009 to 2018. The forensic nature of this audit required much greater depth than a typical financial audit, and staff spent considerable time locating and providing records to justify expenditures out of the TIF funds. FY2020 Initiatives Bringing the City’s Bond rating back to Aa3: In September 2018, the City’s bond rating was downgraded from Aa3 to A1 with a “negative outlook” by Moody’s Investors Service based on the large pension liability the City has shown for the Police and Fire Pension Funds. In FY2020, the City goes back to funding these two pension funds to a greater extent through the property tax levy with a higher funding commitment. In 2010, the City dropped to the lower funding method that is allowable in the State of Illinois to fund these two pension funds. By changing to a higher funding method, increasing the City reserves and reviewing all actuarial assumptions used to calculate the pension obligation annually, the City is hopeful it can push this rating back up to at least Aa3 in the next couple of years. A number of key factors can help in the short run: maintaining the City’s commitment to a 25% General Fund reserve ratio; reducing the City’s debt (accomplished with the 2019 Refunding Bond issue in October, 2019), and expanding and diversifying the property tax base. Investment Management: In 2020, the Department will look to improve the City’s investment income by seeking investments that yield a higher rate of return than what has been achieved in recent years. In past years, the City held a portfolio of fixed-income investments, primarily Certificates of Deposit; however, most of those instruments were cashed out upon maturity and were not reinvested due to the low interest rate environment. Capital Leasing Program: In an effort to stretch the available funding dedicated to fleet and capital equipment replacement, the Department will continue to investigate the possibility of instituting a capital leasing program. Fleet leasing is becoming increasingly popular in the government space. This model may help the City, from a cash flow perspective, replace more vehicles in a shorter timeframe than would otherwise be possible paying full purchase price upfront. City of DeKalb 75 Proposed Budget  Finance Department Assistant City Manager Senior Accountant Accountant Customer Service Account Tech II - Account Tech I - Account Tech II - Representative AP/AR UB Payoll & Licensing (2 PT) City of DeKalb 76 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 17‐12 ‐ FINANCE DEPARTMENT EXPENDITURES 100‐17‐12‐41100 WAGES ‐ FULL‐TIME 330,192 301,243 304,510 217,923 182,581 100‐17‐12‐41200 WAGES ‐ PART‐TIME 14,447 2,509 2,910 2,910 2,966 100‐17‐12‐41300 WAGES ‐ OVERTIME 1,213 1,792 2,500 4,750 5,000 100‐17‐12‐41400 LONGEVITY PAY 291 0 0 0 0 100‐17‐12‐41550 CAR ALLOWANCE 2,088 2,857 2,857 1,594 0 100‐17‐12‐42100 EMPLOYER PORTION FICA 24,350 22,290 23,518 16,356 14,577 100‐17‐12‐42200 EMPLOYER PORTION IMRF 45,413 44,578 39,640 21,781 28,372 100‐17‐12‐42500 EMPLOYEE HEALTH INSURANCE 40,301 66,013 63,468 63,468 49,756 100‐17‐12‐42600 WORKER'S COMPENSATION 1,027 1,027 1,027 1,027 1,027 100‐17‐12‐51600 SUPPLIES/PARTS‐TECHNOLOGY 0 0 0 0 0 100‐17‐12‐52000 OFFICE SUPPLIES 1,987 930 4,200 2,500 6,000 100‐17‐12‐61500 MAINTENANCE‐EQUIPMENT 6,886 5,050 4,505 5,385 5,386 100‐17‐12‐62099 PRINTED MATERIALS 11,062 6,861 14,980 7,500 5,870 100‐17‐12‐62100 FINANCIAL SERVICES 35,030 32,247 32,688 33,580 33,369 100‐17‐12‐63000 SPECIAL EVENT SERVICES 0 62 0 0 0 100‐17‐12‐63800 CONTRACTED SERVICES 86,060 24,788 0 0 0 100‐17‐12‐64500 TELEPHONE SERVICES 950 1,178 700 208 0 100‐17‐12‐65100 FREIGHT & POSTAGE 11,005 11,000 14,100 14,100 14,100 100‐17‐12‐65300 LEGAL EXPENSES & NOTICES 1,457 1,478 1,705 1,628 1,765 100‐17‐12‐66100 DUES & SUBSCRIPTIONS 1,680 2,080 1,555 810 905 100‐17‐12‐66200 TRAINING/TRAVEL 3,250 4,899 9,000 2,000 3,700 100‐17‐12‐86100 TECHNOLOGY EQUIPMENT 0 0 0 0 0 100‐17‐12‐86200 OFFICE FURNITURE & EQUIPMENT 6,361 3,894 0 0 0 TOTAL EXPENDITURES 625,050 536,776 523,863 397,520 355,374 City of DeKalb 77 Proposed Budget Information Technology Department ______________________________________________________________________________ Department Introduction Information Technology (IT) is responsible for the City’s core technology and ensures data is collected, stored, protected and available for use by the City staff, elected officials, residents, businesses and other stakeholders. While IT does purchase, fix, and maintain computers, laptops, phones, servers and other electronic devices, the department does much more for the City organization. The first and foremost responsibility for IT is providing the capability to collect, protect, and allow access to data. Technology is the vehicle to provide City decision-makers access to data and IT strives to not only streamline that process, but also to increase the amount of information available. IT is responsible for the confidentiality and integrity of the City’s data through policy and technology. Additionally, IT facilitates and encourages collaboration and data sharing within the City and with external customers and agencies. IT also evaluates processes to find efficiencies to save the City money and time and to facilitate customer service. The IT Department is constantly evaluating current processes, data collection and use, current technology and service capabilities in order to increase efficiencies, assist stakeholders with better information, keep with evolving technology trends and ensure maximum uptime of technology. Staffing Level FY2018 FY2019 FY2020 FT 4 4 3 PT 0 0 1 Total 4 4 4 FY2019 Accomplishments Enterprise Resource Planning: Enterprise Resource Planning (ERP) is a software solution that moved City operations to a central software platform. This project has been fully implemented. All departments are using this new software which provides efficiencies and improvements to all processes within the City of DeKalb. Microsoft Office 365: This project has moved into an advanced phase. The use of SharePoint within departments has provided a collaboration tool for communications and document sharing. SharePoint has also been used to create a new Intranet for city employees to get information, forms from Human Resources or Finance, and learn about events happening in all departments. SharePoint implementation has provided new ways to communicate and collaborate for all employees. City of DeKalb 78 Proposed Budget Redesigned City Website: As part of the initial contract with CivicPlus, a redesign of the City website was implemented in 2019. Working with internal departments and outside contributors, a redesign of the website has been completed. This redesign provides better communication to the public and allows them to access the information they desire easier. The redesign provides a fresh look that is accessible to all digital platforms that include phones, tablets, computers, etc. Disaster Recovery/Business Continuity: Identical Unified Computer Systems with a Storage Area Network has been installed at City Hall as well as the Police Department. Snapshots of the systems are created every 4 hours and then replicated to their partner in the other building. This provides replication of the systems with each other to ensure disaster recovery as well as business continuity. Geographic Information Systems: Implementing the “Collector” application provided by Environmental Systems Research institute (ESRI) for mobile GIS has greatly benefitted Public Works because those personnel are able to add and update the City’s GIS features directly in real time while out in the field. Additionally, Collector was installed on the City’s engineering-grade GPS devices allowing positions of land features to be captured within an accuracy of one inch. The Utility Division staff are now able to easily and accurately update our water-related GIS features such as hydrants, valves, and water main lines among many others. Squad Car Camera Systems Upgrade: IT assisted in the implementation of high-definition (HD) camera systems in new squad cars that require a server and storage upgrade. This allows for the continued installation of high definition systems in existing squad cars and new cars as they are purchased. The server system is also compatible with existing in-car video systems to allow the continued use of those recording devices. It provides a visual representation of events that occur in and around the squad cars for our Police officers. Ambulance Software Transition: IT facilitated the transition to new ambulance software. This required the installation and configuration of new tablets in all six ambulances and implementation of data-sharing with our Computer Aided Dispatching software. The result is faster sharing of information from dispatch or medical providers to the paramedics who are providing care to people in need. FY2020 Initiatives Data Analysis: IT has placed an increasing importance on data over the past two years. The IT staff have worked to build a foundation by implementing the BS&A Software ERP, SmartGov, Incode, and Office 365, and next steps will be formulated for 2020. The first item is data relationship-building using a data warehouse. A data warehouse is a repository for data from several disparate data sources. From the data warehouse, tools can be used in a much easier fashion to query, display, and visualize the City’s data, and centralize base data such as addressing for consistency. Initially, IT plans to use small datasets from different systems and begin building automated processes. Once refined, the processes can be expanded to more data sources to provide more useable data to combine, report, and visualize information. City Hall Move: IT will help facilitate the move of City Hall to 164 E. Lincoln Highway. We will be ensuring the technological backbone of the building itself to ensure our users have uninterrupted access to all of their resources. The implementation of new fiber to connect to our existing infrastructure and buildings will provide for our future needs. We will also be moving our City Hall datacenter to the Airport property to provide geodiversity for our data. Replication between the new location at the Airport and the Police City of DeKalb 79 Proposed Budget Department is essential for disaster recovery purposes. The backbone to implement this plan will need to be engineered and implemented. Channel 14 Broadcast and Recording Equipment: With the move of City Hall, our broadcast meetings will also be moved to the Yasunas Room in the lower level of the Dekalb Public Library. The equipment to record and broadcast Channel 14 is over 10 years old and has reached the end of its useful life. IT will need to replace the equipment with updated cameras and wiring, consolidate the number of cameras, and change the recording, scheduler, and character generation equipment. This is the perfect time to implement this change to our system. It should be noted that the City’s investment will enable the Library to broadcast special events or meetings. Public Safety Body Cameras: IT will assist in developing a pilot body camera program to be initiated by the Police Department. This initiative will provide analysis of usage, data needs, cost, and feasibility of the system. This would require new hardware, installation, maintenance, training, storage and policies. The purpose of the pilot program is to determine if full implementation could be fiscally possible in the future. Geographic Information Systems (GIS): The IT Department’s largest GIS commitment for 2020 is more comprehensive online mapping. This will include more interactive maps with a greater amount of content for both people within the organization and the public. A major initiative to realize this commitment is to install Portal for ArcGIS, which controls data security for both internal and external users. An emphasis will be placed on using Story Maps to convey information in an easily consumable format on the internet so City staff can educate stakeholders on the City’s initiatives, information, and resources. Enhanced data initiatives in 2020 include adding building footprints, updating the tree inventory, and special use permits. The GIS will also be used as a repository for all zoning district ordinance changes, geographically linking PDFs of the approved City Council ordinances for easy retrieval. City of DeKalb 80 Proposed Budget  Information Technology Department Assistant City Manager Technical Services Supervisor Planning Technician Multimedia IT Technician (GIS/Database) Technician (PT) City of DeKalb 81 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 17‐19 ‐ FINANCE DEPARTMENT ‐ IT EXPENDITURES 100‐17‐19‐41100 WAGES ‐ FULL‐TIME 278,074 311,057 0 0 0 100‐17‐19‐41300 WAGES ‐ OVERTIME 2,897 9,901 0 0 0 100‐17‐19‐41400 LONGEVITY PAY 3,212 4,026 0 0 0 100‐17‐19‐41500 CLOTHING ALLOWANCE 1,295 900 0 0 0 100‐17‐19‐41550 CAR ALLOWANCE 2,857 2,857 0 0 0 100‐17‐19‐42100 EMPLOYER PORTION FICA 20,857 23,801 0 0 0 100‐17‐19‐42200 EMPLOYER PORTION IMRF 43,028 47,413 0 0 0 100‐17‐19‐42500 EMPLOYEE HEALTH INSURANCE 59,284 56,638 0 0 0 100‐17‐19‐42600 WORKER'S COMPENSATION 2,498 2,498 0 0 0 100‐17‐19‐51600 SUPPLIES/PARTS‐TECHNOLOGY 43,697 26,188 0 0 0 100‐17‐19‐51700 SUPPLIES/PARTS‐VEHICLES 0 0 0 0 0 100‐17‐19‐52000 OFFICE SUPPLIES 1,146 1,439 0 0 0 100‐17‐19‐53300 SMALL TOOLS & EQUIPMENT 338 782 0 0 0 100‐17‐19‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 0 0 0 100‐17‐19‐55000 FUEL, OIL, & LUBRICANTS 120 199 0 0 0 100‐17‐19‐61500 MAINTENANCE‐EQUIPMENT 7,301 5,946 0 0 0 100‐17‐19‐61700 MAINTENANCE‐VEHICLES 0 0 0 0 0 100‐17‐19‐62099 PRINTED MATERIALS 9,929 6,921 0 0 0 100‐17‐19‐62400 TECHNOLOGY SERVICES 19,441 4,530 0 0 0 100‐17‐19‐63000 SPECIAL EVENT SERVICES 613 0 0 0 0 100‐17‐19‐63800 CONTRACTED SERVICES 316,452 345,076 0 0 0 100‐17‐19‐64500 TELEPHONE SERVICES 28,247 19,088 0 0 0 100‐17‐19‐65100 FREIGHT & POSTAGE 119 69 0 0 0 100‐17‐19‐66100 DUES & SUBSCRIPTIONS 405 300 0 0 0 100‐17‐19‐66200 TRAINING/TRAVEL 4,853 543 0 0 0 100‐17‐19‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐17‐19‐86100 TECHNOLOGY EQUIPMENT 28,370 16,871 0 0 0 100‐17‐19‐86200 OFFICE FURNITURE & EQUIPMENT 153 0 0 0 0 100‐17‐19‐86300 TELEPHONE & RADIO EQUIPMENT 3,369 680 0 0 0 TOTAL EXPENDITURES 878,555 887,723 0 0 0 City of DeKalb 82 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 19‐19 ‐ INFORMATION AND TECHNOLOGY EXPENDITURES 100‐19‐19‐41100 WAGES ‐ FULL‐TIME 0 0 315,404 246,130 225,542 100‐19‐19‐41200 WAGES ‐ PART‐TIME 0 0 0 0 15,000 100‐19‐19‐41300 WAGES ‐ OVERTIME 0 0 20,000 2,500 7,500 100‐19‐19‐41400 LONGEVITY PAY 0 0 4,289 4,289 4,355 100‐19‐19‐41500 CLOTHING ALLOWANCE 0 0 900 900 900 100‐19‐19‐41550 CAR ALLOWANCE 0 0 2,857 593 0 100‐19‐19‐42100 EMPLOYER PORTION FICA 0 0 24,939 18,233 19,377 100‐19‐19‐42200 EMPLOYER PORTION IMRF 0 0 38,802 30,116 35,482 100‐19‐19‐42500 EMPLOYEE HEALTH INSURANCE 0 0 58,543 58,543 43,646 100‐19‐19‐42600 WORKER'S COMPENSATION 0 0 2,498 2,498 2,498 100‐19‐19‐51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 4,000 100‐19‐19‐51600 SUPPLIES/PARTS‐TECHNOLOGY 0 0 26,960 25,000 25,000 100‐19‐19‐52000 OFFICE SUPPLIES 0 0 1,600 500 500 100‐19‐19‐53300 SMALL TOOLS & EQUIPMENT 0 0 300 300 300 100‐19‐19‐55000 FUEL, OIL, & LUBRICANTS 0 0 166 166 175 100‐19‐19‐61500 MAINTENANCE‐EQUIPMENT 0 0 8,913 8,913 52,865 100‐19‐19‐61800 MAINTENANCE‐SOFTWARE 0 0 0 0 342,315 100‐19‐19‐62099 PRINTED MATERIALS 0 0 8,000 8,000 8,000 100‐19‐19‐62400 TECHNOLOGY SERVICES 0 0 3,000 1,000 19,820 100‐19‐19‐63800 CONTRACTED SERVICES 0 0 392,519 426,804 25,075 100‐19‐19‐64500 TELEPHONE SERVICES 0 0 25,410 25,000 25,000 100‐19‐19‐64600 CABLE/INTERNET SERVICES 0 0 0 0 1,500 100‐19‐19‐65100 FREIGHT & POSTAGE 0 0 600 100 250 100‐19‐19‐66100 DUES & SUBSCRIPTIONS 0 0 800 400 1,090 100‐19‐19‐66200 TRAINING/TRAVEL 0 0 3,600 1,500 3,000 100‐19‐19‐86100 TECHNOLOGY EQUIPMENT 0 0 18,800 18,000 18,000 100‐19‐19‐86300 TELEPHONE & RADIO EQUIPMENT 0 0 4,100 4,000 0 TOTAL EXPENDITURES 0 0 963,000 883,485 881,190 City of DeKalb 83 Proposed Budget Police Department ______________________________________________________________________________ Department Introduction The Police Department is responsible for serving and protecting local residents, local businesses, and visitors to our City. The department is obligated to preserve the peace, enforce laws and ordinances, and protect the constitutional rights of all people. The Police Department seeks to employ effective policing strategies, develop community partnerships, and engage in the efficient deployment of resources to fulfill our vision and mission statements. The Police Department’s Vision Statement is: “A city where our families, businesses, and culture prosper in an environment in which all people are treated with dignity, equity, and respect.” Our Mission Statement is: “The members of the DeKalb Police Department are committed to reducing crime and enhancing the quality of life through an active partnership with our community.” To realize this Vision and Mission the Department must work in partnership with our community. Therefore, the Police Department embraces Intelligence-Driven Policing, Community Policing, Co-Policing, and the best practices in proactive policing to reduce crime, improve public safety, and enhance our quality of life. Staffing Level FY2018 FY2019 FY2020 FT 80 80 80 PT 15 14 16 Total 95 94 96 FY2019 Accomplishments Project H.O.P.E. (Heroin/Opioid Outreach Prevention and Education): Project H.O.P.E. has been in effect for approximately one year. Project H.O.P.E. strives to intercept opioid abuse at the earliest point possible by getting opioid users into treatment prior to entering the criminal justice system. The program has helped place 11 people into various addiction treatment facilities in the past year. Additionally, the program has provided information and assistance to numerous others seeking help. In the battle against the opioid epidemic, the Police Department has continued to partner with other organizations including the DeKalb County Health Department, the DeKalb County State’s Attorney’s Office, DeKalb County Probation Office, and Northern Illinois University. The Police Department helps to educate the community about the opioid epidemic by participating in presentations such as the NIU STEM Café and helping the DeKalb County Health Department provide training on the use of lifesaving NARCAN medication. The Police Department plans to expand Project H.O.P.E. throughout the county and will work with area law enforcement agencies to train other officers on how to place those in need into treatment centers. Safe Streets Initiative: In 2018, the Police Department implemented the Safe Streets Initiative to reduce crime and enhance the quality of life in the northwest quadrant of the City. This area, year-to-year, has had the highest call volume, crime, and demand for public safety services in the City. The Safe Streets City of DeKalb 84 Proposed Budget Initiative is a comprehensive policing strategy that combines a variety of proactive policing practices, including enhanced parking regulations. In 2019, the Police Department continued to evaluate the original Safe Streets ordinances and their effectiveness. The Police Department held numerous public meetings, door-to-door surveys, and discussions concerning the Safe Streets Initiative in the Ellwood Historic District and other neighborhoods. During these engagement efforts, some residents requested fewer restrictions, while others requested additional restrictions. The program has been modified based on these discussions to ensure that this program is fulfilling its mission. The program will continue to be evaluated on an ongoing basis. Crime Reduction Strategies: In 2019, the Police Department continued to employ a data-driven policing model focusing resources in problematic areas to address quality of life concerns and specific crime problems. Some strategies include Community Oriented Policing and Problem Oriented Policing programs as well as community engagement, and community policing methodologies to reduce crime and enhance public safety. The DeKalb Police and its co-policing partner, the Northern Illinois University Public Safety Department, will continue to work together regarding all aspects of proactive and community policing. Co-Policing with the Northern Illinois University Public Safety Department: In 2019, the partnership continued to grow between the DeKalb Police Department and the Northern Illinois University Public Safety Department. The co-policing program was designed to enhance community safety on campus and within neighborhoods adjacent to the university. From attending each other’s roll calls, training together, patrolling together, and working collaboratively to implement proactive policing measures to reduce crime, this partnership has proven beneficial to our community and the university. The COMPASS Program: In 2018, the Police Department deployed an innovative program to address juvenile crime called “COMPASS.” COMPASS or Changing Outcomes by Making Parents Accountable, Supported, and Successful, is a multi-disciplinary approach involving a variety of community stakeholders. Its purpose is to reduce juvenile delinquent behavior at the earliest stage possible, by engaging appropriate support for juveniles and their families to constructively modify behavior. In 2019, the COMPASS program supported over 20 families in attempts to reduce juvenile delinquency. Additionally, literature was created and provided to parents of children engaged in delinquent behavior. This engagement has been well received and seems to be an effective deterrent. Overall feedback received from parents and guardians has been very positive. 911 PSAP Consolidation: The State of Illinois mandated the consolidation of 911 Communications Centers, also known as Public Safety Answering Points (PSAPs), to be completed by July 31, 2019. As a result of this mandate, the DeKalb Police and DeKalb County Sheriff’s communication centers are now the only 911 Centers operational in DeKalb County. The DeKalb Police Department worked collaboratively with the DeKalb County Emergency Telephone System Board (ETSB) and Northern Illinois University Public Safety Department to enable the DeKalb Police Communications Center to handle Northern Illinois University’s 911 calls beginning on June 4, 2019. This resulted in a smooth transition and efficient provision of dispatch services. Law Enforcement Agency Accreditation: In 2019, the DeKalb Police Department successfully met all the criteria required to become a top-tier accredited law enforcement agency by the Illinois Law Enforcement Accreditation Program (ILEAP). The Police Department participated in an on-site assessment of its policies, procedures, operations and facility as part of the accreditation process in May 2019. The benefit City of DeKalb 85 Proposed Budget of becoming an accredited law enforcement agency is ensuring that the department’s policies and procedures represent the best practices in the law enforcement profession, as determined by a credentialed and esteemed professional accreditation board. Community Relations Team: The Police Department is acutely aware of how important relationships are with the community we serve. In order to create, sustain, and enhance community ties with our department, we have created a new Community Relations Team. The team consists of six patrol officers, one detective, one sergeant, and two members of the command staff that will work together on numerous community relations initiatives. Many of these initiatives were previously conducted, however, this team will engage in a more coordinated effort to better address our community’s needs. When combined with our philosophy of proactive and problem-oriented policing, these community engagement efforts should lead to a reduction of crime in our community, while at the same time increasing public trust, which is crucial to the mission of our organization. Cultural Diversity, De-escalation and Procedural Justice Training: A variety of training initiatives were provided to personnel within the Police Department during 2019. Some of them include Tactical De- escalation of Nonviolent Encounters, De-escalation and Smarter Policing, Legally Justified But Was it Avoidable?, and Racial Intelligence Training and Engagement. These trainings focus on techniques for avoiding violent encounters, self-awareness and officer wellness, as well as procedural justice pillars of fairness, impartiality, and transparency. The goal of these training initiatives is to enhance public trust and continue fostering relationships between the community and the Police. FY2020 Initiatives Full Implementation of the Countywide Digital Radio Network: This project was largely constructed in 2019, with the County building three new radio communications towers throughout the county and installing a new digital radio network as well as reconstruction of an existing VHF radio system. Full implementation is planned in 2020, with the DeKalb Police Department Communications Center featuring new radio consoles, a state-of-the-art communications infrastructure, with a county-wide interoperable radio network to support Police and Fire operations on the street. This combination of public safety resources creates a rare opportunity to have all public safety providers within the county on the same radio platform, working in concert to serve our residents. Implementing Crisis Intervention Team Training: Over the past two years, the Police Department has participated in various mental health initiatives as part of the federal Police-Mental Health Collaboration Program. In 2020, the department will embark on a concerted effort to provide a 40-hour training course in Crisis Intervention Team tactics. Team members will become specialists in intervention with persons experiencing a personal crisis due to behavioral health issues. In addition, an embedded social worker provided through the Northwestern Medicine Ben Gordon Center is expected to begin working full-time within the Police Department in 2020 as part of the Crisis Intervention Team. Implementing a Proactive Behavioral Health Program: The Police Department, in partnership with the Northwestern Medicine Ben Gordon Center, has developed a strategy to more effectively address the rising demands for service that involve individuals afflicted with behavioral health challenges. The program focuses on two primary goals: additional Crisis Intervention Team training opportunities for Police officers and the embeding of a social worker in the Police Department to work with non-criminal incidents involving behavioral health issues. The program has already started and will be fully operational in 2020. City of DeKalb 86 Proposed Budget Police-2-Citizen Website: The Police Department has been working towards a web-based platform for citizens to query Police information. In 2019, the Police-2-Citizen (P2C) website has been implemented and prepared for public release. This site will increase the transparency of the Police Department by allowing residents to query arrests and incidents, and offer a self-reporting application for some low-level incidents. Body-Worn Camera Pilot Study: After years of attempting to budget for body-worn cameras, the DeKalb Police Department will embark on a pilot study in 2020. This study will allow a group of officers to test several models of cameras and select the best option for our technological and operational needs. The program will also examine the best method for video retention and redaction as well as personnel needs. The pilot program is expected to lead to full implementation of body cameras in future fiscal years as funds become available. Crime Prevention Through Environmental Design (CPTED) Assessment Program: The Police Department has assisted community members and businesses with security assessments and recommendations for improved security needs for years. Recently, our department sent a supervisor to be trained and certified in CPTED theories and practices. This concept, although similar to our past practices, is based on the theory that proper design and effective use of the built environment can lead to a reduction in both the incidence and fear of crime while also improving the quality of life. The Police Department will formally offer field assessments and recommendations for schools, businesses, organizations, and other stakeholders upon request. The department believes that working with our community and providing these field assessments can lead to a reduction in crime and an increase in the quality of life for our residents. Citizen’s Police Academy (CPA): For the first time since 2009, the Police Department will be hosting a Citizen’s Police Academy for our community. We can think of no better way of engaging our community and building citizen-police relationships, as well as fostering trust than to provide this opportunity. Through education, citizens can gain insight and understanding into how Police officers perform their duties while serving the community. CPA participants will attend a 10-week course where they will gain an understanding of the organizational structure of the Police Department, training, recruitment, patrol procedures, traffic and accident investigation, domestic violence investigation, major case investigation, crime scene processing, gang and drug investigation, use of force situations and simulations, the role of the prosecutor, and many other facets of law enforcement. City of DeKalb 87 Proposed Budget  Police Department Police Chief Administrative Assistant Deputy Chief Commander - Commander - Commander - Investigations Communications & Patrol Division Divison Special Services Sergeant - Crime Free Sergeant - AM Sergeant - PM Sergeant - Night Sergeant - Management Communications Targeted Response Housing Shift (3) Shift (3) Shift (3) Investigations Analyst Coordinator Unit Coordinator (PT) Community Office Associate Telecommunicator Officers (12) Officers (12) Officers (12) Detective (7) Detective (3) Service Officer (1 FT; 3 PT) (11 FT; 6 PT) (5 PT) School Resource Court Security Officer (3) Officer (PT) City of DeKalb 88 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET POLICE DEPARTMENT PERSONNEL 41100 WAGES ‐ FULL‐TIME 6,737,168 6,907,662 7,034,072 6,875,394 7,186,764 41200 WAGES ‐ PART‐TIME 351,258 293,052 341,690 269,298 399,177 41300 WAGES ‐ OVERTIME 627,683 614,355 547,979 641,740 571,570 41400 LONGEVITY PAY 61,569 57,688 61,980 61,980 55,647 41500 CLOTHING ALLOWANCE 59,811 59,068 61,000 59,067 61,001 41600 WELLNESS BONUS 2,400 2,850 4,500 3,000 4,200 42100 EMPLOYER PORTION FICA 189,783 181,731 200,763 180,626 211,975 42200 EMPLOYER PORTION IMRF 169,970 158,312 148,332 135,560 200,765 42300 EMPLOYER CONTRIB/PENSION 2,484,077 2,987,254 3,079,439 3,079,439 3,446,287 42500 EMPLOYEE HEALTH INSURANCE 1,295,325 1,384,549 1,406,281 1,406,281 1,608,329 42600 WORKER'S COMPENSATION 147,805 147,805 147,805 147,805 147,805 PERSONNEL 12,126,849 12,794,326 13,033,841 12,860,190 13,893,520 COMMODITIES 51300 SUPPLIES/PARTS‐BUILDINGS 679 398 568 568 568 51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 1,300 51700 SUPPLIES/PARTS‐VEHICLES 30,650 31,704 42,122 31,014 45,722 52000 OFFICE SUPPLIES 5,648 8,625 7,926 8,241 11,199 52600 PATROL SUPPLIES & EQUIPMENT 113,669 69,565 62,474 62,474 70,223 52700 INVESTIGATION SUPPLIES & EQUIPMEN 13,165 10,388 8,445 8,195 9,250 53300 SMALL TOOLS & EQUIPMENT 444 0 500 400 0 54000 UNIFORMS/PROTECTIVE CLOTHING 29,616 21,694 26,191 36,300 26,300 55000 FUEL, OIL, & LUBRICANTS 69,261 75,557 71,660 71,660 80,500 58110 DUI FINES EXPENDITURES 660 2,983 10,634 10,634 10,634 58120 ANTI‐CRIME EXPENDITURES 0 711 8,000 8,000 8,000 58130 CRIME LAB EXPENDITURES 3,196 0 4,150 4,150 1,000 58140 POLICE FORFEITURES EXPENDITURE 25,575 3,836 14,545 14,545 11,045 59999 COMMODITIES 5,684 5,643 5,084 5,360 5,360 COMMODITIES 298,247 231,104 262,299 261,541 281,101 CONTRACTUAL SERVICES 61300 MAINTENANCE‐BUILDINGS 360 6,040 4,550 4,750 4,800 61500 MAINTENANCE‐EQUIPMENT 20,075 18,853 25,598 19,714 64,304 61700 MAINTENANCE‐VEHICLES 14,531 16,927 17,529 20,434 21,934 62099 PRINTED MATERIALS 14,976 18,825 13,474 14,413 12,543 62200 LEGAL SERVICES 1,360 1,138 818 655 0 63500 TOWING SERVICES 4,515 4,849 5,780 5,780 5,780 63800 CONTRACTED SERVICES 107,184 129,930 29,346 27,046 10,874 64500 TELEPHONE SERVICES 50,727 43,538 44,000 44,000 44,000 65100 FREIGHT & POSTAGE 12,758 4,586 4,462 5,700 5,700 65200 MARKETING ADS & PUBLIC INFO 1,570 3,897 1,350 400 1,350 65300 LEGAL EXPENSES & NOTICES 0 0 275 0 918 66100 DUES & SUBSCRIPTIONS 9,315 11,600 11,527 11,883 12,233 66200 TRAINING/TRAVEL 55,146 62,962 98,912 65,705 86,055 66400 EDUCATION TUITION REIMBURSEMENT 0 427 0 0 0 CONTRACTUAL SERVICES 292,517 323,572 257,621 220,480 270,491 EQUIPMENT 86000 EQUIPMENT 2,378 432 7,318 5,000 6,000 86200 OFFICE FURNITURE & EQUIPMENT 1,620 825 1,658 1,000 0 86300 TELEPHONE & RADIO EQUIPMENT 35,024 39,184 47,540 47,540 0 87000 VEHICLES 6,531 0 0 0 0 EQUIPMENT 45,553 40,441 56,516 53,540 6,000 TOTAL EXPENDITURES 12,763,166 13,389,443 13,610,277 13,395,751 14,451,112 City of DeKalb 89 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 20‐21 ‐ POLICE DEPARTMENT ‐ ADMINISTRATION EXPENDITURES 100‐20‐21‐41100 WAGES ‐ FULL‐TIME 475,913 477,712 548,279 347,668 472,337 100‐20‐21‐41200 WAGES ‐ PART‐TIME 1,602 0 0 0 0 100‐20‐21‐41300 WAGES ‐ OVERTIME 3,728 1,534 3,456 1,000 2,000 100‐20‐21‐41400 LONGEVITY PAY 0 0 0 0 0 100‐20‐21‐41500 CLOTHING ALLOWANCE 2,950 3,000 3,000 3,000 3,000 100‐20‐21‐41550 CAR ALLOWANCE 0 0 0 0 0 100‐20‐21‐42100 EMPLOYER PORTION FICA 11,036 10,632 11,704 8,778 11,460 100‐20‐21‐42200 EMPLOYER PORTION IMRF 11,143 10,459 8,955 8,955 10,900 100‐20‐21‐42300 EMPLOYER CONTRIB/PENSION 152,866 183,831 189,504 189,504 159,059 100‐20‐21‐42500 EMPLOYEE HEALTH INSURANCE 89,426 88,944 80,392 80,392 94,770 100‐20‐21‐42600 WORKER'S COMPENSATION 11,345 11,345 11,345 11,345 11,345 100‐20‐21‐51300 SUPPLIES/PARTS‐BUILDINGS 679 398 568 568 568 100‐20‐21‐51700 SUPPLIES/PARTS‐VEHICLES 963 1,031 2,614 2,614 2,614 100‐20‐21‐52000 OFFICE SUPPLIES 1,724 2,242 1,985 1,985 3,685 100‐20‐21‐52700 INVESTIGATION SUPPLIES & EQUIPMENT 3,134 1,955 2,800 2,800 2,800 100‐20‐21‐54000 UNIFORMS/PROTECTIVE CLOTHING 2,101 537 300 300 300 100‐20‐21‐55000 FUEL, OIL, & LUBRICANTS 69,261 75,557 71,660 71,660 80,500 100‐20‐21‐58110 DUI FINES EXPENDITURES 660 2,983 10,634 10,634 10,634 100‐20‐21‐58120 ANTI‐CRIME EXPENDITURES 0 711 8,000 8,000 8,000 100‐20‐21‐58130 CRIME LAB EXPENDITURES 3,196 0 4,150 4,150 1,000 100‐20‐21‐58140 POLICE FORFEITURES EXPENDITURE 25,575 3,836 14,545 14,545 11,045 100‐20‐21‐59999 COMMODITIES 1,465 1,068 895 895 895 100‐20‐21‐61300 MAINTENANCE‐BUILDINGS 360 0 250 450 500 100‐20‐21‐61500 MAINTENANCE‐EQUIPMENT 880 2,342 7,882 7,882 34,840 100‐20‐21‐61700 MAINTENANCE‐VEHICLES 2,140 610 1,035 4,500 4,500 100‐20‐21‐62099 PRINTED MATERIALS 9,090 5,507 4,320 4,320 1,800 100‐20‐21‐63800 CONTRACTED SERVICES 41,971 72,390 17,397 17,397 1,425 100‐20‐21‐64500 TELEPHONE SERVICES 50,727 43,538 44,000 44,000 44,000 100‐20‐21‐65100 FREIGHT & POSTAGE 3,449 2,001 2,100 2,100 2,100 100‐20‐21‐65300 LEGAL EXPENSES & NOTICES 0 0 175 0 0 100‐20‐21‐66100 DUES & SUBSCRIPTIONS 1,255 2,088 1,260 1,260 1,610 100‐20‐21‐66200 TRAINING/TRAVEL 2,381 11,946 12,307 4,000 5,000 100‐20‐21‐66400 EDUCATION TUITION REIMBURSEMENT 0 427 0 0 0 100‐20‐21‐86200 OFFICE FURNITURE & EQUIPMENT 871 0 700 700 0 100‐20‐21‐86300 TELEPHONE & RADIO EQUIPMENT 33,912 34,176 32,340 32,340 0 TOTAL EXPENDITURES 1,015,803 1,052,800 1,098,552 887,742 982,687 City of DeKalb 90 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 20‐22 ‐ POLICE DEPARTMENT ‐ PATROL EXPENDITURES 100‐20‐22‐41100 WAGES ‐ FULL‐TIME 4,394,710 4,455,356 4,189,179 4,383,407 4,273,597 100‐20‐22‐41200 WAGES ‐ PART‐TIME 48,131 0 0 0 0 100‐20‐22‐41300 WAGES ‐ OVERTIME 464,151 453,555 352,533 450,000 400,000 100‐20‐22‐41400 LONGEVITY PAY 44,764 40,893 42,388 42,388 37,056 100‐20‐22‐41500 CLOTHING ALLOWANCE 37,333 38,867 36,800 38,067 36,800 100‐20‐22‐41600 WELLNESS BONUS 2,100 2,400 3,000 2,550 3,000 100‐20‐22‐42100 EMPLOYER PORTION FICA 73,201 67,916 67,155 67,155 68,882 100‐20‐22‐42200 EMPLOYER PORTION IMRF 0 0 0 0 0 100‐20‐22‐42300 EMPLOYER CONTRIB/PENSION 1,757,962 2,114,057 2,179,295 2,179,295 2,438,911 100‐20‐22‐42500 EMPLOYEE HEALTH INSURANCE 681,826 805,027 822,863 822,863 921,830 100‐20‐22‐42600 WORKER'S COMPENSATION 95,029 95,029 95,029 95,029 95,029 100‐20‐22‐51700 SUPPLIES/PARTS‐VEHICLES 22,997 26,609 31,400 25,000 35,000 100‐20‐22‐52000 OFFICE SUPPLIES 2,227 3,615 4,100 4,100 5,000 100‐20‐22‐52600 PATROL SUPPLIES & EQUIPMENT 95,876 65,154 58,175 58,175 65,924 100‐20‐22‐53300 SMALL TOOLS & EQUIPMENT 0 0 400 400 0 100‐20‐22‐54000 UNIFORMS/PROTECTIVE CLOTHING 20,676 16,452 19,895 30,000 20,000 100‐20‐22‐59999 COMMODITIES 2,043 1,754 1,524 1,800 1,800 100‐20‐22‐61300 MAINTENANCE‐BUILDINGS 0 6,040 4,300 4,300 4,300 100‐20‐22‐61500 MAINTENANCE‐EQUIPMENT 9,565 6,030 3,384 5,464 16,500 100‐20‐22‐61700 MAINTENANCE‐VEHICLES 9,635 15,692 12,934 12,934 12,934 100‐20‐22‐62099 PRINTED MATERIALS 3,401 6,421 4,933 4,933 4,933 100‐20‐22‐62200 LEGAL SERVICES 609 537 390 227 0 100‐20‐22‐62600 MEDICAL SERVICES 0 0 0 0 0 100‐20‐22‐63500 TOWING SERVICES 4,515 4,849 5,780 5,780 5,780 100‐20‐22‐63800 CONTRACTED SERVICES 60,212 56,454 9,649 9,649 7,149 100‐20‐22‐65300 LEGAL EXPENSES & NOTICES 0 0 0 0 390 100‐20‐22‐66100 DUES & SUBSCRIPTIONS 849 3,017 3,304 3,304 3,304 100‐20‐22‐66200 TRAINING/TRAVEL 36,992 33,200 55,360 40,000 49,810 100‐20‐22‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐20‐22‐86000 EQUIPMENT 2,378 432 7,318 5,000 6,000 100‐20‐22‐86200 OFFICE FURNITURE & EQUIPMENT 0 0 200 0 0 100‐20‐22‐86300 TELEPHONE & RADIO EQUIPMENT 180 3,357 14,200 14,200 0 100‐20‐22‐87000 VEHICLES 6,531 0 0 0 0 TOTAL EXPENDITURES 7,877,893 8,322,713 8,025,488 8,306,020 8,513,929 City of DeKalb 91 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 20‐23 ‐ POLICE DEPARTMENT ‐ COMMUNICATIONS EXPENDITURES 100‐20‐23‐41100 WAGES ‐ FULL‐TIME 692,584 734,334 759,651 742,004 779,166 100‐20‐23‐41200 WAGES ‐ PART‐TIME 149,909 156,108 208,964 160,863 219,801 100‐20‐23‐41300 WAGES ‐ OVERTIME 35,759 20,670 56,720 50,000 40,000 100‐20‐23‐41400 LONGEVITY PAY 1,255 1,209 1,758 1,758 2,026 100‐20‐23‐41500 CLOTHING ALLOWANCE 10,526 7,201 7,200 7,200 7,201 100‐20‐23‐42100 EMPLOYER PORTION FICA 64,579 66,590 79,171 67,963 80,188 100‐20‐23‐42200 EMPLOYER PORTION IMRF 130,696 130,697 124,115 112,330 157,907 100‐20‐23‐42300 EMPLOYER CONTRIB/PENSION 0 0 0 0 0 100‐20‐23‐42500 EMPLOYEE HEALTH INSURANCE 153,296 156,737 159,887 159,887 207,170 100‐20‐23‐42600 WORKER'S COMPENSATION 1,303 1,303 1,303 1,303 1,303 100‐20‐23‐51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 1,300 100‐20‐23‐52000 OFFICE SUPPLIES 236 317 240 0 0 100‐20‐23‐54000 UNIFORMS/PROTECTIVE CLOTHING 2,228 652 1,296 1,000 1,300 100‐20‐23‐61500 MAINTENANCE‐EQUIPMENT 9,041 8,419 8,504 4,000 8,504 100‐20‐23‐62099 PRINTED MATERIALS 0 911 1,120 0 0 100‐20‐23‐62200 LEGAL SERVICES 550 347 280 280 0 100‐20‐23‐62300 ARCHITECT/ENGINEERING SERVICES 0 0 0 0 0 100‐20‐23‐62400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐20‐23‐62600 MEDICAL SERVICES 0 0 0 0 0 100‐20‐23‐63800 CONTRACTED SERVICES 0 0 0 0 0 100‐20‐23‐65300 LEGAL EXPENSES & NOTICES 0 0 0 0 280 100‐20‐23‐66100 DUES & SUBSCRIPTIONS 716 1,292 729 729 729 100‐20‐23‐66200 TRAINING/TRAVEL 4,597 6,337 6,411 6,411 6,411 100‐20‐23‐86200 OFFICE FURNITURE & EQUIPMENT 546 525 300 300 0 100‐20‐23‐86300 TELEPHONE & RADIO EQUIPMENT 932 1,651 1,000 1,000 0 TOTAL EXPENDITURES 1,258,753 1,295,300 1,418,649 1,317,028 1,513,286 City of DeKalb 92 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 20‐24 ‐ POLICE DEPARTMENT ‐ INVESTIGATIONS EXPENDITURES 100‐20‐24‐41100 WAGES ‐ FULL‐TIME 789,598 920,594 1,280,933 1,079,454 1,370,717 100‐20‐24‐41300 WAGES ‐ OVERTIME 114,668 130,979 128,070 127,000 128,070 100‐20‐24‐41400 LONGEVITY PAY 11,451 11,248 13,269 13,269 13,445 100‐20‐24‐41500 CLOTHING ALLOWANCE 6,400 7,200 11,200 8,000 12,000 100‐20‐24‐41600 WELLNESS BONUS 300 450 1,200 450 900 100‐20‐24‐42100 EMPLOYER PORTION FICA 13,091 14,643 20,802 16,819 22,114 100‐20‐24‐42300 EMPLOYER CONTRIB/PENSION 496,816 597,451 615,888 615,888 795,297 100‐20‐24‐42500 EMPLOYEE HEALTH INSURANCE 271,463 271,779 270,807 270,807 305,996 100‐20‐24‐42600 WORKER'S COMPENSATION 30,353 30,353 30,353 30,353 30,353 100‐20‐24‐51700 SUPPLIES/PARTS‐VEHICLES 4,229 1,959 6,189 3,000 6,189 100‐20‐24‐51997 STREETLIGHTS, PARTS 0 0 0 0 0 100‐20‐24‐52000 OFFICE SUPPLIES 199 506 506 506 506 100‐20‐24‐52600 PATROL SUPPLIES & EQUIPMENT 17,793 4,411 4,299 4,299 4,299 100‐20‐24‐52700 INVESTIGATION SUPPLIES & EQUIPMENT 9,706 8,301 5,195 5,195 6,000 100‐20‐24‐53300 SMALL TOOLS & EQUIPMENT 0 0 100 0 0 100‐20‐24‐54000 UNIFORMS/PROTECTIVE CLOTHING 3,205 528 3,700 4,000 3,700 100‐20‐24‐59999 COMMODITIES 210 178 220 220 220 100‐20‐24‐61500 MAINTENANCE‐EQUIPMENT 0 56 1,368 1,368 0 100‐20‐24‐61700 MAINTENANCE‐VEHICLES 1,546 166 2,060 2,500 3,000 100‐20‐24‐62099 PRINTED MATERIALS 230 1,243 932 1,560 1,560 100‐20‐24‐62200 LEGAL SERVICES 201 254 148 148 0 100‐20‐24‐63800 CONTRACTED SERVICES 0 0 0 0 0 100‐20‐24‐65200 MARKETING ADS & PUBLIC INFO 0 0 400 100 400 100‐20‐24‐65300 LEGAL EXPENSES & NOTICES 0 0 0 0 148 100‐20‐24‐66100 DUES & SUBSCRIPTIONS 5,058 5,008 5,644 6,000 6,000 100‐20‐24‐66200 TRAINING/TRAVEL 9,144 8,129 19,540 10,000 19,540 100‐20‐24‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐20‐24‐86200 OFFICE FURNITURE & EQUIPMENT 0 0 200 0 0 TOTAL EXPENDITURES 1,785,661 2,015,436 2,423,023 2,200,936 2,730,454 City of DeKalb 93 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 20‐25 ‐ POLICE DEPARTMENT ‐ SPECIAL SERVICES EXPENDITURES 100‐20‐25‐41100 WAGES ‐ FULL‐TIME 249,380 319,666 256,030 322,861 290,947 100‐20‐25‐41200 WAGES ‐ PART‐TIME 84,719 136,944 132,726 108,435 179,376 100‐20‐25‐41300 WAGES ‐ OVERTIME 9,323 7,617 7,200 13,740 1,500 100‐20‐25‐41400 LONGEVITY PAY 3,037 4,338 4,565 4,565 3,120 100‐20‐25‐41500 CLOTHING ALLOWANCE 1,600 2,800 2,800 2,800 2,000 100‐20‐25‐41600 WELLNESS BONUS 0 0 300 0 300 100‐20‐25‐42100 EMPLOYER PORTION FICA 13,119 21,950 21,931 19,911 29,331 100‐20‐25‐42200 EMPLOYER PORTION IMRF 7,587 17,156 15,262 14,275 31,958 100‐20‐25‐42300 EMPLOYER CONTRIB/PENSION 76,433 91,915 94,752 94,752 53,020 100‐20‐25‐42500 EMPLOYEE HEALTH INSURANCE 57,110 62,062 72,332 72,332 78,563 100‐20‐25‐42600 WORKER'S COMPENSATION 6,565 9,775 9,775 9,775 9,775 100‐20‐25‐51700 SUPPLIES/PARTS‐VEHICLES 1,531 2,105 1,919 400 1,919 100‐20‐25‐52000 OFFICE SUPPLIES 1,262 1,945 1,095 1,650 2,008 100‐20‐25‐52700 INVESTIGATION SUPPLIES & EQUIPMENT 325 132 450 200 450 100‐20‐25‐54000 UNIFORMS/PROTECTIVE CLOTHING 661 3,525 1,000 1,000 1,000 100‐20‐25‐59999 COMMODITIES 1,966 2,643 2,445 2,445 2,445 100‐20‐25‐61500 MAINTENANCE‐EQUIPMENT 589 2,006 4,460 1,000 4,460 100‐20‐25‐61700 MAINTENANCE‐VEHICLES 1,210 459 1,500 500 1,500 100‐20‐25‐62099 PRINTED MATERIALS 1,449 4,743 2,169 3,600 4,250 100‐20‐25‐63800 CONTRACTED SERVICES 5,001 1,086 2,300 0 2,300 100‐20‐25‐65100 FREIGHT & POSTAGE 4,777 2,585 2,362 3,600 3,600 100‐20‐25‐65200 MARKETING ADS & PUBLIC INFO 1,570 3,897 950 300 950 100‐20‐25‐65300 LEGAL EXPENSES & NOTICES 0 0 100 0 100 100‐20‐25‐66100 DUES & SUBSCRIPTIONS 477 195 590 590 590 100‐20‐25‐66200 TRAINING/TRAVEL 1,962 3,350 5,294 5,294 5,294 100‐20‐25‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐20‐25‐86200 OFFICE FURNITURE & EQUIPMENT 30 300 258 0 0 TOTAL EXPENDITURES 531,683 703,194 644,565 684,025 710,756 City of DeKalb 94 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 20‐26 ‐ POLICE DEPARTMENT ‐ CRIME FREE EXPENDITURES 100‐20‐26‐41100 WAGES ‐ FULL‐TIME 134,983 0 0 0 0 100‐20‐26‐41200 WAGES ‐ PART‐TIME 66,897 0 0 0 0 100‐20‐26‐41300 WAGES ‐ OVERTIME 54 0 0 0 0 100‐20‐26‐41400 LONGEVITY PAY 1,062 0 0 0 0 100‐20‐26‐41500 CLOTHING ALLOWANCE 1,002 0 0 0 0 100‐20‐26‐42100 EMPLOYER PORTION FICA 14,757 0 0 0 0 100‐20‐26‐42200 EMPLOYER PORTION IMRF 20,544 0 0 0 0 100‐20‐26‐42500 EMPLOYEE HEALTH INSURANCE 42,204 0 0 0 0 100‐20‐26‐42600 WORKER'S COMPENSATION 3,210 0 0 0 0 100‐20‐26‐51700 SUPPLIES/PARTS‐VEHICLES 930 0 0 0 0 100‐20‐26‐53300 SMALL TOOLS & EQUIPMENT 444 0 0 0 0 100‐20‐26‐54000 UNIFORMS/PROTECTIVE CLOTHING 745 0 0 0 0 100‐20‐26‐62099 PRINTED MATERIALS 806 0 0 0 0 100‐20‐26‐65100 FREIGHT & POSTAGE 4,532 0 0 0 0 100‐20‐26‐66100 DUES & SUBSCRIPTIONS 960 0 0 0 0 100‐20‐26‐66200 TRAINING/TRAVEL 70 0 0 0 0 100‐20‐26‐86200 OFFICE FURNITURE & EQUIPMENT 173 0 0 0 0 TOTAL EXPENDITURES 293,373 0 0 0 0 City of DeKalb 95 Proposed Budget  Fire Department Fire Chief Deputy Fire Chief Administrative Assistant Lieutenant - Fire Battalion Chief Battalion Chief Battalion Chief Prevention Captain Captain Captain Lieutenant (3) Lieutenant (3) Lieutenant (3) Swing Shift Firefighter/Paramedic Firefighter/Paramedic Firefighter/Paramedic Firefighter/Paramedic (11) (12) (12) (2) City of DeKalb 96 Proposed Budget Fire Department ______________________________________________________________________________ Department Introduction The Fire Department is committed to seeking innovative and effective ways to protect the lives and property of local residents and businesses through fire suppression, rescue, emergency medical services, education, prevention, and training. The focus of the Fire Department has expanded from responding to fire emergencies to preparing to address an array of hazards to protect the community, including fire investigation, aircraft rescue and firefighting, emergency management, mass casualty response, water rescue, post-fire assistance, and fire and life safety inspections. The depth of our service extends to serving the public with everyday needs such as home safety checks, changing smoke detector batteries, and assisting persons with mobility needs. All these services and resources are available year-round, 24 hours a day. The Fire Department is comprised of two sections: Operations and Administration. The Operations section is comprised of the boots-on-the-ground Firefighters who respond to everyday emergencies from three fire stations. The FY2020 Budget authorizes 54 sworn firefighters who work a 24-hour on/48-hour off schedule. Minimum daily staffing is thirteen firefighters. When emergency requests outpace available on- duty staffing, or when the Fire Department responds to a large-scale incident such as a structure fire, the department relies on “recalls” of off-duty firefighters to staff our fire apparatus. The Fire Chief, Deputy Fire Chief of Training, and one Administrative Assistant make up the Administration section, which supports every aspect of the Operations side of the Fire Department while also providing full public assistance. The Fire Chief oversees staffing, manages facilities and fleet, implements policies and procedures, monitors budget and payroll, and enforces fire codes. The Deputy Fire Chief is responsible for fire service training, daily scheduling, and emergency medical services. In addition, the Fire Chief and Deputy Fire Chief provide 24-hour administrative support and respond to large-scale emergency incidents in the City and throughout DeKalb County. The Administrative Assistant is a 40-hour employee whose primary responsibilities are customer service, fulfilling Freedom of Information Act record requests, managing documents, billing for services rendered, paying invoices, acting as a liaison to boards, processing reimbursements and grants, and completing projects assigned by the Fire Chiefs. The Fire Chief and Deputy Fire Chief are sworn fire personnel whose primary responsibilities are to provide direction for the Fire Department. Firefighters must fill vacant positions daily, on an overtime basis, to staff fire apparatus and perform necessary tasks, including vehicle maintenance, public education, event staffing, and special operations. In 2019, three positions were eliminated: Deputy Fire Chief of Operations, part-time Office Associate, and paid part-time intern. The administrative staff was reduced from four full-time personnel and two part- time personnel to three full-time personnel. Staffing Level FY2018 FY2019 FY2020 FT 58 57 57 PT 2 1 0 Total 60 58 57 City of DeKalb 97 Proposed Budget FY2019 Accomplishments Appointment of a new Fire Chief: In November of 2018, Fire Administration permanently eliminated the Deputy Fire Chief of Operations, one Office Associate, and an Intern position due to budget reductions. On January 28, 2019 Interim Fire Chief Jeff McMaster was promoted to the position of Fire Chief. His first duties were to hire new administrative staff (including a Deputy Fire Chief of Training and a new office associate), redistribute responsibilities, streamline workflows, and reallocate resources to rebuild the support system for the Fire Department. Hiring of a new Deputy Fire Chief: On July 1, Battalion Chief Bart Gilmore was promoted to the position of Deputy Fire Chief of Training. This critical position is responsible for the training program of the Fire Department, including ensuring fire personnel meet mandated and recommended training requirements, overseeing contractual training, conducting Special Operation Team exercises, and developing weekly prescribed training for personnel. Additional responsibilities include coordinating daily activities, acting as liaison with IDPH Region I Emergency Medical Services administration, and managing all aspects of the Fire Department’s Emergency Medical Service program. The Deputy Fire Chief is also tasked with implementing recently revised Illinois Office of the State Fire Marshal fire training and certificate documentation procedures, requiring firefighters to recertify every four-years in all skill areas. The Deputy Fire Chief ensures compliance with these new mandates and is essential in the smooth operation of the Fire Department. Special Teams Training and Equipment Upgrades: The Technical Rescue and Hazardous Materials Teams are long-standing special operation units within the Fire Department. Founding team members have either retired or reached the end of their team commitment in recent years. The equipment originally purchased for use by these teams has become worn or expired. The Fire Department continues to fortify these special operations teams by purchasing new equipment, continuing regular special team exercises for skills retention, and rotating membership as firefighters receive mandated training. Operational Response Review: Response plans were reviewed to determine if changes were necessary to update Fire Department responses to incidents, deployment, and receiving resources at incidents. FY2020 Initiatives Implementation of the New Digital Radio Program: DeKalb County anticipates going live with its new digital radio system this year. Upon its completion, the Fire Department will implement a new P25 digital radio program. This will complement the City’s transition to DeKalb County’s digital platform. This transition will include establishing radio talk groups, reprogramming radios, assessing current communication equipment for compatibility, and personnel training. An audit of the City’s backup radio capabilities will be conducted, and a Fire Department emergency radio backup procedure will be instituted. Evaluation of the Training Program: Fire Administration will perform a comprehensive analysis of its current training program to identify additional firefighting and emergency medical service training needs, evaluate current training props, identify training program goals, and establish a 3-to-5-year training enhancement plan. This analysis will also focus on continuing to meet firefighting training requirements to retain the City’s ISO Class 2 rating. City of DeKalb 98 Proposed Budget Review and Update of the Emergency Operations Plan: The City’s extensive Emergency Operations Plan (EOP) is essentially a roadmap for organizing the City’s response to emergencies and disasters while providing for the safety and welfare of its citizens. The City’s EOP must be reviewed and updated annually. With recent personnel changes and organizational changes within the City, the Fire Department will embark upon a comprehensive review and update of the EOP in 2020. A particular focus will be the need to work with local agencies and institutional partners in assuring emergency housing is available in the event of major fires or extreme property maintenance deficiencies forcing condemnation and evacuation. Enhancement and Improvement of Community Partnerships: The Fire Department will continue to collaborate with community organizations and intergovernmental partners to expand community risk reduction programs, such as promoting smoke detector installation and maintenance, cooking safety, and slip/trip/fall evaluations. More generally, the Fire Department will continue to evaluate and prepare for the community’s needs, ensuring the operational readiness of personnel, facilities, apparatus, and equipment; providing life- saving education to residents, visitors, and businesses; and evaluating and modernizing internal procedures to improve efficiency and effectiveness of the services provided. City of DeKalb 99 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET FIRE DEPARTMENT PERSONNEL 41100 WAGES ‐ FULL‐TIME 5,232,621 5,383,691 5,334,150 5,220,028 5,423,328 41200 WAGES ‐ PART‐TIME 36,799 34,924 12,636 1,782 0 41300 WAGES ‐ OVERTIME 365,334 426,142 445,575 654,204 448,075 41400 LONGEVITY PAY 42,023 45,507 49,486 49,486 48,355 41500 CLOTHING ALLOWANCE 42,267 45,000 44,000 42,067 44,800 41600 WELLNESS BONUS 2,850 2,850 3,000 2,550 3,000 41650 EDUCATION BONUS 4,500 5,750 5,125 5,125 5,125 42100 EMPLOYER PORTION FICA 83,646 86,115 89,537 86,501 90,064 42200 EMPLOYER PORTION IMRF 14,040 13,258 8,027 23,582 8,309 42300 EMPLOYER CONTRIB/PENSION 2,967,492 3,463,310 3,503,332 3,503,332 3,951,651 42500 EMPLOYEE HEALTH INSURANCE 1,013,267 1,073,041 1,092,608 1,092,608 1,161,880 42600 WORKER'S COMPENSATION 290,577 290,577 290,577 290,577 290,577 PERSONNEL 10,095,416 10,870,165 10,878,053 10,971,842 11,475,164 COMMODITIES 51300 SUPPLIES/PARTS‐BUILDINGS 9,385 5,113 7,500 7,900 8,200 51700 SUPPLIES/PARTS‐VEHICLES 23,666 22,575 21,828 26,400 30,000 52000 OFFICE SUPPLIES 678 1,194 1,500 1,700 2,000 52500 JANITORIAL SUPPLIES 5,813 5,319 5,800 5,800 5,800 52800 FIREFIGHTING SUPPLIES & EQUIPMENT 41,709 34,433 41,850 41,850 30,700 52900 AMBULANCE SUPPLIES & EQUIPMENT 24,298 43,014 34,300 19,422 34,300 53099 ACTIVITIES & SUPPLIES 0 0 0 0 1,000 53300 SMALL TOOLS & EQUIPMENT 233 279 500 1,600 2,000 54000 UNIFORMS/PROTECTIVE CLOTHING 1,110 50 2,600 2,677 6,280 55000 FUEL, OIL, & LUBRICANTS 35,155 40,977 40,632 40,674 40,600 COMMODITIES 142,047 152,954 156,510 148,023 160,880 CONTRACTUAL SERVICES 61300 MAINTENANCE‐BUILDINGS 16,520 19,234 17,500 17,500 30,000 61500 MAINTENANCE‐EQUIPMENT 1,192 1,100 3,950 5,000 8,300 61700 MAINTENANCE‐VEHICLES 61,302 76,436 68,795 68,795 68,795 62099 PRINTED MATERIALS 937 1,849 1,029 1,932 2,420 62400 TECHNOLOGY SERVICES 10,109 4,772 4,994 2,225 0 62600 MEDICAL SERVICES 28,165 11,235 25,620 25,620 26,415 63800 CONTRACTED SERVICES 52,876 54,175 54,548 55,000 55,000 64000 UTILITIES 2,617 4,355 2,220 2,220 2,200 64500 TELEPHONE SERVICES 19,511 17,147 17,923 18,469 19,024 65100 FREIGHT & POSTAGE 124 423 435 462 750 65200 MARKETING ADS & PUBLIC INFO 1,985 4,165 3,310 3,310 3,310 66100 DUES & SUBSCRIPTIONS 10,011 6,992 6,515 3,365 6,320 66200 TRAINING/TRAVEL 32,448 24,618 41,460 41,460 42,400 CONTRACTUAL SERVICES 237,797 226,501 248,299 245,358 264,934 EQUIPMENT 86300 TELEPHONE & RADIO EQUIPMENT 7,583 4,794 5,236 5,236 5,500 87000 VEHICLES 129,798 0 0 0 0 EQUIPMENT 137,381 4,794 5,236 5,236 5,500 TOTAL EXPENDITURES 10,612,641 11,254,414 11,288,098 11,370,459 11,906,478 City of DeKalb 100 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 25‐27 ‐ FIRE DEPARTMENT ‐ ADMINISTRATION EXPENDITURES 100‐25‐27‐41100 WAGES ‐ FULL‐TIME 463,701 552,399 395,113 380,078 325,175 100‐25‐27‐41200 WAGES ‐ PART‐TIME 36,799 34,924 12,636 1,782 0 100‐25‐27‐41300 WAGES ‐ OVERTIME 0 0 0 500 2,500 100‐25‐27‐41500 CLOTHING ALLOWANCE 2,400 2,400 1,600 800 1,600 100‐25‐27‐42100 EMPLOYER PORTION FICA 13,097 13,877 9,935 10,264 8,234 100‐25‐27‐42200 EMPLOYER PORTION IMRF 14,040 13,258 8,027 23,582 8,309 100‐25‐27‐42300 EMPLOYER CONTRIB/PENSION 156,183 182,279 184,386 184,386 141,130 100‐25‐27‐42500 EMPLOYEE HEALTH INSURANCE 77,507 81,493 84,232 84,232 69,547 100‐25‐27‐42600 WORKER'S COMPENSATION 20,722 20,722 20,722 20,722 20,722 100‐25‐27‐51700 SUPPLIES/PARTS‐VEHICLES 0 0 0 0 0 100‐25‐27‐52000 OFFICE SUPPLIES 678 1,194 1,500 1,700 2,000 100‐25‐27‐53099 ACTIVITIES & SUPPLIES 0 0 0 0 1,000 100‐25‐27‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 0 177 180 100‐25‐27‐55000 FUEL, OIL, & LUBRICANTS 35,155 40,977 40,632 40,674 40,600 100‐25‐27‐61500 MAINTENANCE‐EQUIPMENT 0 0 0 0 2,300 100‐25‐27‐61700 MAINTENANCE‐VEHICLES 0 0 0 0 0 100‐25‐27‐62099 PRINTED MATERIALS 493 1,270 132 1,207 2,420 100‐25‐27‐62400 TECHNOLOGY SERVICES 10,109 4,772 4,994 2,225 0 100‐25‐27‐62600 MEDICAL SERVICES 2,133 1,195 1,665 1,665 1,715 100‐25‐27‐63800 CONTRACTED SERVICES 52,476 53,735 53,748 55,000 55,000 100‐25‐27‐64500 TELEPHONE SERVICES 19,511 17,147 17,923 18,469 19,024 100‐25‐27‐65100 FREIGHT & POSTAGE 124 423 435 462 750 100‐25‐27‐65200 MARKETING ADS & PUBLIC INFO 0 0 0 0 0 100‐25‐27‐66100 DUES & SUBSCRIPTIONS 1,410 3,467 2,065 2,065 2,075 100‐25‐27‐66200 TRAINING/TRAVEL 1,719 2,028 2,560 2,560 3,500 100‐25‐27‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 TOTAL EXPENDITURES 908,257 1,027,560 842,305 832,550 707,781 City of DeKalb 101 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 25‐28 ‐ FIRE DEPARTMENT ‐ OPERATIONS EXPENDITURES 100‐25‐28‐41100 WAGES ‐ FULL‐TIME 4,768,920 4,831,292 4,939,037 4,839,950 5,098,153 100‐25‐28‐41300 WAGES ‐ OVERTIME 365,334 426,142 445,575 653,704 445,575 100‐25‐28‐41400 LONGEVITY PAY 42,023 45,507 49,486 49,486 48,355 100‐25‐28‐41500 CLOTHING ALLOWANCE 39,867 42,600 42,400 41,267 43,200 100‐25‐28‐41600 WELLNESS BONUS 2,850 2,850 3,000 2,550 3,000 100‐25‐28‐41650 EDUCATION BONUS 4,500 5,750 5,125 5,125 5,125 100‐25‐28‐42100 EMPLOYER PORTION FICA 70,549 72,238 79,602 76,237 81,830 100‐25‐28‐42300 EMPLOYER CONTRIB/PENSION 2,811,309 3,281,031 3,318,946 3,318,946 3,810,521 100‐25‐28‐42500 EMPLOYEE HEALTH INSURANCE 935,760 991,548 1,008,376 1,008,376 1,092,333 100‐25‐28‐42600 WORKER'S COMPENSATION 269,855 269,855 269,855 269,855 269,855 100‐25‐28‐51300 SUPPLIES/PARTS‐BUILDINGS 9,385 5,113 7,500 7,900 8,200 100‐25‐28‐51700 SUPPLIES/PARTS‐VEHICLES 23,666 22,575 21,828 26,400 30,000 100‐25‐28‐52000 OFFICE SUPPLIES 0 0 0 0 0 100‐25‐28‐52500 JANITORIAL SUPPLIES 5,813 5,319 5,800 5,800 5,800 100‐25‐28‐52800 FIREFIGHTING SUPPLIES & EQUIPMENT 41,709 34,433 41,850 41,850 30,700 100‐25‐28‐52900 AMBULANCE SUPPLIES & EQUIPMENT 24,298 43,014 34,300 19,422 34,300 100‐25‐28‐53300 SMALL TOOLS & EQUIPMENT 233 279 500 1,600 2,000 100‐25‐28‐54000 UNIFORMS/PROTECTIVE CLOTHING 1,110 50 2,600 2,500 6,100 100‐25‐28‐61300 MAINTENANCE‐BUILDINGS 16,520 19,234 17,500 17,500 30,000 100‐25‐28‐61500 MAINTENANCE‐EQUIPMENT 1,192 1,100 3,950 5,000 6,000 100‐25‐28‐61700 MAINTENANCE‐VEHICLES 61,302 76,436 68,795 68,795 68,795 100‐25‐28‐62099 PRINTED MATERIALS 444 579 897 725 0 100‐25‐28‐62600 MEDICAL SERVICES 26,032 10,040 23,955 23,955 24,700 100‐25‐28‐63800 CONTRACTED SERVICES 400 440 800 0 0 100‐25‐28‐64000 UTILITIES 2,617 4,355 2,220 2,220 2,200 100‐25‐28‐65200 MARKETING ADS & PUBLIC INFO 1,985 4,165 3,310 3,310 3,310 100‐25‐28‐66100 DUES & SUBSCRIPTIONS 8,601 3,525 4,450 1,300 4,245 100‐25‐28‐66200 TRAINING/TRAVEL 30,729 22,590 38,900 38,900 38,900 100‐25‐28‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐25‐28‐86200 OFFICE FURNITURE & EQUIPMENT 0 0 0 0 0 100‐25‐28‐86300 TELEPHONE & RADIO EQUIPMENT 7,583 4,794 5,236 5,236 5,500 100‐25‐28‐87000 VEHICLES 129,798 0 0 0 0 TOTAL EXPENDITURES 9,704,384 10,226,854 10,445,793 10,537,909 11,198,697 City of DeKalb 102 Proposed Budget Public Works Department ______________________________________________________________________________ Department Introduction The Public Works Department is responsible for planning, operating, maintaining and replacing public infrastructure and equipment necessary to maintain a safe, healthy and attractive community. In FY2019, the department was reorganized to operate under the direction of two department directors, the Director of Streets & Facilities and the Director of Utilities & Transportation, under the general supervision of the City Manager. Under this new structure, the department maintains three operating divisions: Airport, Engineering & Transportation, and Operations (Utilities, Street & Support Services). The Public Works Department is somewhat unique in that it is funded through the General Fund, as well as several Enterprise and Special Revenue Funds. The Public Works Department performs a broad range of activities in support of the City’s mission to “Deliver high quality municipal services to those who live, work, learn in or visit our community”. Staffing Level FY2018 FY2019 FY2020 FT 36 34 33 PT 19 18 18 Total 55 52 51 FY2019 Accomplishments Expansion of Transit Services: Beginning in October 2019, the City expanded public transit service along two routes. Effective October 7, 2019, Route 12 now provides daily shuttle service to the Elburn Train station. Increased frequency to the train station allows residents and students an opportunity to access the Regional Transit Authority (RTA) Union Pacific West Metra train line with a direct connection to Chicago and surrounding suburbs. Additionally, Route 12 also provides passenger access to Cortland going both to and from the Elburn station. Route 19, which began service on October 28, provides resident and student access to south DeKalb including the Park 88 Corridor and Harvestore Drive. An expansion of transit service to areas of employment enables individuals with limited transportation a safe option and additional job opportunities. 2019 Street Maintenance Program: The 2019 Street Maintenance Program to replace damaged curbs, sidewalks, driveway approaches, and repave streets was completed in early August. This year’s program of repairs was funded by CDBG, Local Gas Tax, and Motor Fuel Tax monies. The table below lists the streets that were repaired. City of DeKalb 103 Proposed Budget  Street From To N. First St. Dresser Rd. Bethany Rd. Ilehamwood Dr. First St. Joanne Ln. Joanne Ln. Ilehamwood Dr. Joanne Ln. Golfview Pl. Ilehamwood Dr. Joanne Ln. Wineberry Dr. North End South End Manning Dr. Route 23 Nestlé Harvey St. Route 23 Seventh St. Tyler St. Route 23 Seventh St. Water Main Replacement: Public Works oversaw 4,100 feet of water main replacement on Joanne Lane, Golfview Place, and Ilehamwood Drive. This watermain posed several challenges due to its age and condition. The new water main replaced an approximately 55-year-old water main prone to breaks. Parkway Tree Maintenance: Public Works implemented a cyclical tree trimming program for city-owned parkway trees. The program allows Public Works to track tree trimming and helps to take a proactive approach to tree trimming. Trees are elevated and thinned to promote healthy growth and achieve an attractive appearance for our streetscapes. Public Works estimates that all parkway trees can be trimmed in the next 5-7 years. Corn Fest Layout: Public Works assisted in redesigning the layout for the annual Corn Fest. After listening to our local merchants, Public Works felt the need to adjust the layout to promote and highlight our Central Business District storefronts. The new layout was well received by local merchants and the public alike and will continue in future years. Downtown Banner Projects: Public Works worked with our local American Legion Post to honor our veterans on Locust Street in the heart of our Central Business District. Hometown Hero banners were hung by Public Works from Memorial Day until Veterans Day in honor of our active and retired local veterans. The program gained traction and appears to be growing larger for FY2020. New American flag banners were also installed along Lincoln Highway and remained in place between Memorial Day and Labor Day. Airport Marketing Plan: Public Works commissioned Volaire Aviation to develop a comprehensive strategic marketing plan to assist in engaging the public, both locally and out of market, on a variety of their services while promoting opportunities that are available. This marketing report complements the Airport's Strategic Plan which was developed in 2017. The plan provides best practices for marketing the assets of the airport to new aviation and non-aviation tenants, and media mix recommendations as well as outreach advise. Additionally, the Council approved a contract with the Daley Police Group to assist the City in securing federal Airport Improvement Program (AIP) funding in 2020 to help re-surface Runway 2/20 and adjacent taxiways among other capital upgrades. FY2020 Initiatives 2020 Street Maintenance Program: As the department does every year, Public Works has identified streets in town in need of resurfacing. The following locations are projections pending Council approval, with approximate project limits for 2020: City of DeKalb 104 Proposed Budget  Street From To Seventh St. Route 23 Prospect St. Thirteenth St. Clark St. Route 23 Fourteenth St. Clark St. Dresser Rd. Taylor St. First St. Lions Park Normal Rd. Hillcrest Dr. Dresser Rd. Macom Dr. Crack Filling & Patching Only City Hall Relocation: Public Works anticipates playing a major role in transitioning City Hall to its new location in the heart of the Central Business District. Public Works will help facilitate the move by overseeing repairs and remodeling in the new location, as well as the logistics of the move itself. Water Main Capital Improvement: Public Works has budgeted $500,000 in FY2020 to fund a portion of new water main planned for installation along Crego Road, Gurler Road and S. Route 23 to provide a looped water main serving two proposed developments in the expanded Chicago West Business Park. 50/50 Tree & Sidewalk Replacement Programs: Public Works plans the implementation of two new programs benefiting the residents of the City of DeKalb. These include a 50/50 program for tree planting as well as sidewalk repair. These programs would engage residents in a cost-sharing relationship for improvements to the City's streetscape. City of DeKalb 105 Proposed Budget  Public Works Department City Manager Director of Utilities Director of Streets & Transportation Administrative & Facilities Associate Utility City Engineer Transit Street Airport Superintendant (Contractual) Manager Superintndant Manager Skilled Engineering Intern Transit Planning & Skilled Maintenance Maintenance (2) (PT) Grants Coordinator Maintenance (4) Worker (1 PT) Crew Leader (2) GIS Intern (PT) Line Service Worker Crew Leader (6) (8 PT) Maintenance Maintenance Maintenance Worker Worker - Seasonal Worker (5) (6 FT; 1 PT) (1) Maintenance Maintenance Worker - Seasonal Worker - Seasonal Intern - NIU Grant (1) (3) (PT) City of DeKalb 106 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET PUBLIC WORKS PERSONNEL 41100 WAGES ‐ FULL‐TIME 1,409,155 1,286,071 1,124,484 1,068,426 1,220,685 41200 WAGES ‐ PART‐TIME 49,379 27,310 66,474 42,042 46,798 41300 WAGES ‐ OVERTIME 125,845 196,817 185,000 209,264 185,000 41400 LONGEVITY PAY 25,596 25,940 27,276 27,111 24,906 41500 CLOTHING ALLOWANCE 14,277 8,444 8,341 7,881 7,921 41550 CAR ALLOWANCE 2,106 1,905 2,381 476 0 42100 EMPLOYER PORTION FICA 116,316 109,962 87,006 90,550 113,627 42200 EMPLOYER PORTION IMRF 235,761 220,209 137,560 153,964 214,195 42500 EMPLOYEE HEALTH INSURANCE 334,189 366,506 320,547 320,547 328,722 42600 WORKER'S COMPENSATION 66,016 66,016 66,016 66,016 66,016 PERSONNEL 2,378,640 2,309,180 2,025,085 1,986,277 2,207,870 COMMODITIES 51300 SUPPLIES/PARTS‐BUILDINGS 16,098 10,134 22,500 12,200 18,000 51410 SUPPLIES/PARTS‐STREETS 26,436 22,891 30,500 40,000 37,000 51430 SUPPLIES/PARTS‐STORM SEWERS 15,681 8,342 17,500 9,000 23,500 51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 3,000 51700 SUPPLIES/PARTS‐VEHICLES 85,717 61,800 113,780 64,282 91,500 51997 STREETLIGHTS, PARTS 7,793 17,357 17,000 9,000 15,000 51998 TRAFFIC & STREET SIGNS 20,805 26,030 20,000 30,000 30,000 51999 SUPPLIES/PARTS‐TRAFFIC SIGNALS 13,520 15,382 34,000 30,000 34,000 52000 OFFICE SUPPLIES 852 899 1,975 456 750 52500 JANITORIAL SUPPLIES 12,035 10,532 10,500 8,500 10,500 53100 ICE/SNOW CONTROL SUPPLIES 3,733 118,341 120,500 191,332 121,500 53300 SMALL TOOLS & EQUIPMENT 9,546 7,326 8,000 7,500 9,000 54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 800 0 500 55000 FUEL, OIL, & LUBRICANTS 126,534 161,606 164,950 147,294 135,150 COMMODITIES 338,750 460,640 562,005 549,564 529,400 CONTRACTUAL SERVICES 61100 MAINTENANCE‐GROUNDS 24,098 21,853 27,500 24,500 27,500 61300 MAINTENANCE‐BUILDINGS 42,436 33,111 46,900 39,900 46,900 61400 MAINTENANCE‐INFRASTRUCTURE 13,753 14,775 27,340 11,000 27,340 61420 MAINTENANCE‐STREETS 5,025 2,765 9,000 9,000 10,500 61430 MAINTENANCE‐STORM SEWERS 24,583 3,600 10,000 5,000 10,000 61450 MAINTENANCE‐SIDEWALKS 942 1,825 1,500 1,500 0 61500 MAINTENANCE‐EQUIPMENT 12,842 7,713 11,434 7,450 9,950 61599 WARNING SIRENS 6,480 6,480 6,600 6,480 6,600 61700 MAINTENANCE‐VEHICLES 24,570 28,069 37,000 55,500 56,000 62099 PRINTED MATERIALS 1,043 643 3,000 400 1,000 62300 ARCHITECT/ENGINEERING SERVICES 134,463 103,131 128,000 128,000 131,200 62400 TECHNOLOGY SERVICES 0 0 400 0 0 63100 FORESTRY SERVICES 42,346 12,329 57,000 57,000 90,000 63200 MOSQUITO ABATEMENT SERVICES 8,089 5,196 6,000 6,000 0 63400 SNOW REMOVAL SERVICES 18,020 48,088 10,000 12,300 80,000 63600 WEATHER SERVICES 3,120 3,120 3,649 3,230 3,200 63800 CONTRACTED SERVICES 116,719 109,388 128,050 107,500 104,050 64000 UTILITIES 5,237 19,614 13,500 13,500 16,500 64100 ELECTRIC SERVICES 31,920 73,214 80,000 80,000 80,000 64500 TELEPHONE SERVICES 10,975 10,407 9,450 9,730 10,000 65100 FREIGHT & POSTAGE 47 352 550 0 100 65200 MARKETING ADS & PUBLIC INFO 0 103 500 250 250 65300 LEGAL EXPENSES & NOTICES 40 68 1,100 0 0 City of DeKalb 107 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 65400 TAXES, LICENSES, & FEES 13,113 4,038 11,500 19,350 12,000 65500 RENTAL‐BLDG & EQUIP 250 672 1,400 1,150 1,400 66100 DUES & SUBSCRIPTIONS 979 745 934 415 250 66200 TRAINING/TRAVEL 4,041 1,255 7,450 5,575 6,950 69700 SPECIAL PROJECTS 32,995 11,683 40,000 35,000 10,000 CONTRACTUAL SERVICES 578,126 524,237 679,757 639,730 741,690 EQUIPMENT 86000 EQUIPMENT 12,756 12,279 14,500 14,500 10,500 EQUIPMENT 12,756 12,279 14,500 14,500 10,500 TOTAL EXPENDITURES 3,308,272 3,306,336 3,281,347 3,190,071 3,489,460 City of DeKalb 108 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 30‐31 ‐ PUBLIC WORKS ‐ ADMINISTRATION EXPENDITURES 100‐30‐31‐41100 WAGES ‐ FULL‐TIME 101,160 95,984 112,991 50,690 177,969 100‐30‐31‐41200 WAGES ‐ PART‐TIME 0 0 0 0 13,487 100‐30‐31‐41300 WAGES ‐ OVERTIME 0 0 0 0 0 100‐30‐31‐41400 LONGEVITY PAY 0 0 0 0 0 100‐30‐31‐41550 CAR ALLOWANCE 2,106 1,905 2,381 476 0 100‐30‐31‐42100 EMPLOYER PORTION FICA 7,457 6,995 8,520 3,515 14,647 100‐30‐31‐42200 EMPLOYER PORTION IMRF 15,339 14,010 13,840 6,083 26,500 100‐30‐31‐42500 EMPLOYEE HEALTH INSURANCE 14,490 15,409 22,231 22,231 38,618 100‐30‐31‐42600 WORKER'S COMPENSATION 2,040 2,040 2,040 2,040 2,040 100‐30‐31‐52000 OFFICE SUPPLIES 79 406 400 50 250 100‐30‐31‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 100 0 0 100‐30‐31‐59999 COMMODITIES 0 0 0 0 0 100‐30‐31‐61500 MAINTENANCE‐EQUIPMENT 0 0 0 0 0 100‐30‐31‐62099 PRINTED MATERIALS 0 128 200 100 750 100‐30‐31‐62300 ARCHITECT/ENGINEERING SERVICES 0 0 0 0 131,200 100‐30‐31‐63800 CONTRACTED SERVICES 697 552 0 0 0 100‐30‐31‐64500 TELEPHONE SERVICES 10,552 10,407 9,450 9,730 10,000 100‐30‐31‐65100 FREIGHT & POSTAGE 0 0 50 0 100 100‐30‐31‐65200 MARKETING ADS & PUBLIC INFO 0 0 0 0 0 100‐30‐31‐65300 LEGAL EXPENSES & NOTICES 40 68 300 0 0 100‐30‐31‐66100 DUES & SUBSCRIPTIONS 258 0 284 0 0 100‐30‐31‐66200 TRAINING/TRAVEL 470 0 1,000 75 500 100‐30‐31‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐30‐31‐86200 OFFICE FURNITURE & EQUIPMENT 0 0 0 0 0 100‐30‐31‐86300 TELEPHONE & RADIO EQUIPMENT 0 0 0 0 0 TOTAL EXPENDITURES 154,688 147,904 173,787 94,990 416,061 City of DeKalb 109 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 30‐32 ‐ PUBLIC WORKS ‐ SUPPORT SERVICES EXPENDITURES 100‐30‐32‐41100 WAGES ‐ FULL‐TIME 213,924 129,563 87,853 87,235 121,426 100‐30‐32‐41300 WAGES ‐ OVERTIME 9,957 16,079 20,000 14,264 20,000 100‐30‐32‐41400 LONGEVITY PAY 1,386 1,470 1,554 1,389 1,404 100‐30‐32‐41500 CLOTHING ALLOWANCE 1,848 1,212 1,260 800 1,080 100‐30‐32‐42100 EMPLOYER PORTION FICA 16,400 10,696 6,878 7,226 11,009 100‐30‐32‐42200 EMPLOYER PORTION IMRF 34,156 21,470 12,883 12,200 21,428 100‐30‐32‐42500 EMPLOYEE HEALTH INSURANCE 46,366 52,867 34,439 34,439 41,728 100‐30‐32‐42600 WORKER'S COMPENSATION 0 0 4,574 4,574 4,574 100‐30‐32‐51300 SUPPLIES/PARTS‐BUILDINGS 13,531 6,998 19,500 10,000 15,000 100‐30‐32‐51700 SUPPLIES/PARTS‐VEHICLES 80 61 3,500 1,000 3,500 100‐30‐32‐52500 JANITORIAL SUPPLIES 10,014 9,737 9,000 8,500 9,000 100‐30‐32‐53100 ICE/SNOW CONTROL SUPPLIES 695 436 500 1,332 1,500 100‐30‐32‐53300 SMALL TOOLS & EQUIPMENT 866 918 1,000 1,000 2,000 100‐30‐32‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 500 0 500 100‐30‐32‐55000 FUEL, OIL, & LUBRICANTS 1,990 2,412 2,150 1,650 2,150 100‐30‐32‐61100 MAINTENANCE‐GROUNDS 5,106 9,761 12,500 12,000 12,500 100‐30‐32‐61300 MAINTENANCE‐BUILDINGS 26,135 30,598 37,000 30,000 37,000 100‐30‐32‐61500 MAINTENANCE‐EQUIPMENT 483 3,975 4,000 2,200 4,000 100‐30‐32‐61599 WARNING SIRENS 6,480 6,480 6,600 6,480 6,600 100‐30‐32‐61700 MAINTENANCE‐VEHICLES 0 0 1,000 500 1,000 100‐30‐32‐63800 CONTRACTED SERVICES 107,466 78,836 98,050 87,500 98,050 100‐30‐32‐64000 UTILITIES 5,237 19,614 13,500 13,500 16,500 100‐30‐32‐64100 ELECTRIC SERVICES 31,536 73,214 80,000 80,000 80,000 100‐30‐32‐65400 TAXES, LICENSES, & FEES 12,870 3,728 11,000 19,000 11,000 100‐30‐32‐66100 DUES & SUBSCRIPTIONS 160 0 0 0 0 100‐30‐32‐66200 TRAINING/TRAVEL 0 475 1,250 500 1,250 100‐30‐32‐86000 EQUIPMENT 0 0 1,000 1,000 0 TOTAL EXPENDITURES 546,686 480,600 471,491 438,289 524,199 City of DeKalb 110 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 30‐33 ‐ PUBLIC WORKS ‐ STREET DIVISION EXPENDITURES 100‐30‐33‐41100 WAGES ‐ FULL‐TIME 1,029,397 1,060,524 923,640 930,501 921,290 100‐30‐33‐41200 WAGES ‐ PART‐TIME 49,379 21,414 54,054 31,214 33,311 100‐30‐33‐41300 WAGES ‐ OVERTIME 115,888 180,738 165,000 195,000 165,000 100‐30‐33‐41400 LONGEVITY PAY 24,210 24,470 25,722 25,722 23,502 100‐30‐33‐41500 CLOTHING ALLOWANCE 12,429 7,232 7,081 7,081 6,841 100‐30‐33‐41550 CAR ALLOWANCE 0 0 0 0 0 100‐30‐33‐42100 EMPLOYER PORTION FICA 87,619 91,820 70,658 78,925 87,971 100‐30‐33‐42200 EMPLOYER PORTION IMRF 176,448 184,729 110,837 135,681 166,267 100‐30‐33‐42500 EMPLOYEE HEALTH INSURANCE 263,011 284,831 263,877 263,877 248,376 100‐30‐33‐42600 WORKER'S COMPENSATION 59,402 59,402 59,402 59,402 59,402 100‐30‐33‐51300 SUPPLIES/PARTS‐BUILDINGS 2,567 3,136 3,000 2,200 3,000 100‐30‐33‐51410 SUPPLIES/PARTS‐STREETS 26,436 22,891 30,500 40,000 37,000 100‐30‐33‐51430 SUPPLIES/PARTS‐STORM SEWERS 15,681 8,342 17,500 9,000 23,500 100‐30‐33‐51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 3,000 100‐30‐33‐51700 SUPPLIES/PARTS‐VEHICLES 85,085 60,731 108,000 62,500 88,000 100‐30‐33‐51997 STREETLIGHTS, PARTS 7,793 17,357 17,000 9,000 15,000 100‐30‐33‐51998 TRAFFIC & STREET SIGNS 20,805 26,030 20,000 30,000 30,000 100‐30‐33‐51999 SUPPLIES/PARTS‐TRAFFIC SIGNALS 13,520 15,382 34,000 30,000 34,000 100‐30‐33‐52000 OFFICE SUPPLIES 522 222 700 250 500 100‐30‐33‐52500 JANITORIAL SUPPLIES 2,021 795 1,500 0 1,500 100‐30‐33‐53100 ICE/SNOW CONTROL SUPPLIES 3,038 117,905 120,000 190,000 120,000 100‐30‐33‐53300 SMALL TOOLS & EQUIPMENT 7,180 6,408 7,000 6,500 7,000 100‐30‐33‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 200 0 0 100‐30‐33‐55000 FUEL, OIL, & LUBRICANTS 124,256 158,408 162,000 145,000 133,000 100‐30‐33‐61100 MAINTENANCE‐GROUNDS 18,992 12,092 15,000 12,500 15,000 100‐30‐33‐61300 MAINTENANCE‐BUILDINGS 16,301 2,513 9,900 9,900 9,900 100‐30‐33‐61400 MAINTENANCE‐INFRASTRUCTURE 13,753 14,775 27,340 11,000 27,340 100‐30‐33‐61420 MAINTENANCE‐STREETS 5,025 2,765 9,000 9,000 10,500 100‐30‐33‐61430 MAINTENANCE‐STORM SEWERS 24,583 3,600 10,000 5,000 10,000 100‐30‐33‐61450 MAINTENANCE‐SIDEWALKS 942 1,825 1,500 1,500 0 100‐30‐33‐61500 MAINTENANCE‐EQUIPMENT 9,425 2,637 5,934 5,250 5,950 100‐30‐33‐61700 MAINTENANCE‐VEHICLES 24,110 27,418 35,000 55,000 55,000 100‐30‐33‐62099 PRINTED MATERIALS 1,043 447 1,000 300 250 100‐30‐33‐63100 FORESTRY SERVICES 42,346 12,329 57,000 57,000 90,000 100‐30‐33‐63200 MOSQUITO ABATEMENT SERVICES 8,089 5,196 6,000 6,000 0 100‐30‐33‐63400 SNOW REMOVAL SERVICES 18,020 48,088 10,000 12,300 80,000 100‐30‐33‐63600 WEATHER SERVICES 3,120 3,120 3,649 3,230 3,200 100‐30‐33‐63800 CONTRACTED SERVICES 8,556 30,000 30,000 20,000 6,000 100‐30‐33‐64100 ELECTRIC SERVICES 384 0 0 0 0 100‐30‐33‐64300 REFUSE REMOVAL SERVICES 0 0 0 0 0 100‐30‐33‐65100 FREIGHT & POSTAGE 0 0 0 0 0 100‐30‐33‐65200 MARKETING ADS & PUBLIC INFO 0 103 500 250 250 100‐30‐33‐65400 TAXES, LICENSES, & FEES 243 310 500 350 1,000 100‐30‐33‐65500 RENTAL‐BLDG & EQUIP 250 672 1,400 1,150 1,400 100‐30‐33‐66100 DUES & SUBSCRIPTIONS 420 415 250 415 250 100‐30‐33‐66200 TRAINING/TRAVEL 2,540 780 5,200 5,000 5,200 100‐30‐33‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐30‐33‐69700 SPECIAL PROJECTS 32,995 11,683 40,000 35,000 10,000 100‐30‐33‐86000 EQUIPMENT 12,756 12,279 13,500 13,500 10,500 TOTAL EXPENDITURES 2,370,580 2,545,814 2,484,344 2,515,498 2,549,200 City of DeKalb 111 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 30‐35 ‐ PUBLIC WORKS ‐ ENGINEERING EXPENDITURES 100‐30‐35‐41100 WAGES ‐ FULL‐TIME 64,674 0 0 0 0 100‐30‐35‐41200 WAGES ‐ PART‐TIME 0 5,896 12,420 10,828 0 100‐30‐35‐41300 WAGES ‐ OVERTIME 0 0 0 0 0 100‐30‐35‐41400 LONGEVITY PAY 0 0 0 0 0 100‐30‐35‐41500 CLOTHING ALLOWANCE 0 0 0 0 0 100‐30‐35‐42100 EMPLOYER PORTION FICA 4,840 451 950 884 0 100‐30‐35‐42200 EMPLOYER PORTION IMRF 9,818 0 0 0 0 100‐30‐35‐42500 EMPLOYEE HEALTH INSURANCE 10,322 13,399 0 0 0 100‐30‐35‐42600 WORKER'S COMPENSATION 4,574 4,574 0 0 0 100‐30‐35‐51000 BOARDS & COMMISSIONS 0 0 0 0 0 100‐30‐35‐51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 0 100‐30‐35‐51600 SUPPLIES/PARTS‐TECHNOLOGY 0 0 0 0 0 100‐30‐35‐51700 SUPPLIES/PARTS‐VEHICLES 552 1,008 2,280 782 0 100‐30‐35‐52000 OFFICE SUPPLIES 251 271 875 156 0 100‐30‐35‐53300 SMALL TOOLS & EQUIPMENT 1,500 0 0 0 0 100‐30‐35‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 0 0 0 100‐30‐35‐55000 FUEL, OIL, & LUBRICANTS 288 786 800 644 0 100‐30‐35‐59999 COMMODITIES 0 0 0 0 0 100‐30‐35‐61500 MAINTENANCE‐EQUIPMENT 2,934 1,101 1,500 0 0 100‐30‐35‐61700 MAINTENANCE‐VEHICLES 460 651 1,000 0 0 100‐30‐35‐62099 PRINTED MATERIALS 0 68 1,800 0 0 100‐30‐35‐62300 ARCHITECT/ENGINEERING SERVICES 134,463 103,131 128,000 128,000 0 100‐30‐35‐62400 TECHNOLOGY SERVICES 0 0 400 0 0 100‐30‐35‐63300 NUISANCE ABATEMENT SERVICES 0 0 0 0 0 100‐30‐35‐63800 CONTRACTED SERVICES 0 0 0 0 0 100‐30‐35‐64500 TELEPHONE SERVICES 423 0 0 0 0 100‐30‐35‐65100 FREIGHT & POSTAGE 47 352 500 0 0 100‐30‐35‐65200 MARKETING ADS & PUBLIC INFO 0 0 0 0 0 100‐30‐35‐65300 LEGAL EXPENSES & NOTICES 0 0 800 0 0 100‐30‐35‐65500 RENTAL‐BLDG & EQUIP 0 0 0 0 0 100‐30‐35‐66100 DUES & SUBSCRIPTIONS 141 330 400 0 0 100‐30‐35‐66200 TRAINING/TRAVEL 1,031 0 0 0 0 100‐30‐35‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐30‐35‐86000 EQUIPMENT 0 0 0 0 0 100‐30‐35‐86100 TECHNOLOGY EQUIPMENT 0 0 0 0 0 100‐30‐35‐86300 TELEPHONE & RADIO EQUIPMENT 0 0 0 0 0 TOTAL EXPENDITURES 236,318 132,018 151,725 141,294 0 City of DeKalb 112 Proposed Budget Community Development Department ______________________________________________________________________________ Department Introduction The Community Development Department is responsible for the Planning, Economic Development, Community Development Block Grant (CDBG), Zoning Review and Entitlement, Construction Permitting, and Code Enforcement functions within the City government. The Department promotes responsible development and the sound maintenance of properties in the City, supporting the success of local business and promoting the community to new businesses and residents. Programming includes long range planning, the attraction and retention of quality businesses, efficient development review processes, and the enforcement of locally adopted building and property maintenance codes. The Department’s mission is to be responsive to local residents and their development concerns and needs, and to maintain a positive business climate that brings confidence to investors, resulting in an expanding, diversified and balanced tax base, thereby lessening the tax burden on individual property owners. The Department’s offices are often the first point of contact for new and existing businesses, developers, and contractors. To assist these interested parties, the Department makes a significant effort to remain informed about local resources. The Department is also responsible for long-range and short-range planning, zoning, applicable municipal code revisions, building permit and inspection services, building code enforcement, economic development, Community Development Block Grant (CDBG) program administration, and many special neighborhood-related improvement projects. The Department also coordinates with other City departments and governmental entities to review and approve development projects to ensure high quality developments are delivered in a responsible and timely manner. Staffing Level FY2018 FY2019 FY2020 FT 8 8 7 PT 6 6 1** Total* 14 14 8 *Does not include part-time contractual plumbing inspection, as needed. **Funded but unfilled NIU Intern position. FY2019 Accomplishments Building Inspection and Code Enforcement Reorganization: A number of unforeseen events prompted a reorganization of the building inspection functions in 2019. The unexpected resignation of the chief building official in June, 2019, and the increasing attention required by management dereliction and serious property maintenance issues at many of the Hunter properties in DeKalb provided an opportunity to attract new, skilled professionals and to sharpen the everyday focus on code enforcement. A full-time inspector is now assigned to code enforcement duties to provide consistent service eight hours a day, five City of DeKalb 113 Proposed Budget days a week, and as needed during off-hours. This inspector will work closely with the Fire Prevention Lieutenant in life-safety inspections at existing buildings. Local hires with extensive construction experience will lead the new construction plan review and inspection functions in 2020 in a customer- friendly manner. Finally, the part-time building permit associate and part-time administrative assistant positions were merged into one full-time administrative assistant position to better serve both the planning and building functions on a daily basis. Plaza DeKalb: The construction of the Plaza DeKalb mixed-use project started in the Fall of 2017 and initially involved the demolition of part of one building and the renovation of two buildings that now contain a restaurant, several personal service uses and two luxury apartment units. Another transformative feature is the four-story building at the northeast corner of E. Lincoln Highway and N. Second Street which has been the focus of development in 2019. Upon completion it will include commercial uses on the first floor, plus 23 luxury apartment units on the upper floors. The $6 million project included a total of $1.9 million in TIF funding assistance. Egyptian Theatre: In March 2019, the City Council approved final plans and a development incentive agreement for the Egyptian Theatre to allow for a proposed expansion and upgrades to the 90-year old facility. The proposed expansion will be on the south end of the building and will include the addition of air conditioning and expanded restroom and concession facilities. Construction commenced in May 2019 with a total project cost of $5.5 million and $2.5 million in TIF assistance. Mooney Property - Agora Tower: In September 2019 the City Council approved the zoning and plans for a proposed 4-story mixed use development at the northeast corner of E. Locust St. and N. 4th St. The project will feature 94 one and two-bedroom apartment units and approximately 12,000 sq. ft. of commercial space on the ground floor. Demolition of the existing building on the site will start in the late fall of 2019 and construction on the new building will begin in the spring of 2020. The total project cost will be about $13.8 million with $3 million in TIF assistance. Lovell’s Discount Tire: In May 2019, the City Council approved an ordinance allowing Lovell’s Discount Tire of 424 E. Lincoln Highway to expand the existing, legal non-conforming tire service to include additional vehicle repair services. The approval also allowed for the resurfacing of the parking lot, IDOT approved streetscape improvements, new landscaping, screening of the trash dumpster and adding a new ground sign. TIF assistance is being provided to the owner for a portion of the cost of the work in the right- of-way along E. Lincoln Highway and Rt. 23. Hometown Sports Bar and Grill/Stage Left: The Hometown Sports Bar and Grill located at 241 E. Lincoln Highway expanded in 2019 into an adjacent 2,000 sq. ft. tenant space. The new restaurant and bar is called Stage Left and features an outdoor dining deck. The total project cost was about $560,000 and $150,000 in TIF assistance was provided. ALDI: On July 25, ALDI opened their new 27,000 sq. ft. store in the Northland Plaza Shopping Center along Sycamore Road. The store moved from their previous location on the west of Sycamore Road near Target. The July opening was Aldi’s strongest day of sales ever for a single store in the entire 90-store region. Home2 Suites Hotel: In early June work on a 4-story Home2 Suites Hotel commenced along South Annie Glidden Road at Knolls Avenue South. The hotel will feature 90 rooms and provide the community with a mid-to-higher tier extended stay hotel that will include a conference room and indoor pool. City of DeKalb 114 Proposed Budget DeKalb County Nursing Home Expansion: The DeKalb County Rehab and Nursing Center along the N. Annie Glidden Road corridor began a $15 million expansion project during 2019. A 15,400 square foot addition is underway at the east end of the existing administration building. The expansion project will also provide 18 new private rooms, which will supplement 13 existing renovated rooms. A new 6,100 square foot multipurpose activity center located in the center court of the existing facility was also started in 2019 and will provide more flexible activity, dining, and seasonal event space. McDonald’s: The McDonalds along W. Lincoln Highway undertook a site improvement and remodeling project during the summer of 2019. The work consisted of updating the building façade, replacing sidewalks, walkways, and ramps for ADA compliance, adding parking stalls along the west property line and the installation of an additional drive-through lane. A fire hydrant in the middle of the sidewalk along W. Lincoln Highway was re-located and minor work inside the restaurant was also performed. Manufacturing/Warehouse/Distribution Facilities: The Department continues its work on attracting large manufacturing and distribution facilities to the City which will bring in jobs and broaden and diversify the property tax base. In July the City approved the rezoning of 102 acres of property and approved amendments to the Park 88 annexation agreement to facilitate future growth in the southeast portion of the City. In October, the City Council approved amendments to the Chicago West Business Center annexation agreement along the south side of I-88 to allow for an 1,222,400 square foot food distribution center and a 466,560 square foot packing center on approximately 106 acres of property. Medical and Recreational Cannabis Dispensaries: In November, the City Council approved an Ordinance amending the Unified Development Ordinance to allow adult use cannabis. The amendments will allow medical and recreational cannabis dispensaries in the City’s commercial corridors and light industrial areas with a special use permit. Reasonable setbacks to schools, day care centers and residential areas were established and state laws regarding the advertising of cannabis and hours of operation were incorporated into the City ordinance. The City may impose a tax up to 3% on all persons engaged in the selling of cannabis at retail (does not include medical cannabis). Public Facilities Projects: The Community Development Department oversees the planning and projects under the Community Development Block Grant (CDBG). During 2019, two Public Facilities projects were completed using CDBG funds. Accessible sidewalk improvements were completed on South 6th Street from Culver Street to Charter Street. In addition, street improvements including new pavement, curbs, and gutters were completed on Harvey, Tyler, and Charter Streets from 4th Street to 7th Street. Work continued on two additional projects in the Annie Glidden North neighborhood. The City began working with Syndeo, Inc to come up with a plan to provide free broadband access in a portion of this neighborhood. The Department also continued work with the Police Department and Public Works Department to create a plan for additional street lighting in the same area to increase resident safety and security. Housing Rehabilitation: CDBG also funds improvements to single family housing that is owned and occupied by low-income residents. During 2019, three projects have been completed and six additional projects were in progress. Repairs included the replacement of a ruptured water line, a new furnace, water heater, sewer lateral replacement and soil stack repair, and numerous roof replacements. The goal of the housing rehabilitation program is to support the maintenance of housing which is safe and affordable for low-income property owners. University Village Collaborative: The Community Services Coordinator also serves as the City Liaison for the University Village Collaborative. The Collaborative is a partnership of local social service providers City of DeKalb 115 Proposed Budget who have made a commitment to provide on-site services at University Village, the largest HUD-funded apartment complex in the City. Partners include Community Coordinated Childcare (4-C), Adventure Works, DeKalb County Community Gardens, University of Illinois Extension Service, Kishwaukee College and the Illinois WorkNet, Family Service Agency, the DeKalb County Health Department, DeKalb Township, Northern Illinois University, and the Regional Office of Education. When the property changed owners several years ago, the City negotiated for funding to provide on-site services and support to residents of the property as part of the sale contract. The funding is used to provide an on-site Case Manager for 20 hours per week plus various other programs and services to support University Village residents. Abandoned Residential Property Municipal Relief Program: In 2019, the City received notification of the receipt of a grant from the Illinois Housing Development Authority to address the need to remove abandoned, condemned residential properties that are a safety hazard and blight in some neighborhoods in the City. Adequate funding is not always readily available when the need to demolish a blighted property arises. The Department applied for and received a grant to reimburse the City for past demolition expenses that were incurred to remove three such properties. The City will receive a reimbursement of $55,000 to help cover past expenses. Plans are in place to apply for additional funding as it becomes available when the next grant application is issued. FY2020 Initiatives Economic Development: Continue aggressive Economic Development efforts to promote properties within the community for new development or redevelopment that follow the recommendations of the Comprehensive Plan and Sub-Area Plans and the City’s goals and policies. Promote the development of large-scale manufacturing, distribution, and high-tech facilities that are transformative. Downtown Redevelopment: Encourage continued development and redevelopment in the downtown area by focusing on projects that are compatible with various Downtown Plans and will provide a sustainable environment for existing and future businesses. Toward this end, the Community Development Department will be relocated to the new city hall at 164 E. Lincoln Highway in 2020. Annie Glidden North Revitalization: Continue to identify resources that support the recommendations of the Annie Glidden North Revitalization Plan to stabilize the northwest side of the community. Opportunity Zone: Collaborate with local partners and outside investors to attract investments in the City’s newly designated Opportunity Zones. Updated Sign Regulations: Review and update sign regulations in the Unified Development Ordinance to make the standards easier to understand, more business friendly, and “content neutral” in compliance with the US Supreme Court case of 2015. Community Services: Conduct public outreach and approve the 2020 -2024 Five Year Consolidated Plan for CDBG in the spring of 2020 and submit to HUD. Census Outreach: Participate in the DeKalb Complete Count Committee for the 2020 Census and conduct outreach to those populations that traditionally do not respond to the U.S. Census. Building & Code Compliance: With the recent reorganization of the Building Division, attention will be given to streamlining the permitting and inspection processes to enhance customer service. City of DeKalb 116 Proposed Budget  Community Development Department City Manager Community Chief Building Principal Planner Services Official Coordinator Building Permit Administrative Intern - NIU Coordinator Associate Grant (PT) Code Compliance Coordinator Building Inspector II City of DeKalb 117 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 40‐41 ‐ COMMUNITY DEV. ‐ ADMINISTRATION EXPENDITURES 100‐40‐41‐40026 WARNING SIRENS 0 0 0 0 0 100‐40‐41‐41100 WAGES ‐ FULL‐TIME 425,634 344,328 377,962 229,164 231,399 100‐40‐41‐41200 WAGES ‐ PART‐TIME 79,655 43,112 36,774 25,984 13,487 100‐40‐41‐41300 WAGES ‐ OVERTIME 3,153 10 0 0 0 100‐40‐41‐41400 LONGEVITY PAY 1,748 0 0 0 0 100‐40‐41‐41500 CLOTHING ALLOWANCE 752 0 0 0 0 100‐40‐41‐41550 CAR ALLOWANCE 3,809 3,809 3,809 791 0 100‐40‐41‐42100 EMPLOYER PORTION FICA 38,196 29,111 31,912 19,831 18,734 100‐40‐41‐42200 EMPLOYER PORTION IMRF 73,082 52,255 47,276 27,502 34,455 100‐40‐41‐42500 EMPLOYEE HEALTH INSURANCE 65,651 50,397 43,086 43,086 31,906 100‐40‐41‐42600 WORKER'S COMPENSATION 3,185 1,911 1,911 1,911 1,911 100‐40‐41‐51000 BOARDS & COMMISSIONS 3,234 2,875 6,000 4,000 5,750 100‐40‐41‐52000 OFFICE SUPPLIES 3,362 1,593 2,000 500 500 100‐40‐41‐55000 FUEL, OIL, & LUBRICANTS 0 0 0 0 0 100‐40‐41‐61500 MAINTENANCE‐EQUIPMENT 0 313 0 0 0 100‐40‐41‐61700 MAINTENANCE‐VEHICLES 26 0 0 0 0 100‐40‐41‐62099 PRINTED MATERIALS 2,385 142 4,800 3,500 3,500 100‐40‐41‐62700 HUMAN & SOCIAL SERVICES 148,250 144,500 144,500 144,500 150,000 100‐40‐41‐63000 SPECIAL EVENT SERVICES 0 0 0 0 10,000 100‐40‐41‐63300 NUISANCE ABATEMENT SERVICES 23,646 4,550 0 0 0 100‐40‐41‐63700 DEVELOPMENTAL SERVICES 140,000 127,500 140,000 110,000 115,000 100‐40‐41‐63750 DEMOLITION SERVICES 0 13,239 0 0 0 100‐40‐41‐63800 CONTRACTED SERVICES 390,220 198,680 1,500 1,675 500 100‐40‐41‐64500 TELEPHONE SERVICES 2,218 5,970 2,000 3,000 700 100‐40‐41‐65100 FREIGHT & POSTAGE 0 0 300 100 150 100‐40‐41‐65200 MARKETING ADS & PUBLIC INFO 15,177 9,208 10,000 10,000 5,000 100‐40‐41‐65300 LEGAL EXPENSES & NOTICES 3,044 2,363 1,500 750 1,000 100‐40‐41‐66100 DUES & SUBSCRIPTIONS 2,121 2,804 2,350 1,750 1,000 100‐40‐41‐66200 TRAINING/TRAVEL 3,502 2,656 4,500 750 1,635 100‐40‐41‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 100‐40‐41‐86200 OFFICE FURNITURE & EQUIPMENT 206 0 700 0 0 TOTAL EXPENDITURES 1,432,256 1,041,326 862,880 628,794 626,627 City of DeKalb 118 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 40‐43 ‐ COMMUNITY DEV. ‐ BUILDING & CODE ENFORCE EXPENDITURES 100‐40‐43‐41100 WAGES ‐ FULL‐TIME 0 265,232 307,423 274,079 295,680 100‐40‐43‐41200 WAGES ‐ PART‐TIME 0 91,627 72,973 78,031 0 100‐40‐43‐41300 WAGES ‐ OVERTIME 0 2,216 12,877 4,500 6,500 100‐40‐43‐41500 CLOTHING ALLOWANCE 0 162 600 600 600 100‐40‐43‐42100 EMPLOYER PORTION FICA 0 26,203 30,118 25,808 23,162 100‐40‐43‐42200 EMPLOYER PORTION IMRF 0 43,226 41,980 35,207 45,084 100‐40‐43‐42500 EMPLOYEE HEALTH INSURANCE 0 74,714 76,791 76,791 69,640 100‐40‐43‐42600 WORKER'S COMPENSATION 0 1,274 1,274 1,274 1,274 100‐40‐43‐51000 BOARDS & COMMISSIONS 0 0 0 0 0 100‐40‐43‐51700 SUPPLIES/PARTS‐VEHICLES 0 0 0 657 0 100‐40‐43‐52000 OFFICE SUPPLIES 0 703 600 350 500 100‐40‐43‐53300 SMALL TOOLS & EQUIPMENT 0 1,040 750 200 500 100‐40‐43‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 4,169 2,300 500 1,500 100‐40‐43‐55000 FUEL, OIL, & LUBRICANTS 0 882 750 1,000 1,000 100‐40‐43‐61500 MAINTENANCE‐EQUIPMENT 0 0 1,000 250 250 100‐40‐43‐61700 MAINTENANCE‐VEHICLES 0 0 1,000 500 1,000 100‐40‐43‐62099 PRINTED MATERIALS 0 1,139 800 500 500 100‐40‐43‐62300 ARCHITECT/ENGINEERING SERVICES 0 0 0 0 0 100‐40‐43‐63300 NUISANCE ABATEMENT SERVICES 0 0 15,000 15,000 15,000 100‐40‐43‐63800 CONTRACTED SERVICES 0 0 41,600 30,000 42,000 100‐40‐43‐64500 TELEPHONE SERVICES 0 0 3,689 1,200 3,000 100‐40‐43‐65100 FREIGHT & POSTAGE 0 4,000 4,800 4,000 250 100‐40‐43‐65200 MARKETING ADS & PUBLIC INFO 0 18 200 0 0 100‐40‐43‐65300 LEGAL EXPENSES & NOTICES 0 0 100 100 100 100‐40‐43‐66100 DUES & SUBSCRIPTIONS 0 244 750 500 1,150 100‐40‐43‐66200 TRAINING/TRAVEL 0 1,816 2,000 600 2,000 100‐40‐43‐86200 OFFICE FURNITURE & EQUIPMENT 0 190 200 50 0 TOTAL EXPENDITURES 0 518,855 619,575 551,697 510,690 City of DeKalb 119 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 55‐00 ‐ GENERAL FUND SUPPORT EXPENDITURES 100‐55‐00‐42500 EMPLOYEE HEALTH INSURANCE 804,359 862,924 918,472 918,472 965,650 100‐55‐00‐68750 TAX SHARING AGREEMENTS 1,731,750 1,781,787 1,733,000 1,733,000 1,750,000 100‐55‐00‐69200 SURETY BONDS 64,163 70,000 70,000 70,000 70,000 100‐55‐00‐91200 TRANSFER TO TRANSPORTATION FUND 11,370 0 0 0 0 100‐55‐00‐91300 TRANSFER TO DEBT SERVICE FUND 1,756,998 1,801,827 1,801,827 1,889,733 1,662,007 100‐55‐00‐91400 TRANSFER TO CAPITAL PROJECTS FUND 196,108 0 0 0 186,333 100‐55‐00‐91410 TRANSFER TO FLEET FUND 81,674 0 0 0 0 100‐55‐00‐91420 TRANSFER TO CAPITAL EQUIPMENT FUND 0 0 75,000 75,000 0 100‐55‐00‐91650 TRANSFER TO AIRPORT FUND 0 610,000 0 0 51,000 100‐55‐00‐91710 TRANSFER TO HEALTH INSURANCE FUND 0 250,000 0 0 0 TOTAL EXPENDITURES 4,646,422 5,376,538 4,598,299 4,686,205 4,684,990 ESTIMATED REVENUES 35,716,047 36,017,347 37,856,172 38,252,522 38,267,257 EXPENDITURES 35,871,371 37,688,298 37,007,172 36,231,435 38,137,816 NET OF REVENUES/EXPENDITURES ‐ GENERAL FUND 100 (155,324) (1,670,951) 849,000 2,021,087 129,441 BEGINNING FUND BALANCE 7,402,850 9,423,944 ENDING FUND BALANCE 9,423,944 9,553,385 City of DeKalb 120 Proposed Budget Section Five Special Revenue Funds  Transportation Fund  Motor Fuel Tax  Heritage Ridge SSA #3  Knolls Subdivision SSA #4  Greek Row SSA #6  Heartland Fields SSA #14  924 Greenbrier SSA #28  Central Area Tax Increment Financing #1  Tax Increment Financing #2  Central Business Tax Increment Financing #3  Community Development Block Grant Fund  Housing Rehabilitation Fund  Foreign Fire Insurance Fund City of DeKalb 121 Proposed Budget  This page has been intentionally left blank. City of DeKalb 122 Proposed Budget Transportation Fund ______________________________________________________________________________ FUND 200 The Transportation Fund includes the revenues and expenditures associated with the provision of transportation planning and public transit services within the DeKalb Urbanized Area (UZA). The City of DeKalb serves as the grant recipient for federal and state funds for transit services in the DeKalb UZA. The Public Works Transit Office oversees the management and operations of public transit in the DeKalb UZA. The City of DeKalb is the fiscal agent for State and Federal grants that fund transit services. The State of Illinois provides funding for 65% of all transit operational funding up to a contractual limit. The Federal Transit Administration (FTA) provides approximately $1 million a year for transit capital projects and additional operating assistance. The Transportation budget is based on the State Fiscal Year (SFY) that runs from July 1 to June 30. With the City’s fiscal operations on a calendar year basis, the annual transportation budget does not correspond with the City budget. As transportation grant funding allocations are only known through June 30, 2020 at the time of the City’s budget preparation, this budget is developed on the assumption that the Illinois and federal fiscal year 2021 grant funding will be equal to their FY2020 funding. DSATS Division In FY2019, DeKalb County assumed responsibility as the fiscal and management agent for the DeKalb- Sycamore Area Transportation Study (DSATS). Transit Division When the DeKalb-Sycamore area was designated as an urban center in the 2000 U.S. Census, the area became eligible to receive Federal Section 5307 transit grant funds, which are administered through the Federal Transit Administration (FTA), and Downstate Operating Assistance Program (DOAP) funding from the Illinois Department of Transportation (IDOT). Using state and federal funding sources, the City contracts with two transit operators – Voluntary Action Center (VAC) and Transdev Services Inc. (Transdev) – to provide public transportation services within the DeKalb Urbanized Area (UZA). Since January 1, 2019, the City has overseen all public transportation service within the DeKalb UZA. This includes fixed route bus service in DeKalb and the surrounding area, as well as paratransit services that provide door-to-door transportation for residents within the DeKalb UZA to and from medical facilities, shopping centers, and jobs throughout the northern Illinois region. The Transit Budget identifies several existing grants for which funding is available and our Transit staff will be submitting grant proposals to the FTA to fund several more projects in SFY2020. As previously noted, the DeKalb region is provided an apportionment of grant funds for transit capital projects and operating assistance annually. These funds are approved in the Federal Transportation Funding Program, which is currently known as the Fixing America’s Surface Transportation (FAST) Act. Within the program, specific funds are set aside to provide transit funds to urbanized areas with a population over 50,000 people. City of DeKalb 123 Proposed Budget The DOAP grant reimburses the City for 65% of the cost for public transit operations. The remaining 35% of the funding must come from other grant sources and local match contributions. The City’s SFY2020 DOAP grant allocation is $5,711,600, with a required local match of $3,075,477. The City’s SFY2021 DOAP grant allocation will be $6,282,700 with a required local match of $3,382,992. This budget reflects half of the SFY2020 DOAP grant (1/1/20 – 6/30/20) and half of the SFY2021 DOAP grant (7/1/20 – 12/31/20). Currently, local match funding comes from FTA funds as operating assistance, Northern Illinois University (NIU) student tuition fees, and VAC. Table 1, below, identifies the funding sources for the public transit budget. Table 1. Public Transit Funding Sources Funding Source SFY20 Allocation % of Budget State of IL DOAP Grant (1/1/20 – 12/31/20) $5,997,222.00 61% Local Match Fund: NIU Contribution $2,162,343.84 22% FTA 5307 Operating Assistance Funds $1,600,000.00 16% Fares from Huskie Line Routes $60,000.00 <1% Local Match Funds Provided by VAC $50,000.00 <1% Totals $9,869,565.84 100% The City receives annual FTA 5307 grant funding to finance public transit capital purchases and operating assistance. The City is annually allocated approximately $1,000,000, which varies from year to year based on a formula for public transit funding provided in the annual US Federal Budget. These funds can be accumulated over a three-year period. In SFY2020 (July 1, 2019 to June 30, 2020) our Transit staff will use up to $2,514,024 in FTA 5307 grant funds. Table 2, below, identifies proposed projects using FTA funds. Table 2. SFY20 FTA 5307 Grant Projects Project Grant Allocation New Public Transit Facility – Preliminary Engineering $600,000 Communication Equipment for Vehicles (Signs/Radios/Cameras) $253,524 Marketing Firm $3,500 Bus Shelter Signage Displays $15,000 On Call Transit Planning Consultant $7,000 Replacement of Transportation Staff Vehicle $35,000 Operating Assistance Funds $1,600,000 Total $2,514,024 City of DeKalb 124 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 200 ‐ TRANSPORTATION FUND Dept 30‐36 ‐ TRANSPORTATION ‐ DSATS ESTIMATED REVENUES 200‐30‐36‐33100 FEDERAL GRANTS 230,525 146,351 0 5,937 0 200‐30‐36‐33150 FEDERAL PASS‐THROUGH GRANTS 0 0 109,638 0 0 200‐30‐36‐33200 STATE GRANTS 57,631 36,588 27,410 0 0 200‐30‐36‐39100 TRANSFER FROM GENERAL FUND 11,370 0 0 0 0 TOTAL ESTIMATED REVENUES 299,526 182,939 137,048 5,937 0 EXPENDITURES 200‐30‐36‐41100 WAGES ‐ FULL‐TIME 102,336 102,532 61,297 5,406 0 200‐30‐36‐41200 WAGES ‐ PART‐TIME 4,456 6,222 3,372 0 0 200‐30‐36‐41550 CAR ALLOWANCE 352 571 0 22 0 200‐30‐36‐42100 EMPLOYER PORTION FICA 7,921 8,071 4,948 392 0 200‐30‐36‐42200 EMPLOYER PORTION IMRF 15,516 14,965 9,017 649 0 200‐30‐36‐42500 EMPLOYEE HEALTH INSURANCE 10,874 12,116 9,074 9,074 0 200‐30‐36‐42600 WORKER'S COMPENSATION 559 559 248 248 0 200‐30‐36‐51600 SUPPLIES/PARTS‐TECHNOLOGY 2,288 822 488 0 0 200‐30‐36‐51700 SUPPLIES/PARTS‐VEHICLES 0 0 0 0 0 200‐30‐36‐52000 OFFICE SUPPLIES 361 1 75 0 0 200‐30‐36‐55000 FUEL, OIL, & LUBRICANTS 223 455 188 0 0 200‐30‐36‐61500 MAINTENANCE‐EQUIPMENT 0 0 100 0 0 200‐30‐36‐61700 MAINTENANCE‐VEHICLES 0 0 250 0 0 200‐30‐36‐62099 PRINTED MATERIALS 0 0 75 0 0 200‐30‐36‐63800 CONTRACTED SERVICES 74,634 53,185 12,195 0 0 200‐30‐36‐64500 TELEPHONE SERVICES 256 204 180 44 0 200‐30‐36‐65100 FREIGHT & POSTAGE 50 21 90 0 0 200‐30‐36‐65200 MARKETING ADS & PUBLIC INFO 401 0 830 0 0 200‐30‐36‐65300 LEGAL EXPENSES & NOTICES 9,040 8,089 4,701 0 0 200‐30‐36‐66100 DUES & SUBSCRIPTIONS 829 498 970 0 0 200‐30‐36‐66200 TRAINING/TRAVEL 4,794 5,317 4,270 0 0 200‐30‐36‐66300 TRAVEL EXPENSES 0 14 0 0 0 200‐30‐36‐86000 EQUIPMENT 0 0 0 0 0 200‐30‐36‐86100 TECHNOLOGY EQUIPMENT 3,664 64 250 0 0 200‐30‐36‐86200 OFFICE FURNITURE & EQUIPMENT 0 234 125 0 0 200‐30‐36‐87000 VEHICLES 0 0 0 0 0 200‐30‐36‐91100 TRANSFER TO GENERAL FUND 7,841 0 8,620 0 0 200‐30‐36‐91420 TRANSFER TO CAPITAL EQUIPMENT FUND 1,500 0 0 0 0 TOTAL EXPENDITURES 247,895 213,940 121,363 15,835 0 NET OF REVENUES/EXPENDITURES ‐ 30‐36 ‐ DSATS 51,631 (31,001) 15,685 (9,898) 0 City of DeKalb 125 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Dept 30‐37 ‐ TRANSPORTATION ‐ TRANSIT ESTIMATED REVENUES 200‐30‐37‐33100 FEDERAL GRANTS 1,216,836 1,208,592 3,292,441 1,800,000 2,635,000 200‐30‐37‐33150 FEDERAL PASS‐THROUGH GRANTS 0 0 0 0 0 200‐30‐37‐33200 STATE GRANTS 1,939,712 2,386,479 5,342,400 5,933,262 5,997,222 200‐30‐37‐33300 LOCAL GRANTS 0 0 0 0 0 200‐30‐37‐37100 INVESTMENT INTEREST 0 0 0 3,225 1,500 200‐30‐37‐38100 MISCELLANEOUS REVENUE 435 605 2,519,444 2,571,722 2,160,000 200‐30‐37‐38600 SALES OF SURPLUS PROPERTY 1,184 0 0 38,263 0 200‐30‐37‐39100 TRANSFER FROM GENERAL FUND 0 0 0 0 0 TOTAL ESTIMATED REVENUES 3,158,167 3,595,676 11,154,285 10,346,472 10,793,722 EXPENDITURES 200‐30‐37‐41100 WAGES ‐ FULL‐TIME 58,691 66,536 205,018 152,299 168,430 200‐30‐37‐41200 WAGES ‐ PART‐TIME 4,456 48,311 6,744 12,327 8,100 200‐30‐37‐41300 WAGES ‐ OVERTIME 0 583 0 0 0 200‐30‐37‐42100 EMPLOYER PORTION FICA 4,576 8,595 18,305 11,767 13,504 200‐30‐37‐42200 EMPLOYER PORTION IMRF 8,899 9,700 30,915 18,276 25,079 200‐30‐37‐42500 EMPLOYEE HEALTH INSURANCE 11,949 11,757 31,810 31,810 43,947 200‐30‐37‐42600 WORKER'S COMPENSATION 372 372 916 916 931 200‐30‐37‐51600 SUPPLIES/PARTS‐TECHNOLOGY 0 787 2,806 1,500 0 200‐30‐37‐51700 SUPPLIES/PARTS‐VEHICLES 0 0 0 0 0 200‐30‐37‐52000 OFFICE SUPPLIES 123 80 250 250 500 200‐30‐37‐55000 FUEL, OIL, & LUBRICANTS 47 137 220 350 500 200‐30‐37‐61500 MAINTENANCE‐EQUIPMENT 0 0 200 200 200 200‐30‐37‐61700 MAINTENANCE‐VEHICLES 0 0 500 500 500 200‐30‐37‐61800 MAINTENANCE‐SOFTWARE 0 0 0 0 8,780 200‐30‐37‐62099 PRINTED MATERIALS 0 3,684 5,000 4,500 15,000 200‐30‐37‐62100 FINANCIAL SERVICES 0 0 0 0 2,460 200‐30‐37‐62200 LEGAL SERVICES 0 0 0 0 0 200‐30‐37‐63800 CONTRACTED SERVICES 2,635,462 3,019,336 9,170,861 7,504,489 9,192,752 200‐30‐37‐64500 TELEPHONE SERVICES 257 184 723 250 876 200‐30‐37‐65100 FREIGHT & POSTAGE 84 77 200 75 100 200‐30‐37‐65200 MARKETING ADS & PUBLIC INFO 118 510 812 1,200 2,000 200‐30‐37‐65300 LEGAL EXPENSES & NOTICES 6,341 7,440 13,500 9,000 9,000 200‐30‐37‐66100 DUES & SUBSCRIPTIONS 0 0 1,120 5,000 10,000 200‐30‐37‐66200 TRAINING/TRAVEL 2,573 2,007 9,086 5,000 8,874 200‐30‐37‐66300 TRAVEL EXPENSES 0 198 0 0 0 200‐30‐37‐82000 BUILDINGS & IMPROVEMENTS 0 0 0 0 0 200‐30‐37‐86000 EQUIPMENT 7,139 69,530 513,221 250,000 0 200‐30‐37‐86100 TECHNOLOGY EQUIPMENT 0 6,522 31,900 27,382 250,000 200‐30‐37‐86200 OFFICE FURNITURE & EQUIPMENT 0 500 500 0 0 200‐30‐37‐87000 VEHICLES 464,481 274,305 340,001 340,001 35,000 200‐30‐37‐91100 TRANSFER TO GENERAL FUND 2,730 0 38,888 19,444 25,000 200‐30‐37‐91420 TRANSFER TO CAPITAL EQUIPMENT FUND 1,500 0 0 0 0 TOTAL EXPENDITURES 3,209,798 3,531,151 10,423,496 8,396,536 9,821,533 NET OF REVENUES/EXPENDITURES ‐ 30‐37 ‐ TRANSIT (51,631) 64,525 730,789 1,949,936 972,189 ESTIMATED REVENUES 3,457,693 3,778,615 11,291,333 10,352,409 10,793,722 EXPENDITURES 3,457,693 3,745,091 10,544,859 8,412,371 9,821,533 NET OF REVENUES/EXPENDITURES ‐ TRANSPORTATION FUND 200 33,524 746,474 1,940,038 972,189 City of DeKalb 126 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET BEGINNING FUND BALANCE 33,525 1,973,563 ENDING FUND BALANCE 1,973,563 2,945,752 City of DeKalb 127 Proposed Budget Motor Fuel Tax Fund ______________________________________________________________________________ FUND 210 The City receives a per capita allocation of Illinois Motor Fuel Tax (MFT) revenues on a monthly basis from a State tax on gasoline purchases. These funds can only be used for certain costs related to street maintenance and improvement projects, as set forth by the State of Illinois. The annual MFT allotment to the City in FY2020 is projected to be approximately $1.68 million, which is an increase of approximately $540,000 from FY2019. This increase is the result of the State increase in the MFT rate in July of 2019. The annual MFT allotment will be used for the design and construction of various capital projects, as detailed in the table below. Tentative FY20 Projects Estimated Costs Twombly Road Reconstruction – Phase I $375,000 Peace Road Corridor Study $220,000 Peace Road/I-88 Bridge Phase I Engineering $250,000 First Street Bridge Phase I & II Engineering $200,000 Pavement Condition Index Survey $35,000 Lucinda Bridge Design Engineering $75,000 Total $1,155,000 The balance of the FY2020 MFT allocation--$525,000—will be used to defray the City’s electrical charges ($400,000) and salt purchases ($125,000). State law permits the City to dedicate a portion of its annual MFT allocation for certain electricity costs and road salt purchases. The City defrays the electrical costs associated with our streetlights and lighting equipment provided by ComEd. Like many other Illinois communities, we also purchase road salt for snow and ice removal with Motor Fuel Tax funds. Twombly Road, which connects several housing developments and rural areas to Annie Glidden Road, is in significant disrepair. A multi-jurisdictional project, led by the County and DeKalb Township with financial contributions from the City, will reconstruct the segment immediately west of Annie Glidden Road, with the addition of sidewalk on the north side of Twombly Road from Annie Glidden Road to Rosenow Way. The project will be split between the FY2020 and FY2021 budgets. The Peace Road Corridor Study will give the City and the DeKalb-Sycamore Area Transportation Study (DSATS) a cost projection and plan for when and how to enhance this infrastructure asset. The limits of the study will be Gurler Road to the south and the Union Pacific Railroad overpass to the north. The Peace Road Corridor Study will generate recommendations for intersection improvements at Fairview Drive and the widening of Peace Road between I-88 and Fairview Drive. Phase I engineering for these improvements is expected to occur in FY2020. Phase I and Phase II engineering related to the reconstruction of the First Street Bridge over the Kishwaukee River is scheduled for FY2020. Reconstruction of this bridge using MFT funds is scheduled for FY2021 with the engineering and design phases taking up to 18 months. Early work on the design engineering for replacement of the Lucinda Bridge is also planned for FY2020. City of DeKalb 128 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 210 ‐ MOTOR FUEL TAX FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 210‐00‐00‐33100 FEDERAL GRANTS 0 0 0 0 0 210‐00‐00‐33150 FEDERAL PASS‐THROUGH GRANTS 2,164 0 0 0 0 210‐00‐00‐33200 STATE GRANTS 0 0 0 0 0 210‐00‐00‐33550 MOTOR FUEL TAX ALLOTMENT 1,143,259 1,187,198 1,111,757 1,140,000 1,679,745 210‐00‐00‐37100 INVESTMENT INTEREST 23,504 64,266 50,000 75,000 65,000 210‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 0 71,236 0 0 0 210‐00‐00‐39100 TRANSFER FROM GENERAL FUND 0 0 0 0 0 TOTAL ESTIMATED REVENUES 1,168,927 1,322,700 1,161,757 1,215,000 1,744,745 EXPENDITURES 210‐00‐00‐53100 ICE/SNOW CONTROL SUPPLIES 77,057 99,999 100,000 100,000 125,000 210‐00‐00‐61450 MAINTENANCE‐SIDEWALKS 18,502 9,011 0 0 0 210‐00‐00‐62300 ARCHITECT/ENGINEERING SERVICES 302,583 108,854 200,000 300,000 780,000 210‐00‐00‐63650 LAND ACQUISITION SERVICES 1,800 15,295 0 2,973 0 210‐00‐00‐64100 ELECTRIC SERVICES 399,097 349,838 425,000 425,000 400,000 210‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 0 0 0 0 210‐00‐00‐81000 LAND ACQUISITION 0 13,000 0 0 0 210‐00‐00‐83000 STREET IMPROVEMENTS 0 0 250,000 0 375,000 210‐00‐00‐83050 STREET MAINTENANCE 16,150 982,416 565,000 720,000 0 210‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 84,998 452,620 757,000 450,000 0 210‐00‐00‐91100 TRANSFER TO GENERAL FUND 0 0 0 0 0 210‐00‐00‐91400 TRANSFER TO CAPITAL PROJECTS FUND 0 0 0 0 0 TOTAL EXPENDITURES 900,187 2,031,033 2,297,000 1,997,973 1,680,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 268,740 (708,333) (1,135,243) (782,973) 64,745 ESTIMATED REVENUES ‐ FUND 210 1,168,927 1,322,700 1,161,757 1,215,000 1,744,745 EXPENDITURES ‐ FUND 210 900,187 2,031,033 2,297,000 1,997,973 1,705,000 NET OF REVENUES/EXPENDITURES ‐ FUND 210 268,740 (708,333) (1,135,243) (782,973) 64,745 BEGINNING FUND BALANCE 2,797,303 2,014,330 ENDING FUND BALANCE 2,014,330 2,079,075 City of DeKalb 129 Proposed Budget Special Service Area Funds ______________________________________________________________________________ The City administers five operational Special Services Areas designated to pay the costs of various public maintenance and utility items. They are: Heritage Ridge Subdivision Special Service Area #3 (Fund 223) was created in 1990 for the residential subdivision located at the southeast corner of Fairview Drive and First Street. It pays the costs of retention pond mowing and the maintenance of cul-de-sac islands including, but not limited to, decorative washed stone and island plant materials. It also provides for a stylized street lighting system and entrance sign. Knolls at Prairie Creek Subdivision SSA #4 (Fund 224) was created in 1994 for the residential subdivision on the west side of Annie Glidden Road between Lincoln Highway and Taylor Street. It pays costs of maintaining cul-de-sac islands including, but not limited to, mulch, river stone and weed control. It also pays the additional costs of maintaining various public areas and provides for a stylized street lighting system and entrance sign. Greek Row Special Service Area #6 (Fund 226) was created in 2004 to finance the electrical costs of streetlighting placed upon private properties that benefit the neighborhood. Heartland Fields Special Service Area #14 (Fund 234) was created to authorize the maintenance, repair, regular care, renewal and replacement of the Common Facilities including, without limitation, the mowing and fertilizing of grass, pruning and trimming of trees and bushes, removal and replacement of diseased or dead landscape materials, the repair and replacement of monument signs, storm water detention basins, storm sewers and related areas and appurtenances, culverts, drains, ditches and tiles, landscape buffers and related areas and appurtenances in the Special Service Area. It also authorizes the implementation and continuation of a mosquito abatement program in the Special Service Area, as well as the provision of snow removal services on public sidewalks along Lot 101 of the Heartland Fields Subdivision (or in such other areas as the City shall determine, within the Area) all in accordance with the final engineering plan and final plat of subdivision for the Area. The proposed municipal services are unique and are in addition to the improvements provided or maintained by the City generally. 924 Greenbrier Special Service Area #28 (Fund 248) was created in 2019 for the purpose of repaying a loan from the City’s Water Fund to the owner of 924 Greenbrier Road in the amount of $37,425 for installation of a fire sprinkler system. The City offered loans to property owners operating Greek housing to ensure compliance with State law. The Greek Housing Fire Safety Act, 110 ILCS 130/1, requires “Greek housing structures” constructed after January 1, 2011 to have an automatic sprinkler system installed at the time of construction. In addition, the Act requires Greek housing structures built before January 1, 2011 to be retrofitted with a sprinkler system before January 1, 2019. This loan is scheduled to be repaid to the Water Fund over a five-year period though property taxes levied on the Special Service Area. City of DeKalb 130 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 223 ‐ SPECIAL SERVICE AREA #3 Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 223‐00‐00‐30200 PROPERTY TAX ‐ SSA 1,000 1,000 1,000 1,000 1,000 223‐00‐00‐37100 INVESTMENT INTEREST 0 1 10 10 10 TOTAL ESTIMATED REVENUES 1,000 1,001 1,010 1,010 1,010 EXPENDITURES 223‐00‐00‐51100 SUPPLIES/PARTS‐GROUNDS 223‐00‐00‐61100 MAINTENANCE‐GROUNDS 1,200 315 1,000 1,000 1,000 223‐00‐00‐91100 TRANSFER TO GENERAL FUND 500 500 500 500 500 TOTAL EXPENDITURES 1,700 815 1,500 1,500 1,500 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (700) 186 (490) (490) (490) ESTIMATED REVENUES ‐ FUND 223 1,000 1,001 1,010 1,010 1,010 EXPENDITURES ‐ FUND 223 1,700 815 1,500 1,500 1,500 NET OF REVENUES/EXPENDITURES ‐ FUND 223 (700) 186 (490) (490) (490) BEGINNING FUND BALANCE 3,154 2,664 ENDING FUND BALANCE 2,664 2,174 City of DeKalb 131 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 224 ‐ SPECIAL SERVICE AREA #4 Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 224‐00‐00‐30200 PROPERTY TAX ‐ SSA 5,497 5,489 5,500 5,500 5,500 224‐00‐00‐37100 INVESTMENT INTEREST 2 5 10 10 10 TOTAL ESTIMATED REVENUES 5,499 5,494 5,510 5,510 5,510 EXPENDITURES 224‐00‐00‐61100 MAINTENANCE‐GROUNDS 4,155 2,619 4,000 4,000 4,000 224‐00‐00‐64100 ELECTRIC SERVICES 0 0 0 0 0 224‐00‐00‐91100 TRANSFER TO GENERAL FUND 500 500 500 500 500 TOTAL EXPENDITURES 4,655 3,119 4,500 4,500 4,500 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 844 2,375 1,010 1,010 1,010 ESTIMATED REVENUES ‐ FUND 224 5,499 5,494 5,510 5,510 5,510 EXPENDITURES ‐ FUND 224 4,655 3,119 4,500 4,500 4,500 NET OF REVENUES/EXPENDITURES ‐ FUND 224 844 2,375 1,010 1,010 1,010 BEGINNING FUND BALANCE 2,090 3,100 ENDING FUND BALANCE 3,100 4,110 City of DeKalb 132 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 226 ‐ SPECIAL SERVICE AREA #6 Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 226‐00‐00‐30200 PROPERTY TAX ‐ SSA 14,000 15,671 18,000 16,400 16,400 226‐00‐00‐37100 INVESTMENT INTEREST 6 13 10 10 10 TOTAL ESTIMATED REVENUES 14,006 15,684 18,010 16,410 16,410 EXPENDITURES 226‐00‐00‐64100 ELECTRIC SERVICES 17,987 10,236 17,500 12,500 15,900 226‐00‐00‐91100 TRANSFER TO GENERAL FUND 500 500 500 500 500 TOTAL EXPENDITURES 18,487 10,736 18,000 13,000 16,400 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (4,481) 4,948 10 3,410 10 ESTIMATED REVENUES ‐ FUND 226 14,006 15,684 18,010 16,410 16,410 EXPENDITURES ‐ FUND 226 18,487 10,736 18,000 13,000 16,400 NET OF REVENUES/EXPENDITURES ‐ FUND 226 (4,481) 4,948 10 3,410 10 BEGINNING FUND BALANCE 14 3,424 ENDING FUND BALANCE 3,424 3,434 City of DeKalb 133 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 234 ‐ SPECIAL SERVICE AREA #14 Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 234‐00‐00‐30200 PROPERTY TAX ‐ SSA 2,500 2,500 2,500 2,500 2,500 234‐00‐00‐37100 INVESTMENT INTEREST 1 2 10 10 10 TOTAL ESTIMATED REVENUES 2,501 2,502 2,510 2,510 2,510 EXPENDITURES 234‐00‐00‐61100 MAINTENANCE‐GROUNDS 648 600 2,500 2,500 2,500 234‐00‐00‐91100 TRANSFER TO GENERAL FUND 500 500 500 500 500 TOTAL EXPENDITURES 1,148 1,100 3,000 3,000 3,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 1,353 1,402 (490) (490) (490) ESTIMATED REVENUES ‐ FUND 234 2,501 2,502 2,510 2,510 2,510 EXPENDITURES ‐ FUND 234 1,148 1,100 3,000 3,000 3,000 NET OF REVENUES/EXPENDITURES ‐ FUND 234 1,353 1,402 (490) (490) (490) BEGINNING FUND BALANCE 5,546 5,056 ENDING FUND BALANCE 5,056 4,566 City of DeKalb 134 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 248 ‐ SPECIAL SERVICE AREA #28 Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 248‐00‐00‐30200 PROPERTY TAX ‐ SSA 0 0 0 0 8,704 248‐00‐00‐37100 INVESTMENT INTEREST 0 0 0 0 10 TOTAL ESTIMATED REVENUES 0 0 0 0 8,714 EXPENDITURES 248‐00‐00‐91600 TRANSFER TO WATER FUND 0 0 0 0 8,704 TOTAL EXPENDITURES 0 0 0 0 8,704 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 0 0 0 0 10 ESTIMATED REVENUES ‐ FUND 248 8,714 EXPENDITURES ‐ FUND 248 8,704 NET OF REVENUES/EXPENDITURES ‐ FUND 248 10 BEGINNING FUND BALANCE ENDING FUND BALANCE 10 City of DeKalb 135 Proposed Budget Central Area Tax Increment Finance (#1) Fund ______________________________________________________________________________ FUND 260 The Central Area TIF District was established in 1986 to support new development and redevelopment throughout a large section of the City that included the downtown, Pleasant Street neighborhood, and Sycamore Road, and later expanded to include the Ellwood Historic Neighborhood. At the time TIF #1 was established, the State of Illinois allowed municipalities to capture sales tax increment in addition to property tax increment. Collection of sales tax increment ended in 2013 and the Central Area TIF District now only collects incremental property tax revenue. In 2008, the City worked with the various local taxing districts with overlapping jurisdictions to approve an intergovernmental agreement that declared one-half of the annual TIF revenues as surplus in exchange for supporting a 12-year extension of the Central Area TIF District. Due to the Central Area TIF District being established as a sales tax and property tax TIF district, the TIF Act requires that a proportional share of any surplus declaration be paid back to the Illinois Department of Revenue and the City of DeKalb as repayment for prior sales tax receipts. The proportional share of the surplus is based on a ratio of the total sales tax receipts collected over the life of the district, compared to property tax receipts collected over the life of the district. During FY17, the City began discussing a TIF Phase-Out Plan and developing strategies for investing the remaining funds prior to the expiration of TIF #1 and TIF #2. It became apparent during those conversations that the available funding would not be sufficient in achieving the City’s goals for downtown revitalization, as identified in the City’s 2025 Strategic Plan. As a result, the City began investigating the feasibility of removing a portion of the Central Area TIF District and placing it into a new Central Business District TIF. In FY2019, the City approved the creation of the Central Business District TIF (TIF #3). Several redevelopment projects that were initiated in the Central Area TIF are now a part of TIF #3. Where applicable and in accordance with the TIF Act, funds for those projects will be transferred from Fund 260 to the newly created Fund 262 (TIF #3) in FY2020. In Joint Review Board meetings in January and February of 2019, the participating taxing bodies discussed whether the City would surplus some portion of the annual incremental revenues from TIF #3 as it had in TIF #2. Because TIF #3 comprised about one-seventh of the parcels in TIF #1 (300 vs, 2,000 parcels), there was agreement that such a surplus arrangement would seriously limit the City’s ability to support private redevelopment projects or issue debt. An alternative proposal was introduced in the special February 1 JRB meeting involving the early termination of TIF #1, which would deliver a “surplus” to the other taxing bodies that was roughly comparable to 16 years of a 50/50 revenue-sharing agreement for TIF #3. On June 10, the City Council unanimously approved a resolution (Resolution 2019-094) which closes TIF #1 at the end of FY2021 instead of FY2022. City of DeKalb 136 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 260 ‐ TIF FUND #1 (CENTRAL AREA) Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 260‐00‐00‐30300 PROPERTY TAX ‐ TIF 6,845,389 7,085,132 7,289,311 7,289,311 7,280,074 260‐00‐00‐37100 INVESTMENT INTEREST 59,488 228,088 200,000 175,000 100,000 260‐00‐00‐37500 GAIN/LOSS ON INVESTMENTS 0 30,663 0 0 0 260‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 3,931 2,359 0 0 0 260‐00‐00‐39261 TRANSFER FROM TIF #2 FUND 0 3,392,076 0 0 0 TOTAL ESTIMATED REVENUES 6,908,808 10,738,318 7,489,311 7,464,311 7,380,074 EXPENDITURES 260‐00‐00‐61300 MAINTENANCE‐BUILDINGS 0 0 0 0 0 260‐00‐00‐61450 MAINTENANCE‐SIDEWALKS 0 0 0 0 0 260‐00‐00‐62100 FINANCIAL SERVICES 17,294 9,850 123,543 100,000 10,247 260‐00‐00‐62300 ARCHITECT/ENGINEERING SERVICES 14,977 9,123 10,000 20,000 10,000 260‐00‐00‐63650 LAND ACQUISITION SERVICES 0 600 5,000 0 0 260‐00‐00‐63700 DEVELOPMENTAL SERVICES 10,127 8,710 50,000 0 0 260‐00‐00‐63750 DEMOLITION SERVICES 0 15,958 50,000 0 0 260‐00‐00‐63800 CONTRACTED SERVICES 5,271 49,777 42,500 0 0 260‐00‐00‐65100 FREIGHT & POSTAGE 0 248 250 100 100 260‐00‐00‐65200 MARKETING ADS & PUBLIC INFO 0 0 5,000 0 0 260‐00‐00‐65300 LEGAL EXPENSES & NOTICES 3,445 12,716 50,000 5,000 5,000 260‐00‐00‐66100 DUES & SUBSCRIPTIONS 850 0 850 0 0 260‐00‐00‐66200 TRAINING/TRAVEL 1,316 1,484 1,500 0 0 260‐00‐00‐68600 TIF SURPLUS DISTRIBUTION 0 0 3,644,656 3,644,656 3,640,037 260‐00‐00‐69199 PRIV PROP REHAB / REDEVELOP 2,604,242 2,142,147 6,823,794 2,850,000 50,000 260‐00‐00‐81000 LAND ACQUISITION 1,330 0 0 0 0 260‐00‐00‐82000 BUILDINGS & IMPROVEMENTS 8,780 0 20,000 0 0 260‐00‐00‐83000 STREET IMPROVEMENTS 7,701 0 0 0 0 260‐00‐00‐83050 STREET MAINTENANCE 505,621 449,037 0 0 0 260‐00‐00‐83200 STORM SEWER IMPROVEMENTS 0 0 0 0 0 260‐00‐00‐83300 PARKING LOT IMPROVEMENTS 0 0 0 0 0 260‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 3,193,883 3,235,972 62,500 5,000 1,000,000 260‐00‐00‐83999 SIGNALS & INTERSECTIONS 0 0 0 0 0 260‐00‐00‐91100 TRANSFER TO GENERAL FUND 678,576 100,000 100,000 50,000 15,000 260‐00‐00‐91261 TRANSFER TO TIF #2 FUND 0 0 0 0 0 260‐00‐00‐91262 TRANSFER TO TIF #3 FUND 0 0 0 0 4,275,000 260‐00‐00‐91375 TRANSFER TO TIF DEBT SERVICE FUND 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 TOTAL EXPENDITURES 8,131,413 7,228,822 12,181,993 7,867,156 10,200,384 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (1,222,605) 3,509,496 (4,692,682) (402,845) (2,820,310) ESTIMATED REVENUES ‐ FUND 260 6,908,808 10,738,318 7,489,311 7,464,311 7,380,074 EXPENDITURES ‐ FUND 260 8,131,413 7,228,822 12,181,993 7,867,156 10,200,384 NET OF REVENUES/EXPENDITURES ‐ FUND 260 (1,222,605) 3,509,496 (4,692,682) (402,845) (2,820,310) BEGINNING FUND BALANCE 2,596,537 1,229,458 4,373,313 4,373,313 3,970,468 FUND BALANCE ADJUSTMENTS ENDING FUND BALANCE 3,970,470 1,150,160 City of DeKalb 137 Proposed Budget Tax Increment Finance (#2) Fund ______________________________________________________________________________ FUND 261 The City established TIF #2 in 1995 to fund infrastructure improvements and support residential redevelopment and rehabilitation in the neighborhoods south of the downtown core that runs east-west along East Lincoln Highway. In recent years, TIF #2 has successfully supported the continued operation of Barb City Manor. This City-owned building is leased to Barb City Manor, Inc. for the operation of a low- to moderate-income senior living facility. Funds from TIF #2 have supported capital improvements to the building infrastructure, including replacement of aging roofs and emergency fire escapes. Over its 23-year life, TIF #2 failed to produce any significant redevelopment projects and thus carried a significant fund balance. The TIF Act does allow for municipalities to “port” funding between TIF districts, so long as they are contiguous to each other and the use of transferred funds has a benefit to the TIF district from which funds are ported. In FY2018, the City transferred $3,542,756 to the Central Area TIF (TIF #1) to fund several redevelopment projects in the Central Business District. The remaining excess fund balance in the amount of $5,658,295 was distributed to the taxing districts within TIF #2 at the end of FY2018. On October 14, 2019, the City Council approved Ordinance 2019-068 which officially terminated TIF #2 as of December 31, 2019. Once all FY2019 obligations are paid, the remaining fund balance will be paid out as surplus to the taxing districts within TIF #2 at the conclusion of FY2019. City of DeKalb 138 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 261 ‐ TIF FUND #2 Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 261‐00‐00‐30300 PROPERTY TAX ‐ TIF 1,391,223 1,476,057 1,521,644 1,521,644 0 261‐00‐00‐37100 INVESTMENT INTEREST 16,027 2,043 5,000 15,000 0 261‐00‐00‐39260 TRANSFER FROM TIF #1 FUND 0 0 0 0 0 TOTAL ESTIMATED REVENUES 1,407,250 1,478,100 1,526,644 1,536,644 0 EXPENDITURES 261‐00‐00‐61420 MAINTENANCE‐STREETS 0 0 0 0 0 261‐00‐00‐61450 MAINTENANCE‐SIDEWALKS 0 0 0 0 0 261‐00‐00‐62100 FINANCIAL SERVICES 718 676 100,700 80,000 0 261‐00‐00‐62300 ARCHITECT/ENGINEERING SERVICES 0 0 0 0 0 261‐00‐00‐65100 LEGAL EXPENSES & NOTICES 220 0 10,000 1,000 0 261‐00‐00‐68100 ECONOMIC DEVELOPMENT INCENTIVE 0 0 0 0 0 261‐00‐00‐68600 TIF SURPLUS DISTRIBUTION 0 5,658,295 0 1,859,693 0 261‐00‐00‐69199 PRIV PROP REHAB / REDEVELOP 52,201 30,444 249,039 249,039 0 261‐00‐00‐81000 LAND ACQUISITION 0 5,142 0 0 0 261‐00‐00‐82000 BUILDINGS & IMPROVEMENTS 39,827 27,400 0 0 0 261‐00‐00‐83000 STREET IMPROVEMENTS 248,947 211,585 0 0 0 261‐00‐00‐83050 STREET MAINTENANCE 49,884 37,999 0 0 0 261‐00‐00‐83200 STORM SEWER IMPROVEMENTS 0 0 0 0 0 261‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 148,714 0 0 0 0 261‐00‐00‐91100 TRANSFER TO GENERAL FUND 113,198 60,000 0 0 0 261‐00‐00‐91260 TRANSFER TO TIF #1 FUND 0 3,392,076 0 0 0 261‐00‐00‐91262 TRANSFER TO TIF #3 FUND 0 0 0 0 0 TOTAL EXPENDITURES 653,709 9,423,617 359,739 2,189,732 0 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 753,541 (7,945,517) 1,166,905 (653,088) 0 ESTIMATED REVENUES ‐ FUND 261 1,407,250 1,478,100 1,526,644 1,536,644 EXPENDITURES ‐ FUND 261 653,709 9,423,617 359,739 2,189,732 NET OF REVENUES/EXPENDITURES ‐ FUND 261 753,541 (7,945,517) 1,166,905 (653,088) BEGINNING FUND BALANCE 653,088 ENDING FUND BALANCE 0 City of DeKalb 139 Proposed Budget Central Business Tax Increment Finance (#3) Fund ______________________________________________________________________________ FUND 262 On February 11, 2019, the City Council approved Ordinance 2018-70 Adopting Tax Increment Financing for the DeKalb Central Business District TIF (TIF #3). The primary purpose was to promote continuing commercial and residential rehabilitation and redevelopment in the central business district. In recent years, TIF #1 has supported several significant redevelopment projects in the central business district. With TIF #1 scheduled to end in 2021, the City established TIF #3 to continue the momentum of redevelopment. A number of properties that previously existed within TIF #1, including several currently undergoing redevelopment, now lie within the boundaries of TIF #3. The TIF Act does allow for municipalities to “port” funding between TIF districts, so long as they are contiguous to each other and the use of transferred funds has a benefit to the TIF district from which funds are ported. The FY2020 Budget includes the transfer of funds from TIF #1 to TIF #3 in the amount of $4.28 million. These funds will support ongoing redevelopment projects that were within TIF #1 when approved but are now within the boundaries of TIF #3, as well as other anticipated projects which are allowable under the TIF Act. City of DeKalb 140 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 262 ‐ TIF FUND #3 Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 262‐00‐00‐30300 PROPERTY TAX ‐ TIF 0 0 0 0 546,476 262‐00‐00‐37100 INVESTMENT INTEREST 0 0 0 0 250 262‐00‐00‐39260 TRANSFER FROM TIF #1 FUND 0 0 0 0 4,275,000 262‐00‐00‐39261 TRANSFER FROM TIF #2 FUND 0 0 0 0 0 TOTAL ESTIMATED REVENUES 0 0 0 0 4,821,726 EXPENDITURES 262‐00‐00‐62100 FINANCIAL SERVICES 0 0 0 0 1,500 262‐00‐00‐62300 ARCHITECT/ENGINEERING SERVICES 0 0 0 0 10,000 262‐00‐00‐63650 LAND ACQUISITION SERVICES 0 0 0 0 0 262‐00‐00‐63700 DEVELOPMENTAL SERVICES 0 0 0 0 0 262‐00‐00‐63800 CONTRACTED SERVICES 0 0 0 0 0 262‐00‐00‐65100 FREIGHT & POSTAGE 0 0 0 0 250 262‐00‐00‐65200 MARKETING ADS & PUBLIC INFO 0 0 0 0 0 262‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 0 0 0 5,000 262‐00‐00‐69199 PRIV PROP REHAB / REDEVELOP 0 0 0 0 3,778,250 262‐00‐00‐81000 LAND ACQUISITION 0 0 0 0 5,000 262‐00‐00‐82000 BUILDINGS & IMPROVEMENTS 0 0 0 0 0 262‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 0 0 0 0 500,000 262‐00‐00‐91100 TRANSFER TO GENERAL FUND 0 0 0 0 15,000 TOTAL EXPENDITURES 0 0 0 0 4,315,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 0 0 0 0 506,726 ESTIMATED REVENUES ‐ FUND 262 4,821,726 EXPENDITURES ‐ FUND 262 4,315,000 NET OF REVENUES/EXPENDITURES ‐ FUND 262 506,726 BEGINNING FUND BALANCE 0 ENDING FUND BALANCE 506,726 City of DeKalb 141 Proposed Budget Community Development Block Grant Fund ______________________________________________________________________________ Fund 280 In 1993, the U. S. Census Bureau notified the City that DeKalb County was considered to be part of the Chicago primary metropolitan statistical area (PMSA). The PMSA designation enabled DeKalb, as the largest municipality within the County, to be considered by the U.S. Department of Housing and Urban Development (HUD) as an entitlement community and eligible to receive direct funding through the Community Development Block Grant (CDBG) program on an annual basis. Funding is subject to annual federal appropriation and can only be used for CDBG eligible activities. The CDBG program year runs from April 1 through and March 31. For the Program Year between April 1, 2019 and March 31, 2020, the City of DeKalb received $439,129 in CDBG funds. This is a reduction in the amount of funding received in 2018. The annual amount varies depending on Federal Funding and HUD’s formula for calculating grantee entitlements. The current HUD required Five-Year Consolidated Plan covers years 2015 through 2019 and identifies the general projects the City proposes to carry out using CDBG funds. Each year, specific activities are identified under each project in the Annual Action Plan. For 2019, the City will proposes the following activities: Private Property Rehabilitation – grants up to $5,000 and repayable loans for up to $10,000 to 12 income-eligible owner-occupied single family residences within the City for emergency repairs ($60,000 in 2019 funds plus $169,822 in carry-over funds); Public Facilities/Improvements – street lighting improvements in the Annie Glidden North (AGN) neighborhood to improve security and resident safety ($225,444); Public Services – grants to local not-for-profit social service agencies to provide services to low income residents of the City ($65,860); and Administration ($87,825). The City expects to utilize carry over funds from prior years to accomplish the following activities: Demolition of two condemned single-family residences that are unsuitable for rehabilitation ($35,000) and the 2018 Public Facilities project targeted toward providing access to broadband service in the AGN neighborhood ($210,000). Any additional carry-over funds will be allocated to Private Property Rehabilitation and Demolition based on need. The City estimates that CDBG grant fund revenue and carry-over funds total $1,314,516 for budget purposes for 2020. Actual grant amounts are announced upon congressional approval of the Federal budget and allocation of funds by HUD. In recent years, delays in this process resulted in late grant notifications. In 2019, the notification of the annual allocation was not received until mid-April, after the start of the new program year. Approval for the 2019 Annual Action Plan, which allows the City to begin expending funds, was not received until the end of August. This has been the case for the past several years when budget negotiations at the Federal level are contentious and programs like CDBG are marked for reductions in funding or complete elimination from the federal budget. Pursuant to HUD guidelines, 20% of grant receipts can be used to pay for administrative purposes. This amount is transferred to the general fund to pay the salary and benefits of one full-time staff member assigned to administer this program. City of DeKalb 142 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 280 ‐ CDBG FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 280‐00‐00‐33100 FEDERAL GRANTS 279,328 156,672 979,230 979,230 600,000 TOTAL ESTIMATED REVENUES 279,328 156,672 979,230 979,230 600,000 EXPENDITURES 280‐00‐00‐52000 OFFICE SUPPLIES 0 57 150 150 150 280‐00‐00‐61450 MAINTENANCE‐SIDEWALKS 1,000 0 39,680 39,680 0 280‐00‐00‐62099 PRINTED MATERIALS 0 0 500 500 500 280‐00‐00‐62100 FINANCIAL SERVICES 651 676 700 700 703 280‐00‐00‐62700 HUMAN & SOCIAL SERVICES 82,151 61,008 65,000 65,000 60,000 280‐00‐00‐63700 DEVELOPMENTAL SERVICES 11,500 12,777 100,000 100,000 233,522 280‐00‐00‐63750 DEMOLITION SERVICES 0 0 35,000 35,000 17,500 280‐00‐00‐63800 CONTRACTED SERVICES 0 0 16,000 16,000 5,000 280‐00‐00‐63900 OTHER PROFESSIONAL SERVICES 0 0 0 0 0 280‐00‐00‐65100 FREIGHT & POSTAGE 108 85 150 150 250 280‐00‐00‐65300 LEGAL EXPENSES & NOTICES 1,109 1,310 1,200 1,200 1,500 280‐00‐00‐66100 DUES & SUBSCRIPTIONS 0 25 50 50 75 280‐00‐00‐66200 TRAINING/TRAVEL 1,056 23 800 800 800 280‐00‐00‐81000 LAND ACQUISITION 0 0 0 0 0 280‐00‐00‐83000 STREET IMPROVEMENTS 0 24,725 420,000 420,000 0 280‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 0 0 210,000 210,000 200,000 280‐00‐00‐85500 WATER SYSTEM IMPROVEMENTS 929 0 0 0 0 280‐00‐00‐86100 TECHNOLOGY EQUIPMENT 0 0 0 0 0 280‐00‐00‐91100 TRANSFER TO GENERAL FUND 25,326 55,986 90,000 90,000 80,000 280‐00‐00‐91285 TRANSFER TO REHAB FUND 0 0 0 0 0 280‐00‐00‐91600 TRANSFER TO WATER FUND 0 0 0 0 0 280‐00‐00‐91620 TRANSFER TO WATER CAPITAL FUND 155,498 0 0 0 0 TOTAL EXPENDITURES 279,328 156,672 979,230 979,230 600,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 0 0 0 0 0 ESTIMATED REVENUES ‐ FUND 280 279,328 156,672 979,230 979,230 600,000 EXPENDITURES ‐ FUND 280 279,328 156,672 979,230 979,230 600,000 NET OF REVENUES/EXPENDITURES ‐ FUND 280 0 0 0 0 0 BEGINNING FUND BALANCE 0 ENDING FUND BALANCE 0 City of DeKalb 143 Proposed Budget Housing Rehabilitation Fund ______________________________________________________________________________ FUND 285 Beginning in the late 1970s and continuing through 1983, the City received Community Development Assistance Program (CDAP) and various other federal and state grants that were used for housing rehabilitation activities. A fund was established as the pass-through account for the grant and as the repository of loan repayments and recaptured funds that were restricted for reuse for similar programs. In 1993, the City became an entitlement community through the Federal Community Development Block Grant program. At that time, a new fund (CDBG Fund) was set up to manage the annual grant allocation and the prior fund was maintained as the revolving loan fund for CDBG. In addition to CDBG, the City periodically receives other grants and this fund is used as the pass-through for those as well. The use or reuse of dollars in this fund carries substantial restrictions and cannot be co-mingled with other City, State or Federal revenues. Funds are budgeted to assist very low (50% AMI) and extremely low (30% AMI) income residents with home repair costs that exceed the $5,000 CDBG Program limit when the homeowner has no personal resources to cover the overage and the overage amount is not excessive. Use of this fund is subject to review and approval of the City Manager prior to the commitment of funds. Funds are also available for the emergency demolition of residential structures and minor expenses related to this activity. Because these funds were originally CDBG funds, the City must exercise caution to ensure that any use of these monies meets all HUD guidelines and requirements for use of their funds. City of DeKalb 144 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 285 ‐ HOUSING REHAB FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 285‐00‐00‐37100 INVESTMENT INTEREST 61 274 50 275 250 285‐00‐00‐38100 MISCELLANEOUS REVENUE 0 0 0 0 0 285‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 0 1,410 1,000 0 0 TOTAL ESTIMATED REVENUES 61 1,684 1,050 275 250 EXPENDITURES 285‐00‐00‐62100 FINANCIAL SERVICES 359 338 350 338 352 285‐00‐00‐63700 DEVELOPMENTAL SERVICES 1,000 0 24,000 5,000 50,000 285‐00‐00‐63750 DEMOLITION SERVICES 0 0 25,000 0 0 285‐00‐00‐63900 OTHER PROFESSIONAL SERVICES 0 0 500 0 0 285‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 0 500 0 0 285‐00‐00‐66200 TRAINING/TRAVEL 0 0 500 0 0 285‐00‐00‐81000 LAND ACQUISITION 0 0 0 0 0 285‐00‐00‐91100 TRANSFER TO GENERAL FUND 0 0 4,074 4,074 0 TOTAL EXPENDITURES 1,359 338 54,924 9,412 50,352 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (1,298) 1,346 (53,874) (9,137) (50,102) ESTIMATED REVENUES ‐ FUND 285 61 1,684 1,050 275 250 EXPENDITURES ‐ FUND 285 1,359 338 54,924 9,412 50,352 NET OF REVENUES/EXPENDITURES ‐ FUND 285 (1,298) 1,346 (53,874) (9,137) (50,102) BEGINNING FUND BALANCE 67,576 58,439 ENDING FUND BALANCE 58,439 8,337 City of DeKalb 145 Proposed Budget Foreign Fire Insurance Fund ______________________________________________________________________________ FUND 290 The Foreign Fire Insurance Tax Fund was created in 1992 by the City Council in compliance with applicable state statutory provisions. A two-percent tax is imposed on the gross receipts of the fire insurance premiums provided by insurance companies not located within Illinois, and for property located in the City. These taxes, along with similar taxes imposed by most Illinois municipalities, are collected by the state and distributed to municipalities on a per capita basis. By ordinance, the Foreign Fire Insurance Tax Board members are elected by the Fire Department from among its members. This Board is empowered to expend Foreign Fire Insurance Tax proceeds for the “maintenance, benefit, and use of the Fire Department.” This Board cannot expend tax proceeds for projects not given budget approval by the City Council. The City Council cannot authorize the expenditures of these tax proceeds for projects not approved by the Board. Consequently, the system requires the City Council and the Board to mutually agree on the expenditures. Expenditures from this fund are used for the betterment of the Fire department. Typically, they have included station improvements, station repairs, furniture for stations, personal protection equipment and physical fitness equipment. Purchases planned for FY2020 include:  Purchase firefighter planners for all  Replace worn chairs department personnel  Replace mattresses  Provide funding for the historical  Replace kitchen cooking utensils as preservation of department needed memorabilia  Provide cable service to all Fire Stations  Pay for Foreign Fire Board annual audit  Provide newspaper service to Station 1  Assist department with purchases when  Purchase building supplies for Stations possible  Clean cloth ambulance seats City of DeKalb 146 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 290 ‐ FOREIGN FIRE INSURANCE TAX Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 290‐00‐00‐31950 MISCELLANEOUS TAXES 50,459 54,758 48,000 55,000 55,000 290‐00‐00‐38100 MISCELLANEOUS REVENUE 0 0 0 0 0 TOTAL ESTIMATED REVENUES 50,459 54,758 48,000 55,000 55,000 EXPENDITURES 290‐00‐00‐51300 SUPPLIES/PARTS‐BUILDINGS 7,877 10,337 6,000 6,000 9,000 290‐00‐00‐51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 3,000 290‐00‐00‐52800 FIREFIGHTING SUPPLIES & EQUIPMENT 6,706 11,635 10,000 10,000 0 290‐00‐00‐53300 SMALL TOOLS & EQUIPMENT 664 6,814 5,000 5,000 3,000 290‐00‐00‐54000 UNIFORMS/PROTECTIVE CLOTHING 0 0 0 7,000 450 290‐00‐00‐61300 MAINTENANCE‐BUILDINGS 0 435 0 2,000 0 290‐00‐00‐62100 FINANCIAL SERVICES 0 0 0 0 0 290‐00‐00‐65200 MARKETING ADS & PUBLIC INFO 597 200 500 500 0 290‐00‐00‐66100 DUES & SUBSCRIPTIONS 1,816 1,842 1,472 1,472 2,732 290‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 11,977 1,019 10,000 10,000 0 290‐00‐00‐86000 EQUIPMENT 0 0 7,500 7,500 36,500 290‐00‐00‐86100 TECHNOLOGY EQUIPMENT 0 924 0 0 0 290‐00‐00‐86200 OFFICE FURNITURE & EQUIPMENT 14,747 14,537 6,000 6,000 0 TOTAL EXPENDITURES 44,384 47,743 46,472 55,472 54,682 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 6,075 7,015 1,528 (472) 318 ESTIMATED REVENUES ‐ FUND 290 50,459 54,758 48,000 55,000 55,000 EXPENDITURES ‐ FUND 290 44,384 47,743 46,472 55,472 54,682 NET OF REVENUES/EXPENDITURES ‐ FUND 290 6,075 7,015 1,528 (472) 318 BEGINNING FUND BALANCE 62,282 61,810 ENDING FUND BALANCE 61,810 62,128 City of DeKalb 147 Proposed Budget  This page has been intentionally left blank. City of DeKalb 148 Proposed Budget Section Six Debt Service Funds ▪▪ General Fund Debt Service ▪▪ TIF Fund Debt Service City of DeKalb 149 Proposed Budget  This page has been intentionally left blank. City of DeKalb 150 Proposed Budget Debt Service Funds ______________________________________________________________________________ General Fund Debt Service Fund 300 and TIF Fund Debt Service Fund 375 General Obligation Refunding Bonds of 2010C: In December 2010, the City issued $5,415,000 of General Obligation Refunding Bonds to refinance prior debt at a lower interest cost. The original obligations were issued to finance storm sewer construction, road reconstruction, park land, and initial costs for a police station. The debt service is based on a 13-year amortization schedule with interest ranging from 1.90% to 5.90%. Semi-annual interest payments are due July 1st and January 1st while annual principal payments are due each January 1st. The outstanding principal balance as of December 31, 2019 is $2,795,000. General Obligation Bonds of 2012A: In October 2012, the City issued $9,905,000 of G.O. Refunding Bonds for the purpose of constructing a new Police Station. The debt service is based on a 17-year amortization schedule with interest ranging from 2.00% to 2.50%. Semi-annual interest payments are due July 1st and January 1st while annual principal payments are due each January 1st. The outstanding principal balance as of December 31, 2019 is $6,195,000. General Obligation Bonds of 2013B: In June 2013, the City issued $2,380,000 of G.O. Bonds for the purpose of completing construction on the new Police Station. The debt service is based on a 9-year amortization schedule with interest ranging from 0.80% to 3.00%. Semi-annual interest payments are due July 1st and January 1st while annual principal payments are due each January 1st. The outstanding principal balance as of December 31, 2019 is $2,170,000. General Obligation Refunding Bonds of 2019: As of December 31, 2018, an outstanding principal balance of $3,905,000 existed for the 2010B G.O. Refunding Bond with interest ranging from 4.25% to 4.75%. In October 2019, the City issued $3,925,000 of G.O. Refunding Bonds to refinance the 2010B bonds at a lower interest cost. The original obligations were issued to finance a public works facility expansion, a new traffic signal, and various road projects. The debt service is based on an 8-year amortization schedule with an interest rate of 1.82%. Semi- annual interest payments will be due July 1st and January 1st while annual principal payments are due each January 1st, beginning in 2021. The outstanding principal balance as of December 31, 2019 is $3,925,000. TIF General Obligation Refunding Bonds of 2010A: In May 2010, the City issued $10,800,000 of G.O. Bonds to refinance the City’s 2008 and 2009 TIF bond anticipation notes as well as finance TIF downtown improvements and other TIF projects. The debt service is based on a 12-year amortization schedule with interest ranging from 2.00% to 4.00%. Semi-annual interest payments are due December 1st and June 1st while annual principal payments are due each December 1st. The outstanding principal balance as of December 31, 2019 is $2,250,000. City of DeKalb 151 Proposed Budget  Debt Service Summary: General Fund and TIF The following tables summarizes the debt service obligations of the City for fiscal years 2020-2030. Table 1: Debt Service Schedule – Annual Payments for General Obligation and TIF Debt (Principal) Series Series Series Series TIF Series Fiscal Year Total 2010C 2012A 2013B 2019 2010A 2020 680,000 700,000 1,105,000 2,485,000 2021 715,000 725,000 20,000 1,145,000 2,605,000 2022 755,000 745,000 35,000 1,535,000 2023 645,000 765,000 185,000 1,595,000 2024 780,000 870,000 1,650,000 2025 795,000 885,000 1,680,000 2026 810,000 905,000 1,715,000 2027 830,000 920,000 1,750,000 2028 845,000 105,000 950,000 2029 865,000 865,000 2030 505,000 505,000 Total 2,795,000 6,195,000 2,170,000 3,925,000 2,250,000 17,335,000 City of DeKalb 152 Proposed Budget  Table 2: Debt Service Schedule – Annual Payments for General Obligation and TIF Debt (Interest) Series Series Series Series TIF Series Fiscal Year 2010C 2012A 2013B 2019 2010A Total 2020 137,040 130,681 54,600 49,211 90,000 461,532 2021 100,395 130,681 33,225 71,253 45,800 381,354 2022 59,573 130,681 11,175 70,753 272,182 2023 19,028 123,031 68,751 210,810 2024 107,581 59,150 166,731 2025 91,831 43,180 135,011 2026 75,781 26,891 102,672 2027 58,863 10,283 69,146 2028 41,066 956 42,022 2029 22,356 22,356 2030 6,313 6,313 Total 316,036 918,865 99,000 400,427 135,800 1,870,128 City of DeKalb 153 Proposed Budget The chart below provides a quick glance at the debt schedule with amounts owed by bond series per fiscal year throughout the remainder of the redemption period. Debt Schedule by Fiscal Year 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Bond Series 2019 Bond Series 2010C Bond Series 2012A Bond Series 2013B Bond Series 2010A (TIF) The City of DeKalb is a home-rule community and has no legal debt limit set by the Illinois General Assembly. The City monitors the overlapping debt of all taxing districts and is sensitive to the burden debt places on the taxpayer. At the end of 2018, the City’s General Obligation Bonded Debt as a percentage of total assessed value of property was 3.95% as shown in the chart below. Bonded Debt as Percentage of Total Assessed Value of Property 2,500,000 5.95% 6.05% 6.04% 2,000,000 5.81% 5.54% 1,500,000 4.68% 3.77% 3.96% 3.95% 1,000,000 3.00% 500,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2016.5* * - The City changed their fiscal year from June 30th to December 31st. City of DeKalb 154 Proposed Budget The chart below provides a ratio of general obligation bonded debt per resident in the City of DeKalb for fiscal years 2010 through 2018 Historical Trends of Bonded Debt per Capita $787 800.00 $734 700.00 $667 $614 $582 $589 600.00 $555 $548 $536 $475 500.00 400.00 300.00 200.00 100.00 0.00 2010 2011 2012 2013 2014 2015 2016 2016.5 * 2017 2018 * - The City changed their fiscal year from June 30th to December 31st City of DeKalb 155 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 300 ‐ DEBT SERVICE‐GENERAL FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 300‐00‐00‐31400 HOTEL/MOTEL TAX 45,822 45,210 50,000 43,500 49,000 300‐00‐00‐31600 HOME RULE MOTOR FUEL TAX 0 0 0 0 0 300‐00‐00‐35300 PARKING FINES 53,619 44,473 41,000 44,000 45,000 300‐00‐00‐37100 INVESTMENT INTEREST 0 0 0 0 0 300‐00‐00‐38800 DEBT ISSUE PROCEEDS 0 0 0 0 0 300‐00‐00‐39100 TRANSFER FROM GENERAL FUND 1,756,998 1,801,827 1,801,827 1,801,827 1,662,007 TOTAL ESTIMATED REVENUES 1,856,439 1,891,510 1,892,827 1,889,327 1,756,007 EXPENDITURES 300‐00‐00‐62100 FINANCIAL SERVICES 1,900 1,900 1,900 1,900 1,900 300‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 0 0 0 0 300‐00‐00‐75000 DEBT SERVICE ‐ PRINCIPAL 1,258,425 1,295,000 1,335,000 1,335,000 1,380,000 300‐00‐00‐76000 DEBT SERVICE ‐ INTEREST 627,629 591,926 548,929 548,929 371,532 300‐00‐00‐79800 PAYMENT TO ESCROW AGENT 0 0 0 0 0 300‐00‐00‐79850 BOND ISSUANCE COSTS 0 0 0 0 0 TOTAL EXPENDITURES 1,887,954 1,888,826 1,885,829 1,885,829 1,753,432 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (31,515) 2,684 6,998 3,498 2,575 ESTIMATED REVENUES ‐ FUND 300 1,856,439 1,891,510 1,892,827 1,889,327 1,756,007 EXPENDITURES ‐ FUND 300 1,887,954 1,888,826 1,885,829 1,885,829 1,753,432 NET OF REVENUES/EXPENDITURES ‐ FUND 300 (31,515) 2,684 6,998 3,498 2,575 BEGINNING FUND BALANCE (6,073) (2,574) ENDING FUND BALANCE (2,574) 1 City of DeKalb 156 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 375 ‐ DEBT SERVICE ‐ TIFS Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 375‐00‐00‐37100 INVESTMENT INTEREST 0 0 0 0 0 375‐00‐00‐38800 DEBT ISSUE PROCEEDS 0 0 0 0 0 375‐00‐00‐39260 TRANSFER FROM TIF #1 FUND 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 TOTAL ESTIMATED REVENUES 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 EXPENDITURES 375‐00‐00‐62100 FINANCIAL SERVICES 0 0 0 0 0 375‐00‐00‐75000 DEBT SERVICE ‐ PRINCIPAL 870,000 1,020,000 1,060,000 1,060,000 1,105,000 375‐00‐00‐76000 DEBT SERVICE ‐ INTEREST 208,000 173,200 132,400 132,400 90,000 TOTAL EXPENDITURES 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 0 0 0 0 0 ESTIMATED REVENUES ‐ FUND 375 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 EXPENDITURES ‐ FUND 375 1,078,000 1,193,200 1,192,400 1,192,400 1,195,000 NET OF REVENUES/EXPENDITURES ‐ FUND 375 0 0 0 0 0 BEGINNING FUND BALANCE 0 0 ENDING FUND BALANCE 0 0 City of DeKalb 157 Proposed Budget  This page has been intentionally left blank. City of DeKalb 158 Proposed Budget Section Seven Capital Project Funds  Capital Projects Fund  Fleet Replacement Fund  Capital Equipment Replacement Fund City of DeKalb 159 Proposed Budget  This page has been intentionally left blank. City of DeKalb 160 Proposed Budget Capital Projects Fund ______________________________________________________________________________ FUND 400 In FY2019, the local fuel tax rate of 5.5 cents per gallon was split between road (4 cents) and airport expenditures (1.5 cents). This fund accounts for most of the costs associated annual street maintenance, plus public building improvements, alley repairs, and other capital costs. Proceeds from the local tax on motor fuel can be used for any public capital improvements. The City owns and maintains about 130 centerline miles of roads, of which 74.8% (97.3 miles) are residential streets. As of January 2019, approximately 25 miles of DeKalb roads (mostly residential) needed immediate maintenance to prevent rapid degradation. In 2019, a total of only 2.75 centerline miles received such maintenance. At this pace, the road mileage needing urgent maintenance is growing much faster than the funds available to maintain good or very good pavement ratings (i.e. a PCI rating above 70). The average street maintenance expenditures required to keep pace total about $3.7 million per year. The State Motor Fuel Tax fund (Fund 210) will receive an estimated $540,000 in additional revenue in FY2020 as a result of the State legislature’s increase in the State tax by $0.19 per gallon. The total State MFT revenue in FY2020 will be about $1.68 million, which is still about $2 million short of the desired annual pace of road repairs and resurfacing. Of that $1.68 million, a total of $1,155,000 is budgeted for street and bridge improvements in FY2020. The Proposed FY2020 Budget assumes an increase of 4 cents in the local tax on motor fuel purchases. This increase will be split between Fund 400 (3 cents) and Fund 420, the Capital Equipment Replacement Fund (1 cent). The new local fuel tax revenue assigned to Fund 400 will provide an additional $525,000 to address the City’s deteriorating roads. The total allocation from Fund 400 for road improvements in FY2020 will be $1,325,000. The combined allocation of local motor fuel tax (Fund 400) and State motor fuel tax (Fund 210) funds toward street improvements in DeKalb in FY2020 will be $2,480,000, an increase of about $773,000 over FY2019. Tentative project expenditures for FY2020 include the following: Tentative FY2020 Projects Estimated Costs Annual Street Maintenance Program $1,325,000 Building Improvements – 164 E. Lincoln Highway $200,000 Video Broadcast Equipment – DeKalb Public Library $60,000 Building Improvements – Barb City Manor $50,000 Total $1,635,000 City of DeKalb 161 Proposed Budget The Annual Street Maintenance Program referenced above includes the following estimated unit costs: Street From To Estimated Costs North Seventh Street Lincoln Highway Sycamore Road $350,000 North Thirteenth Street Clark Street Sycamore Road $135,000 North Fourteenth Street Clark Street Dresser Road $165,000 Normal Road Hillcrest Drive Dresser Road $150,000 Taylor Street First Street Bridge @ Lions Park $185,000 Macom Drive Fairview Drive Peace Road $100,000 Various Alleys - - $115,000 Engineering - - $125,000 Total $1,325,000 City roads are maintained according to a pavement condition index survey. Road construction is prioritized through this survey, which is due to be updated in FY2020. City of DeKalb 162 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 400 ‐ CAPITAL PROJECTS FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 400‐00‐00‐31600 HOME RULE MOTOR FUEL TAX 356,161 640,879 614,719 695,000 1,216,250 400‐00‐00‐34790 TRAFFIC IMPACT FEES 250 0 0 0 0 400‐00‐00‐34900 RENTAL INCOME 0 0 0 0 0 400‐00‐00‐37100 INVESTMENT INTEREST 0 0 0 0 0 400‐00‐00‐38100 MISCELLANEOUS REVENUE 0 0 0 0 0 400‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 11,944 1,736 0 0 0 400‐00‐00‐38600 SALES OF SURPLUS PROPERTY 0 0 0 200,000 250,000 400‐00‐00‐39100 TRANSFER FROM GENERAL FUND 196,108 0 0 0 186,333 TOTAL ESTIMATED REVENUES 564,463 642,615 614,719 895,000 1,652,583 EXPENDITURES 400‐00‐00‐51600 SUPPLIES/PARTS‐TECHNOLOGY 0 0 0 0 0 400‐00‐00‐61300 MAINTENANCE‐BUILDINGS 26,745 14,682 0 0 50,000 400‐00‐00‐61450 MAINTENANCE‐SIDEWALKS 3,278 0 0 0 0 400‐00‐00‐62300 ARCHITECT/ENGINEERING SERVICES 0 0 100,000 110,000 125,000 400‐00‐00‐63800 CONTRACTED SERVICES 0 0 0 0 0 400‐00‐00‐81000 LAND ACQUSITION 196,773 1,565 0 0 0 400‐00‐00‐82000 BUILDINGS & IMPROVEMENTS 0 0 0 0 200,000 400‐00‐00‐83050 STREET MAINTENANCE 385,052 301,586 700,000 700,000 1,100,000 400‐00‐00‐83100 ALLEY IMPROVEMENTS 2,957 0 0 0 100,000 400‐00‐00‐86100 TECHNOLOGY EQUIPMENT 0 0 0 0 60,000 400‐00‐00‐91420 TRANSFER TO CAPITAL EQUIPMENT FUND 0 60,000 0 0 0 TOTAL EXPENDITURES 614,805 377,833 800,000 810,000 1,635,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (50,342) 264,782 (185,281) 85,000 17,583 ESTIMATED REVENUES ‐ FUND 400 564,463 642,615 614,719 895,000 1,652,583 EXPENDITURES ‐ FUND 400 614,805 377,833 800,000 810,000 1,635,000 NET OF REVENUES/EXPENDITURES ‐ FUND 400 (50,342) 264,782 (185,281) 85,000 17,583 BEGINNING FUND BALANCE 443,991 528,991 ENDING FUND BALANCE 528,991 546,574 City of DeKalb 163 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 410 ‐ FLEET REPLACEMENT FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 410‐00‐00‐34900 RENTAL INCOME 197,800 0 0 0 0 410‐00‐00‐38100 MISCELLANEOUS REVENUE 40,000 0 0 0 0 410‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 11,333 0 0 0 0 410‐00‐00‐38600 SALES OF SURPLUS PROPERTY 4,460 0 0 0 0 410‐00‐00‐39100 TRANSFER FROM GENERAL FUND 81,674 0 0 0 0 410‐00‐00‐39420 TRSF FROM CAPITAL EQUIP FUND 77,066 0 0 0 0 TOTAL ESTIMATED REVENUES 412,333 0 0 0 0 EXPENDITURES 410‐00‐00‐77000 LOAN PRINCIPAL 16,667 0 0 0 0 410‐00‐00‐87000 VEHICLES 255,666 0 0 0 0 410‐00‐00‐91100 TRANSFER TO GENERAL FUND 140,000 0 0 0 0 TOTAL EXPENDITURES 412,333 0 0 0 0 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 0 0 0 0 0 ESTIMATED REVENUES ‐ FUND 410 412,333 0 0 0 0 EXPENDITURES ‐ FUND 410 412,333 0 0 0 0 NET OF REVENUES/EXPENDITURES ‐ FUND 410 0 0 0 0 0 BEGINNING FUND BALANCE 294,309 0 0 0 0 ENDING FUND BALANCE 294,309 0 0 0 0 City of DeKalb 164 Proposed Budget Capital Equipment Replacement Fund ______________________________________________________________________________ Fund 420 The Capital Equipment Replacement Fund accounts for the acquisition costs for any new purchase or replacement of major equipment and vehicles for the City. The Fleet Replacement Fund (Fund 410) was closed in FY2017, combined with the Equipment Fund (Fund 420) in the FY2018 budget, and renamed the Capital Equipment Replacement Fund. Funding sources for the Capital Equipment Replacement Fund include E911 Board payments, police fines, rental income derived from current water tower leases, a DeKalb County emergency services payment per an intergovernmental agreement, sale of capital assets, and a transfer of any available fund balance from the General Fund. The FY2020 Proposed Budget includes new revenue of 1 cent of Local Motor Fuel Tax. This new revenue will provide another revenue source to help replace fleet vehicles which have outlived their useful life. The following purchases are budgeted in the Capital Equipment Replacement Fund in FY2020: Purchase Cost Department 2020 Fire Engine $550,000 Fire 2020 Ambulance $150,000 Fire 2020 Large Single-Axle Dump Truck/Plow $150,000 Public Works 2020 1-Ton Dump Truck $70,000 Public Works 2020 ¾-Ton Pickup Truck $40,000 Public Works 2020 Patrol SUV $55,000 Police 2020 Patrol SUV $55,000 Police 2020 Patrol SUV $55,000 Police 2020 Compact SUV $20,000 Community Development Total $1,145,000 City of DeKalb 165 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 420 ‐ CAPITAL EQUIP REPLACEMENT FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 420‐00‐00‐31200 HOME RULE SALES TAX 0 0 0 0 0 420‐00‐00‐31600 HOME RULE MOTOR FUEL TAX 0 0 0 0 173,750 420‐00‐00‐34900 RENTAL INCOME 0 209,716 154,877 155,000 155,000 420‐00‐00‐37100 INVESTMENT INTEREST 0 0 20 500 500 420‐00‐00‐38100 MISCELLANEOUS REVENUE 0 40,000 40,000 40,000 40,000 420‐00‐00‐38200 REFUNDS & REIMBURSEMENTS 160,840 194,260 172,500 172,500 172,500 420‐00‐00‐38400 DONATIONS / CONTRIBUTIONS 0 60,000 0 0 0 420‐00‐00‐38600 SALES OF SURPLUS PROPERTY 0 13,423 5,000 20,000 15,000 420‐00‐00‐39100 TRANSFER FROM GENERAL FUND 0 0 75,000 75,000 0 420‐00‐00‐39200 TRANSFER FROM MASS TRANSIT FUND 3,000 0 0 0 0 420‐00‐00‐39400 TRANSFER FROM CAPITAL PROJ FUND 0 0 0 0 0 420‐00‐00‐39600 TRANSFER FROM WATER FUND 7,500 0 0 0 0 420‐00‐00‐39700 TRANSFER FROM WORK COMP FUND 0 0 0 0 0 TOTAL ESTIMATED REVENUES 171,340 517,399 447,397 463,000 556,750 EXPENDITURES 420‐00‐00‐40002 LEASE PURCHASES CONTRACTS 15,493 0 0 0 0 420‐00‐00‐52600 PATROL SUPPLIES & EQUIPMENT 0 0 0 0 0 420‐00‐00‐61300 MAINTENANCE‐BUILDINGS 0 0 30,000 0 0 420‐00‐00‐61500 MAINTENANCE‐EQUIPMENT 243,791 50,225 0 0 0 420‐00‐00‐77000 LOAN PRINCIPAL 0 16,667 16,667 16,667 16,667 420‐00‐00‐86000 EQUIPMENT 235,995 0 0 0 0 420‐00‐00‐86100 TECHNOLOGY EQUIPMENT 21,812 231,268 100,494 80,529 0 420‐00‐00‐86200 OFFICE FURNITURE & EQUIPMENT 0 0 0 0 0 420‐00‐00‐86300 TELEPHONE & RADIO EQUIPMENT 0 185,456 0 0 0 420‐00‐00‐87000 VEHICLES 0 103,566 55,000 55,000 1,145,000 420‐00‐00‐91100 TRANSFER TO GENERAL FUND 69,181 0 0 0 0 420‐00‐00‐91400 TRANSFER TO CAPITAL PROJECTS FUND 0 0 0 0 0 420‐00‐00‐91410 TRANSFER TO FLEET FUND 77,066 0 0 0 0 TOTAL EXPENDITURES 663,338 587,182 202,161 152,196 1,161,667 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (491,998) (69,783) 245,236 310,804 (604,917) ESTIMATED REVENUES ‐ FUND 420 171,340 517,399 447,397 463,000 556,750 EXPENDITURES ‐ FUND 420 663,338 587,182 202,161 152,196 1,161,667 NET OF REVENUES/EXPENDITURES ‐ FUND 420 (491,998) (69,783) 245,236 310,804 (604,917) BEGINNING FUND BALANCE 338,799 649,603 ENDING FUND BALANCE 649,603 44,686 City of DeKalb 166 Proposed Budget Section Eight Enterprise Funds  Water Fund  Water Construction Fund  Water Capital Fund  Airport Fund  Refuse & Recycling Fund City of DeKalb 167 Proposed Budget  This page has been intentionally left blank. City of DeKalb 168 Proposed Budget Water Fund ______________________________________________________________________________ FUND 600 The Water fund provides for the supply, treatment, storage, and distribution of the City's potable water system, which provides approximately 1.1 billion gallons of water annually to DeKalb residents. The chart provided below depicts the number of gallons billed to DeKalb residents annually. (Note: 2019 water sales are projected based on sales-to-date) Annual Gallons Billed 1,200,000,000 1,150,000,000 1,100,000,000 1,050,000,000 1,000,000,000 950,000,000 900,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Debt Service: The City pays bond debt service and loan payments through the Water Fund. General Obligation Refunding Bonds of 2014: In November 2014, the City issued $1,676,575 of G.O. Refunding Bonds for the purpose of refinancing the City’s 2004 bonds in order to reduce interest costs. The debt service is based on a 6-year amortization schedule with interest at 1.544%. Semi-annual interest payments are due July 1 and January 1 while annual principal payments are due each January 1st. The outstanding principal balance as of December 31, 2019 is $549,875. Illinois Environmental Protection Agency Loan #L17-1337: In January 2002, the City began payment on a $3,901,248 loan for radium abatement. The debt service is based on a 20-year amortization schedule with interest at 2.535%. Semi-annual principal and interest payments are due July 1 and January 1. The outstanding principal balance as of December 31, 2019 is $389,794. Illinois Environmental Protection Agency Loan #L17-1614: In May 2002, the City began payment on a second radium abatement loan of $3,221,586. The debt service is based on a 20-year amortization City of DeKalb 169 Proposed Budget schedule with interest at 2.535%. Semi-annual principal and interest payments are due November 30 and May 30. The outstanding principal balance as of December 31, 2019 is $320,070. Illinois Environmental Protection Agency Loan #L17-4045: From 2012 through 2014, the City received $271,891 in loan proceeds for the replacement of water main on Hollister Drive. The debt service is based on a 20-year amortization schedule with interest at 2.295%. Semi-annual principal and interest payments are due April 26th and October 26th. The outstanding principal balance as of December 31, 2019 is $207,197. Illinois Environmental Protection Agency Loan #L17-5473: In 2019, the City received $693,150 in loan proceeds for the replacement of approximately 4,100 feet of water main and services on Joanne Lane, Golfview Place, and Ilehamwood Drive. The debt service is based on a 20-year amortization schedule with interest at 1.84%. Semi-annual principal and interest payments are due June 30 and December 30. The outstanding principal balance as of December 31, 2019 is $683,032. Table 1: Debt Service Schedule – Annual Payments for General Obligation Debt - Business Activities - Water Fund Principal and Interest Fiscal Year Principal Interest Total 2020 273,875 6,376 280,251 2021 276,000 2,131 278,131 Total 549,875 8,506 558,381 City of DeKalb 170 Proposed Budget  Table 2: Debt Service Schedule for All Water Fund Debt Including IEPA Loans IEPA Loan IEPA Loan IEPA Loan IEPA Loan GO Bond Series #L17-1337 #L17-1614 #L17-4045 #L17-5473 2014 Fiscal Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Total Year 2020 258,223 8,255 212,033 6,778 13,848 4,676 29,412 12,433 273,875 6,376 825,910 2021 131,571 1,668 108,036 1,369 14,168 4,357 29,956 11,889 276,000 2,131 581,145 2022 14,495 4,030 30,510 11,336 60,370 2023 14,830 3,695 31,074 10,772 60,370 2024 15,172 3,353 31,648 10,197 60,370 2025 15,522 3,002 32,233 9,612 60,370 2026 15,880 2,644 32,829 9,017 60,370 2027 16,247 2,278 33,436 8,410 60,370 2028 16,622 1,903 34,054 7,792 60,370 2029 17,005 1,519 34,683 7,162 60,370 2030 17,398 1,126 35,324 6,521 60,370 2031 17,800 725 35,977 5,868 60,370 2032 18,211 314 36,642 5,203 60,370 2033 37,320 4,526 41,845 2034 38,009 3,836 41,845 2035 38,712 3,133 41,845 2036 39,428 2,418 41,845 2037 40,156 1,689 41,845 2038 40,899 947 41,845 2039 20,732 191 20,923 Total 389,794 9,923 320,070 8,148 207,197 33,621 683,032 132,952 549,875 8,506 2,343,118 City of DeKalb 171 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 600 ‐ WATER FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 600‐00‐00‐32900 OTHER PERMITS 100 1,600 1,500 1,500 1,500 600‐00‐00‐34800 WATER SALES REVENUE 5,410,020 5,192,729 5,345,154 5,195,154 5,319,600 600‐00‐00‐34850 WATER SERVICE CHARGES 138,901 161,198 170,789 170,000 171,000 600‐00‐00‐34880 WATER IMPACT FEES 23,538 17,195 30,000 25,000 30,000 600‐00‐00‐37100 INVESTMENT INTEREST 5,225 0 25,000 1,700 2,000 600‐00‐00‐38100 MISCELLANEOUS REVENUE 28,176 11,302 12,000 11,000 12,000 600‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 4,745 59 0 0 0 600‐00‐00‐38600 SALES OF SURPLUS PROPERTY 5,546 9,350 2,000 0 2,000 600‐00‐00‐38700 CONTRIBUTED CAPITAL 0 0 0 0 0 600‐00‐00‐38825 LOAN PROCEEDS 0 0 1,500,000 560,308 0 600‐00‐00‐39248 TRANSFER FROM SSA #28 FUND 0 0 0 0 8,704 600‐00‐00‐39280 TRANSFER FROM CDBG FUND 0 0 0 0 0 600‐00‐00‐39620 TRANSFER FROM WATER CAPITAL FUND 1,473,244 1,046,545 0 0 0 TOTAL ESTIMATED REVENUES 7,089,495 6,439,978 7,086,443 5,964,662 5,546,804 EXPENDITURES 600‐00‐00‐41100 WAGES ‐ FULL‐TIME 1,451,564 1,317,698 1,389,149 1,308,562 1,283,375 600‐00‐00‐41200 WAGES ‐ PART‐TIME 61,254 62,069 82,079 59,070 64,301 600‐00‐00‐41300 WAGES ‐ OVERTIME 107,508 165,567 135,000 185,000 165,000 600‐00‐00‐41400 LONGEVITY PAY 24,565 22,718 25,892 25,892 22,233 600‐00‐00‐41500 CLOTHING ALLOWANCE 11,770 6,489 6,961 6,961 7,381 600‐00‐00‐41550 CAR ALLOWANCE 3,824 3,455 3,922 1,252 480 600‐00‐00‐42100 EMPLOYER PORTION FICA 118,556 113,200 112,535 113,553 117,911 600‐00‐00‐42200 EMPLOYER PORTION IMRF 243,090 227,356 176,526 181,446 228,093 600‐00‐00‐42500 EMPLOYEE HEALTH INSURANCE 501,291 522,572 508,679 508,679 500,476 600‐00‐00‐42600 WORKER'S COMPENSATION 123,050 234,050 234,050 234,050 123,050 600‐00‐00‐48150 CHANGE IN COMP ABS‐WATER (13,859) (95,863) 0 0 0 600‐00‐00‐48250 IMRF NPO ‐ WATER (42,265) 143,270 0 0 0 600‐00‐00‐48350 NET OPEB‐WATER 2,630 (788) 0 0 0 600‐00‐00‐51300 SUPPLIES/PARTS‐BUILDINGS 6,023 9,757 8,000 9,500 22,500 600‐00‐00‐51410 SUPPLIES/PARTS‐STREETS 62,929 61,304 55,000 55,000 60,000 600‐00‐00‐51500 SUPPLIES/PARTS‐EQUIPMENT 18,551 19,059 20,000 16,000 22,000 600‐00‐00‐51600 SUPPLIES/PARTS‐TECHNOLOGY 422 0 1,000 0 1,000 600‐00‐00‐51700 SUPPLIES/PARTS‐VEHICLES 14,018 8,772 16,000 7,000 16,000 600‐00‐00‐51996 POTABLE WATER SYSTEM PARTS 41,080 53,985 65,000 55,000 65,000 600‐00‐00‐52000 OFFICE SUPPLIES 254 470 500 450 500 600‐00‐00‐52500 JANITORIAL SUPPLIES 2,512 945 2,000 1,200 1,800 600‐00‐00‐53100 ICE/SNOW CONTROL SUPPLIES 0 15 500 0 500 600‐00‐00‐53200 WATER SYSTEM CHEMICALS 223,614 225,892 250,000 220,000 250,000 600‐00‐00‐53300 SMALL TOOLS & EQUIPMENT 5,728 8,022 7,000 9,000 12,200 600‐00‐00‐54000 UNIFORMS/PROTECTIVE CLOTHING 276 716 1,000 600 2,500 600‐00‐00‐55000 FUEL, OIL, & LUBRICANTS 19,373 23,294 25,000 24,000 24,500 600‐00‐00‐59999 COMMODITIES 40 161 500 200 500 600‐00‐00‐61100 MAINTENANCE‐GROUNDS 699 1,207 2,100 500 1,500 600‐00‐00‐61300 MAINTENANCE‐BUILDINGS 39,176 8,404 47,000 30,000 10,000 600‐00‐00‐61400 MAINTENANCE‐INFRASTRUCTURE 22,375 17,305 100,000 20,393 100,000 600‐00‐00‐61500 MAINTENANCE‐EQUIPMENT 533 6,924 5,000 2,000 5,000 600‐00‐00‐61700 MAINTENANCE‐VEHICLES 3,461 1,733 6,000 3,000 6,000 600‐00‐00‐61800 MAINTENANCE‐SOFTWARE 0 0 0 0 26,691 600‐00‐00‐62099 PRINTED MATERIALS 2,195 2,536 1,700 1,500 1,500 City of DeKalb 172 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 600‐00‐00‐62100 FINANCIAL SERVICES 46,070 53,843 50,000 22,000 22,000 600‐00‐00‐62200 LEGAL SERVICES 0 0 0 44,000 37,000 600‐00‐00‐62300 ARCHITECT/ENGINEERING SERVICES 270,098 219,417 391,168 120,000 77,500 600‐00‐00‐62400 TECHNOLOGY SERVICES 9,425 11,564 37,329 50,000 0 600‐00‐00‐62500 LAB TESTING SERVICES 3,558 11,639 5,000 3,500 5,000 600‐00‐00‐63800 CONTRACTED SERVICES 45,478 26,034 35,000 22,000 32,200 600‐00‐00‐64000 UTILITIES 112,410 113,206 131,500 131,000 135,000 600‐00‐00‐64100 ELECTRIC SERVICES 149,683 162,939 170,000 160,000 170,000 600‐00‐00‐64200 NATURAL GAS SERVICES 23,048 21,574 25,000 22,000 25,000 600‐00‐00‐64300 REFUSE REMOVAL SERVICES 10,180 8,805 9,500 9,500 9,500 600‐00‐00‐64500 TELEPHONE SERVICES 8,484 8,471 9,000 9,000 9,000 600‐00‐00‐65100 FREIGHT & POSTAGE 27,882 37,172 40,000 38,000 42,500 600‐00‐00‐65200 MARKETING ADS & PUBLIC INFO 85 0 6,000 0 1,500 600‐00‐00‐65300 LEGAL EXPENSES & NOTICES 53,480 52,959 80,000 36,000 0 600‐00‐00‐65400 TAXES, LICENSES, & FEES 200 50 200 198 200 600‐00‐00‐65500 RENTAL‐BLDG & EQUIP 4,517 4,520 5,500 3,000 1,000 600‐00‐00‐66100 DUES & SUBSCRIPTIONS 2,317 2,358 2,500 2,069 3,350 600‐00‐00‐66200 TRAINING/TRAVEL 4,617 590 3,200 3,000 3,000 600‐00‐00‐69200 SURETY BONDS 27,500 30,000 30,000 30,000 30,000 600‐00‐00‐69800 UTILITY REBATE PROGRAM 2,822 1,910 10,000 2,442 3,000 600‐00‐00‐71000 BAD DEBT EXPENSE 24,531 0 0 0 0 600‐00‐00‐72500 DEPRECIATION‐WATER 1,067,229 1,105,571 0 0 0 600‐00‐00‐75000 DEBT SERVICE ‐ PRINCIPAL 0 0 275,500 275,500 273,875 600‐00‐00‐76000 DEBT SERVICE ‐ INTEREST 15,378 12,709 10,617 10,569 6,376 600‐00‐00‐77000 LOAN PRINCIPAL 0 0 472,094 472,094 514,092 600‐00‐00‐78000 LOAN INTEREST 51,471 39,963 31,721 31,721 32,142 600‐00‐00‐85000 WATER MAINS 0 0 0 0 0 600‐00‐00‐85100 WATER METERS 0 0 0 0 0 600‐00‐00‐85500 WATER SYSTEM IMPROVEMENTS 59,988 71,366 239,634 239,634 0 600‐00‐00‐85510 WATER SPRINKLER IMPROVEMENTS 0 0 37,425 37,425 0 600‐00‐00‐86000 EQUIPMENT 0 0 0 0 0 600‐00‐00‐86100 TECHNOLOGY EQUIPMENT 0 0 0 0 0 600‐00‐00‐86200 OFFICE FURNITURE & EQUIPMENT 2,388 0 500 0 0 600‐00‐00‐86300 TELEPHONE & RADIO EQUIPMENT 0 0 1,000 0 0 600‐00‐00‐87000 VEHICLES 0 0 0 0 0 600‐00‐00‐91100 TRANSFER TO GENERAL FUND 316,000 310,400 321,800 321,800 311,000 600‐00‐00‐91420 TRANSFER TO CAPITAL EQUIPMENT FUND 7,500 0 0 0 0 600‐00‐00‐91620 TRANSFER TO WATER CAPITAL FUND 1,955,000 1,050,000 500,000 500,000 1,450,000 TOTAL EXPENDITURES 7,357,576 6,529,354 6,219,281 5,676,260 6,336,226 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (268,081) (89,376) 867,162 288,402 (789,422) ESTIMATED REVENUES ‐ FUND 600 7,089,495 6,439,978 7,086,443 5,964,662 5,546,804 EXPENDITURES ‐ FUND 600 7,357,576 6,529,354 6,219,281 5,676,260 6,336,226 NET OF REVENUES/EXPENDITURES ‐ FUND 600 (268,081) (89,376) 867,162 288,402 (789,422) BEGINNING FUND BALANCE 2,522,463 2,810,865 FUND BALANCE ADJUSTMENTS ENDING FUND BALANCE 2,810,865 2,021,443 City of DeKalb 173 Proposed Budget Water Construction Fund ______________________________________________________________________________ Fund 610 The capital portion of the Water Fund receives impact fee revenue. Expenditures are restricted to new water main construction. There were no expenditures during FY19. In FY2020, $500,000 has been budgeted to fund a portion of new water main planned for installation along Crego Road, Gurler Road and Route 23 to provide water to two proposed developments in the Chicago West Business Center. City of DeKalb 174 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 610 ‐ WATER NEW CONSTRUCTION FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 610‐00‐00‐34880 WATER IMPACT FEES 30,024 5,472 20,000 4,757 10,000 610‐00‐00‐37100 INVESTMENT INTEREST 5,238 394 0 0 0 TOTAL ESTIMATED REVENUES 35,262 5,866 20,000 4,757 10,000 EXPENDITURES 610‐00‐00‐85000 WATER MAINS 0 0 0 0 500,000 610‐00‐00‐85500 WATER SYSTEM IMPROVEMENTS 0 0 0 0 0 TOTAL EXPENDITURES 0 0 0 0 500,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 35,262 5,866 20,000 4,757 (490,000) ESTIMATED REVENUES ‐ FUND 610 35,262 5,866 20,000 4,757 10,000 EXPENDITURES ‐ FUND 610 0 0 0 0 500,000 NET OF REVENUES/EXPENDITURES ‐ FUND 610 35,262 5,866 20,000 4,757 (490,000) BEGINNING FUND BALANCE 1,145,454 1,150,211 ENDING FUND BALANCE 1,150,211 660,211 City of DeKalb 175 Proposed Budget Water Capital Fund ______________________________________________________________________________ Fund 620 The capital portion of the Water Fund as it relates to the maintenance of existing water assets was split into its own fund in FY2016.5. This Fund includes water-related expenses pertaining to fleet and equipment and capital projects of existing water infrastructure such as water mains, wells, treatment plants and water towers. Over $900,000 of water capital improvements were completed during FY2019 and included: • Approximately 4,100 feet of water main replacement on Joanne Lane, Golfview Place, and Ilehamwood Drive. • Repair of Storm laterals at 218 & 226 E Lincoln Highway. • Final payment on the ERP software conversion. • Purchase of a used Vactor Truck. • Routine upgrade and replacement of water meters. The City has $1.6 million of water capital improvements planned for the FY2020 Budget that include: Tentative FY2020 Projects Estimated Costs Routine Meter Replacements $50,000 Well Maintenance $165,000 South Water Tower Painting $815,000 Loader $200,000 Scissor Lift $15,000 Beacon Meter Software Update $25,000 Tandem Axle Dump Truck $185,000 One Ton Utility Truck $75,000 One Ton Dump Truck $70,000 TOTAL $1,600,000 City of DeKalb 176 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 620 ‐ WATER CAPITAL FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 620‐00‐00‐34800 WATER SALES REVENUE 160,313 307,964 350,000 385,000 385,000 620‐00‐00‐37100 INVESTMENT INTEREST 0 0 0 1,200 1,200 620‐00‐00‐39280 TRANSFER FROM CDBG FUND 155,498 0 0 0 0 620‐00‐00‐39600 TRANSFER FROM WATER FUND 1,955,000 1,050,000 500,000 500,000 1,450,000 TOTAL ESTIMATED REVENUES 2,270,811 1,357,964 850,000 886,200 1,836,200 EXPENDITURES 620‐00‐00‐85000 WATER MAINS 0 (1) 1,435,000 693,150 0 620‐00‐00‐85100 WATER METERS 82,538 74,468 70,000 50,000 50,000 620‐00‐00‐85500 WATER SYSTEM IMPROVEMENTS 0 0 80,000 80,000 980,000 620‐00‐00‐86000 EQUIPMENT 4,779 0 0 0 215,000 620‐00‐00‐86100 TECHNOLOGY EQUIPMENT 2,715 3,557 71,977 68,476 25,000 620‐00‐00‐87000 VEHICLES 5,218 0 255,000 57,500 330,000 620‐00‐00‐91600 TRANSFER TO THE WATER FUND 1,473,244 1,046,545 0 0 0 TOTAL EXPENDITURES 1,568,494 1,124,569 1,911,977 949,126 1,600,000 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 702,317 233,395 (1,061,977) (62,926) 236,200 ESTIMATED REVENUES ‐ FUND 620 2,270,811 1,357,964 850,000 886,200 1,836,200 EXPENDITURES ‐ FUND 620 1,568,494 1,124,569 1,911,977 949,126 1,600,000 NET OF REVENUES/EXPENDITURES ‐ FUND 620 702,317 233,395 (1,061,977) (62,926) 236,200 BEGINNING FUND BALANCE 1,234,773 1,171,847 ENDING FUND BALANCE 1,171,847 1,408,047 City of DeKalb 177 Proposed Budget Airport Fund ______________________________________________________________________________ FUND 650 The Airport fund is charged with the management of DeKalb Taylor Municipal Airport (DTMA) and the DeKalb Flight Center, which provides fueling and other services to aircraft at DTMA. DTMA is an all- weather, 24-hour-a-day airport with one full Instrument Landing System (ILS) and four Global Positioning System (GPS) approaches. The Airport has more than 30,000 annual operations, more than 90 based aircraft, and two runways that are respectively 7,025 feet and 4,200 feet in length. The Airport is designed to service and de-ice corporate and cargo aircraft and provide services to general aviation aircraft moving through the region. The Airport is staffed by one full-time Airport Manager, one part-time Airport Maintenance worker, one seasonal Airport Maintenance worker and eight part-time Aircraft Line Service employees, all working under the direction of the Director of Streets & Facilities. Debt Service: The City pays bond debt service through the Airport Fund. General Obligation Refunding Bonds of 2014: In November 2014, the City issued $416,650 of G.O. Refunding Bonds for the purpose of refinancing the City’s 2004 bonds in order to reduce interest costs. The debt service is based on a 6-year amortization schedule with interest at 1.544%. Semi-annual interest payments are due July 1 and January 1 while annual principal payments are due each January 1. The outstanding principal balance as of December 31, 2019 is $135,125. Table 1: Debt Service Schedule – Annual Payments for General Obligation Debt - Business Activities - Airport Fund Principal and Interest. Airport Fund Fiscal Year Principal Interest Total 2020 66,125 1,576 67,701 2021 69,000 533 69,533 Total 135,125 2,109 137,234 City of DeKalb 178 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 650 ‐ AIRPORT FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 650‐00‐00‐31100 STATE SALES TAX 264 4,726 3,000 3,750 3,750 650‐00‐00‐31200 HOME RULE SALES TAX 452 8,138 5,000 6,500 6,500 650‐00‐00‐31600 HOME RULE MOTOR FUEL TAX 267,120 284,299 296,000 260,000 260,000 650‐00‐00‐33150 FEDERAL PASS‐THROUGH GRANTS 0 101,193 0 35,000 36,550 650‐00‐00‐33200 STATE GRANTS 0 5,190 0 1,856 0 650‐00‐00‐34500 FUEL SALES 392,619 501,144 500,000 500,000 500,000 650‐00‐00‐34900 RENTAL INCOME 357,528 306,468 370,435 372,000 368,260 650‐00‐00‐34950 AIRPORT OPERATIONS 26,759 30,385 27,000 20,500 27,000 650‐00‐00‐37100 INVESTMENT INTEREST 94 345 100 650 500 650‐00‐00‐38100 MISCELLANEOUS REVENUE 13,040 27,139 27,000 1,000 0 650‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 326 12,666 5,000 25,000 13,550 650‐00‐00‐38600 SALES OF SURPLUS PROPERTY 0 910 0 0 0 650‐00‐00‐38700 CONTRIBUTED CAPITAL 789,468 372,546 0 0 0 650‐00‐00‐39100 TRANSFER FROM GENERAL FUND 0 610,000 0 0 51,000 650‐00‐00‐39260 TRANSFER FROM TIF #1 FUND 0 0 0 0 0 TOTAL ESTIMATED REVENUES 1,847,670 2,265,149 1,233,535 1,226,256 1,267,110 EXPENDITURES 650‐00‐00‐41100 WAGES ‐ FULL‐TIME 132,632 137,392 147,091 127,205 134,015 650‐00‐00‐41200 WAGES ‐ PART‐TIME 121,677 112,843 126,479 129,622 150,936 650‐00‐00‐41300 WAGES ‐ OVERTIME 0 0 0 400 400 650‐00‐00‐41400 LONGEVITY PAY 0 0 0 0 0 650‐00‐00‐41550 CAR ALLOWANCE 418 381 476 95 0 650‐00‐00‐42100 EMPLOYER PORTION FICA 18,718 18,303 20,928 19,615 21,830 650‐00‐00‐42200 EMPLOYER PORTION IMRF 20,110 20,060 17,651 15,634 20,456 650‐00‐00‐42500 EMPLOYEE HEALTH INSURANCE 27,165 31,141 31,050 31,050 33,436 650‐00‐00‐42600 WORKER'S COMPENSATION 14,303 14,303 14,303 14,303 14,303 650‐00‐00‐48160 CHANGE IN COMP ABS‐AIRPORT 2,260 328 0 0 0 650‐00‐00‐48260 IMRF NPO ‐ AIRPORT (3,492) (12,248) 0 0 0 650‐00‐00‐48360 NET OPEB‐AIRPORT 284 (24) 0 0 0 650‐00‐00‐51000 BOARDS & COMMISSIONS 0 0 100 0 0 650‐00‐00‐51100 SUPPLIES/PARTS‐GROUNDS 0 0 0 0 2,500 650‐00‐00‐51300 SUPPLIES/PARTS‐BUILDINGS 14,324 5,193 11,750 10,450 12,450 650‐00‐00‐51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 0 1,800 650‐00‐00‐51600 SUPPLIES/PARTS‐TECHNOLOGY 312 0 1,000 1,000 1,000 650‐00‐00‐51700 SUPPLIES/PARTS‐VEHICLES 1,418 1,755 3,250 4,250 4,000 650‐00‐00‐52000 OFFICE SUPPLIES 157 153 250 100 100 650‐00‐00‐52500 JANITORIAL SUPPLIES 165 0 500 400 500 650‐00‐00‐53000 OPERATING SUPPLIES 155 285 350 300 350 650‐00‐00‐53100 ICE/SNOW CONTROL SUPPLIES 15,543 15,197 25,000 27,500 33,500 650‐00‐00‐53300 SMALL TOOLS & EQUIPMENT 395 0 1,750 1,750 7,050 650‐00‐00‐55000 FUEL, OIL, & LUBRICANTS 6,437 13,949 23,000 19,500 22,500 650‐00‐00‐55100 AIRPORT FUEL (FOR RESALE) 320,046 423,849 425,000 356,000 375,000 650‐00‐00‐59999 COMMODITIES 0 0 0 0 0 650‐00‐00‐61100 MAINTENANCE‐GROUNDS 11,322 10,668 10,000 11,000 6,500 650‐00‐00‐61300 MAINTENANCE‐BUILDINGS 22,011 15,166 17,800 18,000 25,000 650‐00‐00‐61500 MAINTENANCE‐EQUIPMENT 23,126 34,944 30,000 38,800 43,200 650‐00‐00‐61700 MAINTENANCE‐VEHICLES 4,311 3,670 4,000 8,000 4,500 650‐00‐00‐61800 MAINTENANCE‐SOFTWARE 0 0 0 0 0 City of DeKalb 179 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 650‐00‐00‐61999 MAINTENANCE‐AIRPORT 27 0 500 500 500 650‐00‐00‐62099 PRINTED MATERIALS 418 473 250 250 250 650‐00‐00‐62100 FINANCIAL SERVICES 11,342 14,423 12,000 12,600 12,609 650‐00‐00‐62300 ARCHITECT/ENGINEERING SERVICES 17,924 19,659 8,528 11,000 17,735 650‐00‐00‐63800 CONTRACTED SERVICES 15,956 15,311 25,000 25,000 100,800 650‐00‐00‐64000 UTILITIES 10,058 10,923 9,000 10,000 10,500 650‐00‐00‐64100 ELECTRIC SERVICES 48,458 43,814 45,000 40,000 40,000 650‐00‐00‐64500 TELEPHONE SERVICES 14,145 10,997 12,250 12,250 12,500 650‐00‐00‐65100 FREIGHT & POSTAGE 83 47 150 30 150 650‐00‐00‐65200 MARKETING ADS & PUBLIC INFO 15,007 11,734 11,100 12,000 13,350 650‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 0 1,300 500 1,000 650‐00‐00‐65400 TAXES, LICENSES, & FEES 3,326 63,221 48,400 48,400 48,000 650‐00‐00‐66100 DUES & SUBSCRIPTIONS 3,077 2,514 2,700 2,700 2,700 650‐00‐00‐66200 TRAINING/TRAVEL 2,695 4,410 3,850 4,175 4,975 650‐00‐00‐66300 TRAVEL EXPENSES 0 25 0 0 0 650‐00‐00‐66400 EDUCATION TUITION REIMBURSEMENT 0 0 0 0 0 650‐00‐00‐69200 SURETY BONDS 25,483 38,578 38,600 38,600 43,600 650‐00‐00‐69999 CONTINGENCIES 0 0 0 0 0 650‐00‐00‐72600 DEPRECIATION‐AIRPORT 388,475 385,907 0 0 0 650‐00‐00‐75000 DEBT SERVICE ‐ PRINCIPAL 0 0 69,500 69,500 66,125 650‐00‐00‐76000 DEBT SERVICE ‐ INTEREST 3,786 3,151 2,623 2,611 1,576 650‐00‐00‐81000 LAND ACQUISITION 0 0 0 0 0 650‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 31,711 (440) 0 37,115 36,550 650‐00‐00‐86000 EQUIPMENT 4,002 1,319 6,600 7,900 19,500 650‐00‐00‐86200 OFFICE FURNITURE & EQUIPMENT 500 1,143 1,000 1,000 0 650‐00‐00‐86300 TELEPHONE & RADIO EQUIPMENT 703 893 1,950 1,200 0 650‐00‐00‐86301 LEASED EQUIPMENT 6,298 5,590 5,600 5,800 0 650‐00‐00‐87000 VEHICLES 0 0 0 0 0 650‐00‐00‐91100 TRANSFER TO GENERAL FUND 0 0 0 0 0 TOTAL EXPENDITURES 1,357,271 1,481,000 1,217,629 1,178,105 1,347,746 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 490,399 784,149 15,906 48,151 (80,636) ESTIMATED REVENUES ‐ FUND 650 1,847,670 2,265,149 1,233,535 1,226,256 1,267,110 EXPENDITURES ‐ FUND 650 1,357,271 1,481,000 1,217,629 1,178,105 1,347,746 NET OF REVENUES/EXPENDITURES ‐ FUND 650 490,399 784,149 15,906 48,151 (80,636) BEGINNING FUND BALANCE 32,623 80,774 FUND BALANCE ADJUSTMENTS 0 0 ENDING FUND BALANCE 80,774 138 City of DeKalb 180 Proposed Budget Refuse and Recycling Fund ______________________________________________________________________________ FUND 680 The Refuse & Recycling Fund provides for the efficient collection, processing, and disposal of refuse, landscape waste, and recyclables for DeKalb residents. In September 2018, the City entered a new 5-year agreement with Lakeshore Recycling Systems, Inc. (LRS) to provide these services. Refuse charges are collected through the City’s Utility Bill on behalf of LRS. DeKalb residents receive curbside collection services for an unlimited volume of refuse, recyclables, and landscape waste. As part of the agreement, LRS provides one 95-gallon refuse cart and one 65-gallon recycling cart at no additional charge. Residents may request a second 95-gallon refuse cart at no charge. Landscape waste collection is offered between April 1 and November 30 each year. In 2019, the City staff worked with downtown business owners and LRS to set up a simplified process of billing refuse charges through the City’s Utility Billing system for Central Business District (CBD) properties. The new billing system has been well received by both CBD business owners and LRS. The contract with LRS includes curbside electronic waste pick-up on the first pick-up day of the month. This is a new service for DeKalb residents. Another new service offered to residents is household hazardous water collection. This service is offered three times per year as scheduled with the City. City of DeKalb 181 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 680 ‐ REFUSE & RECYCLING FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 680‐00‐00‐34600 REFUSE & RECYCLING FEES 2,160,482 2,058,770 2,009,674 2,009,674 2,059,916 680‐00‐00‐37100 INVESTMENT INTEREST 0 0 0 400 0 680‐00‐00‐38100 MISCELLANEOUS REVENUE 0 0 0 38 0 TOTAL ESTIMATED REVENUES 2,160,482 2,058,770 2,009,674 2,010,112 2,059,916 EXPENDITURES 680‐00‐00‐51500 SUPPLIES/PARTS‐EQUIPMENT 0 0 0 730 0 680‐00‐00‐64300 REFUSE REMOVAL SERVICES 2,028,643 1,961,778 1,858,452 1,858,452 1,904,913 680‐00‐00‐65200 MARKETING ADS & PUBLIC INFO 0 631 0 74 0 680‐00‐00‐86000 EQUIPMENT 0 0 6,000 0 0 680‐00‐00‐91100 TRANSFER TO GENERAL FUND 104,000 124,000 124,000 124,000 360,000 TOTAL EXPENDITURES 2,132,643 2,086,409 1,988,452 1,983,256 2,264,913 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 27,839 (27,639) 21,222 26,856 (204,997) ESTIMATED REVENUES ‐ FUND 680 2,160,482 2,058,770 2,009,674 2,010,112 2,059,916 EXPENDITURES ‐ FUND 680 2,132,643 2,086,409 1,988,452 1,983,256 2,264,913 NET OF REVENUES/EXPENDITURES ‐ FUND 680 27,839 (27,639) 21,222 26,856 (204,997) BEGINNING FUND BALANCE 205,195 232,051 FUND BALANCE ADJUSTMENTS 0 0 ENDING FUND BALANCE 232,051 27,054 City of DeKalb 182 Proposed Budget Section Nine Internal Service Funds  Workers Compensation/Property & Liability Insurance Funds  Health Insurance Fund  Property & Liability Insurance Fund City of DeKalb 183 Proposed Budget  This page has been intentionally left blank. City of DeKalb 184 Proposed Budget Internal Service Funds ______________________________________________________________________________ Workers’ Compensation & Liability – Fund 700 This fund pays for all medical treatment, disability payments, and settlement costs associated with claims filed by employees who are injured on the job. In FY1994 the City became self-insured for workers compensation claims. For FY1994, through FY2012, the City had no excess or “umbrella” insurance coverage provided by private carriers. Since May 1, 2012, the City has had a self-insured retention policy through Safety National Casualty Corporation for excess coverage. These claims are administered and monitored by the City Manager’s Office and Human Resources Department. This fund also pays for costs incurred as a result of accidents involving City property or employees, or in settlement of lawsuits brought against the City. Again, since May 2012, the City now has had a self-insured retention policy for excess coverage. This coverage includes: property, inland marine, general liability, automobile liability and auto physical damage, law enforcement liability, public official’s liability, and employment practices liability. Health Insurance – Fund 710 The City of DeKalb maintained its own self-funded insurance system from FY1993 through FY2008 for employee health insurance. On January 1, 2008, the City joined the Intergovernmental Personnel Benefits Cooperative (IPBC), which is a pooled arrangement with other Illinois communities for providing health insurance. This allowed the City to budget for known monthly payments to the IPBC, rather than funding for payment of all health claims as a fully self-insured entity. The chart provided below shows health insurance costs for current and retired City employees from fiscal years 2012 to 2019 (fiscal years prior to 2012 were reported as total fund expenditures and not separated by line item). Health Insurance Costs 4,500,000 Employee Costs 4,000,000 Retiree Costs 3,500,000 * The City 3,000,000 changed their fiscal year end 2,500,000 from June 30 to 2,000,000 December 31. 1,500,000 1,000,000 500,000 0 2012 2013 2014 2015 2016 2016.5 *2017 2018 2019 Est City of DeKalb 185 Proposed Budget The City offers comprehensive medical and dental coverage to its employees, their dependents and retirees. All active employees pay 20% of the health insurance premium for single, single +1 or family coverage. Property Liability – Fund 720 This fund was closed out in FY2017 and combined with the Workers’ Compensation Fund (Fund 700) starting with the FY2018 budget. City of DeKalb 186 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 700 ‐ WORK COMP/LIAB INSURANCE FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 700‐00‐00‐37100 INVESTMENT INTEREST 1,211 6,442 1,500 1,400 1,500 700‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 0 0 0 0 0 700‐00‐00‐38300 PROPERTY DAMAGE COMPENSATION 940 60,940 15,000 50,000 35,000 700‐00‐00‐38500 EMPLOYER CONTRIBUTIONS 650,659 881,659 881,659 881,659 881,659 700‐00‐00‐39100 TRANSFER FROM GENERAL FUND 0 0 0 0 0 700‐00‐00‐39720 TRANSFER FROM LIAB INSUR FUND 158,301 0 0 0 0 TOTAL ESTIMATED REVENUES 811,111 949,041 898,159 933,059 918,159 EXPENDITURES 700‐00‐00‐62200 LEGAL SERVICES 0 0 0 0 29,600 700‐00‐00‐63800 CONTRACTED SERVICES 461,763 465,521 479,487 453,653 467,263 700‐00‐00‐63999 TPA ADMINISTRATION 40,234 36,500 36,500 36,500 36,500 700‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 30,708 34,300 40,000 5,000 700‐00‐00‐66200 TRAINING/TRAVEL 0 0 0 0 0 700‐00‐00‐69100 CLAIMS: LIAB & PROP INSURANCE 0 133,860 100,000 110,000 110,000 700‐00‐00‐69150 CLAIMS: WORK COMP INSURANCE 218,935 464,494 400,000 400,000 400,000 700‐00‐00‐69200 SURETY BONDS 0 575 565 565 565 700‐00‐00‐91100 TRANSFER TO GENERAL FUND 130,000 0 0 0 0 700‐00‐00‐91420 TRANSFER TO CAPITAL EQUIPMENT FUND 0 0 0 0 0 700‐00‐00‐91720 TRANSFER TO PROPERTY/LIAB FUND 167,950 0 0 0 0 TOTAL EXPENDITURES 1,018,882 1,131,658 1,050,852 1,040,718 1,048,928 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (207,771) (182,617) (152,693) (107,659) (130,769) ESTIMATED REVENUES ‐ FUND 700 811,111 949,041 898,159 933,059 918,159 EXPENDITURES ‐ FUND 700 1,018,882 1,131,658 1,050,852 1,040,718 1,048,928 NET OF REVENUES/EXPENDITURES ‐ FUND 700 (207,771) (182,617) (152,693) (107,659) (130,769) BEGINNING FUND BALANCE 1,248,820 1,141,161 ENDING FUND BALANCE 1,141,161 1,010,392 City of DeKalb 187 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 710 ‐ HEALTH INSURANCE FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 710‐00‐00‐37100 INVESTMENT INTEREST 35 180 50 290 250 710‐00‐00‐37200 MISCELLANEOUS INCOME 0 901 0 0 0 710‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 0 0 0 0 0 710‐00‐00‐38500 EMPLOYER CONTRIBUTIONS 4,259,005 4,609,288 4,644,789 4,644,789 4,887,065 710‐00‐00‐38510 EMPLOYEE CONTRIBUTIONS 822,508 866,005 857,276 864,758 894,956 710‐00‐00‐38520 RETIREE CONTRIBUTIONS 431,019 488,335 584,392 482,739 730,743 710‐00‐00‐38530 LIBRARY CONTRIBUTIONS 146,026 197,071 210,919 209,922 248,050 710‐00‐00‐38590 OTHER CONTRIBUTIONS 12,344 8,380 800 13,000 800 710‐00‐00‐38599 SECTION 125 CONTRIBUTIONS 0 0 0 0 0 710‐00‐00‐39100 TRANSFER FROM GENERAL FUND 0 250,000 0 0 0 TOTAL ESTIMATED REVENUES 5,670,937 6,420,160 6,298,226 6,215,498 6,761,864 EXPENDITURES 710‐00‐00‐41700 DEFERRED COMPENSATION 171,735 164,151 159,580 159,580 152,980 710‐00‐00‐41800 HSA CONTRIBUTIONS 46,875 88,375 80,000 74,167 80,000 710‐00‐00‐41850 INSURANCE OPT‐OUT CONTRIBUTION 11,569 24,887 27,000 22,633 28,000 710‐00‐00‐42100 EMPLOYER PORTION FICA 9,288 9,297 13,946 8,912 12,155 710‐00‐00‐42200 EMPLOYER PORTION IMRF 17,993 16,086 22,380 11,811 12,880 710‐00‐00‐42580 EMPLOYEE LIFE INSURANCE 14,894 15,234 16,000 15,482 16,000 710‐00‐00‐42999 SECTION 125 PAYMENTS (1,331) 0 0 0 0 710‐00‐00‐62100 FINANCIAL SERVICES 18 22 25 20 25 710‐00‐00‐62600 MEDICAL SERVICES 0 0 0 0 0 710‐00‐00‐63800 CONTRACTED SERVICES 0 0 0 0 0 710‐00‐00‐63998 FLEX ADMINISTRATION 5,494 5,418 5,400 4,144 4,800 710‐00‐00‐66200 TRAINING/TRAVEL 0 0 0 0 0 710‐00‐00‐67100 EMPLOYEE HEALTH INSURANCE 3,895,917 4,177,633 4,362,886 4,489,947 4,080,732 710‐00‐00‐67200 LIBRARY HEALTH INSURANCE 135,046 141,082 210,919 143,380 248,050 710‐00‐00‐67300 RETIREE HEALTH INSURANCE 1,513,667 1,526,491 1,679,689 1,605,371 1,873,219 710‐00‐00‐67400 PEHP PLAN 33,225 33,700 33,125 32,175 33,500 710‐00‐00‐67500 WELLNESS BENEFIT PAYMENTS 35,336 45,994 60,000 50,000 60,000 710‐00‐00‐91100 TRANSFER TO GENERAL FUND 0 0 0 0 0 710‐00‐00‐91700 TRANSFER TO WORK COMP/LIABILITY FUN 0 0 0 0 0 710‐00‐00‐91720 TRANSFER TO PROPERTY/LIAB FUND 0 0 0 0 0 TOTAL EXPENDITURES 5,889,726 6,248,370 6,670,950 6,617,622 6,602,341 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL (218,789) 171,790 (372,724) (402,124) 159,523 ESTIMATED REVENUES ‐ FUND 710 5,670,937 6,420,160 6,298,226 6,215,498 6,761,864 EXPENDITURES ‐ FUND 710 5,889,726 6,248,370 6,670,950 6,617,622 6,602,341 NET OF REVENUES/EXPENDITURES ‐ FUND 710 (218,789) 171,790 (372,724) (402,124) 159,523 BEGINNING FUND BALANCE 445,393 43,269 ENDING FUND BALANCE 43,269 202,791 City of DeKalb 188 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 720 ‐ LIABILITY & PROPERTY INSURANCE Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 720‐00‐00‐38300 PROPERTY DAMAGE COMPENSATION 83,300 0 0 0 0 720‐00‐00‐38500 EMPLOYER CONTRIBUTIONS 110,000 0 0 0 0 720‐00‐00‐39700 TRANSFER FROM WORK COMP FUND 167,950 0 0 0 0 TOTAL ESTIMATED REVENUES 361,250 0 0 0 0 EXPENDITURES 720‐00‐00‐63900 OTHER PROFESSIONAL SERVICES 10,338 0 0 0 0 720‐00‐00‐65300 LEGAL EXPENSES & NOTICES 20,808 0 0 0 0 720‐00‐00‐69100 CLAIMS: LIAB & PROP INSURANCE 171,239 0 0 0 0 720‐00‐00‐69200 SURETY BONDS 564 0 0 0 0 720‐00‐00‐91700 TRANSFER TO WORK COMP/LIABILITY FUN 158,301 0 0 0 0 TOTAL EXPENDITURES 361,250 0 0 0 0 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 0 0 0 0 0 ESTIMATED REVENUES ‐ FUND 720 361,250 0 0 0 0 EXPENDITURES ‐ FUND 720 361,250 0 0 0 0 NET OF REVENUES/EXPENDITURES ‐ FUND 720 0 0 0 0 0 BEGINNING FUND BALANCE 47,514 0 0 0 0 ENDING FUND BALANCE 47,514 0 0 0 0 City of DeKalb 189 Proposed Budget  This page has been intentionally left blank. City of DeKalb 190 Proposed Budget Section Ten Fiduciary Funds  Police Pension Fund  Fire Pension Fund  DeKalb Public Library Fund City of DeKalb 191 Proposed Budget  This page has been intentionally left blank. City of DeKalb 192 Proposed Budget Police and Fire Pension Funds ______________________________________________________________________________ Police Pension Fund (Fund 830) and Fire Pension Fund (Fund 850) The Police and Fire Pension Funds account for the financial administration of these two programs, which are governed by Illinois state statute. Revenue sources are primarily property taxes, investment earnings, and withholdings from the payroll checks of active Police and Fire Department personnel. Expenditures pay for retiree pensions, financial management fees, audit costs, and other miscellaneous items. An established Board for each fund directs its own affairs and meets quarterly with special meetings as needed. The Boards are each comprised of five members. Two members are appointed by the Mayor, two are elected from the active participants of the pension fund, and one is elected by and from the fund’s beneficiaries. The funds are regulated by the Illinois Department of Financial and Professional Regulation, Division of Insurance. By state law, these pension funds must be 90% funded by the year 2040. Current funding levels as of December 31, 2018 for the Police Pension Fund and the Fire Pension Fund were 47.3% and 40.4% respectively. Historically, employer contributions are funded through the City’s property tax. However, in recent years, increases in the required contributions have significantly outpaced the City’s ability to levy dollars through the property tax process. These contributions are based upon an actuarial study conducted annually by an independent actuary. The employee contributions are the payroll contributions being made by current employees. The contribution percentage for Police is 9.91% of regular salaries and the contribution percentage for Fire is 9.455% of regular salaries. City of DeKalb 193 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 830 ‐ POLICE PENSION FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 830‐00‐00‐37100 INVESTMENT INTEREST 624,758 781,436 730,000 680,000 760,000 830‐00‐00‐37500 GAIN/LOSS ON INVESTMENTS 3,710,308 (2,819,608) 0 1,700,000 1,370,000 830‐00‐00‐37600 UNREALIZED INV GAIN/LOSS 0 0 1,300,000 0 0 830‐00‐00‐38100 MISCELLANEOUS REVENUE 175 2,792 0 48,307 0 830‐00‐00‐38500 EMPLOYER CONTRIBUTIONS 2,485,107 2,989,632 3,079,438 3,079,438 3,446,287 830‐00‐00‐38510 EMPLOYEE CONTRIBUTIONS 579,016 653,454 599,999 602,842 620,927 TOTAL ESTIMATED REVENUES 7,399,364 1,607,706 5,709,437 6,110,587 6,197,214 EXPENDITURES 830‐00‐00‐41950 PENSIONER COMPENSATION 3,238,369 3,341,647 3,650,225 3,505,366 3,860,527 830‐00‐00‐41960 SERVICE CREDIT TRANSFER 0 0 50,000 0 50,000 830‐00‐00‐41970 CONTRIBUTION REFUNDS 0 0 50,000 0 50,000 830‐00‐00‐62150 INVESTMENT SERVICES 43,479 45,065 63,078 47,529 48,955 830‐00‐00‐62750 INSURANCE SERVICES 9,031 10,321 9,807 9,018 9,500 830‐00‐00‐63800 CONTRACTED SERVICES 0 0 12,995 6,678 7,146 830‐00‐00‐63900 OTHER PROFESSIONAL SERVICES 28,489 38,177 40,260 21,176 21,812 830‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 0 1,260 1,809 1,864 830‐00‐00‐66200 TRAINING/TRAVEL 0 0 5,233 1,455 1,600 830‐00‐00‐66300 TRAVEL EXPENSES 0 0 0 0 0 TOTAL EXPENDITURES 3,319,368 3,435,210 3,882,858 3,593,031 4,051,404 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 4,079,996 (1,827,504) 1,826,579 2,517,556 2,145,810 ESTIMATED REVENUES ‐ FUND 830 7,399,364 1,607,706 5,709,437 6,110,587 6,197,214 EXPENDITURES ‐ FUND 830 3,319,368 3,435,210 3,882,858 3,593,031 4,051,404 NET OF REVENUES/EXPENDITURES ‐ FUND 830 4,079,996 (1,827,504) 1,826,579 2,517,556 2,145,810 BEGINNING FUND BALANCE 33,378,723 35,896,279 ENDING FUND BALANCE 35,896,279 38,042,089 City of DeKalb 194 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 850 ‐ FIRE PENSION FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 850‐00‐00‐37100 INVESTMENT INTEREST 893,135 1,057,686 730,000 680,000 760,000 850‐00‐00‐37500 GAIN/LOSS ON INVESTMENTS 2,286,496 (1,882,305) 1,300,000 1,700,000 1,370,000 850‐00‐00‐37600 UNREALIZED INV GAIN/LOSS 0 (1,556,915) 489,512 0 0 850‐00‐00‐38100 MISCELLANEOUS REVENUE 4,258 11,072 32,594 (6,933) 0 850‐00‐00‐38500 EMPLOYER CONTRIBUTIONS 2,968,723 3,466,072 3,503,332 3,503,332 3,951,651 850‐00‐00‐38510 EMPLOYEE CONTRIBUTIONS 521,427 496,109 477,150 490,131 504,835 TOTAL ESTIMATED REVENUES 6,674,039 1,591,719 6,532,588 6,366,530 6,586,486 EXPENDITURES 850‐00‐00‐41950 PENSIONER COMPENSATION 3,436,210 3,542,390 3,643,589 3,875,005 4,241,255 850‐00‐00‐41970 CONTRIBUTION REFUNDS 0 0 15,000 0 15,000 850‐00‐00‐62150 INVESTMENT SERVICES 44,076 44,401 71,406 46,671 48,071 850‐00‐00‐63800 CONTRACTED SERVICES 0 0 12,025 5,862 6,273 850‐00‐00‐63900 OTHER PROFESSIONAL SERVICES 32,390 43,134 45,818 31,397 32,895 850‐00‐00‐65300 LEGAL EXPENSES & NOTICES 0 0 6,223 2,933 3,021 850‐00‐00‐66200 TRAINING/TRAVEL 0 0 4,243 2,933 3,000 850‐00‐00‐66300 TRAVEL EXPENSES 0 0 0 0 0 TOTAL EXPENDITURES 3,512,676 3,629,925 3,798,304 3,964,801 4,349,515 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 3,161,363 (2,038,206) 2,734,284 2,401,729 2,236,971 ESTIMATED REVENUES ‐ FUND 850 6,674,039 1,591,719 6,532,588 6,366,530 6,586,486 EXPENDITURES ‐ FUND 850 3,512,676 3,629,925 3,798,304 3,964,801 4,349,515 NET OF REVENUES/EXPENDITURES ‐ FUND 850 3,161,363 (2,038,206) 2,734,284 2,401,729 2,236,971 BEGINNING FUND BALANCE 27,267,671 29,669,400 ENDING FUND BALANCE 29,669,400 31,906,371 City of DeKalb 195 Proposed Budget DeKalb Public Library ______________________________________________________________________________ FUND 900 The DeKalb Public Library seeks to enrich, inform, entertain, and inspire the residents of DeKalb. Since its founding in the 1880s as a reading room, the DeKalb Public Library has served the community with a welcoming environment and a full range of services to meet the informational, educational, and cultural needs of DeKalb residents and visitors. The library is a vital and integral part of the community, providing the public with a fully accessible 21st century facility housed in a beautifully maintained and expanded historic building. As the primary community center in DeKalb, the library provides an essential place for people to engage in activities that engage their curiosity. The library offers rich resources through its own collections along with reciprocal access to the collections of more than 130 other libraries across Illinois. Digital collections are available on-site and from home, and within the library residents find access to technology, educational and entertaining programming for all ages, trained professional staff, and quiet spaces to read and work. City of DeKalb 196 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET Fund 900 ‐ DEKALB PUBLIC LIBRARY FUND Dept 00‐00 ‐ GENERAL ESTIMATED REVENUES 900‐00‐00‐30170 PROPERTY TAX ‐ LIBRARY 2,770,128 2,487,807 2,621,799 2,621,799 2,265,717 900‐00‐00‐33100 FEDERAL GRANTS 13,866 0 34,000 34,000 0 900‐00‐00‐33150 FEDERAL PASS‐THROUGH GRANTS 4,649,709 0 11,000 0 0 900‐00‐00‐33200 STATE GRANTS 154,835 89,224 0 0 45,000 900‐00‐00‐33300 LOCAL GRANTS 0 38,544 0 0 0 900‐00‐00‐33600 PERSONAL PROPERTY REPLACEMENT TAX 36,954 33,596 20,400 20,400 32,610 900‐00‐00‐34985 LIBRARY SALES 9,041 3,134 0 0 0 900‐00‐00‐34990 LIBRARY NON‐RESIDENT DUES 3,513 1,169 3,500 3,500 800 900‐00‐00‐34995 LIBRARY PRINTING REVENUE 0 8,160 0 0 0 900‐00‐00‐35890 LIBRARY FINES 45,989 42,627 45,900 45,900 33,500 900‐00‐00‐37100 INVESTMENT INTEREST 455 5,333 0 0 0 900‐00‐00‐37600 UNREALIZED INV GAIN/LOSS 10,291 (15,860) 0 0 0 900‐00‐00‐38100 MISCELLANEOUS REVENUE (4,030) 10,495 15,405 15,405 10,000 900‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 10,961 0 0 0 0 900‐00‐00‐38400 DONATIONS / CONTRIBUTIONS 276,267 135,375 4,000 4,000 5,825 900‐00‐00‐38450 ENDOWMENTS 0 0 0 0 0 900‐00‐00‐38490 ANNUAL CAMPAIGN REVENUE 0 0 3,000 3,000 3,000 900‐00‐00‐38600 SALES OF SURPLUS PROPERTY 0 3,134 0 0 0 900‐00‐00‐38800 DEBT ISSUE PROCEEDS 0 0 0 0 489,225 900‐00‐00‐38850 TIF PROPERTY TAX SURPLUS 0 81,327 95,000 95,000 80,750 900‐00‐00‐38900 INTERFUND TRANSFERS 6,397 0 0 0 0 TOTAL ESTIMATED REVENUES 7,984,376 2,924,065 2,854,004 2,843,004 2,966,427 EXPENDITURES 900‐00‐00‐41100 WAGES ‐ FULL‐TIME 966,235 984,968 776,000 776,000 788,365 900‐00‐00‐41200 WAGES ‐ PART‐TIME 0 1,205 370,364 370,364 403,207 900‐00‐00‐41300 WAGES ‐ OVERTIME 0 0 0 0 0 900‐00‐00‐41400 LONGEVITY PAY 0 0 0 0 0 900‐00‐00‐42100 EMPLOYER PORTION FICA 69,442 72,520 88,000 88,000 90,647 900‐00‐00‐42200 EMPLOYER PORTION IMRF 124,318 96,983 95,000 95,000 117,387 900‐00‐00‐42500 EMPLOYEE HEALTH INSURANCE 104,485 137,304 122,923 122,923 158,112 900‐00‐00‐42580 EMPLOYEE LIFE INSURANCE 3,234 166 231 231 231 900‐00‐00‐42600 WORKER'S COMPENSATION 6,087 1,722 5,000 5,000 4,000 900‐00‐00‐42700 UNEMPLOYMENT INSURANCE 3,208 2,831 3,200 3,200 6,000 900‐00‐00‐48190 CHANGE IN COMP ABS‐LIBRARY 0 (3,129) 0 0 0 900‐00‐00‐48290 IMRF NPO‐LIBRARY 0 (145,572) 0 0 0 900‐00‐00‐48390 NET OPEB‐LIBRARY 0 (297) 0 0 0 900‐00‐00‐51300 SUPPLIES/PARTS‐BUILDINGS 9,702 7 5,000 5,000 6,000 900‐00‐00‐52000 OFFICE SUPPLIES 18,084 30,490 21,000 2,100 16,500 900‐00‐00‐59900 LIBRARY MATERIALS 119,046 137,606 138,822 138,822 141,700 900‐00‐00‐59999 COMMODITIES 212 1,647 9,800 9,800 5,460 900‐00‐00‐61100 MAINTENANCE‐GROUNDS 17,430 3,290 0 0 12,150 900‐00‐00‐61300 MAINTENANCE‐BUILDINGS 29,579 3,717 0 0 19,100 900‐00‐00‐61400 MAINTENANCE‐INFRASTRUCTURE 0 0 0 0 2,500 900‐00‐00‐61500 MAINTENANCE‐EQUIPMENT 22,909 1,743 0 0 0 900‐00‐00‐61900 MAINTENANCE‐BOOKS 646 16 0 0 0 900‐00‐00‐62099 PRINTED MATERIALS 140 0 0 0 0 900‐00‐00‐62100 FINANCIAL SERVICES 20,967 37,274 14,400 14,400 16,000 900‐00‐00‐62200 LEGAL SERVICES 17,265 9,235 7,500 7,500 7,500 City of DeKalb 197 Proposed Budget  2017 2018 2019 2019 2020 AMENDED PROJECTED PROPOSED GL NUMBER DESCRIPTION ACTIVITY ACTIVITY BUDGET ACTIVITY BUDGET 900‐00‐00‐62400 TECHNOLOGY SERVICES 0 68,955 0 0 8,642 900‐00‐00‐63800 CONTRACTED SERVICES 27,686 60,146 119,700 119,700 85,000 900‐00‐00‐63900 OTHER PROFESSIONAL SERVICES 15,074 2,347 4,500 4,500 4,500 900‐00‐00‐63950 LIBRARY PROGRAMS 14,566 24,258 13,200 13,200 18,654 900‐00‐00‐63955 GRANT FUNDED PROGRAMS 5,139 1,434 0 0 0 900‐00‐00‐63960 DONATIONS/FRIENDS OF THE LIBRARY 30,495 16,895 3,000 3,000 3,000 900‐00‐00‐63965 ENDOWMENTS AND MEMORIALS 1,461 0 4,000 4,000 2,825 900‐00‐00‐63970 LIBRARY ELECTRONIC RESOURCES 68,104 62,031 58,500 58,500 65,580 900‐00‐00‐63975 LIBRARY CONSORTIA SERVICES 0 28,997 0 0 31,897 900‐00‐00‐64100 ELECTRIC SERVICES 1,341 1,289 1,450 1,450 780 900‐00‐00‐64200 NATURAL GAS SERVICES 9,155 14,100 16,000 16,000 10,200 900‐00‐00‐64300 REFUSE REMOVAL SERVICES 7,713 5,960 3,000 3,000 2,400 900‐00‐00‐64400 SEWER SERVICES 2,165 1,974 10,700 10,700 5,200 900‐00‐00‐64500 TELEPHONE SERVICES 17,539 20,755 19,000 19,000 15,466 900‐00‐00‐64600 CABLE/INTERNET SERVICES 11,823 16,438 0 0 8,420 900‐00‐00‐65100 FREIGHT & POSTAGE 5,009 2,076 5,000 5,000 5,000 900‐00‐00‐65200 MARKETING ADS & PUBLIC INFO 10,983 25,028 13,000 13,000 13,000 900‐00‐00‐66100 DUES & SUBSCRIPTIONS 650 816 2,000 2,000 2,000 900‐00‐00‐66200 TRAINING/TRAVEL 4,327 2,959 6,000 6,000 6,000 900‐00‐00‐66300 TRAVEL EXPENSES 584 1,375 1,000 1,000 1,400 900‐00‐00‐69200 SURETY BONDS 23,130 28,926 28,200 28,200 28,200 900‐00‐00‐69997 COLLECTION AGENCY 1,294 1,134 0 0 0 900‐00‐00‐69998 PROFESSIONAL CONSULTING (IT) 14,831 0 6,400 6,400 0 900‐00‐00‐69999 CONTINGENCIES 0 0 0 0 0 900‐00‐00‐72900 DEPRECIATION‐LIBRARY 0 624,230 0 0 0 900‐00‐00‐75000 DEBT SERVICE ‐ PRINCIPAL 591,111 0 295,000 295,000 305,000 900‐00‐00‐76000 DEBT SERVICE ‐ INTEREST 431,736 277,520 194,225 194,225 195,000 900‐00‐00‐77000 LOAN PRINCIPAL 0 22,141 361,111 361,111 369,154 900‐00‐00‐78000 LOAN INTEREST 0 0 6,578 6,578 0 900‐00‐00‐79901 DEBT FINANCING 0 0 0 0 0 900‐00‐00‐81000 LAND ACQUISITION 0 0 0 0 114,400 900‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 173,638 2,083 0 0 25,000 900‐00‐00‐86000 EQUIPMENT 0 2,325 5,000 5,000 2,650 900‐00‐00‐86200 OFFICE FURNITURE & EQUIPMENT 1,809 0 0 0 0 900‐00‐00‐91000 INTERFUND TRANSFERS 0 0 0 0 0 TOTAL EXPENDITURES 3,004,352 2,689,918 2,833,804 2,814,904 3,124,227 NET OF REVENUES/EXPENDITURES ‐ 00‐00 ‐ GENERAL 4,980,024 234,147 20,200 28,100 (157,800) ESTIMATED REVENUES ‐ FUND 900 7,984,376 2,924,065 2,854,004 2,843,004 2,966,427 EXPENDITURES ‐ FUND 900 3,004,352 2,689,918 2,833,804 2,814,904 3,124,227 NET OF REVENUES/EXPENDITURES ‐ FUND 900 4,980,024 234,147 20,200 28,100 (157,800) BEGINNING FUND BALANCE 9,058,174 (2,188,094) 19,283,473 19,283,472 19,311,572 FUND BALANCE ADJUSTMENTS 0 0 ENDING FUND BALANCE 19,311,572 19,153,772 City of DeKalb 198 Proposed Budget Appendix  Staffing Plan  Capital Outlay  Chart of Accounts  Policies  Glossary City of DeKalb 199 Proposed Budget  This page has been intentionally left blank. City of DeKalb 200 Proposed Budget  Staffing Plan ____________________________________________________________________________________________________________________ FY2016.5 FY2017 FY2018 FY2019 FY2020 FT PT FT PT FT PT FT PT FT PT City Manager's Office 6 2 6 2 6 2 6 2 5 1 Human Resources Department 2 2 2 2 2 3 2 1 2 1 Finance Department 8 3 7 3 7 2 6 2 5 2 Information Technology Department 4 0 4 0 4 0 4 0 3 1 Police Department 81 36 81 36 80 15 80 14 80 16 Fire Department 58 2 58 2 58 2 57 1 57 0 Public Works Department 37 18 36 19 36 20 34 18 33 18 Community Development Department 6 3 6 3 8 6 8 6 7 1 TOTAL 202 66 200 67 201 50 197 44 192 40 The allocation of personnel as outlined within the Budget are for planning purposes and indicate estimated staffing levels. The City Manager is authorized to make revisions to staffing levels from time to time and to hire employees, terminate employees, and/or reassign employees by position, rank or placement in pay scale, provided that all expenditures incurred are within budgeted amounts. City of DeKalb 201 Proposed Budget Capital Outlay Summary ______________________________________________________________________________ The capital outlay for FY2020 is included below and draws from the General Fund and other City funds. The capital outlay summary total for FY2020 is $7,198,050. City of DeKalb 202 Proposed Budget CAPITAL OUTLAY SUMMARY Information & Technology (100-19-19) Capital Projects (400-00-00) Computer Replacements (86100) $18,000 City Hall Renovation (82000) $200,000 $18,000 Street Maintenance (83050) $1,100,000 Police - Patrol (100-20-22) Alley Maintenance (83100) $100,000 Service Weapons-New Officers (86000) $6,000 Video Equipment at Library (86100) $60,000 $6,000 $1,460,000 Fire - Operations (100-25-28) Capital Equipment Replacement (420-00-00) Pager Replacements (86300) $5,500 3 Police Interceptor Vehicles (87000) $165,000 $5,500 Ambulance (87000) $150,000 Public Works-Streets (100-30-33) Fire Engine (87000) $550,000 Motorized Paint Cart (86000) $6,000 PW Dump Truck (87000) $150,000 $6,000 PW One Ton Truck (87000) $70,000 Transportation (200-30-37) PW 4x4 Pickup Truck (87000) $40,000 AVL Software Upgrade & Additional Cameras (86100) $250,000 Community Development Vehicle (87000) $20,000 Transit Staff Vehicle (87000) $35,000 $1,145,000 $285,000 Water Construction (610-00-00) Motor Fuel Tax (210-00-00) New Water Main (85000) $500,000 Twombly Road Reconstruction (83000) $375,000 $500,000 $375,000 Water Capital (620-00-00) TIF #1 (260-00-00) Water Meters (85100) $50,000 Airport TIP - Local Match (83900) $1,000,000 Well Maintenance (85500) $165,000 $1,000,000 South Water Tower Painting/Maint (85500) $815,000 TIF #3 (262-00-00) Loader (86000) $200,000 Land Acquisition (81000) $5,000 Scissor Lift (86000) $15,000 Lincon Highway Reconfiguration (83900) $500,000 Beacon Meter Software Update (86100) $25,000 $505,000 Tandem Axle Dump Truck (87000) $185,000 Community Development Block Grant (280-00-00) One Ton Utility Truck (87000) $75,000 Other Capital Improvements (83900) $200,000 One Ton Dump Truck (87000) $70,000 $200,000 $1,600,000 Foreign Fire Insurance Tax (290-00-00) Airport (650-00-00) Machinery & Tools (86000) $36,500 Navigation Lighting Project (83900) $36,550 $36,500 Mowing Implements & Machinery (86000) $19,500 $56,050 General Fund Capital Total: $35,500 Other Funds Capital Total: $7,162,550 Total Capital Outlay: $7,198,050 City of DeKalb 203 Proposed Budget Chart of Accounts ________________________________________________________________________________ PERSONNEL & BENEFITS 41100 WAGES FULL-TIME - Salary expense for full-time employees. 41200 WAGES PART-TIME - Salary expense for part-time employees or seasonal help. 41300 WAGES-OVERTIME - Salary expense paid to non-exempt employees at one and one-half times or two times the employee's regular hourly rate for all hours worked in excess of forty hours per week or eight hours per day, as applicable. 41400 LONGEVITY PAY - Salary expense for employees with contract specific negotiated years of continuous/creditable service. 41500 CLOTHING ALLOWANCE - Amount paid for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs. 41550 CAR ALLOWANCE - Amount paid to employees for monthly car allowance. 41600 WELLNESS BONUS - Salary expense for Fire and Police employees that take a limited amount of sick time per calendar year. 41650 EDUCATION BONUS - Salary expense for full-time, non-probationary Fire employees that obtain a level of education beyond that of high school. 41700 DEFERRED COMPENSATION - The employer cost of employee deferred compensations plans. 41950 RETIREE COMPENSATION - For Police and Fire Pension Funds only. 41970 REFUND OF CONTRIBUTIONS - For Police and Fire Pension Funds only. 42100 EMPLOYER PORTION FICA - The employer contribution of FICA and Medicare, which is currently at 7.65% of gross wages. 42200 EMPLOYER PORTION IMRF - The employer contribution of IMRF, which is currently at 12.0% of gross wages for all employees covered under the IMRF program. City of DeKalb 204 Proposed Budget 42300 EMPLOYER CONTRIB/PENSION - Amount equal to the property taxes collected for the Police/Fire Pension Fund. This amount is determined by an actuarial study conducted on an annual basis. 42500 EMPLOYEE HEALTH INSURANCE - Employer amount paid for employee group medical and dental insurance premiums. 42580 EMPLOYEE LIFE INSURANCE - Amount paid for standard monthly funding for IPBC – Intergovernmental Personnel Benefit Funding for employee life insurance. 42600 WORKERS COMPENSATION - Premium paid to the City’s Insurance Company for workers compensation insurance coverage for employees of the City. 42700 UNEMPLOYMENT INSURANCE - Reimbursements to the State of Illinois for unemployment insurance claims filed by former employees. 48250 NET IMRF PENSION OBLIGATION - This is the unfunded liability from IMRF when the City passed in a large rate increase. This grows at 7.50% annually until it is paid off in full. 48300 NET OPEB COST - The net employer and employee cost of other post-employment benefits such as health care related costs for all City employees and retirees. 42999 SECTION 125 PAYMENTS - Amount paid for employee flexible spending account. COMMODITIES 51000 BOARDS & COMMISSIONS - Amount paid for expenses related to the Police and Fire Commission and the Planning and Zoning Commission. 51100 SUPPLIES/PARTS-GROUNDS - Amount paid for supplies and parts to maintain municipal grounds including items for landscaping, trees planted by City personnel, grass seed, plantings, topsoil, etc. 51300 SUPPLIES/PARTS-BUILDINGS - Amount paid for supplies and parts to maintain municipal building mechanical systems including items for plumbing, electric, HVAC, alarm systems etc. 51410 SUPPLIES/PARTS-STREETS - Amount paid for supplies and parts to maintain streets and alleys. 51430 SUPPLIES/PARTS-STORM SEWERS - Amount paid for supplies and parts to maintain municipal storm water systems. 51500 SUPPLIES/PARTS-EQUIPMENT - Amount paid for supplies and minor equipment for the Engineering and Water lab. City of DeKalb 205 Proposed Budget 51700 SUPPLIES/PARTS-VEHICLES - Amount paid for supplies and parts to maintain municipal vehicles. 51996 POTABLE WATER SYSTEM PARTS - Amount paid for supplies and parts to maintain municipal potable water systems. 51997 STREETLIGHTS, PARTS - Amount paid for supplies and parts to maintain streetlights. 51998 TRAFFIC & STREET SIGNS - Amount paid for supplies and parts to maintain traffic and street signs. 51999 SUPPLIES/PARTS-TRAFFIC SIGNALS - Amount paid for supplies and parts to maintain traffic signals. 52000 OFFICE SUPPLIES - Amount paid for pens, pencils, markers, post-its, staples, binders, folders, dividers, pads, calendars, cassette tapes, ribbons, paper, ink, etc. 52500 JANITORIAL SUPPLIES - Amount paid for operating supplies such as cleaning supplies (sweeping compound, glass cleaner, etc.), paper towels, toilet tissue, testing and exam supplies, pesticides/herbicides, signs posts, cabinets, small tools, non-personal safety equipment, and other equipment. 52600 PATROL SUPPLIES & EQUIPMENT - Amount paid for supplies and equipment for Police Patrol Officers, including gloves, evidence supplies, trauma bags, testing supplies, etc. 52700 INVESTIGATION SUPPLIES & EQUIPMENT - Amount paid for supplies and equipment for Investigation Officers, including office supplies, car rental, etc. 52800 FIREFIGHTING SUPPLIES & EQUIPMENT - Amount paid for supplies and equipment for Fire personnel, including items for uniform maintenance. 52900 AMBULANCE SUPPPLIES & EQUIPMENT - Amount paid for supplies and equipment required to stock an ambulance. 53000 OPERATING SUPPLIES - Amount paid for airport supplies, including safety harnesses, etc. 53099 ACTIVITIES & SUPPLIES - Amount paid for activities such as employee service plaques, employee events, etc. 53100 ICE/SNOW CONTROL SUPPLIES - Amount paid for ice and snow control supplies such as road salt, ice melt, etc. 53200 WATER SYSTEM CHEMICALS - Amount paid for potable water chemicals such as, salt, chlorine, hydrofluosilicic, etc. City of DeKalb 206 Proposed Budget 53300 SMALL TOOLS & EQUIPMENT - Amount paid for operating supplies such as small tools, non-personal safety equipment, and other equipment costing less than $1,000. 54000 UNIFORMS/PROTECTIVE CLOTHING - Amount paid for purchase and maintenance of uniforms such as, cleaning, embroidery, safety glasses, etc. 55000 FUEL, OIL, & LUBRICANTS - Amount paid for gasoline and oil used in municipal vehicles. 55100 AIRPORT FUEL (FOR RESALE) - Amount paid for Airport fuel. 58110 DUI FINES EXPENDITURES - Amount paid for supplies related to DUI enforcement, including mouthpieces, manuals, gloves, etc. 58120 ANTI-CRIME EXPENDITURES - Amount paid for anti-crime prevention activities such as Live Healthy, Camp Power, domestic violence database, etc. 58130 CRIME LAB EXPENDITURES - Amount paid for expenses related to the crime lab such as, lab supplies, carbon filters, masks, etc. 58140 POLICE FORFEITURES EXPENDITURE - Amount paid for items related to vehicle seizures, K- 9 expenses, vehicle/bicycle repairs, riot helmets, etc. 59900 LIBRARY MATERIALS - Amount paid for materials purchased for the Library. 59999 COMMODITIES - Amount paid for miscellaneous purchases such as Prisoner meals, sympathy arrangements, etc. CONTRACTUAL 61100 MAINTENANCE-GROUNDS - Amount paid for contracted maintenance of municipal grounds including labor and materials for mowing, landscaping, trimming, fertilization, aeration, planting, spoils disposal, stump removal, etc. 61300 MAINTENANCE-BUILDINGS - Amount paid for contracted maintenance of municipal buildings including labor and materials for plumbing, electrical, HVAC, alarm systems, etc. 61400 MAINTENANCE-INFRASTRUCTURE - Amount paid for contracted maintenance of municipal infrastructure. 61420 MAINTENANCE-ALLEYS - Amount paid for contracted maintenance of municipal streets, paths, wells and storage, meters and hydrants, water lines, right of way areas, etc. 61430 STORM MAINTENANCE-STORM SEWERS - Amount paid for repair and maintenance of storm water systems. City of DeKalb 207 Proposed Budget 61450 MAINTENANCE-SIDEWALKS - Amount paid for contracted maintenance of sidewalks. 61500 MAINTENANCE-EQUIPMENT - Amount paid for contracted maintenance of municipal equipment including labor and materials for office machines, copiers, radios and electronics, desks, fans, air conditioners, movie cameras, recorders, VCRs, fire extinguishers, first aid kits, hoists, generators, central telephone systems, trailers, non-licensed wheeled equipment, etc. 61599 WARNING SIRENS - Amount paid for warning sirens services. 61700 MAINTENANCE-VEHICLES - Amount paid for contracted maintenance of municipal vehicles including labor and materials for automobiles, trucks, sweepers, salt spreaders, snowplows, permanently installed accessories, etc. 61800 MAINTENANCE-SOFTWARE - Amount paid for maintenance of technology resources such as annual renewal of software licenses and subsciptions. 61900 MAINTENANCE-BOOKS - Amount paid for maintenance related to books at the Library. 61999 AIRPORT - MAINTENANCE - Amount paid for repair and maintenance at the airport. 62099 PRINTED MATERIALS - Amount paid for printing newsletters, letterhead/stationery, envelopes, work order forms, business cards, checks, application forms, program brochures, etc. 62100 FINANCIAL SERVICES - Amount paid for contracted accounting services such as auditing, bookkeeping, attestations, and other related functions. 62200 LEGAL SERVICES - Amount paid for contracted legal advice and services. 62300 ARCHITECT/ENGINEER SERVICES - Amount paid for architect and engineering fees. 62400 TECHNOLOGY SERVICES - Amount paid for technology services including monthly/annual maintenance contracts, copier expenses, consulting fees, etc. 62500 LAB TESTING SERVICES - Amount paid for contracted services for lab testing services. 62600 MEDICAL SERVICES - Amount paid for pre-employment physicals, drug screens, required medical testing for various employees, psychological examinations of applicants as part of the testing process, wellness program expenditures, and payments to health care providers and employee reimbursements made in connection with the City’s partially self-funded health insurance plan. 62700 HUMAN & SOCIAL SERVICES - Amount paid for Human Services Fund and Community Development Block Grant Fund. City of DeKalb 208 Proposed Budget 62900 PERSONNEL RECRUITMENT SERVICES - Amount paid for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices. 63000 SPECIAL EVENT SERVICES - Amount paid for items related to special events such as cake for employees retiring, Alderman reception, funeral flowers, etc. 63100 FORESTRY SERVICES - Amount paid for expenses related to maintenance of municipal tree inventory including tree and stump removal, Emerald Ash Borer treatment, etc. 63200 MOSQUITO ABATEMENT SERVICES - Amount paid for contracted mosquito abatement services such as spraying. 63300 NUISANCE ABATEMENT SERVICES – Amount paid for contracted nuisance abatement services. 63400 SNOW REMOVAL SERVICES - Amount paid for contracted maintenance of municipal vehicles including labor and materials for automobiles, trucks, sweepers, salt spreaders, snowplows, permanently installed accessories, etc. 63500 TOWING SERVICES - Amount paid for towing services. 63600 WEATHER SERVICES - Amount paid for weather services including monitoring of pavement temperature, live radar, etc. 63650 LAND ACQUISITION SERVICES - Amount paid for fees and services for land acquisition. 63700 DEVELOPMENTAL SERVICES - Amount paid for contracted development services. 63750 DEMOLITION SERVICES - Funds to assist with property demolition. 63800 CONTRACTED SERVICES - Amount paid for contracted services including building inspections, plan review, band director, etc. 63900 OTHER PROFESSIONAL SERVICES - Amount paid for consulting fees and services. 63960 DONATIONS/FRIENDS OF THE LIBRARY - Amount paid for Library gifts and donations. 63965 ENDOWMENTS AND MEMORIALS - Amount paid for Library memorials. 63970 LIBRARY ELECTRONIC RESOURCES - Amount paid for parts and maintenance of the Library database. 63998 FLEX ADMINISTRATION - Amount paid to third party administrator for flexible spending account program. City of DeKalb 209 Proposed Budget 63999 TPA ADMINISTRATION - Amount paid to third party administrator for workers' compensation program. 64000 UTILITIES - Amount paid for utility services, including gas and electric. 64100 ELECTRIC SERVICES - Amount paid for electricity for streetlights, water system power, municipal buildings, and airport power. 64200 NATURAL GAS SERVICES - Amount paid for natural gas service to municipal buildings. 64300 REFUSE REMOVAL SERVICES - Amount paid for contracted refuse removal services. 64400 SEWER SERVICES – Amount paid for sewer services. 64500 TELEPHONE SERVICES - Amount paid for all telecommunication expenses including, local, long distance, cell phones, etc. 64600 CABLE/INTERNET SERVICES – Amount paid for cable and internet services. 65100 FREIGHT & POSTAGE - Amount paid for freight and postal related services such as stamps, bulk mailings, overnight deliveries, permits, etc. 65200 MARKETING ADS & PUBLIC INFO - Amount paid for marketing advertising and public information including posters, maps, advertisement for bid, etc. 65300 LEGAL EXPENSES & NOTICES - Amount paid for legal expenses and notices including appraisals, motions, public hearing, etc. 65400 TAXES, LICENSES, & FEES - Amount paid for expenses related to taxes, license and fees including property taxes, CDL license renewal, notary renewal, etc. 65500 RENTAL-BLDG & EQUIP - Amount paid for rent or lease of vehicles, equipment, land, and buildings such as portable toilets, tools, etc. 66100 DUES & SUBSCRIPTIONS - Amount paid for membership dues for various professional organizations. Amount paid for books, magazines, periodicals, pamphlets, maps, internet access, weather service, training films and DVDs, etc. 66200 TRAINING/TRAVEL - Amount paid for attendance at professional conferences and meetings by municipal personnel and elected officials, luncheon meetings where presentations are given, and amount paid for training related costs such as registration, fees, tuition, travel expenses, etc. by municipal personnel for professional development. 66300 TRAVEL EXPENSES – Amount paid to municipal employees for travel reimbursement. City of DeKalb 210 Proposed Budget 66400 EDUCATION TUITION REIMBURSEMENT - Amount paid to municipal employees for successful completion of course work for tuition reimbursement. 67100 EMPLOYEE HEALTH INSURANCE - Amount paid for standard monthly funding for IPBC – Intergovernmental Personnel Benefit Funding for employee health insurance. 67200 LIBRARY HEALTH INSURANCE - The employer cost of employee insurance premiums for Library employees. 67300 RETIREE HEALTH INSURANCE - Amount paid for standard monthly funding for IPBC - Intergovernmental Personnel Benefit Funding for retiree insurance. 67400 PEHP PLAN - The employer cost of post- employment health care benefits offered to Fire department employees. 67500 WELLNESS BENEFIT PAYMENTS - Amounts paid to municipal employees for reimbursement of wellness activities including reimbursement for gym memberships, wellness classes, etc. 68100 ECONOMIC DEVELOPMENT INCENTIVE - Amount paid to encourage redevelopment activities within the city. 68750 TAX SHARING AGREEMENTS - Disbursements to other taxing bodies stemming from various revenue sharing agreements. 69150 CLAIMS: WORK COMP INSURANCE - Amount paid for self-insured workers’ compensation claims, general and automotive liability losses. 69200 SURETY BONDS - Amount paid for surety bonds for Mayor, City Manager, Treasurer and Clerk, as well as amounts paid for notary bonds. 69800 UTILITY REBATE PROGRAM - Costs associated with the Utility Rebate Program, a program offered to residents based on certain qualifications offering assistance for local taxes paid for utilities. 69997 COLLECTION AGENCY - Amount paid for collection agency fees for the Library. 69998 PROFESSIONAL CONSULTING (IT) - Amount paid for professional consulting fees and services for the Library. 69999 CONTINGENCIES - Amounts set aside to cover unanticipated expenditures throughout the budget year. City of DeKalb 211 Proposed Budget DEBT SERVICE 72500 DEPRECIATION - WATER - Amount charged as an expense for an expired portion of a capital asset. 72600 DEPRECIATION - AIRPORT - Amount charged as an expense for an expired portion of a capital asset. 75000 DEBT SERVIC - PRINCIPAL - Amount paid for principal payment on bonds, debt certificates, and other debt instruments. 76000 DEBT SERVICE - INTEREST - Amount paid for charges on borrowed funds at an agreed upon rate. 77000 LOAN PRINCIPAL - Amount paid for principal payment on loans, debt certificates, and other debt instruments. 78000 LOAN INTEREST - Amount paid for interest payment on bonds, debt certificates, and other debt instruments. 79000 MUN LEASE / PURCHASE DEBT - Amount paid for rent or lease of vehicles, equipment, land, and buildings such as portable toilets, tools, etc. CAPITAL OUTLAY 81000 LAND ACQUISITION - Amount paid for capital purchases of land. 82000 BUILDINGS & IMPROVEMENTS - Amount paid for remodeling and renovation. 83000 STREET IMPROVEMENTS - Amount paid for capital street construction or reconstruction. 83050 STREET MAINTENANCE - Amount paid for capital street improvements and maintenance. 83100 ALLEY IMPROVEMENTS - Amount paid for capital alley improvements. 83200 STORM SEWER IMPROVEMENTS - Amount paid for capital storm sewer system improvements. 83300 PARKING LOT IMPROVEMENTS - Amount paid for capital parking lot improvements. 83900 OTHER CAPITAL IMPROVEMENTS- Amount paid for capital improvements. 83999 SIGNALS & INTERSECTIONS - Amount paid for capital signal and intersection improvements. 85000 WATER MAINS - Amount paid for capital water main improvements. City of DeKalb 212 Proposed Budget 85100 WATER METERS - Amount paid for the acquisition of water meters. 85500 WATER SYSTEM IMPROVEMENTS- Amount paid for the improvements to the water systems. 86000 EQUIPMENT - Amount paid for the acquisition of municipal equipment. 86100 TECHNOLOGY EQUIPMENT - Amount paid for the acquisition of technology equipment. 86200 OFOFFICE FURNITURE & EQUIPMENT - Amount paid for the acquisition of office furniture and equipment. 86300 TELEPHONE & RADIO EQUIPMENT - Amount paid for the acquisition of office furniture and equipment. 87000 VEHICLES - Amount paid for the acquisition of municipal vehicles. TRANSFERS OUT 91100 TRANSFER TO GENERAL FUND - Amount of permanent transfers to the General Fund. 91200 TRANSFER TO TRANSPORTATION FUND - Amount of permanent transfers to the Transportation Fund. 91201 TRANSFER TO ECONOMIC DEV FUND - Amount of permanent transfers to the Economic Development Fund. 91210 TRANSFER TO MFT FUND - Amount of permanent transfers to the Motor Fuel Tax Fund. 91260 TRANSFER TO TIF #1 - Amount of permanent transfers to the Tax Increment Financing Fund #1. 91262 TRANSFER TO TIF #3 - Amount of permanent transfers to the Tax Increment Financing Fund #3. 91285 TRANSFER TO REHAB FUND - Amount of permanent transfers to the Housing Rehabilitation Fund. 91300 TRANSFER TO DEBT SERVICE FUND - Amount of permanent transfers to the General Fund Debt Service Fund. 91375 TRANSFER TO TIF DEBT SERVICE FUND - Amount of permanent transfers to the TIF Debt Service Fund. City of DeKalb 213 Proposed Budget 91400 TRANSFER TO CAPITAL PROJECTS FUND - Amount of permanent transfers to the Capital Projects Fund. 91405 TRANSFER TO PUB SFTY BLDNG FUND - Amount of permanent transfers to the Public Safety Building Fund. 91410 TRANSFER TO FLEET FUND - Amount of permanent transfers to the Fleet Replacement Fund. 91420 TRANSFER TO CAPITAL EQUIPMENT FUND - Amount of permanent transfers to the Equipment Fund. 91600 TRANSFER TO WATER FUND - Amount of permanent transfers to the Water Fund. 91620 TRANSFER TO WATER CAPITAL FUND - Amount pf permanent transfer to the Water Capital Fund. 91650 TRANSFER TO AIRPORT FUND - Amount of permanent transfers to the Airport Fund. 91700 TRANSFER TO WORKERS COMP FUND - Amount of permanent transfers to the Workers Compensation Fund. 91710 TRANSFER TO HEALTH INSURANCE FUND - Amount of permanent transfers to the Health Insurance Fund. 91720 TRANSFER TO PROPERTY/LIAB FUND - Amount of permanent transfers to the Liability Insurance Fund. City of DeKalb 214 Proposed Budget Budget Policy ______________________________________________________________________________ Policy Number: 01-01 Date: January 9, 2017 Purpose: The City Manager shall submit an annual budget to the City Council which is within the City’s ability to pay. The annual budget should provide for the following: 1. A meeting will be held with the Finance Advisory Committee after June 30 and before joint City Council budget discussions begin to discuss the previous year-end Comprehensive Annual Financial Report, review revenues trends and discuss any new policy recommendations. 2. Management shall prepare a draft of the annual budget for review by the City Council and the Finance Advisory Committee in October/November of each year. The recommended budget should be submitted to the City Council for review and a public hearing in November of each year. The final budget document shall be submitted to the full membership for approval prior to December 31 of each year. 3. The annual budget should effectively communicate meaningful and understandable information to the City residents, City Council, City Staff, and other readers. 4. The annual budget shall be monitored on a monthly basis. Revenue and expenditure budget reports shall be prepared and made available to City management staff for departmental review on a monthly basis. A quarterly budget summary report (Treasurer’s Report) shall be presented to the City Council. 5. The annual budget should allow for the implementation of as many of the City Council’s goals and objectives from the 2025 strategic plan as financially possible. 6. The annual budget should provide for the adequate funding of all pension plans (IMRF, Police Pension Fund, and Firefighters Pension Fund). An independent actuary should be used to determine the annual City contributions to the Police Pension Fund and the Firefighters Pension Fund and determine if these pension funds are adequately funded. 7. The annual budget should provide funding for the adequate maintenance of municipal equipment, municipal facilities, and infrastructure. City of DeKalb 215 Proposed Budget  8. The annual budget should set aside-adequate funding (pay-as-you-go funding) for the replacement of major equipment. Annual funding (depreciation funding) for these replacements will eliminate major expenditure jumps in the annual budget when these acquisitions are made. 9. During the budget process, the City will assess the need for contingency funds to be included in the budget to fund unanticipated expenditures that might arise. 10. The annual budget should finance current operating expenditures, excluding major capital expenditures, with current revenues. The use of reserve funds to finance current operating expenditures should be carefully considered and avoided if possible. 11. The City should limit the use of the reserve fund to nonrecurring operating expenditures or capital expenditures, specifically if our anticipated fund balance is below our Fund Balance Reserve Policy of 25%. 12. When the City is required to undertake a budget amendment and/or execute expenditure transfers to ensure that actual expenditures are within approved budgetary limits as authorized by City Council the following procedures will be followed. Administration of these procedures will be the responsibility of the City’s Finance Director and the Finance Director will sign off that these procedures have been adhered to for any budget amendments and/or expenditure transfers undertaken by the City. Those procedures are as follows: a. Upon knowledge that a budget amendment and/or expenditure transfer will be required, the City’s Finance Director will inform both the Finance Committee and the City Council. b. Documents will be drafted by the Finance Director with the reason for the required budget amendment and/or expenditure transfer, including the specific accounts affected and the dollar amounts of said amendments and/or expenditure transfers. c. Formal City Council review and approval of proposed budget amendments and/or expenditure transfers will be required before any amendments and/or transfers are executed by the Finance Director. City of DeKalb 216 Proposed Budget Fund Balance Policy ______________________________________________________________________________ Policy Number: 01-02 Date: January 9, 2017 Purpose: Fund balance measures the net financial resources available to finance expenditures of future periods. Fund balance reserve policies are established to avoid cash flow interruptions, generate investment income, and reduce the need for borrowing. The fund balance reserves identified within this policy are the minimum balances necessary to accomplish these objectives. While keeping in mind the uneven nature of the City’s cash flows, should the projected ending fiscal year fund balance fall below the desired percentage or amount, the City should create a plan to restore the appropriate levels. Part II – Governmental Funds This section only applies to fund balances reported in the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, and Permanent Funds. 1. Definitions The five fund balance classifications outlined in GASB Statement 54 follows: Nonspendable Fund Balance: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. This would include items not expected to be converted to cash including inventories and prepaid amounts. It may also include the long-term amount of loans and receivables, as well as property acquired for resale and the corpus (principal) of a permanent fund. Restricted Fund Balance: This classification should be reported when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance: This classification reflects specific purposes pursuant to constraints imposed by formal action of the district’s highest level of decision-making authority (generally the governing board). Also, such constraints can only be removed or changed by the same form of formal action. Assigned Fund Balance: This classification reflects amounts that are constrained by the government’s intent to be used for specific purposes, but meet neither the restricted nor committed forms of constraint. City of DeKalb 217 Proposed Budget  Unassigned Fund Balance: This classification is the residual classification for the general fund only. It is also where negative residual amounts for all other governmental funds would be reported. 2. Fund Balance Commitments & Assignments Committed fund balance for a specific use must be taken by formal action of the City Council. Amendments or modifications of the committed fund balance must also be approved by formal action of the City Council. In order to be recognized in the annual Audit Report, commitments of fund balance must be enacted prior to the end of that Report’s particular fiscal year. Assigned Fund Balance is intended for specific purposes not imposed by external parties or City Council’s formal action. The City Council authorizes the City Manager and/or his/her designee(s) to assign fund balance. Such assignments cannot exceed the available (spendable, unrestricted, uncommitted) fund balance in any particular Fund. 3. Reserves General Fund: Unassigned fund balance will be maintained at a minimum level equal to 25% of annual expenditures. The City’s unassigned General Fund balance will be maintained to provide the municipality with sufficient working capital and a margin of safety to address emergencies without borrowing. TIF Funds: The City currently has two budgeted TIF Funds (the Central Area TIF and TIF II). These Funds should be self-supporting and should maintain a fund balance equivalent to meet the planned improvements identified in a multi-year capital schedule(s). Capital Projects Fund: This Fund is used for resources accumulated and used in right of way improvements such as street repair, street reconstruction, and curb and gutter replacement. Costs associated with this Fund must not be State MFT eligible and must cost over $5,000 and have a useful life of at least three years. The funding source for this Fund will be the local home rule motor fuel tax. The Capital Projects Fund should work toward establishing a fund balance at a minimum dollar amount to meet the planned improvements identified in a multi-year capital replacement schedule(s). Special Revenue Funds: These Funds are used to account and report the proceeds of specific revenue sources which are restricted or committed toward expenditures for specific purposes other than debt service or capital projects. In general, all these Funds should maintain the least fund balance necessary to cover current fiscal year expenditures, plus an amount to pay for those expenditures of the subsequent fiscal year needed to avoid a cash deficit position. City of DeKalb 218 Proposed Budget  4. Fund Balance Classification Fund balance classifications depict the nature of the net resources that are reported in a governmental fund type. An individual governmental fund may include nonspendable resources and amounts that are restricted, committed, or assigned, or any combination of those classifications. The General Fund may also include an unassigned amount. 5. Prioritization of Fund Balance Use When an expenditure is incurred for a purpose which can be paid from multiple fund balance classifications, the City will spend the most restricted dollars before less restricted, in the following order:  Nonspendable (if funds become spendable)  Restricted  Committed  Assigned  Unassigned Part III – Enterprise, Internal Service, & Fiduciary Funds This section applies to Funds outside the scope of GASB 54. 1. Definitions Restricted Net Assets: The component of net assets restricted by external parties, constitutional restrictions, and enabling legislation. Net Assets Invested in Capital Assets, Net of Related Debt: A component of net assets calculated by reducing capital assets by accumulated depreciation and the principal portion of related debt. Unrestricted Net Assets: The portion of net assets that is neither restricted nor invested in capital assets net of related debt. 2. Reserves Water Operating Fund: The unrestricted net assets of the Water Fund will be maintained at a minimum level equal to 25% of the annual budgeted operational expenses. Net position above 25% will be transferred annually to the Water Capital Fund for use in funding the Water Capital plan. Water New Construction Fund: This revenue is from impact fees and is restricted for any new water main infrastructure in the City of DeKalb. Water Capital Projects Fund: This fund will be used to account for all capital revenues and expenditures to Water Capital as approved by City Council in the annual budget. Capital projects include existing water infrastructure for water mains, wells, treatment plants, pumping systems and water towers. Additionally, Water Division equipment and City of DeKalb 219 Proposed Budget  fleet that exceed $10,000 with a useful life exceeding one year would be accounted for through this fund and be subject to the same annual budget approval by Council. Airport Fund: The unrestricted net assets of the Airport Fund will be maintained at a minimum level equal to 25% of annual budgeted operational expenses, plus the budgeted capital improvements for the current fiscal year. Other Specified Funds: The Health Insurance Fund should maintain unrestricted net assets of one month of IPBC premium. Any amount above this threshold may be transferred to the Workers’ Compensation Fund or Liability/Property Insurance Fund to be used toward claims, eliminate potential deficits, or maintain net asset policy in these other Funds. The Workers’ Compensation Fund should maintain unrestricted net assets of $1,000,000 collectively (or 1 year premium for reinsurance plus the average annual retention costs associated with that premium). The Liability/Property Insurance Fund should maintain unrestricted net assets approximately equivalent to 25% of annual budgeted expenses. Part IV – Other 1. Cash Deficits Should any Fund incur a cash deficit by the end of the fiscal year, an interfund loan will be created with a Fund or Fund(s) which have a cash surplus (unless restricted by statute or Fund Balance policy). 2. Reporting Year to date revenues and expenditures for the General Fund will be issued to the City Council by their second regular meeting of each month. On a quarterly basis, the City Council shall receive an update on the General Fund with a year-end forecast for the fiscal year and also receive a summary of major fund balances. TIF Funds will be reported in greater detail to Council by the end of March and by the end of September of each year. The City Council shall receive an update on Workers’ Compensation claims through December 31 by the end of March and claims through June 30 by the end of September of each year. City of DeKalb 220 Proposed Budget  A semi-annual report on economic development incentives will be reported to Council by the end of March and by the end of September of each year. An update on retiree insurance costs will be reported annually by the end of March of each year. City of DeKalb 221 Proposed Budget Capital Equipment Replacement Fund ______________________________________________________________________________ Policy Number: 01-03 Date: January 9, 2017 Purpose: The City of DeKalb has established the Capital Equipment Replacement Fund (CERF) to encourage departments to set aside funds each year for the eventual replacement of existing equipment and to avoid significant fluctuations in the operating budget from one year to the next. In order to build and maintain sufficient funds on hand to replace items at the end of their useful life, water tower rental income, revenue received from the E911 Board for OSSI payments will be dedicated annually as well as, transfers by each department from the General Fund determined annually through the budget process. The remainder of this policy is intended to provide guidance as to how the CERF will operate. The Capital Equipment Replacement Fund shall be used only to replace existing equipment owned by the City. The fund shall not be used to purchase equipment not currently owned by the City or as a means to circumvent the process for having new equipment approved by the City Council. Requests for new equipment shall be made as part of the annual operating budget and must be approved by the City Council before acquisition; Only those items which individually have a replacement cost of more than $10,000 or groups of similar equipment (e.g. personal computers, bullet proof vests, etc.) which, in the aggregate, exceed $10,000 with a useful life of more than one year shall be included in the CERF. Departments shall include individual items or groups of items with a value of less than $10,000 in their annual operating budget. The cost of items associated with new vehicles such as vehicle markings, light bars, radios and similar equipment shall be included in the replacement cost of the vehicle. The replacement cost and useful life for each vehicle or technology related equipment will be re- evaluated by the individual departments on an annual basis. This re-evaluation may change the annual amounts that programs contribute for the replacement of each item. The Department Head, in consultation with the City Manager and the Finance Director shall determine when a vehicle or equipment is due for replacement. Final capital asset replacement decisions using CERF monies will be discussed and approved by the City Council as part of the annual budget process. City of DeKalb 222 Proposed Budget When CERF equipment is sold, the proceeds of the sale shall be credited to the CERF Fund. From time to time, departments may be assigned previously used technology related equipment from within their department or another department in the City. The Director of Information Technology, in consultation with the Department Head, shall recommend that such equipment be assigned to a department when it meets the department’s needs and when doing so will help avoid the expense of purchasing new equipment. Consideration shall be given to the annual operating cost of maintaining the used equipment when deciding whether or not to continue using it. The City Manager shall have the final say in determining whether or not previously used technology is assigned to a department. City of DeKalb 223 Proposed Budget Revenue and Expenditure Policy ______________________________________________________________________________ Policy Number: 01-04 Date: January 9, 2017 Purpose: Revenues The City desires to maintain a diversified and stable revenue base to reduce the impacts of fluctuations in any one revenue source. The revenue mix combines elastic and inelastic revenue sources to minimize the effects of an economic downturn. The City also incorporates the following principles related to revenues as it furthers its financial planning and fulfills its fiscal responsibilities: 1. The City prefers to keep its property tax rate as low as possible. The following components shall be followed in priority order each year when establishing the property tax levy: a. Levy for Police, Fire and IMRF pensions per actuary calculations. If the actuarial reports indicated a higher employer contribution is needed, said increase will need to be added to the City’s overall previous year levy request to avoid underfunding problems. b. Levy for FICA. c. Levy for general obligation bond principal and interest less abatements. d. Levy to support General Fund operations including Police, Fire, Public Works, Community Development, Finance, Human Resources, I.T. and Administration. The annual increase for this component should not exceed the rate of inflation. e. Levy to fund additional personnel as determined by the City Council. 2. User charges and tap-on fees will be sufficient to finance all operating and debt service costs for the Water Fund. 3. The City Manager should impose spending limits if, in his/her judgment, revenues will be below original estimates. Staff should review and monitor on City of DeKalb 224 Proposed Budget  a monthly basis expenditures to assure control of spending within available revenues. 4. Ongoing transfers will be made from the General Fund to the Fleet Replacement fund on an annual basis to help plan for the purchasing of large capital equipment needs. Expenditures The City will strive to adhere to the following policies: 1. The City will consistently budget the minimum level of expenditures which will provide for the public well-being and safety of the residents and businesses of the community. 2. Expenditures will be within the confines of generated revenue. Fund balances will not be used to pay for operating expenditures except in the case of emergencies and after careful consideration. City of DeKalb 225 Proposed Budget Accounting, Auditing and Financial Reporting Policy ______________________________________________________________________________ Policy Number: 01-05 Date: January 9, 2017 Purpose: The City shall have an annual audit conducted on its financial records by a qualified, independent public accounting firm. The City should request proposals from qualified independent accounting firms to conduct an annual audit of its financial statements every five to six yearsby the use of a request for proposal (RFP) process. In accordance with Government Finance Officers Association’s (GFOA’s) Best Practice Guidelines, the current auditors can be included in the RFP process, however, it is recommended changing the audit team if the same firm came in with the best proposal. The audit shall be conducted on an annual basis to be completed and filed within six months after the end of each fiscal year. The City should submit its Comprehensive Annual Financial Report (CAFR) to the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program. The City’s financial statements shall be prepared according to generally-accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Council (GASB). The City should contract with an independent actuary to determine the City’s annual contribution to the Police and Fire Pension Funds. When the City prepares monthly significant account reconciliations, prepares the year-end adjustments, and prepares the year-end financial statements, the following procedures will be followed. Administration of these procedures will be the responsibility of the City’s Finance Director and the Finance Director will sign off that these procedures have been adhered to on a monthly and year-end basis. Those procedures are as follows: The Finance Department, under approval of the Finance Director, will prepare a listing of all significant accounts of the City that are to be reconciled on a monthly basis. These accounts are to include at a minimum all balance sheet accounts at month-end, all grant related revenue and expense accounts, all restricted use revenue accounts and all other accounts deemed necessary by the Finance Department to be reviewed on a monthly basis. A monthly checklist of these accounts will be prepared and signed off by the Finance Director. City of DeKalb 226 Proposed Budget Within 90 days after the close of the fiscal year the Finance Department will be required to submit to the Finance Director all required year-end close adjustments. These adjustments are to be approved and reviewed by the Finance Director and posted to the general ledger prior to the auditors beginning audit fieldwork. The City’s auditors assist in the preparation of the City’s financial statements, including the footnote disclosures, in accordance with generally accepted accounting principles. Further, the City will review a complete initial draft and final draft of the financial statements as prepared by the auditors. The City Finance Director will be responsible for a final complete review of the financial statements, including the footnotes disclosures, to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. Any questions or concerns related to the financial statements will be discussed with the City’s auditors. The City’s Comprehensive Annual Financial Report and Management Letter will be approved by the City Council and available for distribution no later than six months after the close of the City’s fiscal year-end. City of DeKalb 227 Proposed Budget Capital Asset Policy ______________________________________________________________________________ Policy Number: 01-06 Date: January 9, 2017 Purpose: Capital assets purchased or acquired with an original cost of $25,000 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. General capital assets are long-lived assets of the City as a whole. Infrastructure such as streets, traffic signals and signs are capitalized. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by the governmental activities) the government chose to include all such items regardless of their acquisition date. The valuation basis for general capital assets are historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at estimated fair market value on the date donated. Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives: Buildings and Building Improvements 40 to 50 Years Equipment 10 to 20 Years Vehicles 3 to 20 Years Infrastructure 25 to 50 Years Water Distribution System 40 to 65 Years When capital assets are purchased with the use of federal funds the following procedures will be completed by the City. Administration of these procedures will be the responsibility of the City’s Finance Director and the Finance Director will sign off that these procedures have been adhered to for the purchase of every federal funded capital asset. Those procedures are as follows: Capital assets purchased with federal funds will be tagged with a special notation of “F” in addition to the regular identification number system used by the City. City of DeKalb 228 Proposed Budget The description of the capital asset in the City’s capital asset records will also include the words “federally funded” before the description of the specific asset acquired. The source of federal funds must be noted and include a description of who holds title to the assets, along with the asset acquisition date, the asset cost, location of the asset, condition and use/purpose of the asset. The portion of the asset that is federally funded must also be noted in the City’s capital asset records. Upon disposition of any federally acquired assets, the City must note in the capital asset records the disposition date and sale price. A physical inventory of all assets acquired with federal funds will be performed on a biennial basis. The results of the City’s inventory of federally funded capital assets will be reconciled to the City’s capital asset records to ensure accuracy. This inventory will be overseen and approved by the City’s Finance Director. City of DeKalb 229 Proposed Budget Debt Management Policy ______________________________________________________________________________ Policy Number: 01-07 Date: January 9, 2017 Purpose: The City of DeKalb developed this Debt Management Policy to help ensure the City’s credit worthiness and to provide a functional tool for debt management and capital planning. The City of DeKalb faces continuing capital infrastructure requirements to meet the increasing needs of its citizens. The City limits long-term debt to only those capital improvements that cannot be financed from current revenues. The City of DeKalb will not use long-term debt to fund operating programs. The costs of the capital requirements will be met through the issuance of various types of debt instruments. Consequently, the City needs to anticipate increases in debt levels based upon historical data. With these increases, the effects of decisions regarding the type of issue, method of sale, and payment structure become ever more critical to the City's financial well-being. To help ensure the City's credit worthiness, an established program of managing the City's debt becomes essential. To this end, the City Council recognizes this "Debt Management Policy" to be financially prudent and in the City's best economic interest. This policy will provide a functional tool for debt management and capital planning, and enhance the City's reputation for managing its debt in a conservative and prudent manner. Goals Related to the Issuance of General Obligation and Revenue Bond Debt: The City shall pursue the following goals below when issuing debt. Though the City may not have achieved all these goals as of yet, these are long term objectives for which we must continue to strive toward. 1. Maintain at least an Aa3 (Moody’s) or equivalent credit rating for each general obligation debt issue. 2. Take all practical precautions to avoid any financial decision which will negatively impact current credit ratings on existing or future debt issues. 3. The City should attain a General Fund unassigned balance equal to a minimum of twenty five percent (25%) of total annual expenditures. 4. Consider market timing. City of DeKalb 230 Proposed Budget  5. Determine the amortization (maturity) schedule which will best fit with the overall debt structure of the City’s general obligation debt and related tax levy at the time the new debt is issued. The City may choose to delay principal payments or capitalized interest during project construction. For issuance of revenue bonds, the amortization schedule which will best fit with the overall debt structure of the fund and its related rate structure will be considered. Consideration will be given to coordinating the length of the issue with the lives of assets, whenever practicable, while considering repair and replacement costs of those assets to be incurred in future years as an offset to the useful lives, and the related length of time in the payout structure. 6. Consider the impact of such new debt on overlapping debt and the financing plans of local governments which overlap, or underlie the City. 7. Assess financial alternatives to include new and innovative financing approaches, including whenever feasible, categorical grants, revolving loans or other state/federal aid. 8. Minimize debt interest costs. Debt Issuance in General: 1. Authority and Purposes of the Issuance of Debt The laws of the State of Illinois authorize the issuance of debt by the City. The Local Bond Law confers upon municipalities the power and authority to contract debt, borrow money, and issue bonds for public improvement projects as defined therein. Under these provisions, the City may contract debt to pay for the cost of acquiring, constructing, reconstructing, improving, extending, enlarging, and equipping such projects or to refund bonds. The City Charter authorizes the City Council to incur debt by issuing bonds for any lawful municipal purpose as authorized by the State Constitution or its Home Rule Powers. 2. Short-Term Debt (three years or less) The City may issue short-term debt to finance projects or portions of projects for which the City ultimately intends to issue long-term debt. This will be used to provide interim financing which will eventually be refunded with proceeds of long-term obligations, which may include, but not be limited to, bond anticipation notes or variable rate demand notes. The City will have an estimated timeframe when any short-term debt issue will eventually be converted into long-term debt. City of DeKalb 231 Proposed Budget  a. Line of Credit The City may also issue debt instruments to meet cash flow requirements. With the approval of the City Council, the City may establish a tax-exempt line of credit with a financial institution selected through a competitive process. This line should have a limit of $2,500,000. Draws should be made on the line of credit when the need for financing is needed to meet operating expenditures on a temporary basis. Draws made on the line of credit must be requested by the Finance Director and approved by the City Manager and the City Council. 3. Long-Term Debt (more than three years) The City may issue long-term debt which may include, but not limited to, general obligation bonds, certificates of participation, capital appreciation bonds, special assessment bonds, self-liquidating bonds and double barreled bonds. Level or declining debt service should be employed unless operational matters dictate otherwise, or except to achieve overall level debt service with existing bonds. The City shall be mindful of the potential benefits of bank qualification and will strive to limit its annual issuance of debt to $10 million or less when such estimated benefits are greater than the benefits of exceeding the bank qualification limit. Should subsequent changes in the law raise this limit, then the City policy will be adjusted accordingly. The cost of issuance of private activity bonds is usually higher than for governmental purpose bonds. Consequently, private activity bonds will be issued only when they will economically benefit the City. The cost of taxable debt is higher than for tax-exempt debt. However, the issuance of taxable debt is mandated in some circumstances and may allow valuable flexibility in subsequent contracts with users or managers of the improvement constructed with the bond proceeds. In addition, there may be circumstances in which the issuance of taxable debt may be more cost effective than the issuance of tax-exempt debt. Therefore, the City will usually issue obligations tax exempt, but may occasionally issue taxable obligations. a. Capital Leasing The City may also enter into long-term leases for public facilities, property, and equipment with a useful life greater than one year that costs less than $500,000. The City should be limited to issuing a capital lease of no more than $1,000,000 in a fiscal year. City of DeKalb 232 Proposed Budget  Whenever a lease is arranged with a private sector entity, a tax-exempt rate should be sought. Whenever a lease is arranged with a government or other tax-exempt entity, the City should strive to obtain an explicitly defined taxable rate so that the lease will not be counted in the City’s total annual borrowing subject to arbitrage rebate. The lease agreement should permit the City to refinance the lease at no more than reasonable cost should the City decide to do so. A lease which can be called at will is preferable to one which can merely be accelerated. 4. Capital Improvement Program The Capital Improvement Program (CIP), approved by the City Council as part of the annual budget, should determine the City's capital needs. The program should be a five- year plan for the acquisition, development and/or improvement of the City's infrastructure. Projects included in the CIP should be prioritized; and the means for financing each should be identified. If the current resources are insufficient to meet the needs identified in the CIP, the City Council may consider incurring debt to fund the shortfall. The City Council may also consider incurring debt to fund multiple years of the Capital Improvement Program. The CIP should be revised and supplemented each year to maintain and test compliance with the City's Debt Management Policy Financial Policy #01-07. 5. Structure of Debt Issues The duration of a debt issue should not remain outstanding beyond the asset’s useful life. Each new bond issue should be structured to be callable in 10 years. The City should design the financing schedule and repayment of debt so as to take best advantage of market conditions and, as practical, to recapture or maximize its credit capacity for future use, and moderate the impact to the taxpayer. In keeping with the stated goals of this debt management policy, the City should structure each general obligation issue (except refunding and mini-bond issues) to comply with the rapidity of debt repayment provisions in Section III. E-4 following. 6. Credit Enhancements Credit enhancements are mechanisms which guarantee principal and interest payments. Typically they include bond insurance and/or a line or letter of credit. Usually this will bring a lower interest rate and a higher rating from the rating agencies, thus lowering costs. City of DeKalb 233 Proposed Budget  The City may enter into agreements with commercial banks or other financial entities for the purpose of acquiring credit enhancements when their use is judged cost effective or otherwise advantageous. Any such agreements shall be approved by the City Council. 7. Inclusion of Local Institutions Whenever practical and in the best interest of promoting the City of DeKalb, local financial institutions are to be offered the opportunity to bid on debt instruments. Legal Constraints and Other Limitations on the Issuance of Debt 1. State Law 30 ILCS 305/0.01, et. seq.: the short title is "The Bond Authorization Act." 2. Authority for Debt The City may, by bond ordinance, incur indebtedness or borrow money, and authorize the issue of negotiable obligations, including refunding bonds, for any capital improvement of property, land acquisition, or any other lawful purpose with approval by the City Council. 3. Debt Limitation The City of DeKalb is a home rule community. As such, the debt limitations of the bond laws are not applicable because the General Assembly has set no limits for home rule municipalities. 4. Methods of Sale When feasible and economical, obligations should be issued by competitive rather than negotiated sale. A sale may be negotiated when the issue is predominantly a refunding issue or in other non-routine situations which require more flexibility than a competitive offer allows. Whenever the option exists to offer an issue either for competition or for negotiation, analysis of the options should be performed to aid in the decision-making process. When a sale is not competitively bid, the City will publicly present the reasons and select the underwriter or direct purchaser. If a Financial Advisor is hired to assist the City in bond issuance, the Financial Advisor will not underwrite any debt issues on which it is advising. The criteria used to select an underwriter in a competitive sale should be the true interest cost. In a negotiated sale, the underwriter may be selected with or without a request for proposals (RFP). The criteria used to select an underwriter in a negotiated sale should include the following: City of DeKalb 234 Proposed Budget   Overall experience  Marketing philosophy  Capability  Previous experience as managing a co-managing partner  Financial statements  Public Finance team and resources  Underwriter’s discount When cost/beneficial, the City may privately place its debt. Since no underwriter participates in a private placement, it may result in lower costs of issuance. Private placement is sometimes an option for small issues. 5. Credit Implications When issuing new debt, the City should strive not to exceed credit industry benchmarks where applicable. Therefore, the following factors should be considered in developing debt issuance plans: a. Ratio of Gross Bonded Debt to Full Market Value of Taxable Property The formula for this computation is Gross Bonded Debt, which is the total outstanding debt, divided by the current Full Market Value of Taxable Property as determined by the Township Assessors. The City should not exceed 2% of Gross Bonded Debt per Full Market Value of Taxable Property. b. Gross Bonded Debt Per Capita The formula for this computation is Gross Bonded Debt divided by the current population as determined by the most recent U.S. Census. The City should not exceed $1,200 for Gross Bonded Debt per capita. c. Ratio of Annual Debt Service to General Fund Expenditures The formula for this computation is annual debt service expenditures divided by General Fund expenditures (excluding certain interfund transfers). The City should not exceed 10% of General Fund expenditures for annual debt service. d. Rapidity of Debt Service Repayment The City's general obligation bond issues should be so structured whereby the duration of the debt should not exceed 120% of the life of the asset. e. Current Fund Balance General Fund Cash Reserve The City should maintain a General Fund unassigned balance equal to a minimum of twenty five percent (25%) of total annual appropriations, exclusive of interfund transfers. Such calculation, including a projection to City of DeKalb 235 Proposed Budget  June 30th (of the current fiscal year), should be made on an annual basis by the Finance Director (or designee) during the budget process. Debt Administration 1. Financial Disclosures The City shall prepare appropriate disclosures as required by the Securities and Exchange Commission, the federal government, the State of Illinois, rating agencies, underwriters, investors, agencies, taxpayers, and other appropriate entities and persons to ensure compliance with applicable laws and regulations. 2. Review of Financing Proposals All capital financing proposals that involve a pledge of the City's credit through the sale of securities, execution of loans or lease agreements and/or otherwise directly involve the lending or pledging of the City's credit shall be referred to the Finance Director who shall determine the financial feasibility, and the impact on existing debt of such proposal, and shall make recommendations accordingly to the City Manager. 3. Establishing Financing Priorities The Finance Director shall administer and coordinate the City's debt issuance program and activities, including timing of issuance, method of sale, structuring the issue, and marketing strategies. The Finance Director along with the City's bond consultants shall meet, as appropriate, with the City Manager and the City Council regarding the status of the current year's program and to make specific recommendations. 4. Credit Rating The City should endeavor to maintain and/or to improve its credit rating and staff will specifically discuss with the City Council any proposal which might cause that rating to be lowered. Before a general obligation bond is issued, the City will update its rating from at least one national rating agency. The City Manager, Finance Director, and the City's bond consultants should meet with a rating agency to disclose the City's capital plans, debt issuance program, and other appropriate financial information as required by the rating agency. 5. Refunding Policy The City should consider refunding outstanding debt when legally permissible and financially advantageous. When refunding for savings purposes, a net present value City of DeKalb 236 Proposed Budget  debt service savings of at least two percent or greater must be achieved. Depending on the time to maturity and the absolute level of interest rates of the refunding candidate this target may change. For longer maturities the target can be higher, for shorter maturities, lower. For higher interest rates the target may be higher, for lower rates it could be lower. There may be circumstances where the City may refund bonds for restructuring purposes that may not generate any savings. 6. Investment of Borrowed Proceeds The City acknowledges its ongoing fiduciary responsibilities to actively manage the proceeds of debt issued for public purposes in a manner that is consistent with Illinois statutes that govern the investment of public funds, and consistent with the permitted securities covenants of related bond documents executed by the City. The management of public funds should enable the City to respond to changes in markets or changes in payment or construction schedules so as to (i) optimize returns, (ii) insure liquidity, and (iii) minimize risk. The City will invest bond proceeds in accordance with the City’s investment policy and federal arbitrage requirements. Glossary of Terms: Ad Valorem Tax - A direct tax based "according to value" of property. Advanced Refunding Bonds - Bonds issued to refund an outstanding bond issue prior to the date on which the outstanding bonds become due or callable. Proceeds of the advanced refunding bonds are deposited in escrow with a fiduciary, invested in United States Treasury Bonds or other authorized securities, and used to redeem the underlying bonds at maturity or call date. Amortization - the process of paying the principal amount of an issue of bonds by periodic payments either directly to bondholders or to a sinking fund for the benefit of bondholders. Arbitrage - Usually refers to the difference between the interest paid on the tax-exempt securities and the interest earned by investing the proceeds in higher yielding taxable securities. Internal Revenue Service regulations govern arbitrage (reference I.R.S. Reg. 1.103-13 through 1.103-15). Arbitrage Bonds - Bonds which are deemed by the I.R.S. to violate federal arbitrage regulations. The interest on such bonds becomes taxable and the bondholders must include this interest as part of gross income for federal income tax purposes (I.R.S. Reg. 1.103-13 through 1.103-15). Assessed Value - An annual determination of the just or fair market value of property for purposes of ad valorem taxation. Basis Point - 1/100 of one percent. City of DeKalb 237 Proposed Budget Bond - Written evidence of the issuer's obligation to repay a specified principal amount on a date certain, together with interest at a stated rate, or according to a formula for determining that rate. Bond Anticipation Notes (BANS) - Short-term interest bearing notes issued by a government in anticipation of bonds to be issued at a later date. The notes are retired from proceeds of the bond issue to which they are related. Bond Counsel - An attorney retained by the City to render a legal opinion whether the City is authorized to issue the proposed bonds, has met all legal requirements necessary for issuance, and whether interest on the bonds is, or is not, exempt from federal and state income taxation. Bonded Debt - The portion of an issuers total indebtedness represented by outstanding bonds. Direct Debt or Gross Bonded Debt - The sum of the total bonded debt and any unfunded debt of the issuer. Net Direct Debt or Net Bonded Debt - Direct debt less sinking fund accumulations and all self-supporting debt. Total Overall Debt - Net direct debt plus the issuer's applicable share of the direct debt of all overlapping jurisdictions. Net Overall Debt - Net direct debt plus the issuer's applicable share of the net direct debt of all overlapping jurisdictions. Overlapping Debt - The issuer's proportionate share of the debt of other local governmental units which either overlap or underlie it. Callable Bond - A bond which permits or requires the issuer to redeem the obligation before the stated maturity date at a specified price, the call price, usually at or above par value. Capital Appreciation Bonds (CAB) - A long-term security on which the investment return is reinvested at a stated compound rate until maturity. The investor receives a single payment at maturity representing both the principal and investment return. Certificates of Participation - Documents, in fully registered form, that act like bonds. However, security for the certificates is the government's intent to make annual appropriations during the term of a lease agreement. No pledge of full faith and credit of the government is made. Consequently, the obligation of the government to make basic rental payments does not constitute an indebtedness of the government. Commercial Paper - Very short-term, unsecured promissory notes issued in either registered or bearer form, and usually backed by a line of credit with a bank. City of DeKalb 238 Proposed Budget Coupon Rate - The annual rate of interest payable on a coupon bond (a bearer bond or bond registered as to principal only, carrying coupons evidencing future interest payments), expressed as a percentage of the principal amount. Debt Limit - The maximum amount of debt which an issuer is permitted in incur under constitutional, statutory or charter provision. Debt Service - The amount of money necessary to pay interest on an outstanding debt, the serial maturities of principal for serial bonds, and the required contributions to an amortization or sinking fund for term bonds. Demand Notes (Variable Rate) - A short-term security which is subject to a frequently available put option feature under which the holder may put the security back to the issuer after giving specified notice. Many of these securities are floating or variable rate, with the put option exercisable on dates on which the floating rate changes. Double Barreled Bonds (Combination Bonds) - A bond which is payable from the revenues of a governmental enterprise and are also backed by the full faith and credit of the governmental unit. Enterprise Funds - Funds that are financed and operated in a manner similar to private business in that goods and services provided are financed primarily through user charges. General Obligation Bond - A bond for whose payment the full faith and credit of the issuer has been pledged. More commonly, but not necessarily, general obligation bonds are payable from ad valorem property taxes and other general revenues. Lease Purchase Agreement (Capital Lease) - A contractual agreement whereby the government borrows funds from a financial institution or a vendor to pay for capital acquisition. The title to the asset(s) normally belongs to the government with the lessor acquiring security interest or appropriate lien therein. Letter of Credit - A commitment, usually made by a commercial bank, to honor demands for payment of a debt upon compliance with conditions and/or the occurrence of certain events specified under the terms of the commitment. Level Debt Service - An arrangement of serial maturities in which the amount of principal maturing increases at approximately the same rate as the amount of interest declines. Long-Term Debt - Long-term debt is defined as any debt incurred whose final maturity is more than three years. Maturity - The date upon which the principal of a municipal bond becomes due and payable to bondholders. City of DeKalb 239 Proposed Budget Mini-bonds - A small denomination bond directly marketed to the public. Net Interest Cost (NIC) - The traditional method of calculating bids for new issues of municipal securities. The total dollar amount of interest over the life of the bonds is adjusted by the amount of premium or discount bid, and then reduced to an average annual rate. The other method is known as the true interest cost (see "true interest cost"). Offering Circular - Usually a preliminary and final document prepared to describe or disclose to investors and dealers information about an issue of securities expected to be offered in the primary market. As a part of the offering circular, an official statement should be prepared by the City describing the debt and other pertinent financial and demographic data used to market the bonds to potential buyers. Other Contractual Debt - Purchase contracts and other contractual debt other than bonds and notes. Other contractual debt does not affect annual debt limitation and is not a part of indebtedness within the meaning of any constitution or statutory debt limitation or restriction. Par Value or Face Amount - In the case of bonds, the amount of principal which must be paid at maturity. Parity Bonds - Two or more issues of bonds which have the same priority of claim or lien against pledged revenues or the issuer's full faith and credit pledge. Principal - The face amount or par value of a bond or issue of bonds payable on stated dates of maturity. Private Activity Bonds - One of two categories of bonds established under the Tax Reform Act of 1986, both of whom are subject to certain tests and State volume caps to preserve tax exemption. Ratings - Evaluations of the credit quality of notes and bonds, usually made by independent rating services, which generally measure the probability of the timely repayment of principal and interest on municipal bonds. Refunding Bonds - Bonds issued to retire bonds already outstanding. Registered Bond - A bond listed with the registrar as to ownership, which cannot be sold or exchanged without a change of registration. Reserve Fund - A fund which may be used to pay debt service if the sources of the pledged revenues do not generate sufficient funds to satisfy the debt service requirements. Self-Supporting or Self Liquidating Debt - Debt that is to be repaid from proceeds derived exclusively from the enterprise activity for which the debt was issued. City of DeKalb 240 Proposed Budget Short-Term Debt - Short-term debt is defined as any debt incurred whose final maturity is three years or less. Spread - The income earned by the underwriting syndicate as a result of differences in the price paid to the issuer for a new issue of municipal bonds, and the prices at which the bonds are sold to the investing public, usually expressed in points or fractions thereof. Tax-Exempt Bonds - For municipal bonds issued by the City tax-exempt means interest on the bonds are not included in gross income for federal income tax purposes; the bonds are not items of tax preference for purposes of the federal, alternative minimum income tax imposed on individuals and corporations; and the bonds are exempt from taxation by the State of Illinois. Tax Increment Bonds - Bonds secured by the incremental property tax revenues generated from a redevelopment project area. Term Bonds - Bonds coming due in a single maturity. True Interest Cost (TIC) - Also known as Canadian Interest Cost. A rate which, when used to discount each amount of debt service payable in a bond issue, will produce a present value precisely equal to the amount of money received by the issuer in exchange for the bonds. The TIC method considers the time value of money while the net interest cost (NIC) method does not. Yield to Maturity - The rate of return to the investor earned from payments of principal and interest, with interest compounded semiannually and assuming that interest paid is reinvested at the same rate. Zero Coupon Bond - A bond which pays no interest, but is issued at a deep discount from par, appreciating to its full value at maturity. City of DeKalb 241 Proposed Budget Investment Policy ______________________________________________________________________________ Policy Number: 01-08 Date: January 9, 2017 Purpose: 1.01 Policy It is the policy of the City of DeKalb to invest public funds in a manner that will conform to state statute, maximize security, meet daily cash flow demands, and attempt to attain a market rate of return. 1.02 Scope This policy includes all funds governed by the City Council and, except for cash in certain restricted funds, the City of DeKalb will consolidate cash balances to maximize investment earnings. Investment income will be allocated to the various individual funds based on their respective participation. Interest income derived from non-fund specific consolidated bank accounts will be attributed to the General Fund. 1.03 Objectives The primary objectives of the City of DeKalb's investment activities are, in order of priority: A. Safety of principal Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio, while mitigating credit and interest rate risks, as defined below: 1. Credit Risk, that is, the risk of loss due to the failure of the security issuer or backer. It may be mitigated by:  Limiting investments to the safest types of securities;  Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the City will do business; and  Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk, that is, the risk that the market value of securities in the portfolio will fail due to changes in general interest rates. It may be mitigated by:  Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and  By investing operating funds primarily in shorter-term securities City of DeKalb 242 Proposed Budget B. Liquidity, so as to meet all operating requirements that may be reasonably anticipated, the portfolio shall consist largely of securities with active secondary or resale markets (dynamic liquidity). C. Yield, with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments shall be limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 1. a declining credit security could be sold early to avoid loss of principal; 2. a security swap would improve the quality, yield, or target duration in the portfolio; or, 3. liquidity needs of the portfolio require that the security be sold. 1.04 Standards of Care A. Prudence The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers and employees of the City of DeKalb, while acting in good faith in accordance with this investment policy and any written procedures as might be established, shall be relieved of personal liability for an individual security’s credit risk or market price changes. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. B. Ethics and Conflicts of Interest City of DeKalb employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. They shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of their entity. C. Delegation of Authority Authority to manage the investment program is granted to the authorized municipal official described in Chapter 54 of the DeKalb Municipal Code. Responsibility for the operation of the investment program is hereby delegated to the Finance Director or his/her designee, who shall carry out established written procedures and internal controls for the operation of the investment program consistent with this investment policy. These procedures shall include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements collateral/depository agreements and banking services City of DeKalb 243 Proposed Budget contracts. All investments shall follow the investment plan designed and approved by the Finance Director or his/her designee prior to execution. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the DeKalb City Council. The Finance Director, as Chief Financial Officer, shall be accountable for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 1.05 Safekeeping and Custody All trades where applicable will be executed by Delivery vs. Payment (DVP). This shall ensure that securities are deposited in the eligible financial institution prior to the release of funds. Securities will be held by a third party custodian as evidenced by safekeeping receipts. 1.06 Authorized Financial Dealers and Institutions A list shall be maintained of financial institutions authorized to provide investment services to the City of DeKalb, as well as a list of approved security broker/dealers (or their respective custodial clearing firm) selected for creditworthiness (minimum capital requirement of $10,000,000 and at least five years of operation). These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission rule 15C3-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the following (as appropriate): 1. audited financial statements 2. proof of National Association of Securities Dealers (NASD) certification 3. proof of state registration 4. completed broker/dealer questionnaire 5. certification of having read the City of DeKalb’s investment policy and that all investments will comply with the policy An annual review of the financial condition and registration of qualified bidders will be conducted by the Finance Director or his/her designee. 1.07 Internal Controls The Finance Director or his/her designee is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Finance Director or his/her designee shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: City of DeKalb 244 Proposed Budget  1. Prevention of collusion 2. Separation of transaction authority from accounting and record keeping. 3. Custodial safekeeping (Securities purchased from any bank or dealer including appropriate collateral, as defined by State Law, shall be placed with an independent third party for custodial safekeeping). 4. Avoidance of physical delivery securities. 5. Clear delegation of authority to subordinate staff members. 6. Written confirmation of telephone transactions for investments and wire transfers (may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures). 7. Development of a wire transfer agreement with the lead bank or third party custodian, which shall outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. 1.08 Suitable and Authorized Investments Investment Types Consistent with the GFOA Recommended Practice on State Statutes Concerning Investment Practices, the following investments will be permitted by this policy and are those defined by state law where applicable: 1. U.S. Government obligations, U.S. Government agency obligations, and U.S. Government instrumentality obligations 2. Repurchase agreements 3. Certificates of deposit 4. Savings and loan association deposits 5. Investment-grade obligations of state, provincial and local governments and public authorities 6. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of domestic securities 7. Statewide investment pools Use of repurchase agreements should be consistent with GFOA Recommended Practices on Repurchase Agreements (see attached "GFOA Recommended Practices"). Consistent with the GFOA Recommended Practice on Use of Derivatives by State and Local Governments, extreme caution shall be exercised in the use of derivative instruments (see attached "GFOA Recommended Practices"). From time to time, the City may choose to invest in instruments offered by minority and community financial institutions. These financial institutions may not meet all the criteria under this section. All terms and relationships will be fully disclosed and authorized by the City Manager prior to purchase and shall be consistent with state or local law. City of DeKalb 245 Proposed Budget 1.09 Collateralization Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC or SIPC limits, excluding interest, must be secured by some form of collateral, witnessed by a written agreement (see the attached "GFOA Recommended Practices"). Pledged collateral shall be held in safekeeping by the Federal Reserve Bank of Chicago (or other independent third party designated by the Finance Director or his/her designee) in the name of the municipality. In addition, the value of the pledged collateral must be marked to market monthly, or more frequently depending on the volatility of the collateral pledged. Last, the City requires that the amount of collateral pledged equal 110% of the uninsured amount on deposit. 1.10 Diversification The City of DeKalb shall attempt to diversify its investments appropriate to the nature of the funds, the purpose for the funds, and the amount available to invest. Diversification can be by type of investment, number of institutions invested in, and length of maturity. 1.11 Maximum Maturities To the extent practicable, the City of DeKalb shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City of DeKalb will not directly invest in securities maturing more than 3-years from the date of purchase. Reserve funds may be invested in securities exceeding 3-years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. Regardless of the foregoing, no funds may be invested in securities maturing in excess of 7-years from the date of purchase unless authorized by the City Council. 1.12 Reporting The Finance Director or his/her designee shall prepare a monthly investment and bank balance report for City Council that provides: 1. Cash balances held at the end of the month; 2. A listing of individual securities and corresponding maturities held at the end of the reporting period; 3. The percentage of the total portfolio which each type of investment represents; 4. Inception-to-date yields for each individual security; 5. Average weighted inception-to-date yield to maturity of the entire portfolio as compared to applicable benchmarks. 1.13 Performance Standards This investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should attempt to obtain a comparable rate of return during a market/economic environment of stable interest rates. The portfolio performance should be benchmarked to the return of the 90-day Treasury bill. City of DeKalb 246 Proposed Budget 1.14 Investment Policy Adoption The investment policy shall be adopted by the City Council. 1.15 Policy Exemption and Amendment Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. Amendment This policy shall be reviewed on an annual basis. Any changes must be approved by the City Manager and any other appropriate authority, as well as the individual(s) charged with maintaining internal controls. City of DeKalb 247 Proposed Budget Glossary of Terms ________________________________________________________________________________ The Annual Budget Document contains specialized and technical terminology and acronyms that are unique to public finance and budgeting. To assist the reader of the Annual Budget Document in understanding these terms and acronyms, a budget glossary has been included. Abatement – A complete or partial cancellation of a tax levy imposed by a government. Accrual - The recognition of revenue when earned or expenses when incurred regardless of when cash is received or disbursed. Ad Valorem Tax - A direct tax based "according to value" of property. Advanced Refunding Bonds - Bonds issued to refund an outstanding bond issue prior to the date on which the outstanding bonds become due or callable. Proceeds of the advanced refunding bonds are deposited in escrow with a fiduciary, invested in United States Treasury Bonds or other authorized securities, and used to redeem the underlying bonds at maturity or call date. Amortization - The process of paying the principal amount of an issue of bonds by periodic payments either directly to bondholders or to a sinking fund for the benefit of bondholders. Assessed Value - An annual determination of the just or fair market value of property for purposes of ad valorem taxation. Balanced Budget - A budget for which expenditures in a given fiscal year do not exceed the sum of 1) estimated revenues for the fiscal year, plus 2) the fund balance at the beginning of the fiscal year. Basis Point - 1/100 of one percent. Bond - Written evidence of the issuer's obligation to repay a specified principal amount on a date certain, together with interest at a stated rate, or according to a formula for determining that rate. Bond Counsel - An attorney retained by the City to render a legal opinion whether the City is authorized to issue the proposed bonds, has met all legal requirements necessary for issuance, and whether interest on the bonds is, or is not, exempt from federal and state income taxation. Bond Rating - An evaluation of credit worthiness performed by an independent rating service. Bonded Debt - The portion of an issuers total indebtedness represented by outstanding bonds. City of DeKalb 248 Proposed Budget  Direct Debt or Gross Bonded Debt - The sum of the total bonded debt and any unfunded debt of the issuer. Net Direct Debt or Net Bonded Debt - Direct debt less sinking fund accumulations and all self-supporting debt. Total Overall Debt - Net direct debt plus the issuer's applicable share of the direct debt of all overlapping jurisdictions. Net Overall Debt - Net direct debt plus the issuer's applicable share of the net direct debt of all overlapping jurisdictions. Overlapping Debt - The issuer's proportionate share of the debt of other local governmental units which either overlap or underlie it. Budget - Plan of financial operations for the City. Includes estimated income (revenues) and expenses (expenditures) matched with various municipal services. Budget Calendar – The schedule of key dates or milestones that City departments follow in the preparation, adoption, and administration of the budget. Budget Document – The official written document prepared by the Finance Department that presents the operating budget to the legislative body. The document includes written summaries, narratives, schedules of revenues, expenditures, and transfers, charts, and graphs to ease the understanding of the effect of the operating budget on the City’s financial condition. CAFR - Comprehensive Annual Financial Report Callable Bond - A bond which permits or requires the issuer to redeem the obligation before the stated maturity date at a specified price, the call price, usually at or above par value. Capital Expenditures - An amount spent to acquire or improve a long-term asset such as equipment or buildings. The cost (except for the cost of land) is then charged to depreciation expense over the useful life of the asset. Capital Improvement Program (CIP) - A plan for future capital expenditures which identifies each capital project, its anticipated start and completion, and the cost per year. The City develops a Five- Year CIP annually as part of the budget development process. Capitalization Threshold – Dollar value at which a government elects to capitalize tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. City of DeKalb 249 Proposed Budget Component Unit – Legally separate organization that must be included in the financial report of the primary government. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures. Contractual Services - Services provided by external entities. Debt Service - The amount of money necessary to pay interest on an outstanding debt and the serial maturities of principal for serial bonds. Debt Service Fund – Governmental fund type used to account for accumulations of resources that are restricted, committed, or assigned to expenditures for principal and interest. Department - An organizational unit which is functionally unique in delivery of services. A department may contain one or more divisions or programs. Depreciation - A reduction in the value of an asset with the passage of time, due in particular to wear and tear. Enterprise Funds - Funds that are financed and operated in a manner similar to private business in that goods and services provided are financed primarily through user charges. Enterprise Resource Planning (ERP) System – A system designed to deliver an integrated suite of business applications. In FY18 and FY19, the City implemented a new ERP system (BS&A Software). Expenditures - The cost of goods delivered, or services rendered. Fiduciary Funds – Funds used to report assets held in trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs. Fiscal Year (FY) - A twelve-month period for which the annual operating budget and budget ordinance applies. The City of DeKalb’s fiscal year runs from January 1 through December 31. Five Year Forecast – The City develops Five Year Financial Forecasts for select funds each year to assess the impact of current budgetary decisions over the long-term. Fund - A self-balancing set of accounts reporting assets, liabilities and residual equity/fund balance segregated for the purpose of carrying on a specific activity or to attain a specific objective in accordance with regulations. Fund Balance - The accumulated reserves of a particular fund, consisting of the cumulative revenues and other financing sources in excess of the cumulative expenditures and other uses. City of DeKalb 250 Proposed Budget General Fund - This is the City’s primary operating fund. It is used to account for all revenue and expenditures applicable to general operations of City departments and other agencies, not accounted for in another fund. General Obligation Bond - A bond for whose payment the full faith and credit of the issuer has been pledged. More commonly, but not necessarily, general obligation bonds are payable from ad valorem property taxes and other general revenues. Geographic Information Systems (GIS) - A computer information system that integrates, stores, edits, analyzes, shares and displays geographic information to enhance decision making. Governmental Fund – Fund generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital project funds, and permanent funds. Grant - A monetary contribution by a government or an organization to financially support a particular function or purpose. Home-Rule Municipality – A home-rule unit may exercise any power and perform any function pertaining to its government and affairs including but not limited to the power to regulate for the protection of the public health, safety, morals, and welfare; to license; to tax; and to incur debt. The City of DeKalb is a home-rule municipality. HUD – U.S. Department of Housing and Urban Development. Impact Fees - Fees assessed to cover the anticipated cost of services and improvements that will be needed as a result of development. Improvement – Addition made to, or change made in, a capital asset, other than maintenance, to prolong its life or to increase its efficiency or capacity. The cost of the addition or change normally is added to the book value of the asset. Infrastructure – Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, drainage systems, water and sewer systems, dams, and lighting systems. Interfund transfer – Flows of assets (such as cash or goods) between funds and blended component units of the primary government without equivalent flows of assets in return and without requirement for repayment. Internal Service Fund - Funds which account for activities supplied by one department to another on a cost-reimbursement basis. The City accounts for fleet, liability insurance and self-insurance activities as internal service funds. City of DeKalb 251 Proposed Budget Lease Purchase Agreement (Capital Lease) - A contractual agreement whereby the government borrows funds from a financial institution or a vendor to pay for capital acquisition. The title to the asset(s) normally belongs to the government with the lessor acquiring security interest or appropriate lien therein. Letter of Credit - A commitment, usually made by a commercial bank, to honor demands for payment of a debt upon compliance with conditions and/or the occurrence of certain events specified under the terms of the commitment. Long-Term Debt – Debt with a maturity of more than one year after the date of issuance. Major Fund - Those funds whose revenues, expenditures/expenses assets or liabilities are at least 10 percent of the total for their fund category (governmental or enterprise) and 5 percent of the aggregate for all governmental and enterprise funds in total. The General Fund is always a Major Fund. Maturity - The date upon which the principal of a municipal bond becomes due and payable to bondholders. Non-Major Fund - Funds that do not meet the definition of a Major Fund. Non-major funds are reported in total as a separate column on the government-wide financial statements. OPEB – This is an abbreviation for Other Post Employment Benefits. It is used in reference to the City’s health insurance liability associated with providing health insurance benefits to retirees. Ordinance – A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute, it has the full force and effect of the law within the boundaries of the municipality to which it applies. Par Value or Face Amount - In the case of bonds, the amount of principal which must be paid at maturity. Personnel Costs - A category of expenditures consisting primarily of the salaries, other wages, and fringe benefits of the employees. Principal - The face amount or par value of a bond or issue of bonds payable on stated dates of maturity. Property Tax Levy – The single greatest revenue source of the City and adopted annually by the City Council in December, the property tax levy Ordinance imposes a tax liability on all real estate within the corporate limits. The County establishes the rates required to generate the tax levy established, which is assessed uniformly on all properties’ equalized assessed valuation. City of DeKalb 252 Proposed Budget Proposed Budget - The spending plan for fiscal year formally submitted by the City Manager to the City Council for consideration. Refunding Bonds - Bonds issued to retire bonds already outstanding. Revenue - The financial resources generated from various sources of income, such as taxes and fees, collected by the City for public use. Special Service Area (SSA) - A contiguous area in which special services are provided in addition to those services provided generally. The cost of the special services is paid from revenues collected through taxes assessed on the property within the special service area. Tax-Exempt Bonds - For municipal bonds issued by the City tax-exempt means interest on the bonds are not included in gross income for federal income tax purposes; the bonds are not items of tax preference for purposes of the federal, alternative minimum income tax imposed on individuals and corporations; and the bonds are exempt from taxation by the State of Illinois. Tax Increment Financing (TIF) - A financing method which utilizes future property tax revenues to stimulate new private investment in redevelopment areas. Growth in the value of the property within the TIF district generates “increment” used to make additional investment in the area. Tax Levy – The total amount to be raised by general property taxes for the purposes specified in the Tax Levy Ordinance. City of DeKalb 253 Proposed Budget