Finance Advisory Committee
Regular MeetingDeKalb, IL · August 16, 2021
Minutes
MINUTES
SPECIAL JOINT MEETING
OF THE
CITY COUNCIL
&
FINANCE ADVISORY COMMITTEE
AUGUST 16, 2021
The City Council of DeKalb, Illinois, and its Finance Advisory Committee (FAC) held a Special
joint meeting on August 16, 2021, in the Yusunas Room of the DeKalb Public Library, 309 Oak
Street.
A. CALL TO ORDER
1. City Council Committee of the Whole Call to Order and Roll Call.
Mayor Barnes called the City Council meeting to order at 6:00 p.m.
Executive Assistant Ruth Scott called the roll, and the following members of City Council
were present: Alderman Carolyn Morris, Alderman Barb Larson, Alderman Tracy Smith,
Alderman Greg Perkins, Alderman Scott McAdams, and Mayor Cohen Barnes. Alderman
Mike Verbic and Alderman Tony Faivre were absent.
2. Finance Advisory Committee Call to Order and Roll Call.
FAC Chair Neeley asked for roll call of the FAC.
Executive Assistant Scott called the roll and the following members of the FAC were present:
Chair Lynn Neeley, Member Tom Teresinski, and Member Lance McGill. Member Ron
Partch and Member Dytania Washington were absent. (Note that the FAC did not have a
quorum.)
Also present was City Manager Bill Nicklas.
B. APPROVAL OF AGENDA
Mayor Barnes asked if there were any Council or FAC members wishing to make changes to the
agenda; there were none.
MOTION: Alderman Perkins moved to approve the agenda; seconded by Alderman Larson.
VOTE: Motion carried by a 6-0-2 roll call vote. Aye: Morris, Larson, Smith, Perkins, McAdams,
Barnes. Nay: None. Absent: Verbic, Faivre.
C. PUBLIC PARTICIPATION
Earnell Brown spoke about his concern regarding the City’s financial disbursement throughout
the community, indicating it should be more diverse.
D. CONSIDERATIONS
1. Consideration of Key Assumptions for the Fiscal Year 2022 City Budget.
City Manager Nicklas stated the focus of this meeting will be to take stock of where DeKalb
is now and where he believes it will be in FY2022. He added that he’s not only looking over
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the next 12 months but out a little bit further because the federal government has given
substantial money to cities like DeKalb with certain prescriptive parameters, which he
intends to follow. These federal funds will allow the City to some do things it hasn’t been
able to do in many years.
City Manager Nicklas noted that in the revenue and expenditure assumptions for the general
fund, he’s assuming there will be no further COVID related restrictions on business and
employment. Further, some important tax data is still not available, which would be helpful
in making predictions about revenues. He noted that most companies wouldn’t begin the
budgeting process at this point, but as a public body, it’s important to start discussions now,
even though we’re doing a little “spit balling”.
FY2022 General Fund Revenue Assumptions
Property Tax and Pension Obligations.
City Manager Nicklas provided an overview of his suggestions and comments from the
information provided in the agenda packet for the upcoming budget year as follows:
Using all property tax to offset the fire and police pension obligation. He’s predicting the
City will be short by approximately $1.3 million, which will be taken out of sales and use
tax.
Not asking taxpayers to pay a proportional share of the library debt the City took on, which
is just under $500,000.
Some of the new development on the south part of town has materialized, in particular the
Ferrara project, which will assist with the equalized assessed value (EAV) on taxes to be
paid in 2022, which will affect how the City levies. We won’t see anything from Facebook
this year because other than a few small buildings, it won’t be fully occupied until the end
of next year. The total estimated new construction is approximately $25.5 million. Last
year it was just over $2.25 million.
Sales and Use Taxes.
Based on early FY2021 trends, there should be a little over a 4% increase in sales tax
revenues. Last year we underplayed what revenue would be, so the FY2021 budget was
amended in July of this year to show the additional revenue that had not been accounted
for.
Gross Receipts Taxes.
This category includes utility taxes with a 3.4% difference approximately at this point.
There may be a little bit more because of the electrical tax to be shared with Ferrara.
Intergovernmental Revenues.
Based on the recently released 2020 Census information, there was a change in the city’s
population from 44,030 to 40,290 residents in DeKalb over the last 10 years, which is
about an 8.5% drop. That affects our per capita revenues and our share of the state
income tax.
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The local use tax captures internet sales, which were up substantially last year, most likely
due to people being home due to COVID and it continues to rise.
Licenses and Permits.
This category has seen an increase in revenues, mostly thanks to Facebook and Ferrara.
The soon-to-be named company coming to DeKalb in that same area will assist with
further revenues in this category.
Transfers In.
American Recovery Act dollars allowed the City to make up for the loss of about $4.2
million. This funding gives us an opportunity to do some things that have been put off for
years, specifically related to fire and police.
FY2022 General Fund Expenditure Assumptions
City Manager Nicklas referred to his summary in the agenda packet regarding personnel.
There wasn’t much of an increase in commodities, contractual services, and equipment.
With reference to transfers out, in 2020 the City “scooped and tossed” its debt service to
the end of the term for the general obligation (G.O.) bonds so that it didn’t have to dip into
the reserve to keep services going. In 2022 the debt obligation comes back, hence the
increase. Ferrara will offset a majority of that.
At this point in the meeting, City Manager Nicklas paused the overview and asked if anyone
had questions.
FAC Member Teresinski briefly commented on the role of the FAC. He also commented that
the overview provided looks relatively good from a community perspective, much better than
it did in early 2020. One of the primary objectives and assumptions the FAC has discussed
year after year was how to retain the 25% general fund balance. It was a long-term struggle
but now the City is looking at a fund balance above that level and it looks like it’s sustainable
for a period of time.
Speaking to the pension obligation issue, Mr. Teresinski stated it remains significant and he
would hope that at some point a discussion can take place to see if there are dollars
available and use that as an opportunity to address what the minimum requirements have
been.
Continuing, Mr. Teresinski stated the other long-term liability is roads and construction costs
the City has struggled with over the years. He, along with others he’s spoken with, would
like to try to get that up to $3 to $4 million regular annual commitment.
Mr. Teresinski also commented that multiple year budgeting helps with capital cost planning.
As for the property tax aspect of the pension discussion, it will be enhanced not only with
Ferrara and Facebook, but also with the roll off of TIF (tax increment financing). The TIF
surplus is still generating $200,070 more or less. The other half will come back at the end
of next year. The good part is that it will all come back to property tax income, which reduces
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the deficit related to pension obligations from a $1.3 million deficit and nearer to zero to get
to a balanced pension obligation on a go forward basis.
City Manager Nicklas noted that one other problem that bothers him is how much the general
fund in DeKalb has been supported by other funds that have other needs, one of those being
the water fund. Referencing data provided on page two of the agenda packet regarding
transfers in, there will be a drop off in 2023 and 2024 in transfers from the water fund.
Mayor Barnes and City Manager Nicklas discussed the recent census outcome and the
City’s pension obligation.
Mr. Teresinski expressed his frustration that the library debt became the City’s obligation
rather than the library’s.
Mr. Teresinski commented there is no revenue that the City is using on the library’s behalf
so it’s a pure add on to the City budget. City Manager Nicklas stated it was his understanding
that the library needed more money for its expansion and at the time the City said they’d
cover it. The library has indicated that its debt service is paid, however, the City has another
10 years left in the amount of approximately $500,000 per year.
Mr. Teresinski asked about headcount for assumptions and if the 12 frozen positions were
in the FY2022 budget. City Manager Nicklas indicated they were.
Discussion ensued between Mr. Teresinski and City Manager Nicklas regarding staffing
levels. City Manager Nicklas indicated that some of the frozen positions have been carried
over since 2019. He added that services have been the focus, specifically with fire and
police. At this time the hiring process for fire and police has been accelerated to assist with
the lowering of overtime and providing services.
FY2022 Capital Funds.
City Manager Nicklas indicated that not all of the capital-oriented funds are listed in the
summary provided in the agenda packet. He added that the City does not receive property
taxes for streets or operations.
City Manager Nicklas continued, stating that three years ago the Council and FAC spent a
lot of time thinking about how to attack the slow pace of street maintenance. To remedy that,
the City increased its local motor fuel tax (MFT), as did the State of Illinois, which brought
in more dollars. In 2018 the City had $750,000 in annual street maintenance spending. In
FY2022, $2.2 million is proposed. Some of those funds will go towards two major bridge
replacements – the Lucinda Street bridge and the N. First Street bridge.
City Manager Nicklas continued with his explanation of MFT funding and spending, stating
that next year a more aggressive program will be put in place so the City can work on more
alleys, which have been neglected due to the lack of funding. Other projects are coming
along, such as the repaving of First Street and next year the State of Illinois is going to pave
Route 38, which will benefit the downtown area.
Another project the City wanted to tackle this year was the streetscape of Lincoln Highway.
However, there’s still some review going on at the state level, therefore the project will not
begin until 2022. This project will widen the sidewalks in the downtown area from First Street
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to Fourth Street and reduce the number of lanes to three. There will also be more
enhancements including lighting, street art, etc.
Mayor Barnes commented that the Route 38 project will include repaving of the asphalt from
the Convocation Center through to Cortland, which will improve the beautification structure
of the area.
City Manager Nicklas then provided an overview of vehicle replacement. He noted that in
2019 the City made the decision to lease some vehicles for a five-year term, which has
helped tremendously. However, it comes with a debt consideration and an audit standard
where we are required to record the full value of the costs on the books and spreading that
over five years.
Mayor Barnes asked for information on the DeKalb Taylor Municipal Airport (DTMA). City
Manager Nicklas indicated there are two ongoing runway paving projects in progress, as
well as a lighting project, which have been on transportation improvement program list for
years. These projects will assist with developing the DTMA.
DeKalb’s TIF Program
City Manager Nicklas noted that TIF 1 will be expiring at the end of 2021. Action will be
taken later in the year to terminate the TIF 1 program.
With regard to TIF 3, this is the second full year where some revenue can be spent. The
total of TIF 3 projected is $450,000, which would cover a couple of downtown projects.
FY2022 Budget Schedule
City Manager Nicklas provided a brief overview of the FY2022 budget schedule, explaining
that after this meeting, there will be a couple of months of intense department level budget
discussions. After that, the meeting schedule is as follows:
Monday, October 18. An FAC meeting to review proposed, detailed FY2022 Budget
highlights, including annual levy assumptions.
Monday, October 25. Council consideration of property tax levy options.
Tuesday, November 8. Presentation of a Council resolution establishing a Truth in
Taxation Hearing for November 22.
Monday, November 15 & Wednesday, November 17. Back-to-back Special Council
meetings in joint session with the FAC to go over the Proposed FY2022 Budget document.
The General Fund departments will be the focus on November 15, and the Capital,
Enterprise, and Special Funds will be the focus on November 17.
Monday, November 22. Truth in Taxation Hearing and FY2022 Budget Hearing. First
Reading on the proposed FY2022 City Budget.
Monday, December 13. Second reading on the proposed FY2022 City Budget.
December 31, 2021. Last day to file the approved FY2022 Annual Budget and Property
Tax Levy with the DeKalb County Clerk.
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Mayor Barnes asked if conversations have been had about returning the library debt service
obligation back to the library. City Manager Nicklas replied that he doesn’t know of any
discussions that have taken place, but he would if that was the direction of the Council. He
added that we would need to see what the understanding was at the time the deal was
struck.
Discussion ensued City’s fund balance reserves.
City Manager Nicklas expressed his gratitude to the fire department and their dedication to
the community during the hiring freeze. Firefighters were called in on their days off to cover
shifts that otherwise would have not been covered.
FAC Member Neeley expressed her gratitude to City employees who worked hard and
sacrificed to tow the line over the last year.
Alderman Morris noted the City could find itself in a similar situation it was in last year to
afford a bump down in the fund balance reserves to create some positive outcomes for the
entire community.
E. ADJOURNMENT
MOTION: Mr. Teresinski moved to adjourn; seconded by FAC Member McGill.
VOTE: Motion carried by a majority voice vote of the FAC members present.
MOTION: Alderman Morris moved adjourn; seconded by Alderman McAdams.
VOTE: Motion carried by a majority voice vote of the Council members present.
Mayor Barnes declared the meeting adjourned at 8:05 p.m.
Respectfully submitted,
_____________________________
Ruth A. Scott, Executive Assistant
Minutes approved by the City Council on August 23, 2021.
Minutes approved by the Finance Advisory Committee on October 19, 2022.
Click here to view the agenda packet for the August 16, 2021, Joint City Council and Finance Advisory
Committee meeting.
Click here to view the video recording of the August 16, 2021, Joint City Council and Finance Advisory
Committee meeting.
Agenda
SPECIAL JOINT MEETING
OF THE
CITY COUNCIL
&
FINANCE ADVISORY COMMITTEE
AUGUST 16, 2021
6:00 P.M. TO 8:00 P.M.
DeKalb Public Library
Yusunas Meeting Room
309 Oak Street
DeKalb, Illinois 60115
A. CALL TO ORDER
1. City Council Committee of the Whole Call to Order and Roll Call.
2. Finance Advisory Committee Call to Order and Roll Call.
B. APPROVAL OF AGENDA
C. PUBLIC PARTICIPATION
D. CONSIDERATIONS
1. Consideration of Key Assumptions for the Fiscal Year 2022 City Budget.
City Manager’s Summary:
Background
As we project FY2021 year-end numbers and attempt to forecast reliable FY2022 City
revenues and expenditures, the City staff welcome the comments and suggestions of
the Council and FAC on the following operational and capital budget modules in
particular:
The General Fund (Fund 100)
American Rescue Plan Fund (Fund 110)
The MFT Fund (Fund 210)
The Capital Projects Fund (Fund 400)
The Capital Equipment Replacement Fund (Fund 420)
Central Area TIF & TIF 3 Funds (Fund 260 & Fund 262)
The notes that follow on the current status and projected budgets for each of these
critical City funds will hopefully inform the conversation.
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A. THE GENERAL FUND
Here’s a quick glance at projected FY2021 revenues and expenditures, along with
projected revenues and expenditures for the next three fiscal years:
FY2020 FY2021 FY2022 FY2023 FY2024
Actual Amended Budget Budget Budget
Starting Fund Balance $10,524,704 $12,286,411 $14,531,654 $16,891,911 $18,932,724
Revenues by Category
Property Taxes $6,178,386 $6,522,456 $6,845,318 $7,184,161 $7,539,777
Sales & Use Taxes $14,504,006 $16,057,608 $16,735,272 $17,195,492 $17,668,368
Gross Receipts Taxes $3,375,859 $3,507,593 $3,627,072 $3,726,816 $3,829,304
Intergovernmental $7,462,155 $5,123,514 $5,836,949 $5,997,465 $6,162,395
Licenses & Permits $997,277 $872,133 $973,847 $1,000,628 $1,028,145
Service Charges $3,119,088 $3,763,507 $4,350,924 $4,470,574 $4,593,515
Fines $422,112 $506,393 $471,815 $484,790 $498,122
Other Income $1,235,589 $1,054,481 $899,075 $923,800 $949,204
Transfers In $1,295,038 $2,290,996 $2,722,785 $2,411,785 $1,593,523
Total Revenues $38,589,510 $39,698,681 $42,463,057 $43,395,511 $43,862,353
Expenditures by Category
Personnel $30,566,531 $30,517,945 $31,554,055 $32,484,580 $33,590,566
Commodities $774,146 $675,226 $728,513 $757,654 $787,960
Contractual Services $3,635,519 $3,949,962 $4,161,559 $4,359,233 $4,566,297
Equipment $19,922 $31,000 $32,240 $33,530 $34,871
Transfers Out $1,831,685 $2,279,305 $3,626,433 $3,719,701 $3,819,103
Total Expenditures $36,827,803 $37,453,438 $40,102,800 $41,354,697 $42,798,796
Rev-Exp $1,761,707 $2,245,243 $2,360,257 $2,040,814 $1,063,557
Prior Period Adjustment $0 $0 $0 $0 $0
Ending Fund Balance $12,286,411 $14,531,654 $16,891,911 $18,932,724 $19,996,281
vs. Reserve Policy 25% 33.36% 38.80% 42.12% 45.78% 46.72%
Amended by ORD 2021-023 (July 12, 2021)
55 FF/Paramedics, 63 sworn officers, EMS Coordinator (Lieutenant level), Fill Vacant Fire Ops
Deputy Chief Position, Video Evidence Tech (PD)
58 FF/Paramedics, 65 Sworn Officers, +2 Additional FT Public Works/Water Maintenance, +1 Code
Compliance Officer, Work Comp Fund Deposit Increased by $200K
Includes ARP Transfer: $1,397,996 (FY21); $1,837,285 (FY22); $1,837,285 (FY23); $1,019,023
(FY24);
Water Fund transfers to General Fund reversed in 2023 (savings to Water Fund of $311,000 in
FY23 and FY24).
Includes G.O. Debt Service of $1,853,291; Pension Shortfall of $1,278,142; Library Debt Service
$495,000
Includes New GEMT Revenue & Ambulance Service Charges
Municipal Share of State Income Tax Trend as of July 2021
Utility, Telecomm, Gas Use Tax Trends as of Q1 and May 2021
Municipal Share of Central Area TIF Sales Tax Surplus Forfeited and Interest Income Very Low
Most residents and businesses encounter our municipal government through one of
the operational departments financed by the General Fund. The following
assumptions should be kept in mind for these early FY2022 projections:
no further COVID-related restrictions on business and employment will occur;
Assistive services, including hearing assistance devices, available upon request.
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August 16, 2021
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the limited tax data from the State to date is reliable for predicting revenue trends
through the end of the year;
the projected year-end General Fund balance for FY2021 will be over $14.5 million.
FY2022 GENERAL FUND REVENUE ASSUMPTIONS
1. Property Tax and Pension Obligations. The property tax is the most stable
source of municipal revenues. What is levied is applied and generally distributed,
assuming property owners pay their taxes. In 2021, the City’s 2020 corporate levy
(excluding the Library) of $6,522,456 will be fully distributed in about 4 allocations from
the County Assessor by year’s end. It is important to note the following, however:
a) None of the City’s property taxes levied in 2020 and paid in this 2021 fiscal year
can be used for general operations. In addition, another $1,374,655 was needed
from other General Fund revenues to fulfill the City’s actuarial obligation for the
Fire and Police pension funds in 2021.
b) This troubling trend will continue in 2022. None of the property taxes that the
Council will levy in December 2021, payable in 2022, will be used for general
operations. In addition, the $1,278,142 shortfall between the City’s levy and the
actuarial obligations for 2022 will need to be drawn from other General Fund
revenues or the General Fund reserve.
City Pension 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%
2020 Actuarial 2020 Levy Difference* % Difference
Obligation Funding
Fire Pension $4,282,230 $3,569,403 $712,827 16.65%
Police Pension $3,614,881 $2,953,053 $661,828 18.31%
Total $7,897,111 $6,522,456 $1,374,655 17.41%
2021 Actuarial 2021 Levy Difference* % Difference
Obligation Funding
Fire Pension $4,415,632 $3,746,088 $669,544 15.16%
Police Pension $3,707,827 $3,099,229 $608,598 16.41%
Total $8,123,459 $6,845,317 $1,278,142 15.73%
In 2014 the City dedicated 10.4% of its General Fund revenues toward Fire and
Police pension contributions. In 2022 about 20.23% of the projected General
Fund expenditures will be dedicated to Fire and Police pension obligations.
Assistive services, including hearing assistance devices, available upon request.
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c) According to DeKalb Township (Ferrara) and Afton Township (Facebook)
assessment officials, the projected 2021 City levy, payable in 2022, will capture
the following new assessed values:
Ferrara Distribution Center: (Parcel #08-35-300-012): $17,503,696 in EAV.
Ferrara Pack Center: (Parcel #08-35-400-009): $5,841,817 in EAV.
Facebook: The Afton Township Assessor has taken a conservative stance on
the development’s 2021 assessed valuation. Although the 500-acre
development has been annexed and zoned “Planned Development –
Industrial” since March of 2020, the Assessor has determined that because no
principal buildings have yet been occupied the “developer’s exemption” still
applies for the land, which has not been farmed since the fall harvest of 2018.
Other: A modest $2,175,797 in additional EAV tied to new construction across
all other residential, commercial, and industrial projects.
Total Estimated 2021 New Construction: $25,521,310.
This Fall, the City-wide EAV will increase by about $23.3 million on the basis of the
Ferrara parcels alone. By the end of the year, local taxing bodies will take action
to abate 50% of the 2022 property taxes to be received from the two Ferrara
parcels.
d) The tentative 2021 DeKalb Township multiplier is 1.0199.
e) The City levy obligation for the Fire and Police pensions is projected to be
$6,845,317 if, as recommended, the Library Bond debt service of $495,000 is paid
from other General Fund sources as in 2021. Based on a City-wide EAV
projection of $648,000,000 in 2021, the estimated 2021 City tax rate of
1.05638, payable in 2022, would be 1.15% lower than the 2020 rate of 1.06868
per $100 EAV. The annual levy discussion will occur toward the end of October
as the City gains further EAV information from the County Assessor.
The foregoing property tax and levy analysis highlights the continuing heavy
burden imposed on DeKalb and other Illinois municipalities by a rising
“ramp” in Fire and Police pension obligations imposed by the state
legislature in 2011. According to the 2011 pension compromise, a closed
amortization period was created that requires all pension funds to be 90% funded
on the arbitrary date of 2040. This approach builds in increasing levels of
contribution beyond annual increases owing to such actuarial factors as the
number of lives covered, the wage levels at retirement, mortality, disability, etc. If
funding ratios are low (the average state-wide is around 55%), the additional funds
needed each year rise significantly the closer we get to 2040. As of January 1,
2022, the funding levels of DeKalb’s Fire and Police Pension Funds are 46.00%
and 63.5%, respectively.
This burden was exacerbated by the COVID-19 impacts and will continue until
action downstate leads to reform of the actuarial cost method. Because of the
COVID crisis, the two state-wide boards which are to handle the larger,
consolidated investment pools to the advantage of local communities have not
completed the consolidations anticipated by the Legislature in 2019. As a result,
no relief in terms of reduced fund management costs has been realized. The City
Assistive services, including hearing assistance devices, available upon request.
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Manager is working collaboratively with the Illinois Municipal League and the
Associated Fire Fighters of Illinois to press the state legislature and the recently-
consolidated state pension boards toward an actuarial cost method that can be
sustained over time.
The attached exhibit titled “FY2022 Projected Revenues” portrays very
preliminary projections of other general revenue categories in FY2022. A
very brief summary of each general revenue category follows. It should be
noted that in certain key categories such as “Sales and Use Taxes” and
“Intergovernmental Revenues” a number of revenue streams collected by the state
Department of Revenue and remitted several months later to municipalities are
only registering revenues through May 2021 at this point.
2. Sales and Use Taxes. Overall, this category should register a 4.22% year-on-year
increase, based on early FY2021 trends.
FY2021 Amended FY2022 Projected $ Difference % Difference
$16,057,608 $16,735,272 $677,664 4.22%
3. Gross Receipts Taxes. There should be measurable increases in the utility tax
receipts from the new developments on Gurler Road.
FY2021 Amended FY2022 Projected $ Difference % Difference
$3,507,593 $3,627,072 $119,479 3.41%
4. Intergovernmental Revenues. The significant increase is attributable to a
projected return to 2019-2020 state income tax levels from the Treasury’s Local
Government Distributive Fund (LGDF). The FY2021 Budget was ultraconservative on
this revenue stream, assuming a sharp decline in 2020 earnings owing to the COVID
pandemic. The Illinois Municipal league is now projecting per capita income of about
$110.
FY2021 Amended FY2022 Projected $ Difference % Difference
$5,123,514 5,836,949 $713,435 13.9%
5. Licenses & Permits. This category will increase as liquor license renewal fees
are recovered with the expiration of the City’s moratorium on payments.
FY2021 Amended FY2022 Projected $ Difference % Difference
$872,133 $973,847 $101,714 11.66%
6. Service Charges. The principal increase is owing to the projected collection of
federal GEMT (Ground Emergency Medical Transportation) monies which close the
gap between what the City bills for ambulance services to Medicaid patients and
actually receives from insurance providers.
FY2021 Amended FY2022 Projected $ Difference % Difference
$3,763,507 $4,350,924 $587,417 15.6%
Assistive services, including hearing assistance devices, available upon request.
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August 16, 2021
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7. Fines. Court fines are projected to trail FY2020 totals in expectation of
redevelopment in the AGN neighborhood.
FY2021 Amended FY2022 Projected $ Difference % Difference
$506,393 $471,815 -$34,578 -6.83%
8. Other Income. Investment interest will continue to be low. In addition, the TIF JRB
intergovernmental agreement spreads the City’s sale tax surplus with all local
taxing bodies in 2022.
FY2021 Amended FY2022 Projected $ Difference % Difference
$1,054,481 $899,075 -155,406 -14.74%
9. Transfers In. The projected increase in the ARP transfer for FY2022 explains the
difference. The City Manager proposes spreading the ARP monies dedicated for
fiscal recovery across the next three fiscal years as shown in the color table on p.
2.
FY2021 Amended FY2022 Projected $ Difference % Difference
$2,290,996 $2,722,785 $431,789 18.85%
The American Recovery Act transfer of $1,397,996 in FY21 reimburses the General
Fund for the 10 full-time and 2 part-time positions frozen in FY2020 to protect the
General Fund from the anticipated economic impact of the COVID pandemic. The
following table spreads these dollars across the three City departments that were
considered “essential” during the crisis:
Employer
2021 Clothing Employer
Positions FICA Medicare Pension Health* Dental*
Wages Allowance Cost
Obligation
Fire
Firefighter/Paramedic $ 66,619 $ 800 $ - $ 978 $ 77,858 $ 19,000 $ 1,047 $ 166,302
Firefighter/Paramedic $ 66,619 $ 800 $ - $ 978 $ 77,858 $ 19,000 $ 1,047 $ 166,302
Firefighter/Paramedic $ 66,619 $ 800 $ - $ 978 $ 77,858 $ 19,000 $ 1,047 $ 166,302
Police
Patrol Officer $ 73,382 $ 800 $ - $ 1,076 $ 59,260 $ 19,000 $ 1,047 $ 154,565
Patrol Officer $ 73,382 $ 800 $ - $ 1,076 $ 59,260 $ 19,000 $ 1,047 $ 154,565
Patrol Officer $ 73,382 $ 800 $ - $ 1,076 $ 59,260 $ 19,000 $ 1,047 $ 154,565
Telecommunicator (PT) $ 45,020 $ - $ 2,791 $ 653 $ 6,546 $ - $ - $ 55,010
Comm Serv Officer (PT) $ 20,919 $ - $ 1,297 $ 303 $ - $ - $ - $ 22,519
Public Works
Water Maintenance $ 49,447 $ 600 $ 3,058 $ 715 $ 7,172 $ 19,000 $ 1,047 $ 81,039
Street Maintenance $ 49,447 $ 600 $ 3,058 $ 715 $ 7,172 $ 19,000 $ 1,047 $ 81,039
Water Crew Leader $ 63,110 $ 600 $ 3,950 $ 924 $ 9,263 $ 19,000 $ 1,047 $ 97,894
Street Crew Leader $ 63,110 $ 600 $ 3,950 $ 924 $ 9,263 $ 19,000 $ 1,047 $ 97,894
$1,397,996
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Page 7 of 19
General Fund Revenues by Category 2019 - 2023
20
18
$ in Millions
16
14
12
10
8
6
4
2
0
2019 Actual 2020 Actual 2021 Amended 2022 Budget 2023 Budget
FY2022 GENERAL FUND EXPENDITURE ASSUMPTIONS
1. Personnel.
A discussion about City staffing in 2022 needs to begin with U.S. Treasury funds
allocated in 2021.
The American Rescue Plan (ARP) of March 11, 2021 allocated $10,422,954 to the
City of DeKalb. Of that amount, $5,211,477 was received on May 19 and the balance
of $5,211,477 will be received in the spring of 2022.
ARP recognized that the response to the COVID-19 public health emergency evolved
in 2020 and would continue to evolve in 2021 and beyond. This was a prescient
assumption: even the framers of ARP did not anticipate today’s experience with the
Delta Variant and the lingering potential for economic dislocation. In anticipation of
continuing demands on first responders, the US Treasury’s rules allow for the
reimbursement of payroll and covered benefits for public safety employees under
certain circumstances.
DeKalb is classified under ARP as a “metropolitan city.” Such cities may
calculate reimbursable revenue losses in 2021 and 2022 on an “entity-wide”
basis. A specific averaging formula is identified in the Plan that allows for a
“growth adjustment” that posits what might have been the City’s 2020 general
revenue growth if the pandemic had not occurred (4.1% times the base year 2019
general revenue), then subtracts the actual 2020 general revenues from that growth
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adjustment. In DeKalb’s case, the assumption is that the 2020 General Fund revenues
might have been $39,110,121 rather than the actual $34,855,817 (subtracting $1.816
million in Cares Act Funding, plus $605,604 in “Transfers In,” refunds, sales of assets,
and other revenues excluded by ARP from the overall revenue calculation). The
resulting “growth adjustment” for DeKalb is $4,254,304.
Additionally, looking prospectively, ARP allows for the reimbursement of all
public safety costs incurred after March 3, 2021, through May 31, 2021, which in
DeKalb’s case total $1,837,285:
a) Fire Department $1,526,290
b) Police Department
Sworn Officers $15,845
Telecommunicators $244,566
c) Public Works Dept $50,584
Total: $1,837,285
The total of all reimbursable costs for the City of DeKalb through December 31,
2024, is $6,091,589. All expenditures must be incurred before December 31, 2024.
In addition to the City’s reimbursable costs, the City of DeKalb’s overall
allocation can be spent on the following:
Investments in Water, Sewer, Roads, and Broadband. These investments should
promote equitable outcomes to historically underserved, marginalized, or adversely
affected groups. This would include the acquisition and demolition of Hunter Hillcrest,
along with the compassionate relocation of tenants. Such assistance would meet the
“evidence-based” criteria of ARP, which include the following:
The program is offered in a physical location within a Qualified Census Tract (QCT);
The primary intended beneficiaries earn less than 60 percent of the median income
for the relevant jurisdiction. The forthcoming Census information will help identify
such criteria.
Over 25% of the intended beneficiaries are below the federal poverty line as defined
by the US Department of Housing and Urban Development (HUD).
The proposed programming addresses health disparities, education disparities, and
builds stronger neighborhoods.
On July 12, the Council provisionally allocated $1.5 million for these purposes.
Another emphasis of the American Recovery Plan is projects to replace lead service
lines. On July 12, the Council provisionally transferred $1,000,000 to the Water Fund
to help homeowners replace lead service lines.
Another potential target is the repair of streets and sidewalks in qualified census tracts.
Finally, there is more to do in assuring broadband access for underserved
neighborhoods. The AGN project is nearly complete, but several other qualified
census tracts on the south side of DeKalb might be considered for broadband
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upgrades not provided by private cable companies that tie system improvements to
the ratepayers’ ability to pay.
Finally, ARP allows for the Transfer of Qualified Funds to Non-Entitlement Units
(NEUs). The ARP also allows metropolitan cities to allocate funds to “Non-Entitlement
Units” (NEUs) including smaller, single-purpose taxing bodies which experienced
significant revenue losses owing to the COVID-19 pandemic and were not eligible for
direct 2020 Cares Act reimbursements. The Kishwaukee Water Reclamation District
(KWRD) has documented losses associated with a particular impact, namely, the loss
of revenues associated with services to NIU in 2020. The losses are portrayed in the
following chart:
at $3.36/unit
NIU--Units Billed 2019 $678,599
NIU--Units Billed 2020 $436,955
Difference from 2019 $241,644
% Difference from 2019 -35.61%
On July 26, the Council allocated $241,644 to KWRD.
So, where are we with ARP allocations for personnel purposes? As noted in the
foregoing explanation of FY2022 revenues, the City Manager has proposed the
transfer of $1,397,996 from the City’s ARP Fund (the New Fund 110) to the General
Fund in 2021 to use that portion of the “growth adjustment” that correlates to the
freezing of twelve (12) City positions in 2020, which rocketed overtime especially in
the Fire and Police departments and has significantly impacted overtime so far in
FY2022. Additionally, we have seen early retirements and transfers from DeKalb’s
public safety departments to other cities because of “burn out” and we need to fill the
ranks. The ARP transfer will permit the City to meet the following staffing goals:
2021
Fire: 55 FF/Paramedics, EMS Coordinator (Lieutenant); fill frozen Deputy Chief
position (Ops).
Police: 63 sworn officers (Includes Chief, commanders, detectives and patrol),
and a video evidence technician to tend to the proper recording and storage of
hours of body cam footage that are accumulating.
2022
Fire: 58 FF/Paramedics (this will substantially diminish OT).
Police: 65 sworn officers
Public Works: 2 additional maintenance workers
1 additional building inspector (funded from non-ARP sources)
N.B.: The layered process of hiring individual police officers and
firefighter/paramedics extends over a number of months because of deeper
background investigations and testing. Further, candidates are pulled from lists
vetted by the Board of Fire and Police Commissioners, and the building of these
lists involves many hours of review by the Board. The lists of potential employees
are exhausted from time to time as persons on the list are hired by the City or take
other jobs. The building of new lists of qualified firefighters or police officers then
takes additional time. To fill the vacancies in 2021 and to attain the 2022 staffing
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objectives, the hiring processes guided by the Board and the City’s HR department
will need to be unrelenting for many more months ahead. As the Council and FAC
review the personnel numbers on p. 2, it should be kept in mind that the 2021 and
2022 totals are provisional and could slightly move up or down depending on the
timing of the actual letters of hire.
FY2021 Amended FY2022 Projected $ Difference % Difference
$30,517,945 $31,554,055 $1,036,110 3.4%
2. Commodities. This category shows a 8.29% increase from the 2021 amended
budget. The steep price increases for most supplies in 2021 is expected to level,
but incremental increases across most categories are expected.
FY2021 Amended FY2022 Projected $ Difference % Difference
$672,726 $728,513 $55,787 8.29%
3. Contractual Services. This category shows a 5.29% increase from the 2021
amended budget. As with Commodities, vendor pricing has increased significantly
in 2021 and most FY2022 categories are expected to increase between 4% and
5%.
FY2021 Amended FY2022 Projected $ Difference % Difference
$3,952,462 $4,161,559 $209,097 5.29%
4. Equipment. This line item covers incidental small equipment purchases. The City
Manager has earmarked a 4.00% increase to be conservative.
FY2021 Amended FY2022 Projected $ Difference % Difference
$31,000 $32,240 $1,240 4%
5. Transfers Out. The City’s G.O debt service returns to the operating budget after
the “scoop and toss” of the 2021 debt service. Slightly lower allocations to the
Police and Fire pension funds do not offset this impact.
FY2021 Amended FY2022 Projected $ Difference % Difference
$2,279,305 $3,626,433 $1,347,128 59%
Overall, projected FY2022 General Fund revenues will exceed projected General
Fund expenditures by $2,360,256 as federal funds restore operating shortfalls.
The projected General Fund reserve on December 31, 2022, is $16,891,911 or
42.12% of the General Fund expenditures for FY22.
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B. FY2022 AMERICAN RESCUE PLAN FUNDING
The table that follows summarizes the suggested allocation of ARP funds that figures
prominently in FY2022 and beyond:
2021 Amended 2021 Projected 2022 Budget 2023 Budget 2024 Budget
Starting Fund Balance $0 $0 $781,837 $2,871,029 $1,048,744
Revenues
Federal Grants $5,211,477 $5,211,477 $5,211,477 $0 $0
Federal Pass-Through Grants $0 $0 $0 $0 $0
State Grants $0 $0 $0 $0 $0
Investment Interest $30,000 $15,000 $20,000 $20,000 $20,000
Miscellaneous Revenue $0 $0 $0 $0 $0
Transfer from General Fund $0 $0 $0 $0 $0
Total Revenues $5,241,477 $5,226,477 $5,231,477 $20,000 $20,000
Expenditures
Wages--Full-Time $0 $0 $0 $0 $0
Wages--Part-Time $0 $0 $0 $0 $0
Wages--Overtime $0 $0 $0 $0 $0
Longevity Pay $0 $0 $0 $0 $0
Employer Portion--FICA $0 $0 $0 $0 $0
Employer Portion--IMRF $0 $0 $0 $0 $0
Employee Health Insurance $0 $0 $0 $0 $0
Financial Services (Audit) $5,000 $5,000 $5,000 $5,000 $5,000
Human & Social Services $0 $0 $0 $0 $0
Land Acquisition Services $1,000,000 $1,200,000 $0 $0 $0
Developmental Services $500,000 $200,000 $300,000 $0 $0
Demolition Services $0 $400,000 $0 $0 $0
Contracted Services $241,644 $241,644 $0 $0 $0
Other Capital Improvements $0 $0
Trsf to General Fund $2,000,000 $1,397,996 $1,837,285 $1,837,285 $1,019,023
Trsf to Water Capital Fund $1,000,000 $1,000,000 $1,000,000 $0 $0
Total Expenditures $4,746,644 $4,444,640 $3,142,285 $1,842,285 $1,024,023
Net of Revenue- $494,833 $781,837 $2,089,192 ($1,822,285) ($1,004,023)
Expenditures
Ending Balance $494,833 $781,837 $2,871,029 $1,048,744 $44,721
Filling COVID-related Frozen Positions/Revenue Losses in FY2020
KWRD
AGN
Lead Service Replacement
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C. FY2022 CAPITAL FUNDS
a) Fund 210 Motor Fuel Tax. The State of Illinois shares a monthly per capita
allocation with municipalities based on gasoline purchases. The number of
gallons pumped rather than the price of gas is the determinant. These funds
are principally restricted to street and bridge maintenance and related costs
but, interestingly, can be used for salt purchases and also to defray the City’s
electrical charges for street lighting. In recent years the City has been
stockpiling its MFT allotment for the Lucinda Avenue and North First Street
bridge repair projects but has also dedicated a portion toward the design of the
Twombly Road improvements in 2021.
On a positive note, the City received $967,250 in MFT-based Rebuild Illinois
Bond monies this year to help defray the costs of the two bridge replacements
in 2022. In FY2022, the City will receive an additional allocation of $967,250
from the Rebuild Illinois capital program. After FY 2022, the smaller fund
balance in addition to the annual MFT allotment for street maintenance will
bring Fund 210 back into the historic range of annual revenues and
expenditures.
FY2019 FY2020 FY2021 FY2021 FY2021 FY2022
Actual Actual Budget Amended Projected Budget
Starting Fund
$2,797,303 $3,000,334 $4,085,227 $4,085,227 $4,085,227 $3,614,851
Balance
Revenues
Bond Revenue $0 $967,250 $967,250 $967,250 $967,250 $967,250
Federal Grants $0 $0 $0 $0 $0 $0
Federal Pass-
$0 $0 $0 $0 $0 $0
Through Grants
State Grants $0 $0 $0 $0 $0 $0
MFT Allotment $1,454,409 $1,699,173 $1,375,000 $1,489,536 $1,587,374 $1,631,027
Investment Interest $69,131 $20,887 $50,000 $50,000 $5,000 $10,000
Refunds/
$0 $0 $0 $0 $60,000 $0
Reimbursements
Transfer from
$0 $0 $0 $0 $0 $0
General Fund
Total Revenues $1,523,540 $2,687,310 $2,392,250 $2,506,786 $2,619,624 $2,608,277
Expenditures
Supplies -
$0 $0 $100,000 $100,000 $100,000 $100,000
Parts/Streets
Bonded Capital
$0 $0 $0 $0 $0 $1,500,000
Projects
Ice/Snow Control
$99,944 $124,946 $250,000 $250,000 $165,000 $165,000
Supplies
Maintenance -
$0 $0 $0 $0 $0 $0
Sidewalks
Arch/Eng Services $50,252 $453,150 $725,000 $725,000 $725,000 $650,000
Land Acquisition
$3,199 $0 $0 $0 $0 $0
Services
Electric Services $286,079 $334,506 $400,000 $400,000 $300,000 $300,000
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Legal Expenses &
$0 $0 $0 $0 $0 $0
Notices
Land Acquisition
$0 $244,467 $0 $0 $0 $0
Services
Street
$0 $246,240 $1,910,000 $1,910,000 $0 $500,000
Improvements
Street Maintenance $0 $0 $1,200,000 $1,200,000 $1,200,000 $250,000
Street Construction $706,123 $199,108 $0 $0 $600,000 $0
Other Capital
$174,912 $0 $0 $0 $0 $0
Improvements
Transfer to General
$0 $0 $0 $0 $0 $0
Fund
Total
$1,320,509 $1,602,417 $4,585,000 $4,585,000 $3,090,000 $3,465,000
Expenditures
Net of Revenues/
$203,031 $1,084,893 ($2,192,750) ($2,078,214) ($470,376) ($856,723)
Expenditures
Ending Balance $3,000,334 $4,085,227 $1,892,477 $2,007,013 $3,614,851 $2,758,128
MFT Reporting Trend Based on Jan 21 - May 21 Data
$1,000,000 Bridge Construction (N 1st & Lucinda); $500,000 Supplemental Street Reconstruction
Local Share Contribution carried over to FY2022
Local Share Contribution for Twombly Rd 2021 Construction
b) Fund 400 Capital Projects Fund. The principal source of revenue for this fund
is a local tax on motor fuel purchases. Lesser sources include sales of surplus
property and transfers from the General Fund.
Two years ago, the Council and FAC wrestled with the growing gap between
the cost of upgrading streets and the available funds for street repair. With 130
centerline miles of roads to maintain (75% or 97.5 miles are residential), the
average street maintenance budget to maintain a pavement condition index
(PCI) at a rating above 70 on all City roads would require about $3.7 million
per year. The annual State MFT allotment which increased by 19 cents per
gallon in 2019 added about $500,000 to the City’s annual street maintenance
program. In November 2019, the Council increased the local fuel tax rate by 4
cents per gallon. The local fuel tax rate of 9.5 cents per gallon is now split
between road improvements (7 cents); Airport expenses (1.5 cents); and fleet
maintenance (1 cent).
The annual war chest for street maintenance is now about $2.2 million in
combined Fund 210 (state MFT) and Fund 400 (local MFT) monies. The
annual allocation includes street-related costs such as sidewalk repairs, alley
improvements, and construction engineering. This is a significant increase
from the roughly $750,000 spent in FY2017.
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FY2019 FY2020 FY2021 FY2021 FY2021 FY2022
Actual Actual Budget Amended Projected Budget
Starting Fund
Balance $ 443,991 $524,063 $414,455 $414,455 $414,455 $799,955
Revenues
Home Rule Motor
$714,856 $861,826 $800,000 $800,000 $822,000
Fuel Tax $860,000
State Grants $0 $0 $2,940,000 $2,940,000 $2,940,000 $0
Traffic Impact Fees $0 $0 $0 $0 $0 $0
Rental Income $0 $0 $0 $0 $0 $0
Investment Interest $0 $0 $0 $0 $0 $0
Misc. Revenue $0 $0 $250,000 $250,000 $395,000 $1,000,000
Refunds/
$0 $0 $60,000 $60,000 $60,000
Reimbursements $0
Sales of Surplus
$136,632 $604,387 $130,000 $130,000 $0
Property $50,000
Transfer from
$36,756 $0 $0 $0 $0
General Fund $0
Total Revenues $888,244 $1,466,213 $4,180,000 $4,180,000 $4,217,000 $1,910,000
Expenditures
Supplies/Parts $0 $0 $47,000 $47,000 $47,000 $47,000
Maintenance-
$0 $0 $50,000 $50,000 $50,000 $55,000
Buildings
Maintenance-
$0 $0 $0 $0 $50,000
Sidewalks $50,000
Arch/Eng Services $122,423 $114,348 $200,000 $200,000 $200,000 $50,000
Developmental
$0 $0 $0 $0 $22,500
Services $0
Legal Expenses &
$0 $0 $0 $0 $0
Notices $0
Land Acquisition
$0 $375,000 $0 $0 $60,000
Services $0
Buildings &
$0 $179,020 $20,000 $20,000 $50,000
Improvements $55,000
Street Improvements $0 $0 $2,265,000 $2,265,000 $2,450,000 $1,000,000
Street Maintenance $685,749 $718,617 $580,000 $580,000 $0 $700,000
Alley Improvements $0 $75,000 $25,000 $25,000 $25,000 $150,000
Technology
$0 $113,836 $317,000 $317,000 $317,000 $200,000
Equipment
Storm Sewer
$0 $0 $100,000 $100,000 $100,000
Improvements $25,000
Other Capital
$0 $0 $20,000 $20,000 $460,000
Improvements $30,000
Transfer to Capital
$0 $0 $0 $0 $0
Equip. Fund $0
Total Expenditures $808,172 $1,575,821 $3,624,000 $3,624,000 $3,831,500 $2,362,000
Net of Revenues/
$80,072 ($109,608) $556,000 $556,000 $385,500 ($452,000)
Expenditures
Ending Balance $524,063 $414,455 $970,455 $970,455 $799,955 $347,955
ICMA Expenditure
$160,000 Fairview Bike Path; $300,000 Dresser Rd Bike Path; $30,000 Contingencies
Revenue sourced from Park 88 and DeKalb County development agreements ($395,000). FY2022:
$1,000,000.
$1,700,000 Rt. 23/Gurler Road Construction; $750,000 Afton Rd Construction
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c) Fund 420 Capital Equipment Replacement Fund. As noted above, in
November 2019 the City Council dedicated one cent of its 4-cent increase in
the local fuel tax to fleet maintenance and thereby added about $175,000 to
the annual revenues for such purposes. Other recurring fund sources include
lease payments from telecommunication companies with antennae on our
water towers (“Rental Income”); E911 Board payments (“Reimbursements”);
and a DeKalb County emergency services payment (“Miscellaneous
Revenue”).
On May 26, 2020, the City Council reviewed and approved a staff proposal to
enter an open-ended equity lease program with Enterprise Fleet Management
that included 13 vehicles—10 of which were funded by Fund 420 and 3 were
funded by the Water Capital Fund (Fund 620). All vehicles were priced on a
five-year lease term, with the option of rolling any remaining equity into the
lease of a follow-on vehicle. The total not-to-exceed leasing cost for the 13
vehicles over the full five-year term is $665,000.
On June 8, 2020, the City entered a more specialized master lease for two
unique vehicles: a 2019 Ford Type III ambulance and a 2021 International 5-
yard tandem dump truck. Enterprise focuses its program on smaller vehicles,
so after reviewing the market the staff recommended and the Council approved
a contract with Tax-Exempt Leasing Corporation for a financed amount of
$296,710 for the two vehicles at an interest rate of 2.6%. The outright purchase
had been budgeted at $300,000 but the annual finance payment of $63,475
freed up additional monies for ongoing vehicle replacement.
For FY2022, the City Manager proposes a mix of leases and outright
purchases to maintain both a sound operating balance and to limit the debt
exposure from capital leasing. The projected spread of revenues and
expenditures for Fund 420 is shown in the following tables:
FY2019 FY2020 FY2021 FY2021 FY2021 FY2022
Actual Actual Budget Amended Projected Budget
Starting Fund Balance $338,799 $697,371 $739,596 $739,596 $739,596 $838,994
Revenues
Home Rule Motor Fuel Tax $0 $122,267 $175,000 $175,000 $175,000 $179,813
State Grants $0 $0 $0 $0 $0
Rental Income $217,155 $226,224 $220,000 $220,000 $220,000 $220,000
Investment Interest $489 $391 $500 $500 $300 $400
Misc. Revenue $40,000 $40,000 $40,000 $40,000 $40,000 $40,000
Refunds/Reimbursements $166,714 $202,689 $210,000 $210,000 $210,000 $210,000
Donation/Contribution $0 $0 $0 $0 $0 $0
Sales of Surplus Property $15,840 $83,924 $0 $0 $84,725 $10,000
Capital Lease Issuance $0 $414,386 $0 $0 $305,428 $275,000
Transfer from General Fund $75,000 $1,700 $0 $25,000 $25,000 $0
Total Revenues $515,198 $1,091,581 $645,500 $670,500 $1,060,453 $935,213
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Expenditures
Loan Principal $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Lease Purchase Contracts $0 $0 $205,144 $129,753 $129,753 $61,569
Capital Lease Principal $0 $29,905 $0 $116,780 $116,780 $183,190
Capital Lease Interest $0 $2,493 $0 $22,119 $22,119 $35,238
Maintenance--Buildings $1,406 $0 $0 $0 $0 $0
Maintenance--Equipment $0 $21,975 $20,000 $20,000 $20,000 $20,000
Maintenance--Vehicles $0 $0 $20,000 $20,000 $20,000 $20,000
Technology Equipment $84,929 $0 $104,000 $104,000 $104,000 $110,000
Vehicles $53,624 $478,316 $141,500 $226,308 $531,736 $425,000
Transfer to General Fund $0 $500,000 $0 $0 $0 $0
Total Expenditures $156,626 $1,049,356 $507,311 $655,627 $961,055 $871,665
Net of
$358,572 $42,225 $138,189 $14,873 $99,398 $63,548
Revenues/Expenditures
Ending Balance $697,371 $739,596 $877,785 $754,469 $838,994 $902,542
Capital Asset Issuances required for Vehicles according to GAAP.
Represents 5 additional leases (4 Police Explorers; 1 Full Size Street Truck) & $150,000 in outright purchases
Quote not yet finalized, data does represent an inflationary adjustment.
If approved by the City Council, the proposed FY2022 vehicle replacement
program would have the following impact on the City’s overall debt:
Governmental Activities Business Type Activities
IEPA Capital Per
Year GO Bonds Capital Leases GO Bonds Loans Leases Total Capita Population
2017 $22,235,654 $166,665 $1,370,000 $1,849,536 $- $25,621,855 $582 44,030
2018 $19,872,398 $149,998 $1,030,000 $1,389,155 $- $22,441,551 $510 44,030
2019 $17,467,275 $133,331 $ 685,000 $1,600,094 $- $19,885,700 $452 44,030
2020 $15,290,000 $501,144 $ 345,000 $1,086,578 $222,685 $17,445,407 $396 44,030
2021 $14,145,000 $410,823 $- $ 802,846 $180,556 $15,539,225 $353 44,030
2022 $12,610,000 $496,159 $- $ 757,841 $137,101 $14,001,101 $318 44,030
2023 $11,015,000 $508,402 $- $ 711,938 $133,074 $12,368,414 $281 44,030
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D. DeKalb’s TIF Program
a) Central Area TIF. The Central Area TIF District (TIF #1) will be terminated on
December 31, 2021.
FY2019 FY2020 FY2021 FY2021 FY2021 FY2022
Actual Actual Budget Amended Projected Budget
Starting Fund
$4,373,311 $3,178,750 $781,274 $781,274 $781,274 $0
Balance
Revenues
Property Tax - TIF $7,031,778 $6,611,022 $7,050,000 $7,050,000 $6,611,022 $0
Investment Interest $163,231 $28,951 $50,000 $50,000 $5,000 $0
Gain/Loss on
$143,465 $0 $0 $0 $0 $0
Investments
Refunds/
$43,387 $0 $0 $0 $0 $0
Reimbursements
Total Revenues $7,381,861 $6,639,973 $7,100,000 $7,100,000 $6,616,022 $0
Expenditures
Financial Services $85,043 $85,247 $10,000 $10,000 $16,000 $0
Achitect/Engineering
$19,735 $0 $0 $0 $0
Services
Developmental
$0 $0 $0 $0 $0
Services
Contracted Services $5,592 $0 $0 $5,760 $0
Freight & Postage $0 $0 $0 $0 $0
Legal Expenses &
$3,263 $20,000 $0 $0 $0
Notices
Training/Travel $0 $0 $0 $0 $0
TIF Surplus
$3,515,888 $3,305,511 $3,525,000 $3,525,000 $3,305,511 $0
Distribution
Priv Prop
$3,380,053 $20,055 $0 $0 $0
Rehab/Redevelop
Buildings &
$0 $70,119 $300,000 $300,000 $300,000 $0
Improvements
Other Capital
$5,000 $98,871 $470,000 $470,000 $500,000 $0
Improvements
Transfer to
$46,666 $5,000 $0 $0 $0 $0
General Fund
Transfer to
$0 $4,275,000 $2,450,000 $2,450,000 $2,079,225 $0
TIF #3 Fund
Transfer to TIF
$1,192,400 $1,195,000 $1,190,800 $1,190,800 $1,190,800 $0
Debt Service Fund
Transfer to
$0 $37,646 $0 $0 $0 $0
Airport Fund
Total Expenditures $8,253,640 $9,112,449 $7,945,800 $7,945,800 $7,397,296 $0
Net of Revenue-
-$871,779 -$2,472,476 -$845,800 -$845,800 -$781,274 $0
Expenditures
Year End
-$322,782 $75,000 $0 $0 $0 $0
Adjustments
Ending Fund
$3,178,750 $781,274 -$64,526 -$64,526 $0 $0
Balance
Accounts for projected closeout of Central Area TIF.
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Special Joint Meeting
City Council Committee of the Whole & Finance Advisory Committee
August 16, 2021
Page 18 of 19
The actual amount of the residual funds transferred or “ported” to TIF #3 at the
time of the closeout of TIF #1 will depend on the actual TIF #1 spending by fiscal
year end.
b) TIF 3.
FY2019 FY2020 FY2021 FY2021 FY2021 FY2022
Actual Actual Budget Amended Projected Budget
Starting Fund Balance $0 -$500,000 $1,271,336 $1,271,336 $1,271,336 $1,875,234
Revenues
Property Tax - TIF $0 $300,640 $450,000 $450,000 $450,000 $450,000
Investment Interest $0 $201 $250 $250 $500 $500
Transfer from TIF #1 $0 $4,275,000 $2,450,000 $2,450,000 $2,079,225 $0
Total Revenues $0 $4,575,841 $2,900,250 $2,900,250 $2,529,725 $450,500
Expenditures
Financial Services $0 $703 $1,500 $1,500 $1,500 $1,500
Legal Expenses
$0 $0 $6,150 $6,150 $0 $0
& Notices
TIF Surplus Distribution $0 $0 $0 $0 $0 $135,000
Priv Prop
$500,000 $2,803,802 $1,845,000 $1,845,000 $1,845,000 $1,550,000
Rehab/Redevelop
Other Capital
$250,000
Improvements $0 $0 $1,165,000 $1,165,000 $79,327
Total Expenditures $500,000 $2,804,505 $3,017,650 $3,017,650 $1,925,827 $1,936,500
Net of Revenue-
-$500,000 $1,771,336 -$117,400 -$117,400 $603,898 -$1,486,000
Expenditures
Ending Fund Balance -$500,000 $1,271,336 $1,153,936 $1,153,936 $1,875,234 $389,234
Accounts for projected closeout of Central Area TIF.
TIF 3 Surplus Obligation of 30% (according to January 2021 IGA)..
Summary
The foregoing analysis surveys the City’s projected fiscal landscape for the next year and a half
and beyond. This is purposeful.
With the restoration of a balanced budget in FY2021 and the digestion of some of the ARP
funding, the most severe threat to the General Fund reserve will not be the coronavirus, but an
unresolved state pension crisis. The City of DeKalb can simply not endure the exponential
increase in pension obligations and the increasing drain it imposes on general operating
revenues. Disguised somewhat by the more visible and dramatic COVID-19 fiscal responses
provided by the Federal Government, the pension crisis is the greatest menace to our reserve
capacity in the next five years.
Assistive services, including hearing assistance devices, available upon request.
Special Joint Meeting
City Council Committee of the Whole & Finance Advisory Committee
August 16, 2021
Page 19 of 19
FY2022 Budget Schedule
On July 26, the City Council approved the following FY2022 Budget schedule:
Thursday, August 12. Publication of an Agenda for a Joint Meeting between the Council and
the Finance Advisory Committee on August 16.
Monday, August 16. Joint Meeting of the City Council and Finance Advisory Committee, 6:00
p.m. to 8:30 p.m. This joint meeting will review assumptions presented by the City Manager
regarding revenue trends and possible expenditures in the following budgets:
General Fund
Pension Obligations
Motor Fuel Tax Fund (Fund 210)
American Rescue Plan (Fund 110)
Capital Projects Fund (Fund 400)
TIF #1 and TIF #3 Funds (Funds 260 and 262)
August 30 – October 14. Intense Department-level budget discussions around spending
targets based on general goals established on August 16.
Thursday, October 14. Publication of an Agenda for an FAC Meeting on October 18.
Monday, October 18. Finance Advisory Board Meeting to review proposed, detailed FY2022
Budget highlights, including annual levy assumptions, 6:00 p.m. to 8:30 p.m.
Monday, October 25. Council consideration of property tax levy options.
Tuesday, November 8. Presentation of a Council resolution establishing a Truth in Taxation
Hearing for November 22.
Monday, November 15 & Wednesday, November 17. Back-to-back Special Council meetings
in joint session with the Finance Advisory Committee to go over the Proposed FY2022 Budget
document. The General Fund departments will be the focus on November 15, and the Capital,
Enterprise, and Special Funds will be the focus on November 17.
Monday, November 22. Truth in Taxation Hearing and FY2022 Budget Hearing. First Reading
on Proposed FY2022 City Budget.
Monday, December 13. Second Reading on Proposed FY2022 City Budget.
December 31, 2021. Last day to file the approved FY2022 Annual Budget and Property Tax
Levy with the DeKalb County Clerk.
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